Identify the key factors responsible for the success of Gordon Biersch to date. What concerns, if any, do you have as the company looks ahead?
Key Factors responsible for the success:
High quality, moderately priced dining and professional service and German style onsite breweries -
Smooth partnership between Gordon and Biersch
Management style of decentralization
The concern is that the growth ambitions might impact the culture and quality of service which is been some of the competitive advantages for Gordon Biersch.
Evaluate Gordon Biersch’s organizational alternatives to realize its growth ambitions. Recommend a course of action.
The options available to Gordon Biersch are –
Maintain status quo or (2) Hire complete top notch management team or (3) Hire a part of management team The recommendation is to follow the option 3. Gordon and Biersch should fill up the positions which will take off some of their load. This will also fill some of the holes of the current management team and allow Gordon and Biersch to focus on the expansion plans. Once the finances for the growth are confirmed they can accordingly hire the complete management team.
Looking at the financing alternatives facing Biersch and their growth plans, which investment alternative appears to be a best fit for the company over the long-term?
Looking at the financing alternatives and growth ambitions, Fertitta’s investment offer appears to be best fit. Fertitta had an experience in restaurant and leisure / entertainment industry, and they were willing to invest immediately. They knew how to develop corporate infrastructure to enable company for national expansion. Also, if needed they had the ability to invest more.
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