Mcauslan Brewing Co. Case

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McAuslan Brewing Co.

Identification of Major Problems/Issues

1) PROBLEM: There is no separate and formal human resource department. Each department within the company is independently responsible for hiring and training newcomers. This is a major problem because it is very probable that unqualified new employees with no experience and the skill necessary to do the job are being hired. Also, the company needs a separate department which specializes in finding and training employees. SOLUTION: The company could outsource the department by finding and teaming up with another corporation/company which will concentrate on all the aspects of HR. Or, the company could simply create a new HR department by hiring a skilled manager, so that in the future the right personnel would be hired and trained correctly.

2) PROBLEM: The sales and administrative expenses are too high for the microbrewery industry standards. It is very clear, by looking at the income statement that the sales/promotion and administrative expenses are considerably rising each year from 1991 to 1994. This is due to the fact that McAuslan has 3 salespeople and 1 telemarketer, who are poorly trained, since Peter’s time is very limited. SOLUTION: One obvious solution is to fire one or a couple of salesperson, because they are not very useful for the company since they aren’t trained and this will lower the admin./sales expenses.

3) PROBLEM: The company markets its product in Vermont, New York and New Jersey areas. However this isn’t very successful as the export sales is only 1% of the total sales. Peter’s goal is to increase this number to 10% in the future. SOLUTION: First of all, they should do a market research to try to find out which part of the country (Canada and/or USA) would be appropriate or successful to market its beers. It is possible that there is too much competition in Vermont and NY/NJ areas or there is a very low demand.

4) PROBLEM: The company has been a family-oriented...
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