proposal operations management
Bryan Cooper Mark Schuehler
Dr. Kraft
10/10/13
Operations Management
Proposal
We want to open our proposal by identifying the brand we chose and why we chose it. It is important that the person has a thorough understanding of the product and its background before describing the issue the company is facing. In our case, we chose Makers Mark and the supply shortage it is going to be facing in the next couple years. After the introduction, we want to get into the history of the company. It is important to go back to the start and see who originally made the recipe, and where it was started from. Makers Mark did not begin at Beam Inc., but was rather bought from a family who was making the whiskey themselves. From here we will go into the documentation of events.
Makers Mark is a popular bourbon whiskey that is growing rapidly in the United States and worldwide. For years, Makers Mark has been growing at an average pace for Beam Inc. Over the past seven years though, sales have more than doubled causing a supply shortage of the popular whiskey. Makers Mark needs to age for six years, so there is no way to increase production. The company has expanded the amount of whiskey its making, but that won’t help today’s supply shortages. Now, that the problem is identified we can analyze some solutions.
There were several different solutions the company could undertake to meet the demand. We want to evaluate all the options Makers Mark had, and why they chose the option they did. They didn’t want to raise prices because they felt it was unfair to their loyal customers. The next best thing to do was add more water to their whiskey, which would bring down the alcohol content.
The conclusion will describe how the solution worked out for Makers Mark and where the company stands on the events today. The change in alcohol content caused backlash from their customers, so Makers mark changed their mind and decided that some stores were just going to have empty shelves sometimes.
Dr. Kraft
10/10/13
Operations Management
Proposal
We want to open our proposal by identifying the brand we chose and why we chose it. It is important that the person has a thorough understanding of the product and its background before describing the issue the company is facing. In our case, we chose Makers Mark and the supply shortage it is going to be facing in the next couple years. After the introduction, we want to get into the history of the company. It is important to go back to the start and see who originally made the recipe, and where it was started from. Makers Mark did not begin at Beam Inc., but was rather bought from a family who was making the whiskey themselves. From here we will go into the documentation of events.
Makers Mark is a popular bourbon whiskey that is growing rapidly in the United States and worldwide. For years, Makers Mark has been growing at an average pace for Beam Inc. Over the past seven years though, sales have more than doubled causing a supply shortage of the popular whiskey. Makers Mark needs to age for six years, so there is no way to increase production. The company has expanded the amount of whiskey its making, but that won’t help today’s supply shortages. Now, that the problem is identified we can analyze some solutions.
There were several different solutions the company could undertake to meet the demand. We want to evaluate all the options Makers Mark had, and why they chose the option they did. They didn’t want to raise prices because they felt it was unfair to their loyal customers. The next best thing to do was add more water to their whiskey, which would bring down the alcohol content.
The conclusion will describe how the solution worked out for Makers Mark and where the company stands on the events today. The change in alcohol content caused backlash from their customers, so Makers mark changed their mind and decided that some stores were just going to have empty shelves sometimes.