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Chapter 14
1. CHAPTER 14 DISCUSSION QUESTIONS
1) Above all, an entrepreneur must place who first when considering a location?
2) Entrepreneurs generally prefer to locate in regions of the country that are
experiencing what?
3) What is one of the first stops entrepreneurs should make when conducting a
regional evaluation?
4) Every state has what type of office working to recruit new businesses?
5) Because of its location in the center of the country, what city has become home
to many companies' distribution centers?
6) For many businesses, especially technology-driven companies, what is one of
the most important characteristics of a potential location?
7) What is one consistent trend that the lists of "best cities for business" have
revealed about successful small companies?
8) What are "clusters?"
9) What is the final step in the location selection process?
10) The one element common to all businesses is the need to locate what?
11) Define layout.
12) What should entrances do to customers entering a store?
13) Define ergonomics.
14) What allows employees to work at maximum efficiency?
15) What are key ingredients to engage all of a company's customers' senses?
2. BEER CONSUMER DEMOGRAPHICS
(BASED ON GALLUP POLL CONDUCTED JULY 2010 OF U.S. ADULTS 18+)
•MEN ACCOUNT FOR MORE THAN 80% OF THE VOLUME CONSUMED.
•MEN UNDER 50 ARE AMONG THOSE WHO MOST STRONGLY PREFER BEER AS THEIR
ALCOHOLIC DRINK.
•18-34 YEAR OLDS STRONGLY PREFER BEER AS THEIR ALCOHOLIC DRINK.
•55+ CHOOSE WINE AS THEIR PREFERRED ALCOHOLIC BEVERAGE.
•BEER IS THE TOP CHOICE FOR ALL 4 MAJOR REGIONS OF THE COUNTRY.
•THE MOST POPULAR REGION OF THE
COUNTRY FOR BEER: THE MIDWEST.
3.
4.
5. •MINTEL GROUP LTD. IS A PRIVATELY OWNED LONDON-BASED MARKET RESEARCH FIRM
THAT WAS ESTABLISHED IN 1972.
•THE FOLLOWING IS BASED ON MINTEL RESEARCH PUBLISHED IN 2010.
•13% OF US BEER DRINKERS SAY THEY PREFER DOMESTIC CRAFT OR MICROBREW BEER,
COMPARED TO 43% FOR TRADITIONAL DOMESTIC BEER.
•BUT 59% SAY THEY LIKE TO TRY THEM & 51% SAY THEY WOULD TRY MORE
CRAFT/MICROBREW BEERS IF THEY KNEW MORE ABOUT THEM.
“Craft beers have increased in popularity in the past five years, and enjoyed a boost in their
consumer base. Craft beer is most popular with the 25-34-year-old crowd, so manufacturers would
be wise to target this demographic and educate them more about artisan beers.”
GARIMA GOEL LAL
SENIOR ANALYST AT MINTEL
6. •MINTEL FOUND THAT PRICE IS A DETERRENT FOR SOME DRINKERS.
•41% OF DRINKERS ONLY ENJOY CRAFT/MICROBREW BEERS AS A
TREAT BECAUSE THEY ARE EXPENSIVE.
•29% REPORT DRINKING LESS CRAFT BEER BECAUSE OF PRICE.
•BUT, THE INDUSTRY LIKE THE ECONOMY IS BOUNCING BACK.
“The recession hit many industries hard, and the beer market was no
exception. The good news is, it appears that the influence of the recession
is becoming less pronounced on the beer market in terms of losing
volume. The number of beer drinkers who are drinking less beer has
decreased since 2009.”
GARIMA GOEL LAL
SENIOR ANALYST AT MINTEL
7. •MINTEL ALSO FOUND THAT PACKAGING IS JUST AS IMPORTANT AS
THE BEER ITSELF.
•63% OF BEER DRINKERS PREFER A BOTTLE.
•20% OF BEER DRINKERS PERFER A CAN.
•8% OF BEER DRINKERS PREFER DRAFT BEER.
8. OCEANSIDE ALE WORKS
-FIRST MICROBREWERY IN OCEANSIDE, CA (NORTH COAST OF SAN
DIEGO)
THE MENTOR: OCEANSIDE ALE WORKS
9. TOP FACTORS THAT MAKE AN AREA SUITABLE FOR
STARTING & GROWING SMALL COMPANIES
1) ACCESS TO DYNAMIC UNIVERSITIES
2) AN AMPLE SUPPLY OF SKILLED WORKERS
3) A NEARBY AIRPORT
4) A TEMPERATE CLIMATE
5) A HIGH QUALITY OF LIFE
10. CHOOSING A LOCATION
THE KEY TO FINDING A SUITABLE LOCATION IS:
-IDENTIFYING THE CHARACTERISTICS THAT CAN GIVE A
COMPANY A COMPETITIVE EDGE & THEN FINDING A
LOCATION THAT MEET THOSE CRITERIA
-THE SECRET LIES IN KNOWING WHICH FACTORS ARE
MOST IMPORTANT TO A COMPANY’S SUCCESS & THEN
FINDING A LOCATION THAT SATISFIES AS MANY OF THEM
AS POSSIBLE
-WHAT ARE THE IMPORTANT LOCATION FACTORS
FOR A MICROBREWERY?
13. WHICH REGION (EAST, MIDWEST, SOUTH, WEST) OF THE COUNTRY HAS
THE CHARACTERISTICS NECESSARY FOR A NEW BUSINESS TO
SUCCEED?
-THE ENTREPRENEUR MUST PLACE THE CUSTOMER FIRST WHEN
DECIDING ON A LOCATION
-QUESTIONS TO CONSIDER:
-HOW LARGE IS THE POPULATION?
-HOW FAST IS IT GROWING?
-WHAT IS THE MAKEUP OF THE OVERALL POPULATION?
-WHICH SEGMENTS ARE GROWING FAST?
-WHAT IS THE TREND IN THE POPULATIONS INCOME?
-WHAT KIND OF BUSINESSES ARE IN THE REGION?
15. EACH STATE HAS AN ECONOMIC DEVELOPMENT OFFICE THAT CAN HELP AN
ENTREPRENEUR ASSESS THE BUSINES CLIMATE OF THE STATE
-FACTORS THAT AN ENTREPRENEUR SHOULD CONSIDER WHEN CHOOSING A
STATE:
-PROXIMITY TO MARKETS
-PROXIMITY TO NEEDED RAW MATERIALS
-WAGE RATES
-LABOR SUPPLY NEEDS
-BUSINESS CLIMATE
-TAX RATES
-INTERNET ACCESS
-TOTAL OPERATING COSTS
16. TOP 5 STATES IN BREWERIES PER CAPITA
(BASED ON 2011 CENSUS DATA)
PER CAPITA: PER PERSON
FULL LIST IS ON CAMPUSWEB
