Gordon Biersch Harvard Case Solution & Analysis

Gordon Biersch Case Solution

Introduction:

The driving forces behind Gordon Biersch were two people, Dan Gordon; An engineer and alumni of the prestigious University of Munich, and Dean Biersch; who had a passion for the sustenance, due to which he has played an important role of administrative duties in the food and drinking sectors of the business world. Their novel idea of opening a microbrewery and fine dining restaurant was inspired by a law change in California in 1983.This law permitted blending and serving of brew within state. They had an affinity with the idea of providing high class delicacies with extraordinary management coupled with an amazing ambience and the highlight of the concept being their unique German-styled ales from theiron-location brewery. Their objective business sector was genuinely refined, although they were not that young, they were affiliated with Stanford University either in capacity of staff and or their graduate understudy body.They successfully helped Gordon Biersch earn $20 million from five different locations from a small retail beer sector.

The case offers some day-to-day management problems faced by the shareholders in managing a successful growth of the business. After their successful opening in Palo Alto, they both opened four additional brewery restaurants in California and Hawaii. In 1995, they decided to expand the company into its next phase. For financing the growth, Dan and Dean raised the outside capital of about $ 11.2 million for exchange of majority share control in the business.

Gordon Biersch is one of the most successful breweries in America, founded by Dan Gordon and Dean Biersch. They started their first operations in July 1988 at Palo Alto, California. They wanted to introduce authentic effervescent German beer outside ofGermany.For this purpose they made 114,000 square feet brewing facility in California, They have27 brewery restaurants in one state in United States. They generated the annual sales of about $ 97 million with around 2,116 employees working for them. Their first restaurant was a quick success and in the first year, they over accomplished their assessed $1.5 m deals by 47% and topped $2.2 m.

The next years were even more fruitful.They were able to payback their advance of $400,000 in six months. Those selected lager brands were what made Gordon Biersch's personality unique from other brewpubs/restaurants.

They clearly trusted in setting up return support through brilliant services and an extraordinary dining background to its focused customer base. Gordon Biersch additionally offered gifts of lager steins and T-shirts totheir clients. They utilized a self-effacing yet a successful promotion system thatfocusedon advertising and client referrals (buzz showcasing/verbal advertising). This turned out to be an effective technique as well as temperate for them.

In 1990, Gordon Biersch opened their second outletin San Jose that was a greater space with a second floor and had 60% additional edge in brewery. They included more itemsin their menu.Furthermore, they had live jazz music for half a year. Despite the fact that there were a couple of issues with city regulations, they figured out how to accomplish double planned deals that added up to $3.1 m. increased their sales by $2.7 million.In November 1994, Gordon Biersch developed a new restaurant in Honolulu, which cost them $ 2.4 million. This restaurant saw rapid success and generated an income of $ 6 million in its first operational year................

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