Types of strategic control
Strategic control is the tracking of strategies through the implementation process within an organization. One type of strategy control is the premise control. This is used in the Boston Beer Company in the sense that the company checks the premise of growth and abandoned it to not reach 6 million barrels a year. At a level above this figure, the company would lose its craft brewery title thus giving it a bad perception among the customers. The company further uses the special alert control by reassessing situations that were not foreseen before. One example of this is in the changes made when other competitors like Heineken reduce their price ranges and the company has to reassess its strategies to counter such changes. In addition, the company employs strategic surveillance in countering wide range of events both within and outside the company thus cushioning the company from shocks (Miller, 2014, p. 47).
Strategic controls are important aspects in the corporate structure and specifically in the management of organizations. It is of importance that managers and leaders are up to date with information on strategic controls to cushion their companies from rigorous competition. The managers must be sure of the action to take in a particular situation and where to source the information from.
The need for balance between rewards, culture, and boundaries
The balance between boundaries, rewards and cultures should be optimized and balanced at all times to ensure the efficient performance of any organization. In this regard, the growth of the company should be monitored and checked against profits and the different culture. In the Boston Beer Company, culture forms a large part of the organization in the fact that the company maintains a craft brewery status to improve its reputation among the citizens. Moreover, the company has maintained the first beer that they manufactured which is the most loved beer in the country. In addition to culture, the company incorporates rewards and boundaries in its management by balancing growth and profits. Although the company wishes to expand its horizon and grow its profits, this is closely monitored so as to maintain the craft brewery status (Holl & Darcy, 2012, p. 62). As thus, the company forfeits parts of its profits from growth in exchange for its reputations.
There is a special importance in managing to find the right balance between culture, rewards and boundaries as can be evidenced through the Boston Beer Company. In the modern corporate structure where profits override all other aspects in a company, it is very important to find the right balance between the three. In fact, this balance could be the difference between long term growth and collapse of organizations.
The pros and cons of different organizational structures
The importance of different organizational cultures cannot be understood better than in the case of the Boston Beer Company. In this organization, the owner, Koch, has 100% decision rights meaning that he can make decisions and changes on the company’s strategy at his own will and without requiring approval from the investors. This fact has meant that investors are not comfortable investing in the organization and thud the company’s growth is suppressed. The growth of the company is thus sacrificed in search of a rigid organizational structure that aims to protect the founder’s interests. The end result is the slow and reduced growth of the company that exposes it to competition from other companies.
There is a special importance in incorporating different organizational structures within an organization. The modern organizations should establish the most effective organizational structures and embrace a dynamic approach in the implementation of such structures. A company should not be too rigid as to use only one approach in its growth projection. Rather, all organizations should be ready to alter between one organizational structure and the other.
The elements of effective leadership
Effective leadership is not just about making important decisions but the ability to optimize the performance of each individual within an organization. This is an important aspect in any organization and can be traced in the Boston Beer Company’s management. One key element is discipline which is an orderly behavioral pattern that improves the chances of a certain outcome. In addition, the company has in place support mechanisms including offices, factories and other tangible components in the organization. The support aspect and the interactions that take place form the heart of the organization and drive the growth and development of the organization. Moreover a company’s creativity, insight and values are also important elements of effective leadership. In the Boston Beer Company, the values maintained from its inception have ensured its continued growth over the years. The creativity in the management has ensured the formulation of a science team to look into better beer ingredients and ways of brewing beer thus keeping the company competitive.
The place of ethics in any organization is indisputable because of the high importance that it places on the organization. This fact is quite visible in the running of the Boston Beer Company as the management is well aware of the implication of acting ethically. The management continues to brew the best beer in the world and still maintains the best standards over all the years. At no point does the company sacrifice the ethical values for purposes of getting more profits or growth. The Boston Beer Company case study is a manifestation of the importance of maintaining strong ethical values in building a reputable organization. Even in the face of competition, the company withstands all threats due to the good rapport that it maintains with both the customers and the distributors (Holl & Darcy, 2012, p. 28).
It is very important that companies understand the value of having an ethical program within the organization. It is not only important in maintaining individual discipline but also affects the company’s performance to a great extent. In the modern corporate world where profits are given more preference over other values, it is important that companies utilize ethical programs in shaping their future prospects and guaranteeing their continued existence in the business market.
The type of risks a company may take
In the course of doing business, organizations are faced with the task of taking risks in the time of challenges to keep them afloat. This fact is most evident in the Boston Beer Company where continued risk taking is conducted in the company. One example of a big risk was in 1995vwhen the company went public and had two sets of offers, one for its loyal customers and one for other investors. The company took the risk of selling shares to the loyal customers at a cheaper rate thereby leading to an influx. The outcome was that the interested people surpassed by over 70000 people forcing the management to cut off the excess and remaining with 30000. In so doing, the company was at risk of sabotage by other influential investors. Regardless, the company had its reputation in sight prompting it to reward its customers.
The importance of taking risks in an organization cannot be emphasized further. Managers and leaders need to be bold enough to take risks in the face of challenges while still marinating the rational aspect of these decisions. Risk taking could be the difference between success and failure of a business and the prospects could go either way. In this regard, therefore, managers must maintain a rigorous process of risk analysis before deciding on taking any risk within the organization. Particular interest should be accorded to risks that define the organization’s growth trajectory.
Holl, J., & Darcy, A. (2012). Massachusetts breweries. Mechanicsburg, PA: Stackpole Books.
Miller, N. (2014). Boston beer: A history of brewing in the Hub.