[mayrob30]

In the opening case of Chapter Four in the text, you learned that Yuengling’s beer sales were up 225% in the last six years, but that the company’s old Eagle Brewery facility, which could only produce 500,000 barrels of beer per year, could not keep up with growing demand. After temporarily rerouting beer from Maine, Massachusetts, and Rhode Island to its home state and largest market, Pennsylvania, the company considered five options for expanding beer production: (1) adding new storage and finish tanks to Eagle Brewery, (2) outsourcing production to another company, (3) buying an existing brewery from another company, (4) building a new factory, or (5) “doing nothing.”

Please answer the following questions:

1. What is the best way to evaluate these options? Said another way, what is the best way to make this decision?

2. Furthermore, what process or criteria should we use when trying to decide which of these five options is best?

3. Also, is there some way to build some flexibility into your plans, no matter what is decided? This could be tough, considering the expense involved in some of the options, but you don’t want to get locked into one option, especially if things change in Yuengling’s competitive environment.

[Curlyben]

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