Through the implementation of efficient and effective management, New Belgium Brewing (NBB) has grown from operating out
Question:
Through the implementation of efficient and effective management, New Belgium Brewing (NBB) has grown from operating out of the founder's basement to having two state-of-the-art facilities and over 800 employees. New Belgium was founded after co-founder Jeff Lebesch took a trip to Belgium and was inspired to produce a high-quality beer in his hometown of Colorado. After consistently experimenting in his basement with a special strain of yeast used in Belgian-style ales, Lebesch began the entrepreneurial endeavor of marketing his product. Lebesch enlisted his wife at the time, Kim Jordan, to help market the beer and deliver it to local store shelves.
The first brew was named Fat Tire Amber Ale. Retailers were initially reluctant to place the beer on store shelves; however, NBB eventually developed a strong customer base that propelled the brand to become a household name. Today NBB is the fourth-largest craft brewery in the United States and eighth-largest overall. Craft brewers such as New Belgium Brewing maintain a high level of integrity.
Since the beginning, the founders and employees have operated with a set of core values and beliefs. Jeff and Kim pledged to create a high-involvement organizational culture toward which all employees are expected to equally and ethically contribute toward. From planning goals and ways to attain objectives to organizing and assigning responsibilities, the two entrepreneurs assumed a leadership role. They led employees to accomplish tasks that helped them develop conceptual skills when facing any type of issue at hand. Controlling and monitoring activities and correcting for mistakes enabled them to operate in a profitable manner while providing a product that is environmentally and socially responsible. The founders did not stray from their initial vision, and through positive leadership, the entrepreneurs prompted employees to set and achieve goals
through proper planning and organization in all aspects of the business.
With leadership being the crucial aspect of any business, it is important that all levels of management are involved in developing goals and strategies for the company's strategic vision. Bryan Simpson-New Belgium's public relations (PR) director-describes New Belgium Brewing's culture in the following way:
Progressive business practices like employee ownership and open book management enable our co-workers to share in the company's success and in our challenges, pulling us together as a team and a family. It's especially rewarding to see that the values that have driven us for the last 25 years continue to resonate with our co-workers and show results in the marketplace. As a member of the B Corp community, we believe business can be a powerful force for good in this world.
This leadership style has proven to be successful and informational for employees. Employees are encouraged to take an active role in the organization and are provided with a number of incentives to contribute toward a socially responsible culture. To celebrate employees' birthdays, a catered lunch is provided along with a free massage once a year. They get a free beer every day and a 12 -pack once a week. Employees are also allowed to bring children and dogs to work to help alleviate the strain on finding places for them during the workday. On the anniversary of employees' first year working for the company, they are given a cruiser bicycle; on the fifth anniversary, they receive a free flight to Belgium to allow for growth and development within the beer culture. Employees who have been with the company for ten years are eligible for a four-week paid sabbatical. Employees are also encouraged to volunteer with various organizations and causes. By doing this, they are able to receive one hour of reimbursement for every two hours of volunteer work performed.
In 2012 Kim Jordan, who had become CEO, made the decision to allow employees at New Belgium to purchase her remaining controlling shares. This led New Belgium to become a 100 percent employee-owned company. From 2000 to 2012, New Belgium was 41 percent employeeowned. Today it is now fully operated through an employee stock ownership plan. During her tenure as CEO, Kim continued to emphasize a high-involvement organizational culture, a practice likely to continue under new CEO Steve Fechheimer. For instance, NBB allows employees to see the financial costs and current performance summaries of the company and provides financial training so that employees are able to understand the books and ask questions about any concerns. With this "open-book" management style, employees are able to take control of their future and see what effect they are having within the industry.........
Questions
1. How did Kim and Jeff carry out the management function at NBB?
2. Describe ways in which the founders assumed decisional roles in their work.
3. How would you describe New Belgium Brewing's organizational culture?
Step by Step Answer:
Management Principles And Applications
ISBN: 9781942041719
4th Edition
Authors: Leonard Bierman, O.C Ferrell , Linda Ferrell