7704IBA Strategy and Innovation

Hopworks valued sustainability for its environmental benefits, but Ettinger knew firsthand that economic and social sustainability were also a key part of the equation. If you go out of business, you can’t continue doing good in your community, and your environmental impact is irrelevant. He was committed to sustainable growth in both senses of the word. How could Hopworks keep its commitment to produce the best, most sustainable beer?

They were at a turning point, facing intense pressure from Portland’s 83 other craft breweries1 , and needed to expand operations to increase revenue and maintain their leadership position. But what was the best path forward in line with their values?

Ettinger reflected on what it was like when he was starting Hopworks over seven years ago, and tried to channel that younger, perhaps more idealistic, brewer for guidance. But how would he know what was right for Hopworks today?

More specifically, some of his major decisions included:

· What kind of equipment or software was needed to continue to grow and run as sustainably yet profitably as possible?
· Should he pursue two new brewpub locations?
· Could they distribute their wholesale products more widely without increasing their carbon footprint significantly?
· Should they replace or augment their organic certification with other certifications like Salmon Safe?
· Overall, how could Hopworks balance their ideals with a continued commitment to making the best beer, while staying economically sustainable as well?

Case Study Questions

1. Please analyse the environment of craft brewing in the US (and trends in this environment) (11%). How is Hopworks positioned in this environment? (11%)

2. Please perform an internal analysis on Hopworks’ resources and capabilities. (22%)

3. Please critically evaluate Hopworks current strategy on economic and social sustainability. What challenges/opportunities does the company face? (22%)

4. What would you advise Christian Ettinger in relation to the firm’s future strategy to sustain his business and manage sustainability? (22%) )