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Gaining Commercial Advantage

Gaining Commercial Advantage. Francis Patton. Who am I to talk to you….!!. 25 years in the industry Strong links to Cask Strong links to industry bodies Lecturer at Leeds Metropolitan University. So what’s going on...?. Change in Industry Structure - TISC 2004/BISC 2009

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Gaining Commercial Advantage

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  1. Gaining Commercial Advantage Francis Patton

  2. Who am I to talk to you….!! • 25 years in the industry • Strong links to Cask • Strong links to industry bodies • Lecturer at Leeds Metropolitan University

  3. So what’s going on...? • Change in Industry Structure - TISC 2004/BISC 2009 - Change in leases - Change in pricing - Change in ownership - Change in approach Opportunity

  4. So what’s going on....? • Change Socially - Sustainable Communities Act - Big Society - Localism – supermarkets - Pub is the Hub Opportunity

  5. So what’s going on...? • Change of Products - Growth of cask - Growth of local brands - Sourcing - Range in pub companies - 94% within 40 miles Opportunity

  6. So what’s going on...? • Change in route to market • Brands/products need “store front” • Rise in off trade stocking • Rise of DDS • Access to pub companies/brewers up 29.8% Opportunity

  7. So what’s going on...? • Innovation - Project William - Enterprise/Punch/Admiral - Social Networking - Apps - Cyclops Opportunity

  8. The Local Rumours of my death have been greatly exaggerated Localism is alive and flourishing

  9. The issues • Are you as businesses set up commercially to take advantage of the opportunity? • Training 2.3 out of 5 • Internal 51% say could do better/need support • External 65% say could do better/need support • Debt servicing 1.2 out of 5 • 43% don’t use social networking • 65% have no pub • 28% don’t know production costs • Brand awareness

  10. Success v Failure • 56% failure rate in first 4 years • Seven pitfalls • Started for the wrong reasons • Poor management • Insufficient capital • Location • Lack of planning • Overexpansion • No website

  11. Strategy/Business Plan • “Thinking like the big boys, playing like the small ones.” • Every business needs a clear strategy/business plan • Every business needs to create competitive advantage • Every business needs a vision of success backed up by financials • Every business needs help

  12. The Strategic Management Process External Analysis Strategic Choice Strategy Implementation Competitive Advantage Mission Objectives Internal Analysis

  13. The Strategy Clock 6-13

  14. Approaches 7-14

  15. Methods • Acquisition • Merger • Joint Ventures/alliances • Franchising/licensing • Management contracting

  16. Help • SIBA • Cask Marque • Cyclops • CAMRA • Consultants • NED’s • Universities • PITH • Regional Business Support

  17. The future is bright The future is beer And local beer at that

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