Marketing Specialists at Sarasota Beer Co

question 50

Essay

Marketing specialists at Sarasota Beer Co.developed a new advertising campaign for summer sales.The ads were particularly aimed at sports events where Sarasota Beer sold kegs of beer on tap.The marketing group worked for months with a top advertising firm on the campaign.Their effort was successful in terms of significantly higher demand for Sarasota Beer's keg beer at sports stadiums.However, the production department had not been notified of the marketing campaign and was not prepared for the increased demand.The company was forced to buy empty kegs at a premium price.It also had to brew some of the lower-priced keg beer in vats that would have been used for higher-priced specialty beer.The result was that Sarasota Beer sold more of the lower-priced keg beer and less of the higher-priced products that summer.Moreover, the company could not initially fill consumer demand for the keg beer, resulting in customer dissatisfaction.Use system theory to explain what has occurred at Sarasota Beer Co.

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered or used but not yet paid for.

Short-Term Liability

Financial obligations due within a year, such as accounts payable, short-term loans, and other similar debts.

Working Capital

Current assets minus current liabilities, indicating the liquidity available for a company's day-to-day operations.

Current Ratio

A measurement of a corporation's capability to meet obligations due in less than a year by evaluating its short-term liquid assets.