CareGroup Case Study Paper

CareGroup

Daniel Stone

Ohio Dominican University

Abstract

CareGroup, a healthcare system in Massachusetts, experienced a network outage in November 2002.  This outage was triggered by a researcher who unintentionally installed a rogue software program onto the system that overwhelmed the network.  A summary of the case documents causes and possible fixes.  Recommendations are expanded upon the state of the network and the staff at the time of the system failure.  Lastly, a backup plan discussing dialup modems, prevalent at the turn of the 21st century, and cloud backup, prevalent in 2013 are also expanded upon.

Keywords:  CareGroup, Information Technology (IT), system outage, rogue software application, backup plan

 

CareGroup Case

            Although "health care did not suffer" (Applegate, L., Austin, R. and Soule, D., 2009), the three-and-a-half day complete collapse of the CareGroup's Information Technology (IT) system strained this health-care system committed to providing individualized care to patients through a wide array of services.   Between the morning and afternoon of November 13th, 2002, the CareGroup's IT system went from the 21st century back to the 1970s.  Reverting to a paper-based system during the outage, the four major CareGroup medical facilities' IT systems were originally problematic.  In 1998, John Halamka became Chief Information Officer (CIO) of CareGroup, and devised a backup system in an attempt to mitigate possible damages for the Year 2000 problem (Y2K).  However, this backup system was out-of-date and was missing components.  By 2002, a common system for all hospitals were created for standard mode procedures (Applegate, L., Austin, R. and Soule, D., 2009).

              The three-and-a-half day complete collapse of the CareGroup's IT system was started by a researcher who was experimenting with a rogue software program that  had not been tested (Applegate et al., 2009).  A recommended fix to this is a network security policy that is more strict in preventing untrained IT professionals from installing untested software onto the CareGroup network (Cisco Systems, Inc. 2005).     

            The homemade application caused huge data transfers that took over the centrally located network switch (Applegate et al., 2009).  Since the network was physically redundant, the data that was not from the rogue software program had other alternative paths to travel despite the major switch being disabled because of the homemade application. 

            While the CareGroup's network was blessed with redundancy that created alternate routes for data to travel, it was also cursed.  This was due to the smaller networks being added in a way that caused the overall network to confuse the primary and backup travel routes (Applegate et al., 2009).    A recommended fix to this is a more robust network system coupled with a simulated downtime for a total network collapse (Halamka, J., 2008). 

            A wide array of problems took place with the network down such as an ailing communication system plan in the event there was a system outage (Halamka, J., 2008). 

Paper forms from the Y2K changeover were used, forcing the younger staff to take heed from the older staff.  All the paper-based information gathered during the outage was converted into electronic form within 48 hours after the network was returned to normal.  About 300 tests conducted during the outage could not be partnered with their specimen, forcing staff to retest patients at CareGroup's expense (Applegate et al., 2009).  A recommended fix to this is to remain in backup mode while the network's restoration can be assured by an outside vendor.        

            Finally, 24 hours after the homemade application took over the network, the original networking manufacturer, Cisco Systems, Inc., was contacted.  Once on site, Cisco had enough manpower and equipment brought in to build an entire redundant core network if that was needed to get CareGroup's IT system up and running again (Applegate et al., 2009).  Working around the clock, Cisco installed a larger and more modern switch while upgrading the router.   With the network fully restored three-and-a-half days after the rogue software program took over, the paper-based backup process was gradually phased out over the next 24 hours (Berinato, S., 2003) .   A recommended fix to this is to have an established relationship with Cisco that would have allowed CareGroup to have been apprised about the state of their network shortcomings (Halamka, J., 2008). 

Recommendations

            There were several problems that played a part in the CareGroup's marginal network.  These problems presented challenges in delivering services to their patients,  threatened to disrupted the organization's cash flow, and took away from the organization's bottom line.  In particular, these problems were: (a) a lack of security policies; (b) an unclear backup plan and its implementation in the event of a system outage; (c) reluctant to replacing inferior leadership of the organization's IT network; (d) a lack of sharing of knowledge of the network system to other members of the IT team; (e) a lack of knowledge of the system's capabilities; (f) nonexistent relationships with original networking manufacturer, Cisco; and (g) not contacting them promptly when a problem arises.  It is imperative that the following recommendations are looked into to prevent another out of service situation.   

            Security Policy.  CareGroup had too negligent of safeguards allowing employees who were not IT professionals to install unapproved software onto company computers which exposed the organization to instability (Halamka, J., 2008).  A rogue software program installed by a researcher unintentionally crippled the CareGroup's IT system (Applegate, L., Austin, R. and Soule, D., 2009).  Without a clearly defined security policy, the accessibility of CareGroup's network was compromised resulting in the network being disabled (Halamka, J., 2008).  It is recommended that usage policy statements outlining users' roles and responsibilities with regard to security needs to be implemented and clearly understood by everyone at CareGroup (Cisco Systems, Inc. 2005).  Furthermore, it is recommended that risk analysis is conducted and through consensus, the degree of comfort that the organization has with homemade applications, tested on the CareGroup network needs to be addressed (Cisco Systems, Inc. 2005).     Lastly, in regards to institutional control, it is recommended that a security team structure is put in place with participants from each of  CareGroup's areas of operations (Cisco Systems, Inc. 2005).  The representatives on the team should be well-versed in security policy.  At the time of the system outage, the entire network was so permeated that no one at CareGroup could discover the root cause of the problem  (Halamka, J., 2008). 

            Best Practices in Human Resources.  It is recommended that CareGroup act swiftly in removing employees that are not performing to meet expectations.  John Halamka, CIO of CareGroup, felt that terminating CareGroup's single point of human contact would result in an outage (Halamka, J., 2008).  By hesitating to act proactively to reinforce leadership of the network team, he ended up with a system outage anyway (Halamka, J., 2008).   As a result of not removing the mediocre leadership of the network team, a message to dedicated staff, new and prospective hires, and competitors near and far was that mediocrity is being tolerated at CareGroup.  Investors and shareholders could interpret this weakness as a sign that CareGroup is in decline (Walters, C., 2001). 

            In addition to sending the incorrect message to CareGroup's stakeholders and competitors, the organization's resources, primarily management's time and effort, are drained.  Management's time and effort would be better spent on training and preparing quality staff for new opportunities (Walters, C., 2001). 

            Best Practices in Training.  It is recommended that The CareGroup train the entire IT team in all functions of the IT department so that there are multiple points of human contact that are knowledgeable of the network's systems inner workings.  At the time of the outage, Mr. Halamka was also cognizant that the other members of the IT team could not configure the network due to poor documentation and a lack of information sharing from the leadership of the network team  (Halamka, J., 2008).  Not only had the leadership of the network team poorly documented  how the network operated, but this person was also not knowledgeable of the best practices for redundant network cores and  the prevention of bandwidth monopolization by any one user or application (Halamka, J., 2008).    In the years that followed Y2K, a network was expected to incorporate many kinds of impressive services which at the time were troublesome.  Leadership of an organization's network team has to stay abreast of the best practices and remain open to upgrades from when times were easier and an organization could expect a network to support any IP service (Avolio, F., 2000).

            Service Partner Relationship Management.  It is recommended that CareGroup establish a collaborative partner relationship with their vendors.  At the time of the system outage  there was a minimal relationship between CareGroup and Cisco, the manufacturer of CareGroup's network.  A Cisco partner was brought in to document the network but, unfortunately, the network failure occurred before Cisco's partner had finished documenting (Halamka, J., 2008).    Instead of being just another vendor that CareGroup purchased from, Cisco needs to be a partner that is involved in all aspects of CareGroup's network infrastructure.  Had CareGroup and Cisco equally nurtured a relationship, CareGroup would have enabled Cisco to warn Mr.  Halamka about CareGroup's vulnerabilities (Halamka, J., 2008).     

Backup Plan

            Hundreds of tests conducted during the outage could not be partnered with their specimen forcing staff to retest patients at CareGroup's expense (Applegate et al., 2009).    On the one hand, there were so many mismatched specimens because the paper system wasn't robust enough to move between backup mode and standard mode several times.  On the other hand, CareGroup's operations team was given mixed signals to switch from backup mode to standard mode prematurely several times before the network's stability had been assured (Applegate et al., 2009).  The end goal when having a problem such as having the data intact but inaccessible, is to give and receive data, not just receive data as in paper mode.   

            One solution to the problem and preferable to the stability of cash flow for business continuity is for CareGroup's operations to be carried out in backup mode via dial-up modems.  While the interaction would be far slower than in standard mode, it is faster than the paper system and the network would have remained operational (Austin, R. and Henningsson, S., 2013).  In the early 2000s, when the outage took place, dial-up modems for connecting to networks were prevalent.  The benefit of dial-up connectivity versus the paper system is that the backup mode and standard mode remain digitalized with data being collected and processed electronically in both modes, not a 48 hours after returning to standard mode as the case in November 2002 (Applegate et al., 2009).  Far fewer, if any mismatches on specimens tested would likely be the result.  After the outage, CareGroup obtained extra analog telephone capacity and added modem abilities to 50 computers (Austin, R. and Henningsson, S., 2013).

            By definition, laptops, tablets, smart phones, and WIFI hotspots connectivity are prevalent today in comparison to dialup modems and would be a more realistic investment in 2013.  Cisco, the manufacturer of CareGroup's network,  increased cloud workloads from just 21% in 2010 to a projected 57% of all data-center workloads by 2015 (Williams, S., 2012).   

Cloud computing is more realistic in 2013 in comparison to dialup modems and analog telephone capacity.  By allowing essential staff at CareGroup access to data stored remotely via cloud backup  is a more sustainable backup plan and would take the place of having analog telephones and out-dated  modem abilities on computers (Williams, S., 2012).    

Conclusion

            A well-intended researcher who was testing a homemade software application on the CareGroup network triggered the system outage in November 2002.  The overall network was a complicated blend of networks due to the way that the networks were connected each time a new hospital was added to the CareGroup system (Applegate et al., 2009).  Main problems in combination to what triggered this incident were an outdated and unclear backup plan, a security policy that tolerated staff using untested software, a lack of documentation of the network's inner workings, a wealth of the network's inner workers being held by one person, and a fledgling relationship with Cisco  (Halamka, J., 2008).  Recommendations to avoid future issues are to understanding a usage policy statements outlining users' roles and responsibilities with regard to security needs to be implemented, act swiftly in removing personnel that are not performing to meet expectations, train the entire IT team in all functions of the IT department so that there are multiple points of human contact that are knowledgeable of the network's systems inner workings, establish a collaborative partner relationship with their vendors, and contact the vendor promptly when an issue arises  (Halamka, J., 2008). 

            After the outage, CareGroup obtained analog telephone capacity and added modem abilities to dozens of computers (Austin, R. and Henningsson, S., 2013).  This backup plan was more current to CareGroup's backup plan of paper forms, a carryover from Y2K.  However, a more prevalent backup plan in 2013 is allowing essential staff at CareGroup access to data stored remotely via cloud backup.  While dialup modems were an update to the paper system in 2002 (Austin, R. and Henningsson, S., 2013), dialup modem computing would be out of date in 2013.    

References

Applegate, L., Austin, R. and Soule, D. (2009). Corporate information strategy and management:  Text and cases. 8th ed. , P. 322-338.

Austin, R. and Henningsson, S. (2013).  CareGroup case discussion:  IT risk management and robust operations.  Copenhagen Business School, April 2013. 

Avolio, F. M. (2000).  Network Computing For IT and by IT:  Best Practices in Network Security.  Retrieved from http://www.networkcomputing.com/1105/1105f2.html

Berinato, S.  (2003).  CIO:  All Systems Down.  Retrieved from http://www.cio.com.au/article/65115/all_systems_down/

Cisco Systems, Inc. (2005).  Network Security Policy: Best Practices White Paper.  Retrieved from http://www.cisco.com/en/US/tech/tk869/tk769/technologies_white_paper09186a008014f945.shtml#t1

Halamka, J.  (2008).  Life As A Healthcare CIO:  The CareGroup Network Outage.  Retrieved from http://geekdoctor.blogspot.com/2008/03/caregroup-network-outage.html

Walters, C.  (2001).  HR Works, Inc.:  The costs of not firing a mediocre employee.  Retrieved from http://www.hrworks-inc.com/our-solutions/recruiting/recruiting-articles/104-the-costs-of-not-firing-a-mediocre-employee 

Williams, S. (2012).  The Motley Fool:  5 Companies to Play to Cloud Computing Revolution.  Retrieved from http://www.fool.com/investing/general/2012/08/13/5-companies-to-play-the-cloud-computing-revolution.aspx

http://daniel-j-stone.blogspot.com (C) 2009-13

Marion will join main campus for tobacco ban beginning Jan. 1

MARION — Students, faculty and staff at The Ohio State University at Marion will have to find someplace else to smoke, chew and spit come January.
Marion campus will follow the lead of main campus and become completely tobacco-free on Jan. 1. Marion Technical College also may enforce a ban.
Dave Claborn, OSUM director of development and community relations, and Dr. Greg Rose, OSUM dean and director, said some details of the ban are still being ironed out.
“We’re not going to have the cigarette police going around campus,” said Claborn, adding that the school administrators are still figuring out how to enforce the ban.
Rose said the smoking ban is partially proactive, and is part of a larger effort to help people kick the habit.
He said OSUM and Marion Technical College are working to figure out if the ban will be enforced for the MTC community, since it is a shared campus.
Nikki Workman, director of public relations at MTC, said administrators are trying to see what their students and faculty want to do.
For OSUM freshman Savannah Incho-Lewis, who is majoring in middle childhood education, the ban will be welcome. She said her parents smoked while she was growing up, and she doesn’t like having smoke around her.
“I can go to school and not have to worry about it,” she said.
There is no official penalty for smoking or other tobacco use listed on OSU’s main website, which states that “all students, faculty, staff, vendors, volunteers, and visitors are expected to comply with this policy. Individuals are encouraged and empowered to respectfully inform others about the policy in an ongoing effort to support individuals to be tobacco free, improve individual health, and encourage a culture of compliance.”
In 2012, the Ohio Board of Regents recommended that all college campuses become tobacco-free.
OSU’s Newark campus and the Central Ohio Technical College began a smoking ban Aug. 1.

http://daniel-j-stone.blogspot.com (C) 2009-13

Industry Trends and Cost Management Issues: Micro-brewing and Beer

 

Industry Trends and Cost Management Issues:  Micro-brewing and Beer

Daniel J. Stone

Managerial Economics

Ohio Dominican University

 

August 15th, 2013

 

 

Industry Trends

Demand Factors

            Customers and key market segments.  Micro beers, considered a normal good, have a growing preference and taste among those that consume beer (Keat, Paul G. and Philip L.Y. Young).  This statement is supported due to globalization and the varying degree of people's incomes.  While it is debated that globalization is good or bad for mankind, one thing that globalization has done is make it less restrictive in giving and sending of information (Street, M and Street, V., 2010).  As such, mankind has become better informed over the years and as a result, it is projected that the micro beer sector will remain dynamic providing that there is economic prosperity coupled with competition from beers from abroad, other micro breweries and super premium brands of macro breweries such as Michelob.  (Iwasaki, N.; Tremblay, C.H.; and  Tremblay, V. J., 2005). 

            Since a micro beer, also known as a craft beer, is a normal product, substitutes are produced in mass are known as macro beers and are considered an inferior product.  Whether a beer is normal or inferior is contingent on the price.  Those at the lower economic income area prefer macro beers because this is all that can be afforded.  Therefore, from a product development standpoint, normal and inferior beers are substituted based on the cost (Iwasaki, N.; Tremblay, C.H.; and  Tremblay, V. J., 2005).

            The customers of micro beers comprise of what is known as the convenience store class-of-trade, aka "c-store channel" who are advocates for natural food grocers that sell micro beers.  For example, characteristics of micro beer customers are those that prefer quality and variety.  Suppliers of micro beers tend to be proactive with these customers by creating cross-merchandising promos with gift cards, fuel cards, phone cards, and food tie-ins.  Themes such as summertime, St. Patrick's Day, sporting events and ethic holidays such as Cinco de Mayo are offered at the point-of-sale, (Covino, R. M., 2009).  The key market segments of the micro beer industry are Microbrewery, Brewpub, and Contract Brewing Companies, and Regional Craft Breweries.  Some of these examples are Elevator Brewery in Columbus, OH (Microbrewery), Columbus Brewing Company Restaurant in Columbus, OH (Brewpub), Japanese beer, Kirin being made exclusively for the North American market by the Anheuser-Busch brewery in Los Angeles (Contract Brewing Companies), and  Great Lakes Brewing Company (Regional Craft Breweries), (Brewers Association, 2013). 

            Pricing issues.  Demand factors for the craft brewing at home or for commercial distribution have pricing issues due to the provision for excise taxes, higher package material and ingredient costs and the potential costs that come from a temporary shutdown of a brewery's system (The Boston Beer Company, Inc., 2013).  Also, in many cases, craft-brewed beer is priced in a way that only the more affluent consumers can afford on a regular basis.  While on the one hand, the price is set because of the status that comes with micro beers, but on the other hand, prices are set due to having an equilibrium price high enough to cover production on the small scale that microbreweries tend to operate.  (Iwasaki, N.; Tremblay, C.H.; and  Tremblay, V. J., 2005).         

Supply Factors

 

        Suppliers and vital supply components.  The suppliers of micro beers have challenges due to the growth of the craft brewing industry in 2012 of 15% volume and 17% dollars whereas in 2011 it was 13% volume and 15% dollars.  To continually improve and evolve to meet the demand, Brewers Supply Group (BSG) has expanded to serve breweries, wineries, distilleries, and homebrew stores instead of only brewers when BSG was first formed (Morgan, J. 2013).  While there were 43 microbreweries and brewpubs that closed in 2012, there were 409 sites that opened in the same year (Brewers Association, 2013). 

        Vital supply components for micro beers comprise of water, malt, hops, yeast and various adjuncts such as grains, sugars, spices, and processing aids.  The capability of these vital supply components being continued with minimal long-term effects on the environment relies upon brewers keeping supply levels that are in sync with demand by looking at their needs and making those needs known in the form of supply agreements will ensure that supplies that are very specific to brewing are maintained.  This is because these supplies are in competition with non-brewing crops which are increasing (Morgan, J. 2013). 

        Pricing issues.  Supply factors for the craft brewing at home or for commercial distribution have pricing issues due to pressure from distribution costs and grain prices, partially offset by brewery productivity and positive product mix and average price increases of approximately 1% to 2%.  (Craft Brew Alliance, 2012).  On the one hand, the new microbreweries and pub breweries are competing in the specialty and imported beer market and are able to command a premium price for their products whereas on the other hand, income elasticity and price elasticity at the local area are factors as well (Coulter, M., (1987). 

Cost Management Issues

Input Costs

        Input costs in the microbrewery industry comprise of the rising input costs of barley and hops (Sekar, S., 2009).  The brewing process is energy intensive and uses large volumes of water.  Also, in the brewhouse, the place where micro beers are processed by mashing and wort boiling from heat, the commodity of fuel oil is considered prized input.  The price of this commodity was pushed to higher levels.  As of 2012, there were no signs that the cost of using fuel oil will decrease any time soon (Olajire, A. 2012).  This is being countered with the use of electricity for use of the production process.  While natural gas and coal make up 60% of the total energy used at brewhouses, electricity and the investment in the infrastructure to support electric use in yet another input costs (Mignon, D and J. Hermia. 1995). 

        Key factors in operating costs such as wastewater treatment plants at microbreweries are another input cost that maximizes efficiency (Olajire, A. 2012).  Many brewers are searching for ways to cut down on the water usage due to disposal of this being costly (Simate, 2011).  Unfortunately, the lowest cost inputs tend to equate to slow and inefficient systems.  For example, in the production process, the mash that floats on top of the wort of the mashing vessel traditionally is slowest separation process, but is the lowest cost in terms of capital outlay (Galitsky, 2003).   Followed, is the separation process; then comes the filtration process.  The sludge disposal that comes from the filtration process is the main cost with varying costs (Isaacs, N. 2001). 

        Nearly every area of the microbrewery industry has been affected by rising input prices.  Pricing issues in the microbrewery industry consist of wheat, corn price increases, the influx of oil prices coupled by instability in the weather with droughts, floods and the emergence of the Chinese economy.  Costs in the microbrewery industry have soared by more than 100% since June 2010.  As a result, production and transportation costs have been driven up (Thornton, G. 2011).  Another set of pricing issues come to investing.  Potential investors need to be cognizant of production levels and any alliances with distributors as well as the price per barrel (Davila, F. and Perez, E. 1995). 

 Pricing and Profitability Issues

        Overall, the beer industry is in a decline in terms of profitability.  However, the microbrewery is becoming stronger.  With the continuation of consumer education, it is projected that microbreweries will have stronger growth when compared to macro breweries (Lapoint, 2012).  The microbrewery market will have an added strain on the market due to twice as many craft breweries opening this year than the previous year.  Profit issues in the microbrewery industry consist of distribution, for example.  However, nontraditional routes are needed for microbreweries to remain profitable.  To offset the distribution issue, alliances and acquisitions are aligned and carried out.  For example, microbreweries have allowed for macro breweries to become a minor shareholder of the business and in return, distribute product in the most efficient way.  By doing this, microbreweries avoid paying a high margin to an independent and protect the microbrewery in bargaining with their suppliers (Lapoint, 2012).  Craft Brew Alliance, an organizations comprising of the brands of Redhook Brewery, Widmer Brothers Brewing, Kona Brewing Company, and Omission Beer have a distribution agreement with Anheuser-allowing for the product line to be sold in 48 states as of March 31st, 2008.  (Reimer, M. ,2010). 

        The Boston Beer Company, maker of Sam Adams, has been the pioneer of microbreweries in the US in terms of growth.  A microbrewery that grew beyond this status, The Boston Beer Company has set the benchmark for more microbreweries in terms of creating ways for craft brewers to turn a profit (Boston Beer Company, The. (2013).

        Management issues.  Management issues in the microbrewery industry mainly come from mismanagement of growth.  Examples of this are shortages in inventory.  While some consider this as a good problem to have, but if product is out, this means that it can't be sold.  Missing out on a potential sale is not only detrimental on the bottom line, but it is also sets precedence that your brewery will have the reputation of not being able to deliver, especially with distributors, vendors and the end customer (Orchestra, 2012). 

        Another example of management issues in the microbrewery industry is not maintaining consistency.  As a consumer, having expectations met when it comes to a supplier's product line is paramount.  Consumers tend to be loyal to a supplier's product line if their expectations are being met (Orchestra, 2012). 

        Next, mismanagement of cash flow is another management issue.  Ensuring that accounts receivable and accounts payable are kept at manageable levels while meeting demand and managing growth are all balanced is essential (Orchestra, 2012). 

        Social and ethical issues.  Social issues in the beer industry come from health, religion, and tax issues.  For example, on the one hand, long term beer consumption has links to cancer, heart disease, and diabetes.  Also, religions such as Islam forbid the consumption of alcohol.  Then on the other hand, in some countries, alcoholic products are heavily taxed (Bjornstad, J., 2011).

        Ethical issues in the microbrewery industry come from how a supplier can improve their sustainability.  First, consumers are keen on transparency and accountability.  As a result, a consumer is more likely to support a company that reflects this value (Orgolini, J., 2011).

Also, water and energy use are a big part of a microbrewery's operation and the ability to maximize efficiency is good ethics that determine if a brewery can sustain itself (Orgolini, J., 2011). 

        Climate change has caused periods where there are droughts and floods have made the phrase "xeriscaping" prevalent.  This is where landscaping and gardening in ways that reduce or eliminate the need for supplemental water from irrigation.  In periods where there is a drought, rice farmers are unable to produce crops due to water conservation efforts.  As a result, ingredients for micro-brews are used at a premium (Alexander, R., 2012). 

Competitive Market Environment

Microbreweries in imperfect competition.  The microbrewery industry operates in a monopolistic competition environment.  When home breweries are included, there are a large number of suppliers acting independently, market entry and exit is not difficult, services are differentiated by being suppliers, eateries, and drinking establishments.  While customers chose among products, nonprice competition was essential as well.  For example, the beer industry revolutionized the advertising game with the use of popular professional athletes in the 1970s.  (National Beer Wholesalers Association, 2011). 

Since a monopolistic competition environment has the characteristic of earning above normal profits which invites new entrants to the market, it appears that the microbrewery industry will continue with new entrants entering the market.  Furthermore, since new entrants will cause the microbrewery demand curve to shift down and to the left and the microbrewery supply curve to shift out and to the right, the prices will still remain competitive.  (National Beer Wholesalers Association, 2011).

 

References

Alexander, R., (2012).  Sustainable Craft Brewing: The Legal Challenges.  http://www.triple

            pundit.com/2012/06/legal-issues-in-beer-brewing/

 

Bjornstad, J. (2011).  Beer Industry.  http://www.slideshare.net/cadeler/beer-industry. 

Boston Beer Company, The., (2013).  Investor Relations Center.      http://www.bostonbeer.com/

            phoenix.zhtml?c=69432&p=irol-newsArticle&ID=   1073494&highlight 

 

Brewers Association, (2013).  A Passionate Voice for Craft Brewers Facts Page.              http://www.brewersassociation.org/pages/business-tools/craft-brewing-statistics/facts 

 

Coulter, M., (1987).  The step-by-step approach to planning, building and running a small             brewery is the only way to fly.  http://www.cemcorp.com/articles/brewery1.htm 

 

Covino, R. M., (2009).  Beer Business as Usual?  Convenience Store News, Vol. 45 Issue             1, p47-48. 2p.   

 

Craft Brew Alliance, (2012).  Craft Brew Alliance Issues 2013 Financial Outlook and        2012    Preliminary Results.  http://craftbrew.com/2013/01/31/craft-brew-alliance-          issues-2013-    financial-outlook-and-2012-preliminary-results/

 

Davila, F. and Perez, E. (1995).  Industry Is Booming As Microbreweries Expand, Issue Stock.       Seattle Times.  http://community.seattletimes.nwsource.com/archive/?date=

            19951106&slug=2150971

 

Galitsky, C. (2003).  Energy Efficiency Improvement and Cost Saving Opportunities for     Breweries.  Sponsored by the U.S. Environmental Protection Agency

 

Isaacs, N. (2001).  Operation in the SAB Rosslyn Brewhouse.  Rosslyn Brewery, Pretoria. 

 

Iwasaki, N.; Tremblay, C.H.; and  Tremblay, V. J. (2005).  The Dynamics of Industry         Concentration for U.S. Micro and Macro Brewers.  Department of Economics, Oregon       State University. 

 

Keat, Paul G. and Philip L.Y. Young, Managerial Economics: Economic Tools for Today’s           Decision Makers, 6^th Ed.  New York: Prentice Hall, 2009.

 

Lapoint, K. (2012).  Microbrewing in the US: An overview of the microbrewery industry and a      business plan for future success.  University of New Hampshire - Main Campus. 

 

Mignon, D and J. Hermia. (1995). Retrofitting and New Design of the Brewhouses of an     Industrial Brewery. Monatsschrift Fur Brauwissenschaft 48(5-6): pp. 178-183. 

 

Morgan, J. (2013).  BSG President Ian Ward talks rebranding, supplying the craft beer       industry.  http://www.craftbrewingbusiness.com/ingredients-supplies/bsg-       president-ian-  ward-talks-rebranding-supplying-craft-beer-industry/

 

National Beer Wholesalers Association, (2011).  What is a Beer Distributor?.          www.nbwa.org/about/what-is-a-beer-distributor

 

Olajire, A. (2012).  Journal of Cleaner Production.  www.elsever.com/locate/jciepro

 

Orchestra, (2012).  Managing Growth in a Brewery.  Is Your Brewery Growing?              http://www.orchestrateam.com/blogs/managing-growth-brewery

 

Orgolini, J. (2011).  The Sustainable Craft Brewery of the Future.  The New Brewer           March/April 2011.  www.brewersassociation.org

 

Reimer, Miriam, (2010).  Anheuser-Busch Takeover Target: Craft Brewers Alliance?              http://www.thestreet.com/story/10836829/3/anheuser-busch-takeover-target-craft- brewers-alliance.html

 

Sekar, S. (2009).  The Global Brewery Industry.  http://www.slideshare.net/sobithan/the-global-    brewery-industry2

 

Simate, G.S., (2011).  The Treatment of Brewery Wastewater for Reuse:  State of the Art.  Desalination 273, 235-247   

 

Street, M and Street, V. (2010).  Taking Sides: Clashing Views in Management, Third Edition.

 

Thornton, G. (2011).  Food & Beverage Industry Snapshot.  Grant Thornton Corporate Finance    LLC.

 

http://daniel-j-stone.blogspot.com (C) 2009-13

6 Kinds of Facebook Statuses To Ignore

Do you have Facebook envy?

When you’re trying to get out of debt, Facebook can be one of your greatest enemies.
You’ve trimmed your budget to bare bones, eating rice and beans and working three jobs. All you do is work, eat and sleep.
When you have a spare 10 seconds in between bites of your tuna salad sandwich, you might hop on Facebook and see what your virtual friends are up to.
Usually, that’s a bad idea.
Why? Because you’re setting yourself up for a mean case of Facebook envy. Have posts like the following ever annoyed you while you’re trying to get out of debt?

The vacation photos

Your friends Jim and Jane went on vacation last week. You know that because Jim posted 47 photos each day during their eight-day vacation, and you’ve pretty much had your fill of beach sunset photos for one week. And how many photo angles can you really take of the same palm tree?

 

The fancy plates of food

While on vacation, Jim and Jane often post about their fine-dining experiences. The yellowtail sushi looks marvelous, as does the prime cut of filet mignon, and the 14 other entrees that you can’t even pronounce. Jim and Jane do love some pricey food.

The events

Wouldn’t you know it? Jim and Jane just love to go out. Last week, it was the Elton John concert. This week, it’s front-row seats to the symphony. And next week, it will probably be an NFL game. Do Jim and Jane even have a home, or are they social nomads who jump around from social event to social event every night?

The check-ins

Jim and Jane are the king and queen of social media. So when they go to these popular events, they’ll be sure to let you know about it. Not only do they “check in” at places like the Ritz Carlton Paris, but they’ll add a fun little comment: “10 days at the Ritz Carlton Paris! We’re in paradise!”

The clothes

Jim and Jane are both in their 40s. So it’s a little odd when they take “selfies” of themselves posing in designer clothes. It’s even more odd that Jane’s photos seem to be taken in a department store’s fitting room. Is Jane really buying that dress, or is she just showing off for social media?  That’s a little strange.

The group shots

You’re in the same social circle as Jim and Jane. But apparently, everyone else in your circle is either out of debt or living a lavish lifestyle thanks to Mastercard. You saw that group photo at dinner a few nights ago. Everyone had big smiles and seemed to be having so much fun, but you couldn’t go because, well, you would spend your entire week’s food budget at that one restaurant.
So what’s our point?
We’re not bashing people who might “show off” on Facebook. After all, those people might be out of debt and able to fully afford all of it.
The point is to not let envy get in the way of your financial goals.
You have two options. You can either let those posts inspire you and remind you that, one day, you too can check in at the Ritz Carlton Paris. Or you can stop spending so much time on Facebook and letting your Facebook “friends” get in the way of your journey to financial peace.
If you go green with envy every time you log on to Facebook, then it might be time to take a break.
Do you have a case of Facebook envy? Tell us your tips for overcoming this in the comments!

http://daniel-j-stone.blogspot.com (C) 2009-13

Dave Ramsey's Baby Steps

Baby Step 1

$1,000 Emergency Fund

Baby Step 2

Pay off all debt using the Debt Snowball

Baby Step 3

3 to 6 months of expenses in savings

Baby Step 4

Invest 15% of household income into Roth IRAs and pre-tax retirement

Baby Step 5

College funding for children

Baby Step 6

Pay off your house early

Baby Step 7

Build wealth and give!

 

http://daniel-j-stone.blogspot.com (C) 2009-13

5 Habits to Pick Up

Paving the way to a wealth-building life

Jul 31, 2013 | WRITTEN BY CHRIS RUSSELL

Wealthy people can usually point to discipline as key to building their wealth.
If you have self-control and a sense of direction in life, good things will follow (and after a while, follow in spades). Here are some habits that can help you get where you want to go with your life and money.
Be an early riser. The old saying goes, “Early to bed and early to rise makes a person healthy, wealthy and wise.” When you get up early (say, 6 a.m. for a nine-to-five job), your day starts early. You have time to get in a workout, read a book, or focus on some self-improvement goal. Besides, getting up late can actually slow your metabolism down and make you feel sluggish.
Keep lists. Even a simple, daily “to-do” list can help because it gives you something to focus on. If you know that you have one checklist and one day to get everything on it done, it keeps you motivated to knock things out.
Count your calories. Throw a rock out the window and you’ll most likely hit someone who will say they could stand to lose a few pounds. It’s a common problem in America, and if you want to shed weight, start taking steps to cut out late-night snacks, and maybe even exercise. There are all kinds of apps you can download which can help with the process.
While at work, do some work. Some people think that going to work literally means they have done their job by showing up and sitting at their desks. If all you do at your job is check Facebook or stats on last night’s game, you won’t find yourself in line for a promotion anytime soon. Prove your value to the company and they will reward you.
Stick to your budget. This one may seem like the most obvious, but it deserves some emphasis. When you decide what to spend and save before the month begins, and then stick to those numbers, you will mathematically come out ahead. The longer you do it, the bigger your numbers will be.
The underlying themes here are discipline and diligence. When you are intentional in your pursuits and work toward your goals consistently and over time, they produce results. Also, when you are disciplined in one area (such as weight loss), that pattern of discipline can spill over into other areas of life. It’s a good kind of contagious.
Getting up early or watching what you eat are not behaviors that will make you wealthy in and of themselves, but by showing that discipline, they can pave the way for you to win in your life.
Having money will almost invariably follow the person who is disciplined and works hard.
Source: Yahoo!

http://daniel-j-stone.blogspot.com (C) 2009-13

Japanese, U.S. leaders hopeful about future led by next generation

Careers May. 31, 2013 - 06:43AM JST ( 1 )

TOKYO —

Top business executives, government officials and non-profit leaders convened this week at the U.S.-Japan Council Japan Symposium focused on investing in the next generation of leaders from Japan and the United States.

The symposium organizer, the U.S.-Japan Council, defines the next generation as students, entry-level business employees, young politicians, mid-career professionals, entrepreneurs and non-profit leaders who will strengthen and diversify U.S.-Japan relations in the future.

Fast Retailing Chairman, President & CEO Tadashi Yanai described his optimism about Japan’s ability to become more global in the future and the resulting need for Japan’s next leaders to be global citizens. Fast Retailing’s UNIQLO brand is well recognized throughout Asia and is rapidly expanding across the United States and other regions around the world. In his keynote remarks, Yanai provided the following advice for emerging Japanese leaders.

“The future of Japan relies on the young people of today. Fast Retailing intends to empower young people to look forward, develop an international mindset, absorb foreign cultures, and face the challenge to take on the world. At the same time, it is essential that the United States and Japan continue to cooperate and build on the lessons we have learned from each other, to contribute to prosperity and peace in the very important Asia-Pacific region.”

Fast Retailing is a strong supporter of the TOMODACHI Initiative, a public-private partnership between the U.S.-Japan Council and U.S. Embassy in Tokyo. TOMODACHI was born out of support for Japan’s recovery from the Great East Japan Earthquake and invests in the next generation of Japanese and American leaders through educational and cultural exchanges as well as entrepreneurship and leadership programs. The TOMODACHI-UNIQLO Fellowship Program, first announced in October last year, supports the education of Japan’s next generation of business and fashion leaders.

Salesforce.com Chairman & CEO Marc Benioff joined Yanai as a keynote speaker. Salesforce.com is a leader in enterprise cloud computing and has been recognized twice by Forbes as the “Most Innovative Company in the World.”

Benioff emphasized the role of entrepreneurship in ensuring a strong future for Japan and the United States. “Japan – like many advanced economies – is in the midst of a trust revolution. Young entrepreneurs, as well as many established firms and public institutions, are embracing open communication, connecting with their stakeholders, and building a new Japan based on transparency and trust. Salesforce.com is committed to upholding this spirit of openness and trust, and further deepening ties between Japan and the United States.”

The symposium also featured a special tribute to the late Senator Daniel K Inouye, who helped envision the U.S.-Japan Council. Mitsubishi Corporation Chairman Yorihiko Kojima and U.S. Congresswoman Colleen Hanabusa (D-Hawaii) spoke about his remarkable life and commitment to strengthening U.S.-Japan relations.

A panel discussion featuring Masaakira James Kondo, Managing Director - East Asia, Twitter Inc; Tomoko Namba, Founder and Director, DeNA Co and Brian Salsberg, Partner, McKinsey & Company, Japan Inc, examined the roles diversity and risk-taking play in shaping the next generation as well as how young people in Japan are utilizing new media to gain access to opportunities.

U.S. Ambassador to Japan John Roos and Mitsubishi UFJ Financial Inc Deputy President Masaaki Tanaka also spoke at the event, held at Roppongi Academy Hills in Tokyo.

About 500 people attended the symposium, which was sponsored by Mitsubishi UFJ Financial Group, Fast Retailing, the Japan Foundation Center for Global Partnership, PricewaterhouseCoopers, LLP, American Airlines, Hitachi, Ltd., Mitsubishi Corporation and other corporate and individual sponsors.

http://daniel-j-stone.blogspot.com (C) 2009-13