UNIVERSIDAD AUTÓNOMA DE NUEVO LEÓN

FACULTAD DE CONTADURÍA PÚBLICA Y ADMINISTRACIÓN

International Business 430

ORGANIZATIONAL DEVELOPMENT

PIA PROJECT
EGYPTUS BEER COMPANY

Professor: MARÍA FERNANDA CAVADA MALDONADO

Class 5Bi

Team #1

Arreola Pérez, Diego Alfonso 1967591

Cruz Navarro, Rubí Kastheny 1901861
Mendoza Cobos, Luis Fernando 1903318
Ortíz Patiño, Ángel Yarek 1962978
Serna Cepeda, Mauricio Alejandro 1900178

May 19th 2023

Monterrey, Nuevo León, México

Introduction
In this research paper, we will talk about the applied areas of organizational
development such as performance appraisal and organizational satisfaction. So on, we
will show the information of the company, including values, mission, vision, history, and
products/services. Also, we will explain the problems detected and mention the
methodology used to embrace the process of the investigation.

Nevertheless, related to the concepts learned in the course, we will propose a solution
for the problem detected fully based on the knowledge acquired during this course.

Hand in hand with it, organizational development refers to the planned and continuous
efforts taken by companies to enhance their systems, structures, and processes, and
optimize their human resources to achieve long-term success.

Furthermore, this project is important for our future professional lives because
understanding and embracing organizational development principles can position
professionals for success and provide a solid foundation for navigating the complexities
of international business environments.

Objective of the research paper

Our main objective is to focus on the study areas of Performance Appraisal and
Organizational Satisfaction, which are related to Organizational Development.

We think this will be helpful for the company to evaluate the quality of the beer produced
by the employee, ensuring that it meets company standards and customer
requirements, and evaluating the efficiency of the employee in the different production
processes, such as equipment management, ingredient inventory control, time
management and waste reduction. Also, to assess the employee's knowledge and
understanding of brewing processes, including ingredient handling, fermentation
techniques, quality control, and technical problem solving and to evaluate the
employee's ability to show initiative, propose improvements in production processes,
solve problems creatively and contribute innovative ideas.

Information of the company

Company: Egyptus Beer

History of the company

Egyptus Beer is a Mexican craft beer brand belonging to
Padron’s Brewery Company, in addition to being a family
business and classified as a micro company. The project officially
began on November 15th, 2020, but not before starting as a
dream, but the brand officially was registered at the beginning of
2021.

On the other hand, Egyptus aims at customer satisfaction using the best German and
Dutch malts, some of which are award-winning. Because it just started a short time ago,
for now it is a small business.

Why an Egyptian logo? Well, although people usually visualize beer as originally from
Europe, beer is of ancestral origin. The first signs are in Egypt. The Egyptians made an
alcoholic drink by fermenting wheat and other grains. It was after the Roman boom that
this novel invention reached Belgium and Germany.

Vision
Egyptus beer is a quality artisan product, which seeks to position itself using the best
German and Dutch malts, which will provide the consumer with a first-class experience,
tasting exquisite and strong flavors.

Mission
As a company, it seeks to satisfy the consumer's palate together with the need in social
groups in general to have their favorite cane at hand, in order to have a more pleasant
and friendly coexistence, creating a union between people who enjoy to taste a strong
and concentrated beer with exquisite flavors.

Values
Egyptus is known for representing a high value in the nation's artisan product, where it
seeks to create a concept that is related to Mexico when anyone consumes this
product. For this to be achieved, it is very important to use the following values:

➢ Warmth: this concept has the main significance of creating a product that has a
high quality both in its process and in its final unit. This means that quality must
reach a high level of perfection in our value chain, which represents that high
fundamental value for our clients.
➢ Efficiency: the meaning of this point is strongly related to the previous value,
since this practice must be done constantly using a method that allows creating
good practice foundations within the organization.
➢ Effectiveness: our products must have the characteristic of being fast in delivery
so that, in this way, our clients can generate good references and thus our name
can be more widely recognized within the industry.
➢ Overcoming: This method must be used and integrated towards our employees,
who must always seek to perform an efficient and perfect job. For this, it will be
necessary to offer job opportunities that allow them to grow within the same
company.
➢ Confidence: This last but not least important value has to be the great base of
our entire industrial process since through this same concept, we will be able to
provide that security to our clients regarding the natural resources that are used
in the process where they are also demonstrating the sustainable side of our
company.

Products or services of the company

The styles of beer that it handles so far are the following: American Amber Ale, a malty
beer, amber in color with a touch of sweet and slightly bitter hops and 5.4% alcohol.
Blonde Ale, malty beer with 4.7% alcohol, with a slight citrus touch. The Irish Red Ale,
red color, bitter and hoppy taste, dry and with a touch of Irish moss and 5.0% alcohol.
And finally, Russian Imperial Stout, a powerful jewel of 9.0% alcohol, malty and with a
touch of chocolate and roasted coffee, with a lot of body and foam.

Although it is worth mentioning that the market to which this product is aimed is
selective young people (of legal age), and adults who wish to taste natural flavors of
craft beer.

Problem/situation detected of the company related to a specific topic of

organizational development
The main problem the company faces is the competition in the market and how to
satisfy the production required due to its expansion in the market. Egyptus Beer is still a
small company, but they want to expand into the craft beer market. For this reason, we
have carried out the investigation of a study that opens the panorama about it and thus,
later, we can carry out strategies that help us to improve the organizational development
of this company.

First of all, it is important to know that craft beer production is booming in Mexico. The
current consumer trend in this market niche is the search for and consumption of
gourmet products made by hand. The social responsibility of artisan companies leads
them to create products considering market trends: status, health and consumption of
the natural. Due to their quality and the inputs used, these products are more expensive
and more expensive than industrial products, such as Heineken and InBev, who are the
country's largest competitors.

Also, about 40% of beer drinkers are also craft beer drinkers, which represents about
15% of the general population. Of these, although women have joined the segment
later, they have done so with greater intensity, which is why they now represent 41%.
Furthermore, the entry of craft products has made it possible to attract a public that until
now was not a regular consumer of beer. For 69% of those surveyed, flavor is the main
motivation when choosing a craft beer, followed by quality (49%) and naturalness
(43%). Qualities such as small production (35%) or local links (26%) have ceased to
have weight and are no longer as decisive a factor as they were a few years ago.

Due to its more complex organoleptic properties, its different styles and its intensity,
craft beer has managed to reach a more adult audience. The proportion of consumers
among consumers of conventional beer reaches 38%, representing 15% of the total
population, concentrated in the age segment between 25 and 44 years (62%), a trend
that is also reflected in the type of consumption, much more leisurely, associated with
tasting, quality moments with friends and a more mature way of drinking.

Nevertheless, according to a study, the typical consumer is mostly male (59%), although
with a high female percentage (41%). Women have discovered craft beer later, but they
enter it more intensely, attracted by variety, discovery and new styles: 31% of the
women surveyed state that they drink this type of beer at least once a week, compared
to 19% of men.

By age, there are also two main profiles: those who are new to the craft world and who
choose craft beer as an alternative plan —from 25 to 34 years old—, and those who
decide that it is a drink that is more suited to their moment. vital and with the quality they
are looking for, generally between 35 and 44 years of age.

By volume, three quarters of craft beer is drunk during the weekend and six out of ten
outside the home and, although dinner or pre-dinner is the favorite throughout the week,
from Friday to Sunday they emerge with more craft occasions throughout the day. In
fact, up to 45% of consumers choose it, for example, as the best option at lunch.

Regarding the place of consumption, although it is mainly consumed in bars and

breweries, named by more than 60%, modern premises and restaurants represent a
new alternative for up to 50%, followed by restaurants (31%), specialized stores (28%)
or pubs (21%).

This is related to this learning unit, because the organizational development process
has as its main objective to achieve the greatest effectiveness of the company as a
whole, not only in a particular area or task.

Another issue detected is performance appraisal because this concept, in a craft beer
company, plays a crucial role in assessing and evaluating the performance and
contributions of employees. Craft beer companies are often characterized by a passion
for quality, innovation, and creativity. Therefore, performance appraisal processes in
such companies should reflect these values while considering specific industry
requirements.

Finally, the other problem is organizational satisfaction which refers to the level of
contentment and fulfillment that employees experience within the organization. Craft
beer companies often have a distinct culture and work environment that can influence
employee satisfaction.

Methodology of the investigation

Talking about the process carried out during the investigation, we chose this company
for our PIA because many of us would start with small businesses, and this being it, it
helps us to think about how to carry it out effectively, since we will not start with a large
company, but a small business. that we must learn to expand and make it grow.

Furthermore, we think this is more a qualitative investigation because it is based on the

impact of the product due to its taste and quality. Nevertheless, it involves quantitative
data because we base it on statistics and studies about it.

So on, the information was gathered from an interview done to one member of the
team, who works in the company as co-owner.
Improvement proposal to the organization
Related to the concepts learned in the course, we will propose solutions for the
problems detected. First of all, about performance appraisal, we think that Egyptus Beer
should do the following:

1. Establishing Clear Objectives: They should set clear objectives and performance
expectations for each employee, aligned with the company's vision, mission, and
values. This includes defining key performance indicators (KPIs) and goals that
employees are expected to achieve.

2. Regular Feedback and Coaching: Ongoing feedback and coaching are vital in a
craft beer company to foster employee growth and development. Managers and
supervisors should provide constructive feedback, acknowledging strengths and
identifying areas for improvement. They can offer guidance, mentorship, and support to
help employees enhance their skills and knowledge.

3. Evaluating Beer Quality: In a craft beer company, quality is of utmost importance.

Performance appraisal may include assessing an employee's ability to brew or
contribute to the production of high-quality beers. This evaluation could involve sensory
tests, blind tastings, and analyzing beer characteristics such as flavor, aroma,
appearance, and consistency.

4. Collaborative Performance Discussions: Performance appraisal discussions

should be two-way conversations between the employee and the evaluator. Employees
should be given the opportunity to share their achievements, challenges, and goals.
These discussions can help identify training needs, career aspirations, and
opportunities for cross-functional collaboration.

5. Emphasizing Innovation and Creativity: A company like Egyptus Beer and any
other craft beer company thrive on innovation and creativity. Performance appraisal
should assess an employee's ability to contribute fresh ideas, develop new beer
recipes, and drive product innovation. Evaluations might focus on an employee's
involvement in new beer releases, successful experiments, or unique brewing
techniques.

6. Recognizing Teamwork and Collaboration: Craft beer production often involves a

collaborative environment where teamwork is essential. Performance appraisal should
acknowledge employees' ability to work effectively in teams, communicate with
colleagues, and contribute to a positive work culture. Collaborative achievements and
successful cross-functional projects can be considered during evaluations.

7. Supporting Employee Growth: They should provide opportunities for employee

growth and development. Performance appraisal can help identify training needs and
career aspirations. This may include supporting employees in attending beer-related
workshops, certifications, or industry conferences to enhance their skills and
knowledge.

8. Performance-Based Incentives: To motivate and reward exceptional performance,

they must consider implementing performance-based incentives. This can include
bonuses, profit-sharing programs, or recognition programs that highlight outstanding
achievements and contributions.

9. Continuous Improvement: Performance appraisal should not be a one-time event

but rather an ongoing process. Regular check-ins, progress reviews, and follow-ups are
important to track performance over time. Feedback from performance appraisals can
be used to improve processes, identify training gaps, and refine performance
management strategies.

Oh the other hand, about the organizational satisfaction problem, we identified some
key factors that contribute to it and may help to solve the issues:
1. Passion for Craft Beer: Craft beer companies are typically founded by individuals
with a deep passion for brewing and beer culture. This shared passion often permeates
the organization and creates a sense of purpose and enthusiasm among employees.
When employees are genuinely passionate about the product they work on, it can
significantly contribute to their organizational satisfaction.

2. Engaging Work Environment: Craft beer companies often foster a dynamic and
engaging work environment. These companies encourage creativity, innovation, and
experimentation, allowing employees to explore new flavors, recipes, and brewing
techniques. The opportunity to work on diverse projects and be part of the creative
process can enhance job satisfaction and employee engagement.

3. Collaborative Culture: Collaboration is key in craft beer companies as they

emphasize teamwork and a sense of community. Employees often work closely with
brewers, marketers, sales teams, and other stakeholders to bring a beer from concept
to the market. A collaborative culture fosters a sense of belonging, encourages idea
sharing, and creates a supportive work environment, leading to increased job
satisfaction.

4. Recognition and Appreciation: Recognizing and appreciating employees'

contributions is essential for fostering organizational satisfaction. They can implement
recognition programs, such as employee of the month or peer-to-peer recognition, to
acknowledge outstanding performance, innovative ideas, or successful beer releases.
Regular feedback, appreciation, and rewards help employees feel valued and
motivated.

5. Opportunities for Growth and Development: Employees in craft beer companies

often seek opportunities for growth and learning. This can provide avenues for
professional development, such as beer-related certifications, workshops, or training
programs. By investing in employees' skill development and career advancement, craft
beer companies demonstrate their commitment to employee growth and contribute to
organizational satisfaction.

6. Work-Life Balance: Maintaining a healthy work-life balance is crucial for employee

satisfaction in any organization, including craft beer companies. While the brewing
industry can be demanding, companies can implement policies and practices that
promote work-life balance, such as flexible work arrangements, employee wellness
programs, and vacation policies that allow employees to recharge and maintain a
fulfilling personal life.

7. Competitive Compensation and Benefits: Egyptus beer should offer competitive

compensation and benefits packages to attract and retain top talent. This includes fair
salaries, performance-based incentives, health insurance, retirement plans, and other
perks. When employees feel fairly compensated and receive benefits that support their
well-being, it contributes to their overall satisfaction.

8. Open Communication and Transparency: Transparent communication channels

are vital for fostering trust and satisfaction within the organization. They should
encourage open communication, where employees feel comfortable sharing their
thoughts, ideas, and concerns. Regular team meetings, company-wide updates, and
accessible leadership contribute to a culture of transparency, leading to higher levels of
satisfaction.

9. Ethical and Sustainable Practices: Craft beer enthusiasts often value sustainability
and ethical business practices. A company that prioritizes sustainability, environmental
responsibility, and social consciousness can enhance employee satisfaction.
Employees feel proud to work for an organization that aligns with their values and
contributes positively to the community and the environment.

Furthermore, Egyptus' main strategy to positionate the company is to form strategic

alliances. In order to expand the market, increase visibility and reach more customers,
finding those key contacts is essential. Create synergies, pool resources and generate
that win to win. The trends advocate a more flexible way of doing business, where
specific collaborations, adaptability and flexibility are gaining ground. For this reason,
the strategic alliance is an option widely used by companies.

An alliance can go from carrying out a non-monetary exchange (offering the service in
exchange for another), to sharing workspaces or appearing as a specialist with another
professional or SME. In this case, the Egyptus brewery distributes to points of sale such
as pubs, restaurants, bars, and specialized stores.

In addition to this, the company must consider the challenges of the competitive
environment and the use of administrative knowledge to manage the business well, as
this will help increase production. In fact, the target market is really people who like to
taste a beer and feel one by one the exquisite smells and flavors that make it up.

This corporate strategy refers to achieving a competitive advantage or a differential

value compared to other organizations, in this case applied to the craft beer market, the
quality and exclusivity of the product, although mainly its flavor, is the main differentiator
that positions the company. alongside other major competitors, and will also be what
leads consumers to choose.

Conclusions
Overall, performance appraisal in a craft beer company should align with the industry's
unique characteristics while emphasizing quality, innovation, teamwork, and employee
growth. By effectively evaluating performance and providing constructive feedback, craft
beer companies can drive continuous improvement and maintain their competitive edge
in the market.

If Egyptus beer prioritizes organizational satisfaction, it will create a positive work

culture, attract top talent, and foster employee loyalty. By cultivating a passionate,
engaging, and supportive work environment, these companies can retain talented
employees and maintain a competitive edge in the craft beer industry.

Arreola Pérez, Diego Alfonso

To conclude, organizational development is crucial in a craft beer company such as
Egyptus because it helps cultivate a culture of continuous improvement, innovation, and
adaptability. By focusing on enhancing organizational capabilities, such as refining
brewing techniques, streamlining operations, and fostering employee growth, craft beer
companies can stay competitive in a rapidly evolving market.

Cruz Navarro, Rubí Kastheny

In conclusion, I think that investing in organizational development in a craft beer
company like Egyptus leads to improved employee engagement and satisfaction. By
providing opportunities for learning, career advancement, and recognizing employee
contributions, companies can create a work environment where employees feel valued,
motivated, and inspired to contribute their best to the organization's success.

Mendoza Cobos, Luis Fernando

To conclude, organizational development plays a pivotal role in maintaining and
enhancing product quality in a craft beer company. Through process optimization,
quality control measures, and continuous training, companies can ensure consistent
delivery of high-quality craft beers that meet customer expectations. This focus on
quality helps build a strong reputation and customer loyalty.

Ortíz Patiño, Ángel Yarek

As a conclusion, we want Egypus Beer to prioritize organizational development and be
better equipped to adapt to market trends and consumer preferences. By staying
attuned to industry changes, conducting market research, and fostering a culture of
innovation, these companies can develop new beer styles, flavors, and offerings that
resonate with customers, driving business growth and success.
Serna Cepeda, Mauricio Alejandro
In conclusion, the effective organizational development strategies in Egyptus Beer
company promotes collaboration, teamwork, and knowledge sharing. By encouraging
cross-functional collaboration, companies can leverage the diverse skills and expertise
of their employees to solve complex challenges, drive creativity, and foster a sense of
camaraderie within the organization.

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