Lagom Kitchen + Brewery: A Quest for Survival

On the evening of September 30, 2016, the founder and chief executive officer of Lagom Kitchen + Brewery (Lagom) surveyed his newly opened microbrewery and restaurant with pride. He had put a great deal of hard work, time, and money into this venture; in the past two years, Lagom had required an investment of US$1 million. Yet the business’s Gurgaon location, within India’s Delhi National Capital Region, had failed to deliver the footfall that the founder had expected. Lagom was at the centre of an information technology corporate park where more than 10,000 employees worked, and was surrounded by many business parks and malls. However, fewer companies had moved into these spaces than anticipated, which was affecting Lagom’s sales. Should the founder alter Lagom’s product offerings or increase the price of the menu items? Should he increase the focus on corporate customers by undertaking exclusive tie-ups, or should he increase Lagom’s social marketing efforts to attract customers from nearby condominiums? Lagom’s founder had only two weeks to act before the restaurant’s financial situation became critical.

This case is best suited for MBA students in strategic management and entrepreneurship courses. It explains the impact of external environment changes on company strategy. Ideally, the case should be taught as part of a class on external environment analysis. Through this case, students will learn how to do the following:<br><ul><li>Conduct an external environment analysis, which includes political, economic, social, technological, environmental, and legal (PESTEL) factors and industry analysis (Porter’s Five Forces).</li><li>Refine business strategies when there are uncertainties associated with the external environment.</li></ul>

• External Environment analysis , Industry Analysis , Dynamic Strategy , PESTEL Analysis