Assignment Workload:

This assignment is an individual assignment.

Case Study

Students are supposed to read the attached Case -Penn Brewery. Based on your understanding of the case and basic concepts of Entrepreneurship.

Answer the following question:

1. Should Tom Pastorius buy Penn Brewery? Explain. (3 marks)

2. Tom Pastorius says, Im not a good employee. What does he mean? Do you think the same is true of most entrepreneurs? (4marks)

3. What challenges does selling the businesses they create pose for entrepreneurs? (4 marks)

4. If Pastorius decides to buy the brewery, what steps should he take before closing the deal? (4 marks)

The Answer must follow the outline points below:

Each answer should be within 200 to 500 range of word counts.

Reference

below you find the study case

Penn Brewery Should an entrepreneur buy back the brewery that he launched nearly a quarter-century before? Tom Pastorius and his wife Mary Beth started Pena Brewery, luxury of time- Bevides, Mary Beth had launched a retirement an authentic German microbrewery in Pittshurgh, Pennsylvania, business of her own, a company that restores historic buildings. in 1986. They built the brewery into a successful business, pro- Tom, however, could not get rid of the idea of owning Penn ducing more than 15,000 barrels a year and generating annual Brewery again. He began working clandestincly on a business sales of $3.5 million. Along the way, their microbrewery won plan pecpuring a risk-bencfit analysis. The principal risks he 14 medals at the Great American Beer Festival and built a base identified included the becwery's $1 million debe, the tamished of devoted customers for its brands, which included Penn brand mame, and the fact that he would be buying back his Pilsier, Penn Oktoberfest, and others. They also added a German- former business at age 65 . However, he was still very energetic themed restaurant that Mary Beth managed. In 2003, Tom and and had the experience necescary to turn around the foundering Mary Beth, both approaching 60 , decided to cash out and sold brewery. He was confident that he could restore the luster to the brewery to Birchmere Capital, a local private equity firm. the Penn Brewery name by returning beer production to the Tom retained 20 percent ownership and agreed to stay on as Victorian-style red brick building in which he had launched the president of the company for 5 years. He had lived up to his company years before. Affer weeks of candid discussions, Mary contract but was miserable working for the new owners, who Beth told Tom. If you want to do it, you are craxy, but keep me made many significant changes to the company's strategy. "T am oot of it." not a good employee," says Tom. "I'm a solo act." Not only did Birchmere Capital close the beewery's restau- Questions rant, but it also decided to outsource production of beer to the Lion Brewery in nearby Wilkes-Barre and close Penn's brewing operation. The moves proved to be dicastrous; once-devoted 1. Sbould Tom Pastorias buy Penn Brewery? Explain. customers departed, and sales tumbled. "It was so hard to sit 2. Tom Pastorius says, Tm not a good employee," What back and watch this place sink," says Tom, who was becoming does he mean? Do yoe think the same is true of most bored with retirement. Then Birchmere offered to sell the becw- 3. What challenges does selling the businesses they create ery back to Pastorius for a fraction of what they had paid him for pose for eatreprencurs? it a few years before. Tom was ready to buy the becwery back 4. If Pastorius decides to buy the brewery, what steps should and restore it to its former grandeur, but convincing Mary Beth he take before clowing the deal? would take some doing. She had been instrumental in its success but told Tom that she had no intention of going back to it. "It's too ricky at our age (now 65)," she says. "We don't have the