Brewing Resilience: A Case Study in Adapting Small Business Strategy with Systems Thinking

Abstract

This thesis explores how systems thinking—a methodology often reserved for large organizations—can be effectively applied to small businesses facing complex challenges. Using Lamplighter Brewing Co., an independent microbrewery in Cambridge, Massachusetts, as a case study, the research examines how the brewery adapted to the disruptions of the COVID-19 pandemic and the evolving economic landscape that followed. It documents the iterative application of systems thinking principles to identify root causes, leverage points, and actionable solutions to address issues such as declining revenue, rising costs, and misaligned organizational structures. Lamplighter's interventions ranged from restructuring its management and marketing teams to pivoting its sales and production strategies. By leveraging tools such as causal loop diagrams and stock-and-flow models, the brewery uncovered systemic dynamics driving its performance. The research highlights the importance of iterative learning, targeted interventions, and holistic analysis in fostering resilience and sustainability in resource-constrained environments. While focused on the craft brewing industry, the findings offer transferable insights for small businesses in similarly dynamic sectors, demonstrating that systems thinking can empower smaller organizations to navigate complexity, adapt strategically, and thrive amidst uncertainty.