School history
Cover page
Table of contentIntroduction
Deutsche Brauerei is a German Beer Company located just outside of Munich, Germany. Founded in 1737 by Gustav Schweitzer, it remains a family owned business after 12 generations. Today it is run by GM Lukas Schweitzer, and recently welcomed Greta Schweitzer to its board of directors. The company is known for producing its award winning dark and light beers.
Deutsche Brauerei strives to take financial care of its family stockholders, many of whom are retirees of the company, and currently pays dividends worth 75% of net earnings. Total dividends were EUR2.19 million in 2000, and projected to be over EUR3.2 million by 2002.
In late 1998, Deutsche Brauerei entered the beer market in the Ukraine through a network of independent distributors. The beer was so popular in the relatively new market that 28% of the company’s sales in 2000 were from Ukrainian consumers. That number is expected to climb to 41% by the end of 2002.
Deutsche Bruereri hired Oleg Pinchuk to aggressively market their beer in the Ukraine. His salary in 2000 was a base of EUR40,000 plus EUR41,440 (0.5% * Increase in Ukrainian Sales.). His 2001 salary is expected to be in excess of EUR118,000 (EUR48,500 * 0.6% increase in sales).
The company is on the verge of reaching maximum production compacity and must expand, be it in Germany or abroad. The challenge will be how to finance these improvements
Problem statement:
Should Deutsche Brauerei continue to export to the emerging Ukrainian beer market and how will they finance a possible expansion of production capacity and distribution networks
Possible solutions
We came up with 3 different solutions that all will solve the decision Deutche Braiery need to make for its future operations. The first option for Deutsche Brauerei is to cease distribution network in the Ukraine. With this possible solution the older relative family members are kept happy with the annual 75% dividend payout from
Table of contentIntroduction
Deutsche Brauerei is a German Beer Company located just outside of Munich, Germany. Founded in 1737 by Gustav Schweitzer, it remains a family owned business after 12 generations. Today it is run by GM Lukas Schweitzer, and recently welcomed Greta Schweitzer to its board of directors. The company is known for producing its award winning dark and light beers.
Deutsche Brauerei strives to take financial care of its family stockholders, many of whom are retirees of the company, and currently pays dividends worth 75% of net earnings. Total dividends were EUR2.19 million in 2000, and projected to be over EUR3.2 million by 2002.
In late 1998, Deutsche Brauerei entered the beer market in the Ukraine through a network of independent distributors. The beer was so popular in the relatively new market that 28% of the company’s sales in 2000 were from Ukrainian consumers. That number is expected to climb to 41% by the end of 2002.
Deutsche Bruereri hired Oleg Pinchuk to aggressively market their beer in the Ukraine. His salary in 2000 was a base of EUR40,000 plus EUR41,440 (0.5% * Increase in Ukrainian Sales.). His 2001 salary is expected to be in excess of EUR118,000 (EUR48,500 * 0.6% increase in sales).
The company is on the verge of reaching maximum production compacity and must expand, be it in Germany or abroad. The challenge will be how to finance these improvements
Problem statement:
Should Deutsche Brauerei continue to export to the emerging Ukrainian beer market and how will they finance a possible expansion of production capacity and distribution networks
Possible solutions
We came up with 3 different solutions that all will solve the decision Deutche Braiery need to make for its future operations. The first option for Deutsche Brauerei is to cease distribution network in the Ukraine. With this possible solution the older relative family members are kept happy with the annual 75% dividend payout from