Point of View
The approach to the case will be taken from the management’s point of view, at the level of the board of directors.
Case Context
Problem Definition
What recommendations are to be made regarding the (1) approval of the 2001 financial budget, (2) declaration of the quarterly dividend and (3) adoption of a compensation scheme for Oleg Pinchuk, the company’s sales and marketing manager?
Framework for Analysis
First, initial assessment of the current situation of Deutsche Brauerei is to be made. The company’s current financial standing in the market, the reasons for its recent growth and its financial forecasts are analyzed. Then the three issues are to be analyzed for their implications, possible benefits and consequences for the business and. After the analysis, the group will make recommendations regarding the implementation of the three proposals. Alternatives to these proposals will also be suggested.
Analysis

I. Introductory Paragraph

Deutsche Brauerei has been a family owned and operated corporation for 12 generations, which has created a high level of focus and control. Each generation has kept the management and operations processes relatively simple, centered on brewing practices and quality. Deutsche Brauerei’s rapid growth in recent years can be attributed to several factors. First and foremost, the company’s success is centered on the product itself, which has won numerous quality awards and is quite popular in Germany. Another contributing factor to the recent growth may have been a bit inadvertent. The purchase of new equipment in 1994, which was necessary as a result of a fire that destroyed the old equipment, allowed the company to increase brewing capacity and efficiency. Finally, Deutsche Brauerei’s decision to enter the Ukranian market in 1998 contributed significantly to the rapid growth. The collapse of the U.S.S.R.