Deutsche Brauerei Case

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Deutche Brauerei is a family run German Beer Company. It is owned entirely by 16 uncles, aunts, and cousins from the Schweitzer family. The Schweitzers are brewers, not marketers or finance people, so they have hired Oleg Pinchuk to help with the marketing aspects and Greta Schweitzer, Lukas Schweitzer’s niece, to give financial expertise. The company’s agenda includes: approval of the 2001 financial budget, declaration of the quarterly dividend, and adoption of a compensation scheme for Oleg Pinchuk. Greta also wants to study the company’s reliance on debt financing and whether or not Deutsche’s aggressive penetration of the Ukraine helped the company. Although it appears that Oleg Pinchuk has done a great job at aggressively…show more content…
We do not want to create more incentive for him to increase sales especially since is likely to continue doing it with inexperienced entrepreneurs that may continue to be late on their payments and possible hurt the company. He needs to focus on making these distributors more reliable. In conclusion, I would accept the financial plan if the changes to the dividend payout and Pinchuk’s compensation were made. It may also be wise to slightly lower the projected sales in the Ukraine since I do not recommend the expansion. It is my hope that with more focus on the distributors the company’s account receivables will decrease instead of increase. I’m also hoping that our reliance on debt will decrease and our liquidity will increase or remain the same if we decrease the speed of our

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