Grolsch Case Memo

1. Executive summary

1. paragraph must engage their attention by stating that the memo addresses certain critical management issues with a proposed business solution that needs their consideration.

2. presents the management issues and recommendations in a few short statements using key facts to support the proposed business solution.

3. management decisions or resolving open issues need to be clearly stated.

Grolsch strategic issue ..(2-3sentences)

Recommendations:

According to the case Gorlsch’s volume and earnings growth performance shows rather average results. Grolsch’s operations generated 5% growth in net sales, 11% growth in earnings before interest and taxes (EBIT) and 52% growth in earnings per share to 47.88 Euros in 2007. Grolsch’ s earnings before interest, tax, depreciation and amortization per hectoliter is very close to Heineken, Anheuser-Busch, InBev and Molson Coors, it’s much lower than Modelo and higher than SAB Miller’s (Case Exhibit 4 and 16). However, the total hectoliter and EBITDA amount is much lower than leading competitor’s.

The management dilemma of the case…

- Local labor

- Price undercutting by supermarkets in USD and Canada

- Financial losses..

business solutions to management dilemma (issues-supporting data-possible solutions)

Scope of the problems…

CAGE Executive

South Africa ia perspective market for beer, because of beer drinking tradions for more than 40years, it has been a colony of Netherlands that might give Grolsch an advantage.Beer market in South Africa consumes more beer in whole region with total revenues of 5.7million in 2012, but it is expected that it will reach 6,2million in 2017. Also market gives opportunity expand different beer price amplitude because of different income level all over the country.

1. Performance Assessment

CRITERIA ASSESSMENT /EVIDENCE (Rate from superior +++ to poor ---

PROFITABILITY EBITDA per hectoliter

EBITDA margins

Profitability

Contribution margin...