The Ale&Lager Brewing Company

Case Study Report

The Ale & Larger Brewing Company

November 2nd, 2012

INTERNAL MEMO

Date: November 2nd, 2012

To: Board of Directors

From: Marc Bouchard, CMA Consulting Group

Re: The Ale & Larger Brewing Company (ALBC) financial situation

The enclosed report discusses ALBC present situation and analyze Marketing’s proposal to increase its market share in the brewery industry,

We thank you for the opportunity to assist ALBC and to contribute to its success.

Sincerely,

Marc Bouchard, CMA Consulting Group

TABLE OF CONTENTS

EXECUTIVE SUMMARY 5

INTRODUCTION 6

SITUATIONAL ANALYSIS 6

1 MISSION AND VISION STATEMENTS 6

2 EXTERNAL ANALYSIS 6

a. Opportunities: 6

b. Threats: 7

3 INTERNAL ANALYSIS 7

a. Corporate Strategy and Goals 7

b. Stakeholder preferences 7

c. Strengths: 8

d. Weaknesses: 9

4 CURRENT FINANCIAL PERFORMANCE 9

MANDATE 12

PROBLEM STATEMENT 12

IBL PROJECT AS STRATEGIC ALTERNATIVE FOR ALBC 13

1 IBL Project 13

2 EVALUATION CRITERIA 13

3 ANALYSIS OF STRATEGIC ALTERNATIVE 14

a. Statistical data provided by the Marketing department 14

b. IBL Project Analysis 15

STRATEGIC RECOMMENDATIONS 18

1 RECOMMENDATIONS 18

2 COMMENTS ON FINANCIAL ANALYSIS OF THE IBL PROPOSAL PREPARED BY FRED, VP FINANCE 18

3 ANALYSIS OF THE PERFORMANCE EVALUATION SYSTEM 20

4 OTHER LONG TERM INITIATIVES 21

IMPLEMENTATION PLAN 21

FINANCIAL FORECAST 23

CONCLUSION 25

EXHIBITS 26

EXHIBIT I: SWOT ANALYSIS 26

EXHIBIT II: ALBC’S FIVE-YEAR FINANCIAL HISTORY (REVISED ROI) 27

EXHIBIT III: STATISTICAL REVIEW OF MARKETING DATA 28

EXHIBIT IV: NPV & IRR - LOW LEVEL OF POPULARITY 29

EXHIBIT V: NPV & IRR- AVERAGE LEVEL OF POPULARITY 30

EXHIBIT VI: NPV & IRR- HIGH LEVEL OF POPULARITY 31

EXHIBIT VII: CASH PAYBACK – LOW – AVERAGE - HIGH LEVELS OF POPULARITY 32

EXHIBIT VIII: PRO-FORMA FINANCIAL STATEMENTS AND RATIOS. 33

EXHIBIT IX: IMPLEMENTATION PLAN 34

EXECUTIVE SUMMARY

The Ale & Larger Brewing Company (ALBC)...