Bayern Brauerei

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017

Abstract

A new director of this small brewery must prepare to vote on three issues coming before the board of directors the next day: (1) approval of the financial plan for 1993, (2) quarterly dividend declaration, and (3) incentive-compensation plan for the marketing manager. The tasks for the student are to evaluate the past and prospective financial performance of the company and to assess the extremely liberal credit and inventory terms the company is extending to its distributors. The objective of the case is to introduce and exercise tools and concepts of financial-statement analysis. Perhaps the biggest insight gained by students concerns the link between incentives and financial performance: in this case, the marketing manager is motivated to build sales volume, which he accomplishes by a dramatic buildup in receivables and inventory.

Keywords

Citation

Bruner, R. (2017), "Bayern Brauerei", Darden Business Publishing Cases. https://doi.org/10.1108/case.darden.2016.000036

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Publisher

:

University of Virginia Darden School Foundation

Copyright © 1992 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.

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