Page 10 - AB INBEV 2018 Model Answer 2

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Those that are willing to rejoin within the next 90 days should be considered to have served an
unbroken service, for the purpose of determining their longevity in the company!

th
4 Priority: Competitor Activity (In China)

This issue is strategic threat in our SWOT. Heineken, by acquiring 40% of China Resources, has finally
developed the strategic distribution capability to challenge our market share in China -at a time we
have excess capacity –following the construction of our largest brewery facility in that country. To

respond, we need to strengthen our own distribution channels by evaluating the performance of
four city depots, across 3 Key Performance Areas (KPAs): 1) Financial performance; 2)
Competitiveness; and 3) Quality, Flexibility & Resource Utilisation.

A KPA analysis of points gained (1) or forfeited (0) for the 12 months ending 30/09/2018 for each city
depot has been performed for your attention as below:
Dengzhou Langfang Menzhi Rongcheng
Financial performance:
 Depot profitability 1 0 1 0
 Depot liquidity –average debtor days 0 1 1 0
 Depot liquidity –debtors in excess of 60 days 1 1 1 1
Points gained on financial performance (A) 2 2 3 1
Competitiveness:
 Depot revenues 0 1 1 1
 Depot market share - - - -
Points gained on competitiveness (B) 0 1 1 1
Quality, Flexibility and Resource Utilisation
 Late collection of goods (drinks) 1 0 1 0
 Misdirected goods (drinks) 0 1 1 0
 Delayed response to (supermarket) complaints 1 1 1 0
 Delays due to delivery truck breakdowns 0 0 1 0
 Lost items (collected returns being misplaced) 1 1 1 0
 Damaged items (breakages) 1 0 1 1
 Invoice queries (% of total) 1 1 1 1
 Credit notes (% of revenues) 1 1 1 0
Points gained on Quality, Flexibility and Resource Utilisation 6 5 8 2
TOTAL POINTS GAINED 8 8 12 4

Summary Rankings:
Dengzhou Langfang Mengzhi Rongcheng
nd
nd
rd
Financial performance 2 2 1st 3
st
st
st
nd
Competitiveness 2 1 1 1
rd
st
Quality, Flexibility and Resource Utilisation 2 3 1 4
th
nd
TOTAL POINTS GAINED 8 8 12 4
Overall RANKING 3 2 1 4

Developed by The CharterQuest Institute for 'The CFO Case Study Competition 2018'
www.charterquest.co.za | Email: thecfo@charterquest.co.za