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Deutsche Brauerei brewing company was founded back in 1737 by Gustav Schweitzer and currently produces two varieties of beer, dark and light.
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Deutsche Brauerei brewing company was founded back in 1737 by Gustav Schweitzer and currently produces two varieties of beer, dark and light. Since the brewing company was originally family owned and family operated, the equity is all privately held stock which is distributed between 16 members of the Schweitzer family. Lukas Schweitzer asked his niece, Greta Schweitzer, to join the board of directors because of her financial expertise. Lukas, the managing director of the firm, is seeking advice to prepare an agenda for the directors meeting in January. This case analysis addresses three main questions concerning the Deutsche Brauerei Company. The three questions that relate to approving the 2001 financial budget are declaring a quarterly dividend; and determining a reasonable compensation plan for Oleg Pinchuk, the company's sales-and-marketing manager. First let us look at the projections of the financial budget for 2001. Net sales have nearly doubled since 1997,...
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