Deutsche Brauerei (Brewery) Company’s Expansion to Ukraine

CASE BRIEF
Name:
Institution:
Date:
Deutsche Brauerei a brewery company’s expansion to Ukraine is profitable because the subsidiary increases the company’s revenues due to increase in sales projections. These sales depend on imaginary numbers, ascertained by looking at the company’s balance sheet, especially on the estimated accounts receivables.Examining thebalance sheet and the income statement is clear that estimated sales for 2002 in Ukraine represents 41% of estimatednet sales in 2002, the estimated sales for the same year in Ukraine account for 16% of the total sales.
When Deutsche Brauerei started business in Ukraine, Oleg changed the credit system for Ukrainian distributors from net 40 to2 percent and 2 percent 10 to give clients discount. The credit system for Ukrainian distributors differed since Ukrainian entrepreneurs could not access same bank loans and capital that German distributors accessed. The credit system for Ukrainian distributors was good because they were getting new equipment, expanding their business, and given more time to pay than usual, enhancing the development of beer distribution....