Ukraine’s markets

This paper contains a memorandum for Greta Shweitzer telling her to approve the 2001 budget proposed by the Oleg Pinchuk, sales and marketing manager of Deutsche Brauerei in Ukraine. Moreover, the dividend declaration in the budget of Deutsche Brauerei for 2001 for Oleg Pinchuk and other family members of the Shweitzer who served the company all over the years. And approval of the compensation plan of Pinchuk based on the different exhibit presented. To: Greta Schweitzer Managing Director Deutsche Brauerei Subject: Approval of the 2001 budget and declaring of new dividend

I am pleased to announce to you that the budget for 2001 is now approved together with the declaration of the quarterly dividend and the compensation scheme for Oleg Pinchuk, company’s sales and marketing manager. This move is based on the assessment of presented projected financial statement in the preceding years. And visible information about the progress that our company is now experiencing which is led by those individuals that are committed to give their heart in their profession and to the company they are working for.

For the past years, Deutsche Brauerei has conquered the market and increase in inflow and production has been seemingly visible. The balance sheets for the years that come and the projected income statements have proven the growth in our company. These statements which I think you have already seen increase the company’s assets, production and most important thing, our income. These boost made our company much stronger and competitive. Accordingly, expansion in Ukraine has been a successful move too. Hiring Oleg Pinchuk is one of the excellent things that the company does.

The trust given to him is worthy for he sent back good vibes and boost our confidence in investing in Ukraine. Although different approach was done as part of his marketing compared to the usual marketing approach of the company in the retailers here in Germany, Oleg Pinchuck prove himself together with his plan to be successful. His move gave us a strong hold in Ukraine circle of business. Also the budget for 2001 includes the improvement in Ukraine marketing plan, a proposal that comes from Oleg Pinchuk. The proposal is to invest in new plant and equipment to further increase our production to meet our clients need.

Furthermore, a state-of-the-art warehouse and distribution center in Ukraine. Sustainability of our improvement in Ukraine would not be possible if these plans would not be put in action. I believe based on Oleg Pinchuk’s performance for the past years that his decision is reliable and that he will not put the company in vain. However, to fund these proposals I admit that we have to have a loan of in the longstanding Hausbank which I am happy to tell you that they are eager to make business with our company. The good reputation of the company and its credibility makes this possible.

I have decided to approve the budget for I have seen that hindrance is not that huge for us to recess in the battle. I am more concern on how we can continue to prolong our company’s production and its service to the retailers and patrons. And eventually go to the flow of globalization. The ratio analyses of the past years and the projected financial statements show an increasing value which is a good sign in the company. I think it means that we are on the right track. Sources and uses of funds are also transparent. That means that we are not wasting money.

I think you have seen the break even chart that Oleg Pinchuck prepared. This chart projected that as we increase our volume above the break even volume, our profits also increase faster. The budget proposal was supported in every way with the analysis of different factors that might affect our company. In the different data presented it shows that the investment we will add in our usual budget is in the right time and it is really needed for it will expand are company and add up the profit. Moreover, as a respect to the family members of Schweitzer that serve Deutsche Brauerei I am also approving the quarterly dividend.

I think the Schweitzer family that composes the company’s stockholders deserved this approval. I am also looking forward for those stockholders that are retirees. Since the company’s profit improved, this declaration of the dividend is necessary. A generously act for those family members that allotted their time to make our company a much competitive, credible and successful Brauerei in line with the other Brewery in the country and also outside the country. As the company continues to improve its profit I think it is also time to share the blessings that our company receives.

Thus, most of the stockholders are in their retirement age they are the one who will benefit most in this act. Furthermore, the profit for the past years has been improving and I do not see anything wrong if we give something to others too. Also, we will not gain much profit in the past years without this person’s incredibly moves. We owe him a lot especially the success in the expansion in Ukraine which is an amazingly news. His bright ideas and vision in marketing and managing is superb. In line with the approval of the other agendas, I would like to inform you that the compensation plan for Oleg Pinchuk is also been approved.

This is done to send the company’s appreciation for what he has done in Ukraine. The respect that he showed to the retailers in Ukraine especially those businessmen that have great ideas with their businesses but do not have enough capital to avail or invest in our product but still trusted them gave way to a successful investment of our company in west Europe. Although he made some changes on how we deal with the retailers in Germany, for example, he used 2 percent 10, net 40, thus giving more chance to other retailers giving 2 percent 10, net 80, but as I have said earlier some of the retailers in

Ukraine does not have a capital he let them take their time even extending the 80 days deadline to 90 days deadline, still he succeeded in it. This way of communicating is not that easy and very risky for the company who is starting to establish their name in a foreign land but with the different malty taste of the beer of Deutsche Brauerei and most important the expertise and faith of Oleg Pinchuk, the company establish its name and continue to increase its production to supply in Ukraine’s markets.

This splendid happening makes me wonder that I owe Oleg Pinchuk much and that this compensation plan for him is the only way I can repay him. May this approval continue to inspire our employees to love their and give all their best to improve their skills. And I hope you will understand my stand in approving all the agendas involve in here. Thus, help improve the budget for the upcoming years. Reference

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