This is a structured profitability case requiring candidates to balance revenue opportunities against cost optimization through production network rationalization. The case progresses from basic variable cost analysis (China brewery vs. UK production) to identifying fixed cost savings through facility consolidation, ultimately requiring candidates to integrate both quantitative calculations and qualitative risk assessment.
Your client, Salford Breweries, is a medium sized brewer who has recently experienced sales growth in the Chinese market. While this is excellent news, Salford Breweries is facing difficulty growing in a profitable manner.
The CEO of Salford Breweries has been instructed by the board to improve the company’s net profit by 10% in 2019. She has asked for your help in achieving this target.