Czech Republic Max Bradshaw, Diego Villasenor, Connor Mulholland, & Alex
Hacikoglu
Agenda
Country Overview
Business Climate
Risk/Opportunity Analysis
Operational Plan
Financial Considerations
Summary
Resources
Country Overview
Located in Central Europe
Czechoslovakia
Soviet Union
1993 - Czech Republic
European Union
Country Overview
Rise in Population
GDP Per Capita
Major Exporter of Beer
Democracy
Business Climate & Cultural Consideration
History of takeovers from foreign
countries
Freedom is still new to Czech people
Differences:
Social interaction
PDA
Religion
Business Climate & Cultural Consideration
Czech people utilize public
transportation
Meeting times are strict
Western culture
Heavy drinkers
Business Climate & Industry Competitive Analysis
Top Down Market Analysis
Big picture
Macroeconomic trends
Understand market size
Narrow focus
Penetrating beer market
Business Climate & Industry Competitive Analysis
Czech Republic Beer Consumption
World leader of beer consumption per
capita
3% increase in beer consumption over
past 5 years
1.5 Billion liters consumed per year
419 bottles consumed per person annually
SWOT Analysis
Strengths
High volume of beer consumption
Embedded in their culture
Opportunities
New drinkers
$100 M investment
Weaknesses
Beer industry is very competitive
Loyal customers
Threats
Competitive pricing
Loss on investment
Looking to the Future
Marketing to the Future
Branding & Expansion
Our product will reflect the focus of our marketing.
The Beer itself will be a lauger. This style of beer is incredibly popular in the US along with many other countries.
This style will allow us to target both locals and western tourists.
Target Capital Structure
Average capital structures of Miller, Busch , United, and Carlsberg:
-50% Debt
-50% Equity
Operating ExpensesInventory:
Marketing:
Equipment:
Research & Development:
General & Administrative:
Financials-Cash Flows
Estimated Cash Flows:
Summary and Future Expansion
Resources http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Retail%20Food%20Sector%20_Prague_Czech%20Republic_5-18-2015.pdf
http://www.statista.com/forecasts/397925/czech-republic-restaurant-and-mobile-food-services-revenue-forecast-nace-i56
http://www.eesc.europa.eu/resources/docs/balach.pdf
http://www.praguepost.com/economy/39259-czechs-spend-billions-on-drugs-alcohol-prostitutes
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/11237013/Mapped-Beer-sales-around-the-world-who-drinks-the-most.html
http://iom.vse.cz/wp-content/uploads/2008/03/Beer-in-the-Czech-Republic_2006.pdf
http://www.datamonitor.com/store/Product/czech_republic_wine?productid=MLIP1392-0007
http://www.stockspirits.com/index.asp?pageid=281
http://www.ekonomie-management.cz/download/1404726184_33fa/2013_3+Analysis+of+Reasons+for+Beer+Consuption+drop+in+the+Czech+Republic.pdf
http://ec.europa.eu/health/archive/ph_determinants/life_style/alcohol/forum/docs/ev_20081013_co04_en.pdf
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