TASK

The modern firm "Pivovar" – is a heir of the brewery, founded in 1715. Through the
half century it has become the largest factory of Galicia. Up to the 60-th of last century,
"Pivovar" was considered the largest manufacturer of hops barley drinks in Ukraine. During
50-70's, it was the only factory of pasteurized beer in the former Union.
The results of the first relationships with foreign investors several years ago, were
used by "Pivovar" rather originally. Trying to intermarry with "Coca-Cola", the brewery
gave their land in a city (with unfinished factory of soft drinks) to the foreign partner for
building a joint factory. But when a new building raised in a place of long-term construction,
Ukrainian co-founder parted with foreign partner. “Pivovar’s” guidance explained an
unexpected action of the brewery by reluctance of Company’s diverting on relevant projects.
Also the company wanted to invest the funds received from the sale of its shares to
modernize production.
In autumn 1997 the first stage of “Pivovar’s” technical upgrading was completed. In
the factory a line of bottling drinks in the 50-liter barrels made of stainless steel (from
German company "Deestil") was launched. During one-hour new equipment "packaged" 60
barrels of beer. For its retail bottling and improvement of beer’s taste qualities brewery
acquired 60 special machines from Czech Republic and Germany.
The first phase of "Pivovar’s" modernizing costed about $ 1 million. Next spring
"Pivovar" planned to complete modernization at the factory.
However, the impact of external factors (including high taxes, economic chaos, low
purchasing power of population) reduced production of beer, what prevented the return of
funds, which were spent on the reconstruction. In addition, the products of "Pivovar’s"
started to fill pressure on the counter because of powerful competitors, who brewed lower
costed & higher quality drinks. If in the record 1987 "Pivovar’s" made 7 mln. deciliters of
beer, the achievements of the last months were only 800 thousand dekaliters.
This situation affected the price of shares: ordinary owners got rid of their shares in
the property of "Pivovar" for 7-14 UAH. While the nominal share price was 50 UAH, and
the market share price was 100 UAH. This situation was used by Scandinavian company
VTN, which acquired a controlling stake (50.3%) of Ukrainian company, and started to
invest in production. By next summer VTN plans to invest $ 7 million in the "Pivovar’s",
and over $ 25 million for the next two or three years.
VTN company occupies a leading position among producers of beer in Europe. It
makes the basic rate for the purchase of already known local brands of beer and "pulls" them
to the level of world quality. Scandinavians promised to put "Pivovar’s" beer on a "Brewery
pedestal" after two years and to set up the production of 10 mln. dekaliters of drinks every
year.
VTN’s philosophy is like as two peas in all countries where the company is an
investor. VTN don’t involve their people to management, and bases on local personnel. Four
times a year the supervisory board meets, analyzes the work of the company and outlines its
prospects.
VTN promised that they will start to bottle "the best Galician beer in the world", but
not "living beer", what was traditionally done for centuries, but pasteurized beer.
Tasks. Formulate the mission of "Pivovar", highlighting also the image and credo.
Has the mission of Galician brewery changed during its 300-year history? Specify the most
attractive objectives for "Pivovar". Form an "objectives tree" («tree of goals»).
 Mission of “Pivovar”: Supplying the target market with a variety of beer flavors at
various price points.

Image of “Pivovar”: Anyone who enjoys beer and other low-alcohol beverages will
enjoy this, and they will remember the flavor for a very long time.

Credo of “Pivovar”: Nothing’s compared to taking a sip of freedom.

Let's face it, the company's mission has undergone numerous changes over the years
and taken on new forms. This was, in theory, to be expected, especially given that they
initially had no equivalent on the market for this category of drinks, which set them apart
from the bleak mass of potential rivals. However, time is not static, and everything has an
effect. For example, the company started to lag in many indicators as a result of the lack of
any development of its main product, which was in and of itself a bad decision from the
start.

As was stated earlier, times are changing, and if there was a recession yesterday, you
can see how everything has since gone up and confidently, enabling us to offer the audience
a high-quality product today. Each person is free to determine the quality for himself, but
one thing is certain: the company is able to compete with other players. The company's
future appears much brighter than previously anticipated as a result of this increase, which
will lead to continued growth in the international market share, and the f ace-to-face
interference with the product will prove this.