Current Situation: Al Ahram Beverages Company (AABC) is in a period of transition. It has gone from a publicly held enterprise to a privately owned company in Egypt as part of a reform movement that included the privatization of many state owned enterprises. AABC has a number of challenges it must face in the months and years ahead. As a government owned monopoly, AABC routinely generated annual profits thanks in part to the high tariffs Egypt place on imported beer. These tariffs ranged from 300 percent to 1200 percent of the value of the beer being imported. Objective and Mission: As a newly privatized company, AABC must raise its performance standards and position itself for sustainable growth. Waste and scrap must be reduced, and operational efficiencies must be realized. For example, the company must strive to reduce its production scrap percentage which was 14 percent for lost liquids in the year 1996. Senior management at AABC is concerned about the possibility of international c
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