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The Marketing Audit Approach

1. Executive Summary: 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.

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 companies starting local production facilities to manufacture alcoholic beer in Egypt the near future to compete directly with AABC. Senior management and the Board of Directors of AABC are confident that AABC will survive and thrive even in the face of competition. However, AABC is faced with challenges it has never faced before. For example, following privatization the AABC management team is faced with a number of options and choices relating to which business strategy or strategies to adopt and why. One example of the difficult choices that must be made involves determining which products it will continue to manufacture and in what quantities, what products will be dropped and what new products, if any will be added to AABC's group of alcoholic and non-alcoholic product offerings.

One of the most fundamental issues that AABC must address is whether it should to continue to manufacture alcoholic beverages in Egypt, a country in which the majority of th...

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The Marketing Audit Approach. (1969, December 31). In LotsofEssays.com. Retrieved 02:01, March 19, 2024, from https://www.lotsofessays.com/viewpaper/1683507.html