Wolfgang Keller at Konigsbrau-TAK CASE ANALYSIS

Wolfgang Keller at Konigsbrau-TAK CASE ANALYSIS EXECUTIVE SUMMARY: Wolfgang Keller the Managing Director of Konigsbrau’s Ukrainian subsidiary had a strained relationship with Dmitri Brodsky the Commercial Director of the subsidiary. They had conflicting managerial styles with Brodsky following a more delegator and formal managing style while Keller was more action-oriented and was particularly concerned about Brodsky’s relationship with the customers. After a two month temporary assignment in Brazil, Keller had to take immediate actions on this issue. He had three options: To fire Brodsky or aid in improving his performance or reorganize the department to compensate for Brodsky’s inadequacies.

SITUATIONAL ANALYSIS: Konigsbrau was a Munich-based brewer of premium beers. It was one of the best managed and most profitable brewers of premium beers in the world, with high recognition in almost every continent. Wolfgang Keller was the Managing Director of Konigsbrau’s Ukrainian subsidiary. Vladimir Antonov held the title of chairman and managed the subsidiary’s activities. With his reputation as successful hands on manager preceding him, Keller joined the Ukrainian Subsidiary at a time it was losing €2.9 million a year. In three years from taking charge, he had increased the subsidiary’s earnings to €7 million per year. Keller’s efforts in improving the subsidiary’s performance included changing the marketing strategy, hiring a new top-management group, restructuring the sales force and acquiring a fourth brewery in Odessa. Keller made significant efforts in improving relationship with the distributors. He felt that the relationship was very important as they ultimately served the end customers. Also in the liquor business personal relationship and trust mattered. Aggressive distributors were especially needed in Ukraine in order to convert the people from vodka and low end brews to premium beer. Dmitri Brodsky was the commercial director of the subsidiary. Brodsky was expected to balance the young group of managers with his experience and maturity. Unfortunately Brodsky’s relationship with Keller was very much strained. Both Keller and Brodsky had conflicting styles of managing. Brodsky tended to be analytical and deliberate in his actions while Keller was action-oriented and used hands on approach to solve problems. Brodsky felt that Keller was intruding on the commercial department’s activities. Keller on the other hand felt that Brodsky’s formality and distance pervaded his dealings with his peers and subordinates as well as with

customers, competitors and other outsiders. These thoughts were reflected in Keller’s First Annual Performance Evaluation of Brodsky. He had mentioned Brodsky of having low level of leadership and no personality. Brodsky gave a detailed list of his accomplishments during his first year in his memorandum and took issue with Keller’s criticism of his management style. Keller after his visit to Brazil had to provide Brodsky’s second performance evaluation. Keller was on a dilemma as finding a fine replacement for Brodsky was almost impossible and an appraisal had to be given to Brodsky to retain him in the company. He had to set a plan of action for improving Brodsky’s performance.

PROBLEM IDENTIFICATION: Conflicting styles of management was the underlying reason for the strained relationship. Keller wanted his subordinates to be quick to react to problems and follow hands on approach. He intervened in the functions of other departments as he felt each task had deviant effect on other departments too. This annoyed Brodsky as he felt that the autonomy of his departmental functions were affected and also defended his delegatory management style by arguing that it was essential for the development of his subordinates.

PROBLEM DEFINITION: The strained relationship could cause havoc in the progress of the company. Keller has to find a suitable solution so that he can focus on general management functions.

CRITERIA FOR ANALYSIS: The extent of relationship a Commercial Department Director was required to maintain with the distributors- as cited earlier the liquor business required maintaining an amicable relationship with the distributors as they established the final transactions with the end customers. Skills required to manage a sales force- A motivated sales force was required to convert the Ukrainians from low end brews to premium beers. Also one other criterion to be considered includes relationship with Antonov.

POSSIBLE OPTIONS: 1. Replacing Brodsky with a new candidate. 2. Reorganizing Brodsky’s functions like splitting the sales and marketing functions provided to him 3. Provide the required training to Brodsky to handle distributors and sales

EVALUATION OF OPTIONS AGAINST CRITERIA:

1. Replacing Brodsky with a new candidate was almost an impossible option as it was very difficult to find a suitable candidate to provide the required experience to the profile. The job market for English speaking candidates is on upward trajectory which further toughens the chances of finding a replacement for Brodsky. 2. Brodsky can be assigned to responsibilities such as brand management, market data analytics etc. His analytic skills would make him proficient in it. The sales function can be handed over to Zelenko. But Zelenko may not possess the ability to handle the sales force single handedly. Also in long term the formal management approach followed by Brodsky might become useful as the firm grows. 3. Delegation is viewed by Keller as a process that delays the task time plan. But with increasing sales delegation will be required to sustain growth and also it will motivate the subordinates as they feel they are responsible for their actions. A small agile team might require personal touch between its staffs but Konigsbrau with its growth should be more formal in its way in handling employees and relationships with customers and distributors. Moreover the subsidiary was run effectively during Keller’s visit to Brazil indicating that Brodsky had the required skills to manage his department.

RECOMMENDATION: Brodsky can be given short training on how to negotiate and maintain contacts with distributors. Keller should concentrate on general management functions giving autonomy to Brodsky to run his department.

ACTION PLAN: Konigsbrau-TAK has just come out of its worst years; it becomes vital importance to maintain good relationship with distributors. Brodsky can be given a short training on how to negotiate and maintain contacts with distributors. This training will help strengthen the ties with distributors. Keller can undergo training on delegation which will immensely help him in career advancement as he gets more time to concentrate on general management functions. The process and systems should be in place in future to meet the growing demands within the firm. Brodsky can play to his strength to design best in class processes that can sustain growth. Brodsky’s analytical skill can be utilized for this purpose. Keller can concentrate on general management and supervise all departments so that Konigsbrau- TAK can sustain its present growth in long term.