The Interviews

Appendices

2 Appendix 1

The Interviews

3 The interviews

The information, which is derived from the interviews, was critical to learn about the organization and the problem situation. The interviews were the foundation for the problem analysis and have delivered much information for the description of the actual situation. All interviews are performed during the stay at Bralima, except for the interview with Mr. Kolff; this one has been performed in The Netherlands at Heineken Corporate office.

The reflections of the interviews in this appendix are often a summary of the answers of the respondents. Congolese like to talk and they are masters in talking a lot without giving an answer to the question. Although this social focus is something I love about Congolese, this does not make it very easy to filter the functional results. Still the most relevant and important facts are filtered and presented in this appendix.

The interviews are reflected in chronological order.

4 Interview 1

Respondent: Gautthier Nsamu

Function: Manager of the functional department ‘Promo Beer’

Date: 6-21-2004

Introduction

Mr. Nsamu is manager of the functional department ‘Promo Beer’ The responsibility of his department is the promotion of beer (promo bière). He is responsible for 30 employees who are mainly active in the field. The main activity of his department is the organization of promotions, often together with the marketing department, and the maintenance of customer relations. Mr.

Nsamu has worked a long time for Bralima and he has worked his way up to a management function. The objective of the interview was to increase my knowledge of what his department does, to know what he does to stay in control of cost and if he has problems with staying in control of cost.

The interview

- How do you control the activities at your department?

He controls his employees by forms they have to fill in every week. The employees specify by the hour what they have done. Furthermore they fill in the amount of hours they have worked on a weekly basis. This is the only control he has. It is very difficult to control personally if al forms are filled in correctly.

- How do you plan your activities and how do you prepare your operational budget?

He has 4 sorts of planning moments: Yearly, monthly, quarterly, and weekly. He knows how many bars he has. There are four different types of bars: Bars with an A, B, and C status. The fourth are the home-bars. He tries to project how many promotions they are going to do, based on last year, in the different types of bars. When he has an estimate on the amount of crates he wants to use for promotions, he determines his budget proposal. Furthermore he makes plans on a monthly and weekly basis. Based on his budget he divides the amount of crates that are used for actions between his employees.

- Can you tell me what part of your costs, are fixed?

According to Mr. Nsamu, 90% of his costs are fixed. He knows for 90% certain what he is going to spend every month (see note below).

- How do you determine what actions you do to achieve the volume objectives?

He does not really have numbers on the effect of actions that he organizes. He does not know how much volume is sold extra when he organizes actions. He just organizes the same actions year in year out. All these actions are price-actions. He does not know what these actions add to the brand value.

- Do you have any problems concerning the control of costs at your department?

He is far above his budget, because the director of the department ordered him to spend more on free beer in the beginning of the year. That was not according to his plan, but he thinks that if the director tells him to increase the spending on free goods, he has no reason to do otherwise. The only thing he misses is a weekly meeting with other functional department managers to discuss budget and planning issues. Furthermore he does not like to be above budget, because the finance department thinks he is not doing a good job. This is because of things that were not within his control.

Personal Note:

What surprised me is that Mr. Nsamu has no records at all of the effect of the promotional

activities that his department organizes. He has no exact numbers on what the increase in sales

is when he organizes some sort of promotion. This means that he cannot clearly determine what

actions are needed to achieve volume targets. Furthermore it is almost impossible to attach

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budgets to plans when you don’t know how to achieve volume targets. Next to this he told me that 90% of his costs are fixed, even after explaining exactly what fixed costs normally are. He gave me the impression that he did not know how to exactly create plans and budgets, apart from simply creating plans and budgets, based on last year.

Interview 2

Respondent: Vianney Bomboro

Function: Manager Department ‘Key Bars’

Date: 06-23-2004

Introduction

Mr. Bomboro has worked at Bralima for a long time. He was responsible for distribution, but now he is responsible for Key Bars. According to him this means that he has a very diverse set of tasks. He is Congolese. This interview was meant to learn more about the department ‘Key Bars’

and to hear Bomboro’s side of the story concerning cost control.

- How do you determine your plans and budgets?

In the beginning of the year he hears the amount of money that he can spend. He makes a planning based on this budget. This is all determined based on last years’ results.

He prepares a monthly planning, next to the weekly planning.

In the old system there was a meeting every month on how to achieve the goals, the KPI’s and how the budget should be spent. There was a meeting every week with all the responsible managers. At the moment there is no communication between departments about budget and strategy. Mr. Bomboro believes that it would be better to go back to the old situation. Not only to determine goals and planning for every manager every month, but also for all the chefs de secteurs etc.

- What can you say about cost control, planning and budgeting at the SMD?

He thinks it is good that Tsongo is at the department for some control. The installation of a financial control manager has been an improvement. Before Tsongo, there was no control whatsoever on expenditures of the department. There was no respect for budget and plans were not prepared.

Furthermore, more generally speeking, the new structure is not a good one. He thinks it was created just to create a job for Portaus. Now in this structure it is not clear to mr. Bomboro what SRD does. The distribution does not have the same routes and when a bar does not get a delivery, Mr. Bomboro cannot check who is responsible for this problem.

A second thing that will be very important is to design a structure in which the budget is controlled and that within the budgets the action plans can be achieved.

Interviews 3

Respondent: Marc Rouvroy

Function: Director of the Sales and Marketing Department (SMD) Date: 06-15-2004

Introduction

Marc Rouvroy is the director of the Sales and Marketing Department. Normally he is the central figure in coordinating all planning and budgeting activities. Marc works since 2003 for Bralima.

Before he started, he was working as a commercial director at the competitor Bracongo. The

interview is a first exploration on how he tries to stay in control of cost and what his problems are

concerning financial control.

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The interview

How do you stay in control of cost?

Marc does not have 1 routine to stay in control of cost. He knows approximately what the budget is for the upcoming month and where they are with the expenses. In the first few months of the year the expenses were higher than was budgeted, so now the department has to spend les every month to stay within the budget of this year.

Do you see difficulties in staying in control of cost?

It is difficult to control costs concerning desk equipment and free beverages for consumers.

Furthermore regarding the existing P&B system it is annoying that he has to sign so much requests. Every day takes approximately two hours to sign everything. There are no other problems.

Interview 4

Respondent: Mr. Wakilongo

Function: Manager functional department ‘Hors Kinshasa’

Date: 06-28-2004

Introduction

Mr. Wakilongo is manager of the functional department ‘Hors Kinshasa’ which means that he is responsible for the distribution and sales of Bralima products in 12 cities directly out of Kinshasa.

The goal of this interview is to learn more about his cost control policy and his problems concerning cost control.

- How do you plan your activities and how do you determine your budget?

Every month he prepares a planning. He determines for every city what they need and divides the budgets according to this planning. It is not attached to a clear yearly strategy, because the market changes so fast. Normally he prepares a yearly budget for Management accounting as well. In the beginning of the year he receives his budget without any negotiation. Each year he spends far below his budget. He himself thinks this is because he reserves money for sudden changes in the market.

- Do you have any problems with cost control?

He does not really have problems with cost control. Each year he is well within the budget. His operations are not linked with other activities at the SMD so he does not need more intense communication on the plans and budgets. He is very free in what he does and there is not much interference from outside. He does not have any numbers on results of his promotions. The effect of certain promotions in the long term is not clear to him. The only major problems he has are problems with distribution. It happens too often that beer is not sent to his depots because of logistic problems.

Personal Note:

Mr. Wakilongo works on an island. He works autonomous. In my eyes he does not have any cost

control problems, because he gets the same amount of budget every year, which is too much to

spend in the relatively small towns he is operating in. There is no control whatsoever on the

activities that mr. Wakilongo does. This is reason for concern. Although he seems pretty

educated, he is a very short-term planner and he has not got an idea what the performance of his

actions are.

7 Interview 5

Respondent: Judith Kiyanga

Function: Manager market research, marketing department

Date: 09-14-2004

Introduction

Judith Kiyanga is responsible for market research at the marketing department. She is Congolese; however she was educated in Europe. She has worked for Heineken somewhere in Europe. Now back in the Congo, she is working at the SMD, but before this function she was working at the Finance Department. After finding out that she is the one who is the right hand of the marketing manager Bernard Theys in the preparation of the commercial plan I decided to interview her to hear her side of the story. Again the objective of the interview was to find out why it is so hard for the SMD to control costs.

The interview

- How is it possible that you prepare all budgets for the whole department?

The preparation of the budget for 2004 has been one big mess. Nobody cared about budget and nobody was preparing his budget. Still the financial department needed input for their system, so they asked Judith (being former employee at the financial department, to give them input about the division of budgets into cost centers and rubriques at the SMD. Because it was already December when they asked her this, she had to prepare everything herself for the sake of time.

This year the same thing was happening and the management control department asked her again to prepare all budgets. This time she agreed that it was not her job to prepare all budgets and we started a meeting to involve all functional manager in the budgeting process.

- Why is there so little attention for the budgets?

There are multiple reasons for this. First of all, commercial people do not like to work with numbers. Second the financial department is always complaining about the SMD being above budget, instead of looking at the positive side of the work SMD performs. This attitude makes the SMD managers indifferent to financial problems. Third there is no clear strategy opposed to the department. Functional department managers simply do not know what they have to do. Strategy is not clear. Without strategy, how is it possible to prepare plans? Without plans, how is it possible to prepare operational budgets?

Interview 6

Respondent: Marc Rouvroy

Function: Director of the sales and marketing department

Date: 09-23-2004

Introduction

After organizing a meeting with all managers of functional departments it was time for a second interview with Marc. During the meeting the managers had asked for a clear strategy meeting with the director of the department. I wanted to know what his opinion was on a meeting about strategy and budget preparation and the inclusion of involvement of the functional department managers in the whole story. His reaction is reflected here:

Reaction

Marc told me that he did not want to have a meeting with everybody. He thinks it is not good to start a discussion on the budget, but more to tell the chiefs what their budget is and how they have to fill it in. He said that even that functional department managers are never involved in these kinds of strategic meetings. He prefers to have face-to-face meetings with all the chiefs and explain them how they have to prepare the budget.

He furthermore explains that western models will not work in Congo or Bralima. He says that

everybody lies and that you can trust nobody. If you are starting to ask the chiefs of departments

on their opinion, they will misuse it and they will be only opportunistic.

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Marc thinks there is no miscommunication between Finance and Commercial and that there is no miscommunication between the departments within DMC.

Marc ends the conversation by telling that he hates formal structures. He has forbidden everybody at the department to use e-mail and he prefers to not use any budget at all. In his eyes budget preparation and e-mail usage are a waist of time and the risk is that the competitor will find out what you want to do because you write everything down.

End of discussion

Interview 7

Respondent: Mr. Muhindo

Function: Manager of SRG (distribution large depots)

Date: 09-27-2004

Introduction

Mr. Muhindo is an interim manager at the Sales and Distribution department. He is responsible for the distribution of beverages to the large depots. He is Congolese. The goal of the interview was to learn more about his planning and budgeting practice and about his problems with cost control at the department.

- Can you describe how you prepare your plans for next year?

Muhindo is preparing the budget for next year himself. He has seen what the budget is for total distribution and he has prepared his own goals for next year. Now he prepares the budget to reach these goals and afterwards he is going to discuss his proposal with mr. Portaus.

- How is the development of operational plans and budgets organized?

At distribution and sales everybody is working separately. Portaus doesn’t organize a meeting with all the responsible managers in his department. The advantage is that every manager becomes a specialist in his field. The disadvantage is that it is hard to work together and to achieve synergy.

- How did you control your expenditures?

It was not possible, because he did not have any budget for the year. He did not prepare the budget for last year himself. He works only temporarily at the SMD.

- Why is it hard for people at the department to control cost?

The budget was not well prepared. This was in his opinion because of change of management.

New DMC and Distribution manager probably wanted to use the budget for other things than in the beginning was planned.

- What other problems do you see concerning cost control at the department?

It is good that the strategy is organized top-down. It gives direction to the middle cadre and they know more or less what to do. For ventes srg it is a little bit strange, because in the strategic plan SRG is not mentioned.

On top level there should be more stability if it comes to strategy. With a strategy that is changing every month it is not possible to use a budget system.

Furthermore people reserve budget for some sort of operational activity (for example promo BG) and the DMC just spends more money with his cost center on this specific activity. The result is that he is far above budget and that other departments have to carry this problem.

Regarding the control of spending: The control on spending was badly managed, but since the

appointment of mr. Tsongo, the financial controller, it was better organized. The strange thing

was that mr. Muhindo never had a report on his spending until a few months before. This report

always staid with mr. Portaus, so mr. Muhindo, who is responsible for the cost center SRG, did

not get any information on what he really had expended. Furthermore it happens that other

people are spending his budget.

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- What improvements do you propose?

The improvements mr. Muhindo proposes are:

- Improvement structure communication of Portaus and Rouvroy on strategy and budget.

- More structure in the budgets

- Only book costs on cost centers if the responsible manager of the cost center has signed for these costs.

Interview 8

Respondent: Hija Miringita

Function: Manager Promo Soft drinks Date: 09-30-2004

Introduction

Hija is manager of the promotion of soft drinks. He is part of the sales and distribution department. Hija works already many years at Bralima. He is Congolese and he has worked his way up to the position he is in now. The goal of the interview was to learn more about his cost control and the problems he has with it.

The interview

- Can you describe how you prepare your plans for next year?

He prepares his plans for two working areas: The promotion of Maltina and the promotion of Soft drinks. The preparation of the plans for both product types is different. Preparing the plan and the budget for Maltina is in full coordination of Bralima, whereas the preparation of his plan and budget for soft drinks is partially coordinated by the Coke people.

For Maltina, in September there is a communication from the marketing department (Judith) about the amount of the budget. With this budget in mind, Hija prepares a plan of actions for next year, keeping the commercial plan in mind. The strange thing is that the promotion of Maltina is hardly mentioned in the commercial plan for next year. In the opinion of Hija it would be a large improvement if all the chiefs of department would be included in the preparation of the strategic plan.

On the other hand there is the preparation of plans and budgets for the soft drinks. In June the Coca Cola team starts to prepare their plans and budgets for the next year. Hija is asked to prepare a plan of actions and a budget for next year. This is discussed and Jean Tambwe takes the plans into account when asking for budget at his chief for next year. Then the budgets are modified and approved and Hija can start to build his plan of actions for next year.

When I asked which system Hija prefers he says that he prefers the system of coca cola. The budgeting system of Bralima is based on the past year. The budgets are prepared on the budgets of last year and not on the strategy for next year. Furthermore with the Bralima-system the budgets are first fixed for every department, and than they talk about strategy. This should be the other way around.

- How is teamwork with other management on preparing the planning and budgets (timeline)?

There are no meetings with the team of distribution. Portaus is always personally communicating with his chiefs. He is a very open manager, so there is no problem in contacting him.

What Hija is missing is the communication with the other departments within distribution. They are not attacking the market together and they could help each other if there would be a weekly meeting on relevant issues.

- How do you keep in control of your budget?

He is a very organized guy, even before Tsongo and I prepared the weekly suivi, he checked in mishasales and misha stock where he was with, for example, his promo gratuit. He follows the budget very near and is perfectly within his budget.

- Why is it so difficult for the SMD to be in control of cost?

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In the opinion of Hija it is the director of the SMD is mainly the problem when it comes to people being above their budget. He came from Bracongo, where people don’t work with budgets, and started here to overspend in the first months that he was here (promo beer three times more than budgeted).

- What are other problems at the department, concerning cost control?

Because the DMC has overspent, there is a possibility that Hija will be cut in his budget for this year. So because someone else has overspent, he probably will not be able to pursue his plan of action.

This implicates that Hija cannot do his job properly. The DMC doesn’t give him the full responsibility over his cost center. In this way he is not really the owner of his own cost center.

- What improvements can be made?

Hija sees the following improvements:

- The DMC should be more structured and be more precise and focused on the budget.

- More responsibility for the cost center managers over their own cost center.

- A frequently organized meeting with all the chiefs of department of Distribution and Sales - Apply the coca cola system in preparing the budgets (first strategic plans and demand for

budget, then discussion on the budget)

Interview 9

Respondent: Jean-Yves Portaus

Function: Manager Distribution and Sales Department Date: 10-2-2004

Introduction

Mr. Jean-Yves Portaus is responsible for the distribution and sales department. Before coming to Bralima, mr. Portaus has worked together with mr. Rouvroy at the competitor, Bracongo. Mr.

Portaus is a specialist on distribution. The goal of this interview was to determine how mr.

Portaus plans and prepares budgets and is causing the problems with cost control.

The interview

- Can you describe how you prepare the yearly planning?

Portaus determines strategy for his department. Not for a year but for the short term. In his opinion there is no use in looking one year ahead, because the market is changing every day and it would be of no use to prepare a plan for a year.

After he has determined the strategic objectives, he evaluates what were the budget needs for last year. After that, he looks what kind of actions he needs to organize to achieve his strategy.

He makes an estimate for the budget and divides it over the department.

When this is done he controls the budget during the year, looking at financial results and the achievement of objectives. When he has determined the strategy for next year, he communicates this to his chiefs of department and gives them the freedom to decide how they want to achieve these strategic goals. If it comes to KPI’s (targets), he first determines his tactics and than creates his KPI’s. Mostly these KPI’s are fully prepared by himself and his chiefs of department are not included in the process.

- How is teamwork with other management on preparing the planning and budgets?

He deals with his chiefs separately. He doesn’t organize general meetings. The door is always open and he prefers not to have meetings with all the chiefs of department all at once. The reason for this is that from his point of view it takes too much time and furthermore, the sub departments are too different to create any advantages of scale and synergy. He talks with his managers every day and prefers to keep the communication informal.

- How do you control costs?

By using the monthly report.

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- Why is cost control so difficult for the SMD?

If it comes to his own budget he has spent a little too much on increasing credit-levels at customers. This was caused by a misjudgment.

- Do you see any problems on how the short-term-financial planning is organized?

He thinks the planning is organized too late. If the budgets have to be presented in September, it is obvious that the discussion on what to achieve next year should start in June.

- Do you see any further problems with the control of spending?

No he does not see any problems.

Interview 10

Respondent: Christian Ensa Nsabaka

Function: Manager SRD (direct distribution)

Date: 10-8-2004

Introduction

Christian is responsible for the direct distribution of beer in Kinshasa. This means that he manages a team of drivers who visit customers directly. These trucks simply drive the same rout every day and stop at Bralima client who need beverages. Christian has got his education in Belgium and has returned to the Congo because he is originally Congolese. He started working for Bralima in 2003. The goal of this interview was to learn more about problems he has with cost control and with planning and budgeting. The interview is presented in story-form, because he literally took over the interview after one question and handled with all problems himself.

Results of the interview

After introducing the interview to Christian, he immediately took over and began explaining what the problems were with the actual P&B system.

He began with the fact that, officially he is responsible for a cost centre, but that in the beginning of the year there was no budget reserved for this cost centre. He hasn’t got any clue on what he can and cannot spend on the account of his cost centre.

Furthermore it frequently happens that mr. Portaus and mr. Rouvroy use his cost centre for their own expenditures. Because these are expenditures that are not fitting in his strategy, for him it is impossible to make any conclusion on the performance of his department.

If it comes to the preparation of the budget, Christian thinks it is a good idea to have a global discussion on the department strategy, before putting the budget into place. At the moment the chiefs of department are not included in this discussion. The preparation of plans and budgets is organized too much top-down.

When it comes to the preparation of plans, he has prepared the plan that’s in the final commercial plan.

About KPI’s: Christian thinks that this system was not working because of the non-transparency of the calculation of the KPI’s. Some KPI’s can be calculated in different ways and this makes it harder to derive qualitative, useful data.

The signature system, the procedure that needs to be followed to get money or goods, is too bureaucratic. For everything he has to get a signature of three other people. He has got certain costs that he makes every week. Because of the lack of trust of his superior managers, he has to get a signature every week for this. It takes too much time.

Furthermore the budget is not used in the right way according to Christian. The example of

increasing the 2+1 actions in the high-sales month December illustrates this.

12 Interview 11

Respondent: Bernard Theys

Date: Saturday October 23, 2004 Function: Marketing Director

Introduction

The goal of this interview with Bernard They was to retrieve information about the development of the yearly commercial plan and operational budgets.

The interview

What is the formal procedure of preparing plans and budgets?

Normally the process starts with the creation of the operational plan. This must be finished by the end of July. The content of the operational plan is the rough volume targets, the objectives and the main key issues.

Then from that, the commercial strategic plan is prepared. In this plan the key issues for every department are addressed. It is a description of the situation, an analysis and a determination of objectives. At the same time the internal discussion about the budget takes place. Then by the end of August everything must be finished for final approval, so the total plan can be sent to Amsterdam by the end of September.

After this the budgets are included and at the end of Octobre everything must be finished.

Normally the budgets are prepared in the following way:

1. First partitioning of the budget must be communicated to the responsible cost center managers. They have to prepare a first proposal of the budget per item and in the length of time.

2. Then DMC must check these proposals; discuss these with management of cost centers until the budget is set.

3. Control de gestion check everything before putting it into the suivi.

4. Then this goes back for approval to the DMC.

5. Finally the Financial director signs and everything is set.

At the end of the year there is a plan conference in Amsterdam and in January the chief executive presents all the plans in Amsterdam.

Heineken monitors the plans and the achievement of targets through a quarterly budget and plan report the SMD has to prepare and send to MMO, which is Heineken Africa. This plan and budget report is a three-pages-report.

How are plans and budgets actually prepared at the DMC?

In reality the director of the SMD hasn’t got the faintest idea on plans and budgets. By the end of August 2004 Bernard received the demand for the commercial plan. This demand for a plan was already in the e-mailbox of the director since the end of June. However he did not notice it because he didn’t check his e-mail.

Bernard prepared the total commercial plan. According to him, the director hasn’t got the faintest idea of the operational plan for next year.

Can a planning and budgeting system support management at the DMC to be in better control of cost?

Bernard thinks that planning and budgeting can be a very useful tool. The chiefs of department may need to learn more on how to prepare it and on the necessity of these plans and budgets.

With Kolff (the preceding director) it worked perfectly. They even demanded for extra budget on the basis of plans, and got it.

KPI’s are not used at the moment and performance of people is not measured at all.

13 Interview 12

Respondent: Han Kolff

Function: Manager commercial excellence Heineken America Date: 24-03-2005

Introduction

Han Kolff works at Heineken International and is responsible for Commercial Excellence Heineken America. Before Marc Rouvroy became commercial director, Han Kolff was director of the SMD for two years.

The objective of the interview was to learn what the view of Heineken is on Planning and Budgeting in African countries like The DRC.

The interview

1. To what extent is Bralima autonomous in organizing its own cost control?

Bralima is almost completely autonomous. Bralima is responsible for their own operations, including their planning and their budgetary activities. They only have to make sure that they provide a monthly report on their performance for Heineken Africa and a yearly three-year commercial plan to Heineken International Amsterdam. However during the period in which Han Kolff was director of the SMD the planning and budgeting occurred according to ISO-standards.

This standard provides an exact model on how to decide what activities are executed in the future and on what the objectives are on a monthly basis split up in certain categories. This standard, which assists management in setting performance measures and assessing the performance of the department, is recommended by Heineken Commercial Excellence. However it is up to Heinken Africa to decide what countries have to work with this standard and what countries do not have to work with it.

Heineken Amsterdam simply looks at the financial results and the amount of fraud that occurs at the company.

The way of working of the commercial director in charge is not standardized by Heineken. Mr.

Kolff preferred to work with a clear strategy, plan and budget and all activities had to be a result of this strategy, plan and budget. Mr. Rouvroy has a more aggressive market approach. He is always in the market and decides what bars he wants to invest in and spends money without any plan. At the end of the ride he checks if his spending was not too much.

2. When introducing the use of plans and budgets, how important is it to adapt this to the environment?

The concept of creating strategies, plans and budgets is a widely applied tool. Heineken expects that every operating company works with a sound strategy and budget. There is no alternative for planning and budgeting. In the eyes of Mr. Kolff, here lies a responsibility for the director of the SMD. When people are not used to work with future plans, targets and budgets it is up to the director to educate and train them.

Taking in mind that every OpCo has to work with a P&B system Mr. Kolff thinks it is recommendable to watch closely how to adapt the system to the environment. He gave examples of how he adapted the P&B system to the Congolese environment. One example was the initiation of a monthly in stead of a yearly bonus to the sales force. The second example he gave was that he always kept everybody informed, but the decisions were made by him. This is according to the model that Congolese like to be informed, but they have difficulties in taking decisions themselves.

3. How important is communication and coordination?

Referring to the last question Mr. Kolff thinks it is very important to make a P&B system a success. Keep everybody informed.

4. What makes a P&B system effective?

The most important aspect is the commitment of the director of the department. He has to think

and act according to the plans and budgets.

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5. Do you see possible improvement concerning the P&B system at Bralima?

The monthly reports of the financial department were effective to control the total spending of the different functional departments, but the qualitative data was missing. The financial department did not at all provide any information on where money was exactly going. Because there was no frequent report on details of spending of every employee, it was necessary to sign for every transaction. This meant the signing of 600 documents a day to have control on specific spending.

This took too much time. A system which provided more detailed qualitative information would be

preferable.

15 Appendix 2

SMD organizational structure charts

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Direction Marketing et Commerciale

Marketing Department

Ventes Hors Kin

DMC Re: Mr.Rouvroy

Distribution Re: Mr. Portaus

Key Accounts Re: Mr. Bomboro

Promo Beer Re: Mr. Nsamu

Hors Kin Re: Mr.

Wakilongo Cost Control

Re: Mr. Tsongo

Secretariat Re: Mrs Mayanga

Marketing Re: Mr. Theys

Direction Marketing Re: Mr. Theys

Etudes et Recherches Re: Mrs. Kiyanga

Senior Brand Manager Primus Re: Mr. Bukasa

Event Manager Re: Mr. Banza

Junior Brand Manager BG/Maltina Re: Mr.. Sita

Junior Brand Manager Turbo/Media Re: Mr. Luzolo Junior Brand Manager

Mutzig/Guiness Re: Mr. Kiriza

Adm. Commerciale Re: Mrs. Abusa

Ventes Hors Kin Re: Mr. Wakilongo

Mbuji Mayi Re: Mr. Lukusa

Kikwit Re: Mr. Iyelakongo

Tshikapa Re: Mr. Komfo

Llebo Re: Mr. Yabili

Kimpese/Kwilu/

Songolo

Re: Mr. Dianani

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Beer Sales promotion

Key Accounts

Sales and Distribution

Promotion Sales Re: Mr. Nsamu

Secteur I Re: Mr. Mongu

Secteur II Re: Mr.

Kasanza

Secteur III Re: Mr.

Tambia

Secteur IV Re: Mr. Minga

Shanga

Secteur V Re: Nsonsa

Secteur VI Re: Mr. Iyeli

Key Accounts Re: Mr. Bomboro

Premium Re: Mr. Motombo

Horeca Re: Mr. Kasadi

Distribution Manager Re: Mr. Portaus

Service fetes Re: Mr. Mambote

SRD et Glace Re: Mr. Nsabaka

SRG Re: Mr. Muhindo

Soft drink Promo and Sales Re: H.Miringita

Market Dev.

Re: Mr.

Kalambo

Money Purch.

Re: Mr. Koffi Glace

Re: Mr. Fataki.

6 chefs de route Assistant

Mr. Katayi

30 promoteurs

40 Chauffeurs

Suivi Charoi

Re: Mr. Elia

18

Commercial administration

Administration Commerciale Re: Mrs. Abusa

Gestion Administrative

SRD

Gestion database bieres/BG et actions promo

bieres

Gestion des contrats Clients/distributeu

rs/bar tous Agent

administrative N. Mayimona

Encodage du SRD Limbeni Dibazingila

Encodage commandes

Kiyanga Mabilawa

Cust. service admins Gestion

actions promo

BG

19 Appendix 3

Figures and numbers

20

Estimate commercial budget partitioning 2005 (result of negotiations with chief executive)

Below the budget partitioning as it was at the end of October 2004 is presented. The middle column is the budget, which is invested by Bralima, the right column is the budget, which is provide by Coca Cola, since Bralima is bottling for Coca Cola as well.

Bralim Coke Int.

Primus 2,250,000 Mutzig 301,450 Etudes 150,000 Mktg Maltina 154,400

Turbo King 150,000

Guinness 32,500 Heineken 25,000 Mktg Coke 100,000 285,000

Total ATL 3,163,350

Key Account 800,000 Promotion 2,100,000

Distribution 150,000 Promo BG 405,000 150,000 Promo Maltina 213,360

Total BTL 3,668,360

DMC (200, 205, 206) 220,000

Total Administration 220,000

Hors Kin 250,000

Mbandaka 80,000 Boma 650,000 51,000 Bukavu 180,000 18,000 Lshi 100,000 41,000 Kisangani 65,000 Total Sieges 1,325,000

Provision 123,290

Total General 8,500,000 545000

21

Bonus determination

This is an example of how the bonus is determinated for the functional department managers. All

rubrics are marked with a number to show the performance of a manager on this specific rubric.

23

Ex am p le o f t h e m o n th ly r e por t of th e Mana ge me n t C o ntr o l de pa rt m e nt o n s p e n d ing of co s t ce n ter 2 0 0 C o st c e n te r 20 0

B udge t 2004 B udge t YT D 09 Réal .mo y . 2004 Ac tu a l YT D 0 9 Jan v ier Fé v ri e r M a rs A v ri l M a i Juin Juil let A oût S e pte m br e So ld e Budge t CO N S FO URNITU RE S B URE A U X 700 525 109 983 768 71 54 19 21 0 0 41 10 -2 8 3 T .V. /A C H A T ES PA C E 0 0 144 1, 297 397 00 00 0 700 200 0 -1 ,2 9 7 C O N S O A R T IC L ES PU B L IC IT A IR ES 5, 000 3, 750 0 0 0 0 00 00 00 0 5,000 C O NS O M .A RT. P UB L IC.P R IMU S 0 0 1,506 13, 550 2, 033 324 105 162 10,116 93 257 15 446 -13,550 C O NS O M .A RT. P UB L IC.MUT Z IG 0 0 22 200 1 193 00 00 06 0 -2 0 0 CO N S O M . A R T. P U B L ICITA IRE MA LTIN A 0 0 106 950 00 950 00 00 0 0 -9 5 0 C O NS O M .A RT. P UB L IC. FA NTA /CO CA 0 0 294 2, 646 429 2 ,1 6 8 00 00 00 4 8 -2 ,6 4 6 C O NS O M .A RT. P UB L IC.A M S T E L 0 0 16 146 13 29 0 1 2 0 45 0 0 48 -1 4 6 C O NS O M .A RT. P UB L IC. TU RB O K ING 0 0 12 109 00 00 0 9 9 0 1 0 -1 0 9 F R AI S D E PR OD U C T ION T .V. 0 0 233 2, 100 0 2 ,071 0 0 0 0 30 0 0 -2 ,1 0 0 MAT É R IE L POU R BAN D E R Ô LE S E T PL V 0 0 6 52 5 2 00 00 00 0 0 -5 2 AUT R ES F R A IS M A RK E T ING 6,000 4, 500 1,006 9, 058 524 3,017 586 891 572 525 584 731 1, 626 -3 ,0 5 8 PR O M O C O N S O MMA T ION B A R S ET T E R R A S SE S 1, 500 1, 125 21 193 0 0 00 00 193 00 1,307 PR O M O T IO N G R A T U IT S B IER ES 30, 500 22, 875 3,130 28, 170 4, 826 5,114 2,268 2, 414 471 3, 581 7,618 87 1, 791 2,330 PR E S SE / A C H A T ESP AC E 2, 000 1, 500 0 0 0 0 00 00 00 0 2,000 P R O M O T IO N/INJ E CTIO N E M B A LLA G E S 0 0 6,570 59, 128 15,373 12,267 0 12,398 8 ,421 0 10,668 0 0 -59,128 F R AI S EQU IP E S C O M M E R C IAL E S 5, 000 3, 750 492 4, 430 235 851 861 524 181 332 122 304 1, 020 570 PAR T IC IPA T ION S AU X EV EN E M EN T S M U S IC A U X 0 0 459 4, 129 00 7 2 0 0 129 514 3, 414 0 -4 ,1 2 9 SALA IR E S D E B A SE 30, 000 22, 500 5,839 52, 547 6, 244 5,503 5,489 6, 863 5,703 5, 722 5,668 5, 866 5, 490 -22,547 ALLO C F A M E X T R A- LEG 1,500 1, 125 0 0 0 0 00 00 00 0 1,500 C O NTR IB . S /RE V E NU S E X P A T R IE S 0 0 999 8, 993 988 984 984 1, 006 1,006 1, 006 1,006 1, 006 1, 006 -8 ,9 9 3 FRA IS D E S O U S -T R A ITA NCE P E RS O N N E L 0 0 614 5, 530 0 1 ,063 640 481 442 506 1,597 483 318 -5 ,5 3 0 H E UR ES S U PP LE M E NT A IR E S 2,600 1, 950 61 553 47 51 12 37 39 106 128 133 0 2,047 I.N .S .S . 3,200 2, 400 351 3, 163 402 327 324 455 358 328 324 336 310 37 PR IM ES 6, 500 4, 875 110 987 75 75 74 74 688 00 0 0 5,513 GR AT IF IC AT IO N S 0 0 132 1, 189 255 138 137 245 107 09 9 106 103 -1 ,1 8 9 IN D E MN IT E S D E T R A N S P O R T 1 4 ,6 0 0 10, 950 125 1, 123 233 175 176 282 52 53 49 52 51 13,477

24

I N D E M N IT E S D E LO G E MEN T 13,200 9, 900 716 6, 440 1, 011 640 639 1, 255 596 594 557 584 565 6,760 I N D E M N IT E S EAU & EL EC T R IC IT E 9, 500 7, 125 429 3, 861 806 8 466 986 330 329 301 323 314 5,639 I N D E M N IT ES T E N U E D E T R AVA IL 3 ,0 0 0 2, 250 21 192 49 48 48 48 0 0 0 0 0 2,808 ALLO C A T IO N F A M .LEG A LE S 0 0 40 356 36 38 34 48 40 41 40 43 36 -3 5 6 AVA N T AG E S EN N A T U R E /R AT IO N 0 0 340 3, 059 528 265 265 759 256 256 235 251 244 -3 ,0 5 9 I.N .P .P . 0 0 70 631 80 65 65 91 71 66 65 67 62 -6 3 1 TI TRE S D E TR A N S P O R T NA TI O N A U X 0 0 62 557 102 55 56 128 44 45 41 44 43 -5 5 7 T IC K ET S R E SE AU N A T IO N AL 3, 500 2, 625 802 7, 214 79 0 622 1, 860 328 2, 153 459 1, 459 255 -3 ,7 1 4 C O U R SE S D E SER VI C E 300 225 20 179 00 0 179 00 00 0 121 F R AI S D E BU S ET T A XI 2, 500 1, 875 9 80 0 1 01 0 1 01 0 1 01 0 2 0 0 2,420 F R AI S C O N X VO Y E X PAT 250 188 0 0 0 0 00 00 00 0 250 T IC K ET S R E SE AU I N T E R N A T IO N AL 10, 000 7, 500 1,552 13, 972 1, 175 0 4 ,139 0 1 ,245 0 1 ,730 5, 683 0 -3 ,9 7 2 F R AI S DE MI S S IO N 3,000 2, 250 307 2, 764 490 212 57 146 780 29 14 401 636 236 F R AI S H EBER G E ME N T 5, 000 3, 750 934 8, 409 625 0 1 8 0 2,488 3, 469 143 1, 062 603 -3 ,4 0 9 R E PO R T AG E PH OT O ET VI D E O 0 0 77 693 00 0 0 0 6 2 0 0 631 -6 9 3 MAT É R IE L ET EQ U IP E MEN T F O R C E D ES V E N T E S 0 0 635 5, 715 0 0 00 00 0 5, 715 0 -5 ,7 1 5 P R O M OT IO N GR A T U IT S B. G. 0 0 345 3, 105 0 0 00 00 0 3, 105 0 -3 ,1 0 5 PAR T IC IP A T IO N AU T R ES E VEN EM E N T S 0 0 222 2, 000 0 0 00 00 0 2, 000 0 -2 ,0 0 0 I N DE M N IT E S DE D E CE S 0 0 12 108 00 0 0 0 108 00 0 -1 0 8 F R AI S D 'ET U D ES D U M A R C H E 0 0 13 121 00 0 0 0 121 00 0 -1 2 1 F R AI S D E R E P R E SEN T A T IO N 3, 000 2, 250 679 6, 114 4, 135 833 0 5 3 442 204 65 0 383 -3 ,1 1 4 F R AI S DE MI S S IO N 1,000 750 134 1, 210 0- 999 1,660 0 0 0 549 00 -2 1 0 F R AI S H E BE R G E M EN T A L 'ET R A N G ER 2, 000 1, 500 261 2, 351 0 0 0 0 0 0 2,351 0 0 -3 5 1 F R AI S SEJ OU R T IER S 50, 000 37, 500 6,332 56, 990 8, 397 4,765 7,334 10,484 5 ,511 4, 140 3,247 10, 773 2, 338 -6 ,9 9 0 F rai s de réuni on e t r é c ept ion (C on fér enc e Loc ale) 2,500 1, 875 143 1, 289 00 0 301 0 700 288 00 1,211 Rec epti o n v is is teur s ét ranger s 500 375 401 3, 607 00 0 0 173 00 3, 433 0 -3 ,1 0 7 F rai s de réuni on e t r é c ept ion (C on fér enc e- et ranger s ) 1,000 750 200 1, 799 0 0 1,799 0 0 0 0 0 0 -7 9 9 C O NS O M .B UR E A UTI Q U E S I N F O R M A T IQ 700 525 81 733 0 162 156 236 03 5 7 07 3 0 -3 3 T E LE PHO N E 10,000 7, 500 842 7, 580 1, 320 1,719 694 1, 197 289 706 260 763 632 2,420 AU T R ES SER VI C E S E X T E R IE U R S 6, 000 4, 500 728 6, 554 2, 422 299 78 97 0 0 3,021 413 224 -5 5 4

25

C O NS .F O U RNI TUR E S D E B U R E A U 300 225 80 721 82 5 513 79 00 2 0 139 -4 2 1 CO N S O M MAT IO N P E T IT MAT E R IE L ET MO B ILIER 1,000 750 2,508 22, 573 1, 691 84 163 93 1,506 18, 772 3 174 88 -21,573 A S S U R A NCE R .C ./ A UTO M O B IL E 0 0 0 0 0 0 00 00 00 0 0 Tota l pa r c e n tr e de Co ût : 237,350 178, 013 41,356 372, 204 55,847 42,650 31,545 43,838 42,294 44, 265 43,106 49, 189 19, 4 70 -1 34,854

26