Wolfgang Keller at Konigsbrau-Tak

WOLFGANG KELLER AT KONIGSBRAU-TAK (A)

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