Hello I am attempting to solve the following case and answering the following questions:

1. What is your evaluation of each of the three businesses? What is your evaluation of the managers who run them?
2. Try to break out the strategic profitability variances for Italy and ONE other business-doesn't matter which. I need a full variance analysis for these two divisions. The countries are listed on the tabs.

Thanks for the help,

Claire

Compagnie du Froid, S.A. Harvard Business School Case #197085 Case Software #XLS104 Copyright 2010 President and Fellows of Harvard College. No part of this product may be reproduced, stored in a retrieval system or transmitted in any form or by any meanselectronic, mechanical, photocopying, recording or otherwisewithout the permission of Harvard Business School. Ex 1 - Profit plan assumptions Spain Standards Percentage of volume from specialties 10% Selling Prices (in Euros) Ice-cream Price (per litre) Specialties Price (per litre) 4.42 8.13 Manufacturing Costs Dairy (per litre) Other ingredients ice-cream (sugar, flavor, etc., per 100 grams) Other ingredients specialties (sugar, flavor, etc., per 100 grams) Labor (wage per hour) Labor hours ice-cream (litres per hour) Labor hours specialties (litres per hour) Volume Dairy ingredientsice-cream (% of volume) Other ingredientsice-cream (grams per litre) Dairy ingredientsspecialties (% of volume) Other ingredientsspecialties (grams per litre) 2.61 1.51 2.12 8.13 107.20 11.04 72% 48 93% 73 Ex 2 - France Performance France Profit Plan Volume (in '000) Sales Data Sales ice-cream (volume in litres) Sales specialties (litres) Sales from frozen food Total Sales Cost of Goods Sold Cost ice-cream Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) Cost specialties Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) Contribution margin 4,010 445 Actual Euros (in '000) Volume ('000) 4,455 17,879 3,661 21,540 5,023 20,005 3,377 79 23,461 2,887 1,844 38.29 7,893 2,841 371 3,317 2,047 43.56 9,142 3,186 438 (1,249) U (345) U (67) U 410 316 40.03 1,121 693 388 8,233 368 298 36.02 1,015 655 362 8,663 106 38 26 430 10% 4,618 405 Variance Euros ('000) 2,126 (284) 79 1,921 Other costs Supervision, energy, maintenance, ... Depreciation Operating margin 2,206 467 5,560 2,324 467 5,872 Selling and Administrative Expenses Delivery expenses Depreciation of trucks Selling expenses Advertising Administrative salaries and expenses Allocated central office expenses Profits Before Interest and Taxes 861 507 1,078 1,141 788 158 1,027 908 510 1,139 1,070 810 193 1,242 (47) (3) (61) 71 (22) (35) 215 Identifiable Assets Cash (average) Accounts receivable (average) Plant and equipment (net of depreciation 2,322) Total Identifiable Assets 94 580 4,713 5,387 141 634 4,726 5,501 (47) (54) (13) (114) Conditions for tourism Average summer temperature Expected growth ROI 29.8 29.2 9% 19.1% 22.6% F U F F F F F F (118) U 312 F U U U F U U F Ex 3 - Italy Performance Italy Sales Data Sales ice-cream (volume in litres) Sales specialties (litres) Total Sales Cost of Goods Sold Cost ice-cream Dairy ingredients (litres) Other Ingredients (100 gr.) Labor (hours) Cost specialties Dairy ingredients (litres) Other Ingredients (100 gr.) Labor (hours) Contribution margin Profit Plan Volume Euros ('000) ('000) Volume ('000) Actual Euros ('000) Variance 2,453 272 2,725 10,967 2,232 13,199 2,480 276 2,756 11,106 2,253 13,359 139 F 21 F 160 F 1,864 1,275 33.10 4,963 1,885 300 1,895 1,296 36.03 4,986 1,932 328 (23) U (47) U (28) U 259 196 24.24 689 425 220 4,717 257 197 23.29 676 430 212 4,795 13 (5) 8 78 7 F 85 F Other costs Supervision, energy, maintenance, ... Depreciation Operating margin 1,142 109 3,466 1,135 109 3,551 Selling and Administrative Expenses Delivery expenses Depreciation of trucks Selling expenses Advertising Administrative salaries and expenses Rent Allocated central office expenses Profits Before Interest and Taxes 329 198 314 1,328 558 122 158 459 315 198 344 1,288 574 122 193 517 14 (30) 40 (16) (35) 58 Identifiable Assets Cash (average) Accounts receivable (average) Plant and equipment (net of depreciation 3,200) Total Identifiable Assets 94 377 2,763 3,234 108 357 2,764 3,229 (14) 20 (1) 5 Conditions for tourism Average summer temperature Expected growth ROI 29.7 29.8 12% 14.2% 16.0% F U F F F U F U U F Ex 4 - Spain Performance SPAIN Profit Plan Volume Euros ('000) ('000) Actual Volume ('000) Variance Euros ('000) Sales Data Sales ice-cream (volume in litres) Sales specialties (litres) Total Sales 3,685 409 4,094 16,294 3,330 19,624 3,575 400 3,975 15,507 3,251 18,758 (787) U (79) U (866) U Cost of Goods Sold Cost ice-cream Dairy ingredients (litres) Other Ingredients (100 gr.) Labor (hours) 2,653 1,769 34.37 6,923 2,670 279 2,175 1,450 29.21 5,607 2,202 238 1,316 F 468 F 41 F 381 299 37.09 994 633 301 7,824 362 275 34.73 933 571 283 8,924 61 62 18 1,100 Cost specialties Dairy ingredients (litres) Other Ingredients (100 gr.) Labor (hours) Contribution margin F F F F Other costs Supervision, energy, maintenance, ... Depreciation Transfer from France Operating margin 2,145 391 5,288 2,166 391 2,126 4,241 (21) U (2,126) U (1,047) U Selling and Administrative Expenses Delivery expenses Depreciation of trucks Subcontracted transportation Selling expenses Advertising Administrative salaries and expenses Rent Allocated central office expenses Profits Before Interest and Taxes 736 413 827 1,406 620 100 158 1,028 758 424 77 786 1,408 644 100 193 (149) (22) (11) (77) 41 (2) (24) (35) (1,177) Identifiable Assets Cash (average) Accounts receivable (average) Plant and equipment (net of depreciation 1,669) Total Identifiable Assets 94 423 4,764 5,281 98 266 4,837 5,201 (4) 157 (73) 80 Conditions for tourism Average summer temperature Expected growth ROI 30.2 28.5 10% 19.5% -2.9% U U U F U U U U Ex 5 - Transfer prices Cost of ingredients Ice-cream Cost per litre Volume transferred (in '000 litres) Actual Costs (in Euros) Dairy ingredients Other Ingredients Labor 2.76 1.56 0.09 Total (in '000 Euros) 603 1.98 0.69 0.09 1,194 416 57 Allocated fixed costs (in Euros) Other costs Depreciation S&A expenses 0.46 0.09 0.04 279 56 23 5 % profit margin 0.17 101 Total transfer price 3.53 2,126 Ex 6 - Sales and weather data France Italy Year Temperature (degrees Celsius) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (budget) 27.7 29.2 28.4 30.9 32.9 27.3 30.0 30.5 30.8 30.0 29.7 30.3 29.6 29.4 Average 29.8 Year Temperature (degrees Celsius) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (budget) 32.2 30.4 28.6 31.8 28.1 28.2 29.0 28.3 30.1 30.0 Average 29.7 Sales Volume ('000 litres) 1,344 1,435 1,484 1,714 2,031 1,984 2,208 2,489 2,761 2,998 3,216 3,445 3,797 4,087 4,455 Volume Growth Spain 6.7% 3.4% 15.5% 18.5% -2.3% 11.3% 12.7% 10.9% 8.6% 7.3% 7.1% 10.2% 7.6% 9.0% 9.1% Sales Volume ('000 litres) 892 1,036 1,143 1,434 1,508 1,639 1,771 1,872 2,090 2,433 2,725 Volume Growth 16.1% 10.3% 25.6% 5.1% 8.7% 8.0% 5.7% 11.7% 16.4% 12.0% 12.0% Page 7 Year Temperature (degrees Celsius) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (budget) 30.8 31.2 29.0 31.6 29.8 28.3 28.0 27.5 29.9 30.4 31.8 32.4 30.4 31.0 Average 30.2 Sales Volume ('000 litres) 1,069 1,272 1,402 1,685 1,852 2,006 1,964 2,033 2,231 2,481 2,684 3,036 3,346 3,722 4,094 Volume Growth 18.9% 10.2% 20.2% 9.9% 8.3% -2.1% 3.5% 9.8% 11.2% 8.2% 13.1% 10.2% 11.3% 10.0% 10.2% Ex 6 - Sales and weather data Temperature coefficient (rounded) 3% Page 8