Compagnie Du Froid

Compagnie du Froid, S.A. Harvard Business School Case #197-0! Case So"$are %&S-10'

Cop(righ ) *010 +residen and Fello$s Fello$s o" Harvard College. o par o" his produc ma( e reproduced, sored in a rerieval s(sem or ransmied in an( "orm or ( an( meanselecronic, mechanical, phoocop(ing, recording or oher$ise$ihou he permission o" Harvard Business School.

&'ibit 2 4renc Re&ion, *009 Results Proft Plan

Sales Data Sales ice-cream (volume in litres) Sales specialties (litres) Revenue rom !istri"ution Total Sales   Cost o Goods Sold

A

Volume

Euros

('000)

('000)

5rice per unit  

Volum e ('000)

4,010 445 4,455

### 17,879 9.99% 3,661

###   4,618 405 ###

###

5,023

 

2,887 1,844 38.29

7,893 *,8+1 371

###   3,317 ###   2,047 ###   43.56

 

410 316 40.03

1,1*1 693 388

368 ### 298 ### ###   36.02

 

ost ice-cream $air% in&re!ients (litres) ter in&re!ients (100 &r) a"or (ours) ost specialties $air% in&re!ients (litres) ter in&re!ients (100 &r) a"or (ours)  otal Contribution margin

   

8,233

Oter Costs Supervision, ener&%, maintenance, 

*,*06

$epreciation

+67

O!erating margin

","$

Selling and Administrati%e &'!enses $eliver% e.penses

861

$epreciation o truc/s

07

Sellin& e.penses

1,078

!vertisin&

1,1+1

!ministrative salaries an! e.penses

788

llocate! central o2ce e.penses

18

Profts beore (nterest and Ta'es

),$2*

(dentifable Assets as (avera&e)

9+

ccounts Receiva"le (avera&e)

80

5lant an! euipment (net o !epreciation 

+,713

Total identifable assets

",38*

Conditions or tourism vera&e summer temperature

Actual Quantity Variance Actual Mix Variance Actual Price Variance Variable !"t Variance Fixe# !"t Variance

*98 

€ 1,049.68 F € 14.19 U € 460.75 U € 144.75 U € $15.00 U

*9*

%e&'erature Variance

€

$57.5$ F

ctual Euros ('000)

5rice per unit

+le' to Actual uantit le' to Actual .i

7arianc e

*,1*6 (*8+) 79 ),/2)

4  4 +

 

9,1+*  *76 (1,*+9) 3,186  16 (3+) +38 ### (67)

  

*0,00  +33 3,377  83+ 79 ###

*0,18* +,1*777

 

*0,8983 3,3319*

21,282/

0

23,/2)*"

  

8,8993+ 3,*03** +1830

  

9,06861 3,1376 +**06

0

),$)"  *76 6  **0 36* ###

106 38 *6

4 4 4

   

1,*639* 78136 +37+7 1,00361

   

1,00617 633 3+913 1+,63*

8,3

13$

+

0

/,2828

0

/,28"$

*,3*+

(118)





*,*0600



*,*0600

+67





+6700



+6700

",8*2

3)2

,$/8

0

,"/""$

+

0 

-



-

908

(+7)





86100



86100

10

(3)





0700



0700

1,139

(61)





1,07800



1,07800

1,070

71

4



1,1+100



1,1+100

810

(**)





78800



78800

193

(3)





1800



1800

),212

2)"

+

0

2,$*8

0

2,$2"$

1+1

(+7)



63+

(+)



+,7*6

(13)



","$)

4)1)5

6

le' to Actual Price le' to 7ariable Cos e' to +i'ed Co Tem!erature 7ariance

 *0,0000  3,37700  7900 0 23,1)$$

Volume

 /uros

('000)

 0002

    0

*0,0000 3,37700 7900 23,1)$$

   0

*0,0000 3,37700 7900 23,1)$$

+76+ +171

  

9,06861 3,1376 +**06

  

9,1+*00 3,18600 +3800

  

9,1+*00 3,18600 +3800

3,'17 *,10 '!

9+16*6 3*818 +11+

   

1,00617 633 3+913 1+,63*

   

1,0100 600 36*00 1+,79800

   

1,0100 600 36*00 1+,79800

379.0' 304.9' 37.10

10++ 67+6 37*86 ###

0

8,8$**"

0

8,3$$

0

8,3$$

###



*,*0600



*,*0600



*,3*+00

*,3*+



+6700



+6700



+6700

+67

0

,)31*"

0

",//$$$

0

",8*2$$

###



86100



86100



90800

908



0700



0700



1000

10



1,07800



1,07800



1,13900

1139



1,1+100



1,1+100



1,07000

1070



78800



78800



81000

810



1800



1800



19300

193

0

),$)*"

0

),1"*$$

0

),212$$

###



### ### 7900 ###

xibit 4 Spanish ;egion, *009 ;esuls Pr!(it Plan

)ale" *ata Sales ice-cream volume in lires2 Sales specialies lires2 %!tal )ale" !"t !( +!!#" )!l#

Ac

Volume

/uros

('000)

0002

Volume +rice per uni ('000)

3,685 90.01% 14,*9' 5 '.'* 409 9.99% 3,330 5 .1' 19,6$4 4,094  

3,975 

6air( ingrediens lires2 her ingrediens 100 gr.2 &aor hours2 Cos specialies

2,653 1,769 34.37 

4,9*3 5 3.1 *,470 5 1.' *79 5 9.!!

2,175  1,450  29.21

6air( ingrediens lires2 her ingrediens 100 gr.2 &aor hours2 !ntributi!n &arin

381 299 37.09

99' 433 301 7,8$4

362  275  34.73

 

3,575  400 

Cos ice-cream

5 *.7! 5 *.30 5 .47

-ter !"t" Supervision, energ(, mainenance, ...

*,1'!

6epreciaion

391

8rans"er "rom France

/

-'eratin &arin

5,$88

)ellin an# A#&ini"tratie x'en"e" 6eliver( epenses

734

6epreciaion o" ruc:s

'13

Suconraced ransporaion

-

Selling epenses

*7

 Adverising

1,'04

 Adminisraive salaries and epenses

4*0

;en

100

 Allocaed cenral o""ice epenses

1!

Pr!(it" be(!re 2ntere"t an# %axe"

1,0$8

2#enti(iable A""et" Cash average2

9'

 Accouns ;eceivale average2

'*3

+lan and e
',74'

%!tal i#enti(iable a""et"

5,$81

!n#iti!n" (!r t!uri"&  Average summer emperaure

Actual Quantity Variance Actual Mix Variance Actual Price Variance Variable !"t Variance

30.*= C

€ $,36$.68 U € 1,803.01 F € 306.34 U € 1,966.00 F

*.!= C

Fixe# !"t Variance %e&'erature Variance

€ $,$77.00 U € $67.7$ F

ual

Variance

/uros

' to Actual uanti

+le' to Actual .i'

Price  per unit 

0002 1!,!07 € 4.34 3,*!1 € 8.13 18,758

772 792 866

>  >  U 0

1,8*038 3,*33*1 )/,$"3"/

  0

1,80761 3,*67* )/,$131

!,407 € 2.58 *,*0* € 1.52 *3 € 8.15

1,314 '4 '1

F  F  F 

8,19901 3,16*7* 3187+

  

6,9*300 *,67000 *7900

933 € 2.58 !71 € 2.08 *3 € 8.15 8,9$4

41 4* 1 1,100

F F F F

  

1,0176 7971 9888

  

99+00 63300 30100

0

",1)32

0

*,2131

*,144

*12

> 

*,1+00



*,1+00

391

/



39100



39100

*,1*4

*,1*42

>  -

4,$41

1,047

U 0

2,/2"32

7!

**2

> 

73600



73600

'*'

112

> 

+1300



+1300

77

772

>  -

74

'1

F 

8*700



8*700

1,'0

*2

> 

1,+0600



1,+0600

4''

*'2

> 

6*000



6*000

100

-



10000



10000

193

3!2

> 

1800



1800

149

1,177

4),33185 0

1831

9

'2

*44

1!4

',37

732

5,$01

80

U

0

0

1,*2831

-

le' to Actual Pric le' to 7ariable Cos +le' to +i'ed Cost Tem!erature 7ariance Volume

 /uros

('000)

 0002

  0

1,0700 3,*100 )8,*"8$$

  0

1,0700 3,*100 )8,*"8$$

  0

1,0700 3,*100 )8,*"8$$

368** +1*

### ### ###

  

6,9*300 *,67000 *7900

  

,60700 *,*0*00 *3800

  

,60700 *,*0*00 *3800

*,*'0 1,'9' 30

### ###  *+1+

  

99+00 63300 30100

  

93300 7100 *8300

  

93300 7100 *8300

37*.4 *3.*! 3!.77

 96099  8813  *91+9

 0

,/"8$$

0

8,/21$$

0

8,/21$$



*,1+00

*,1+

*,166



39100

391

391

-

###  5 *,144.00 5

391.00



*,1*600

 5 *,1*4.00

###

 0

1,122$$

0

,388$$

0

1,21)$$



73600



73600



7800

 7800



+1300



+1300



+*+00

 +*+00



7700

-

-



7700



8*700



8*700



78600



1,+0600



1,+0600



1,+0800



6*000



6*000



6++00

 6++00



10000



10000



10000

 10000



1800

18 

19300

 19300

 0

)2$$

4)1/$$5

###

0

2,)28$$

0

 78600 ###

xibit 1 /amples o" Sandards "or he *009 +ro"i +lan Spanish ;egion2 )tan#ar#" +ercenage o" volume "rom specialies Selling prices in /uros2 @ce-cream per lire2 Specialies per lire2 anu"acuring coss in /uros2 6air( ice-cream per lire2 her ingrediens ice-cream sugar, "lavor, ec. per 100 grams2 her ingrediens specialies sugar, "lavor, ec. per 100 grams2 &aor $age per hour2 &aor hours ice-cream lires per hour2 &aor hours specialies lires per hour2 olume 6air( ingrediensice-cream ? o" volume2 her ingrediensice cream grams per lire2 6air( ingrediensspecialies ? o" volume2 her ingrediensspecialies grams per lire2

)'ain 10? '.'* .13 *.41 1.!1 *.1* .13 107.*0 11.0' 7*? ' 93? 73

xibit 3 @alian ;egion, *009 ;esuls

)ale" *ata Sales ice-cream volume in lires2 Sales specialies lires2 %!tal )ale"   !"t !( +!!#" )!l#

Pr!(it Plan Volume /uros

Actual Volume /uros

('000)

('000)

0002

Variance

0002

2,453 10,947 2,480  11,104 272  *,*3* 276  *,*!3 2,725  13,199   2,756  13,359

139 *1 160

F F F

6air( ingrediens lires2 her ingrediens 100 gr.2 &aor hours2 Cos specialies

1,864 1,275  33.10 

',943 1,! 300

1,895  1,296  36.03

',94 1,93* 3*

*32 '72 *2

> > U

6air( ingrediens lires2 her ingrediens 100 gr.2 &aor hours2 !ntributi!n &arin

259 196  24.24

49 '*! **0 4,717

257  197  23.29

474 '30 *1* 4,795

13 !2  78

F > F F

1,1'*

1,13!

7

F

109

109

/

3,466

3,551

85

F

6eliver( epenses

3*9

31!

1'

F

6epreciaion o" ruc:s

19

19

/

>

Selling epenses

31'

3''

302

>

1,3*

1,*

'0

F

 Adminisraive salaries and epenses

!!

!7'

142

>

;en

1**

1**

/

 Allocaed cenral o""ice epenses

1!

193

3!2

>

Pr!(it" be(!re 2ntere"t an# %axe"

459

517

58

F

9'

10

1'2

377

3!7

*0

*,743

*,74'

12

3,$34

3,$$9

!

Cos ice-cream

-ter !"t" Supervision, energ(, mainenance, ... 6epreciaion -'eratin &arin )ellin an# A#&ini"tratie x'en"e"

 Adverising

2#enti(iable A""et" Cash average2  Accouns ;eceivale average2 +lan and e
*9.7= C

*9.= C

xibit 5 *009 @ce-cream 8rans"ers e$een France and Spain 2ce/crea& !"t !( inre#ient"

!"t 'er litre

olume rans"erred in 000 lires2

%!tal in 000 ur!" 403

 Acual Coss in /uros2 6air( @ngrediens

*.74

1.9

1,19'

her @ngrediens

1.!4

0.49

'14

&aor

0.09

0.09

!7

her coss

0.'4

*79

6epreciaion

0.09

!4

SA epenses

0.0'

*3

!? pro"i margin

0.17

101

%!tal tran"(er 'rice

3.53

$,1$6

 Allocaed Fied Coss in /uros2

xibit 6 Hisorical 6aa8emperaure and Sales olume France  ear %e&'erature )ale" V!lu&e degrees Celsius2 000 lires2 199! *7.7 1,3'' 1994 *9.* 1,'3! 1997 *.' 1,'' 199 30.9 1,71' 1999 3*.9 *,031 *000 *7.3 1,9' *001 30.0 *,*0 *00* 30.! *,'9 *003 30. *,741 *00' 30.0 *,99 *00! *9.7 3,*14 *004 30.3 3,''! *007 *9.4 3,797 *00 *9.' ',07 *009 udge2 ','!! Aerae

 ear 199! 1994 1997 199 1999 *000 *001 *00* *003 *00' *00! *004 *007 *00 *009 udge2 Aerae

 ear 1999 *000 *001 *00* *003 *00' *00! *004 *007

$9.8 =C )'ain %e&'erature )ale" V!lu&e degrees Celsius2 000 lires2 30. 1,049 31.* 1,*7* *9.0 1,'0* 31.4 1,4! *9. 1,!* *.3 *,004 *.0 1,94' *7.! *,033 *9.9 *,*31 30.' *,'1 31. *,4' 3*.' 3,034 30.' 3,3'4 31.0 3,7** ',09' 30.$ :

V!lu&e +r!t

4.7? 3.'? 1!.!? 1.!? -*.3? 11.3? 1*.7? 10.9? .4? 7.3? 7.1? 10.*? 7.4? 9.0? 9.1

V!lu&e +r!t

1.9? 10.*? *0.*? 9.9? .3? -*.1? 3.!? 9.? 11.*? .*? 13.1? 10.*? 11.3? 10.0? 10.$

2taly %e&'erature )ale" V!lu&e V!lu&e +r!t degrees Celsius2 000 lires2 3*.* 9* 30.' 1,034 14.1? *.4 1,1'3 10.3? 31. 1,'3' *!.4? *.1 1,!0 !.1? *.* 1,439 .7? *9.0 1,771 .0? *.3 1,7* !.7? 30.1 *,090 11.7?

*00 *009 udge2 Aerae

30.0 $9.7 :

*,'33 *,7*!

14.'? 1*.0? 1$.0