The Duke of
Quessex
Consultancy report by ACE Consulting
Kyra Docter 13372882
Lauryn Jackson 12198390 For this consulting report, ACE Consulting did not take Covid-19 into
Diede Kraaij 11050802 account. We believe Covid-19 is a short-term problem and we would
Gabriele Landi 12287393 like to focus on the long-term profitability for the Duke of Quessex.
Jimin Lee 12056405
, Inventory management
Main problems: Delivery day of the stock; Standard weekly order is not sufficient for demand; Prices of the beers are too low
Recommendations:
The current delivery day of the stock is Sunday. However, Sunday is a busy day and it takes a long time for the staff to carry the stock from
the storeroom to the cellar. Our recommendation is to change the day of delivery of the stock to Tuesday morning before the bar opens.
Henceforth, the staff will have enough time and workforce to carry the stock from the storeroom to the cellar.
Additionally, Monday is the least busy day of the week, so we propose the Duke of Quessex to close on Mondays. On Mondays, sales
only account for a tiny percentage of the total sales per week (2%). Additionally, closing on Mondays means the Duke of Quessex can
save staff salaries and utility costs. As calculated in Appendix 1, the pub normally generates a loss of £121.82 every Monday.
Furthermore, the standard weekly order of Ponciebiera, Chateau du Plonk, and Mutton Porte comme L'Agneau should be increased and
the stock order of Ol’ Dirty Badger should be reduced.
Change weekly stock delivery:
28 Barrels Ol’ Dirty Badger
63 Barrels Ponciebiera
79 Barrels Chateau Du Plonk
79 Barrels Mutton Porte comme L’Agneau
44 Barrels Fizzy Pop
(See appendix 2 for further explanation & calculations)
, Finally, the prices of the Duke of Quessex’s beers should be based on a
cost margin of 30% (Starner, 2020). This means that the prices for The Duke of Quessex is expected to save £13,383 per
Ponciebiera and Ol’ Dirty Badger have to be raised. With this increase, week as a result of the change in procurement and
prices will still be competitive with other pubs in the region and far below increased beer prices, as shown in Table 1 in Appendix 4.
the average price of £4.02 in Sussex (Mirror, UK, 2019). Hence, the pub
can still offer cheap beer and satisfy its customers.
Total sales old policy £20,567
Total expected sales new policy £36,718
Change beer prices:
Total wholesale cost old policy £9,808
Total wholesale cost new policy £12,576
Ol’ Dirty Badger £3.00
Ponciebiera £2.50
Chateau Du Plonk £2.50 Positive financial impact £13,383
Mutton Porte comme L’Agneau £2.50
Fizzy Pop £1.50
(See appendix 3 for calculations)
As a result of these price increases, ACE Consulting does not expect
a decline in the number of sales. Beer is relatively price inelastic in
the UK, so a small price increase will not withhold customers from
consuming beer in the Duke of Quessex (Sousa, 2014). In addition,
as customers also mentioned, people prefer to pay a higher price for the
beer and be sure there is enough beer in stock.
Quessex
Consultancy report by ACE Consulting
Kyra Docter 13372882
Lauryn Jackson 12198390 For this consulting report, ACE Consulting did not take Covid-19 into
Diede Kraaij 11050802 account. We believe Covid-19 is a short-term problem and we would
Gabriele Landi 12287393 like to focus on the long-term profitability for the Duke of Quessex.
Jimin Lee 12056405
, Inventory management
Main problems: Delivery day of the stock; Standard weekly order is not sufficient for demand; Prices of the beers are too low
Recommendations:
The current delivery day of the stock is Sunday. However, Sunday is a busy day and it takes a long time for the staff to carry the stock from
the storeroom to the cellar. Our recommendation is to change the day of delivery of the stock to Tuesday morning before the bar opens.
Henceforth, the staff will have enough time and workforce to carry the stock from the storeroom to the cellar.
Additionally, Monday is the least busy day of the week, so we propose the Duke of Quessex to close on Mondays. On Mondays, sales
only account for a tiny percentage of the total sales per week (2%). Additionally, closing on Mondays means the Duke of Quessex can
save staff salaries and utility costs. As calculated in Appendix 1, the pub normally generates a loss of £121.82 every Monday.
Furthermore, the standard weekly order of Ponciebiera, Chateau du Plonk, and Mutton Porte comme L'Agneau should be increased and
the stock order of Ol’ Dirty Badger should be reduced.
Change weekly stock delivery:
28 Barrels Ol’ Dirty Badger
63 Barrels Ponciebiera
79 Barrels Chateau Du Plonk
79 Barrels Mutton Porte comme L’Agneau
44 Barrels Fizzy Pop
(See appendix 2 for further explanation & calculations)
, Finally, the prices of the Duke of Quessex’s beers should be based on a
cost margin of 30% (Starner, 2020). This means that the prices for The Duke of Quessex is expected to save £13,383 per
Ponciebiera and Ol’ Dirty Badger have to be raised. With this increase, week as a result of the change in procurement and
prices will still be competitive with other pubs in the region and far below increased beer prices, as shown in Table 1 in Appendix 4.
the average price of £4.02 in Sussex (Mirror, UK, 2019). Hence, the pub
can still offer cheap beer and satisfy its customers.
Total sales old policy £20,567
Total expected sales new policy £36,718
Change beer prices:
Total wholesale cost old policy £9,808
Total wholesale cost new policy £12,576
Ol’ Dirty Badger £3.00
Ponciebiera £2.50
Chateau Du Plonk £2.50 Positive financial impact £13,383
Mutton Porte comme L’Agneau £2.50
Fizzy Pop £1.50
(See appendix 3 for calculations)
As a result of these price increases, ACE Consulting does not expect
a decline in the number of sales. Beer is relatively price inelastic in
the UK, so a small price increase will not withhold customers from
consuming beer in the Duke of Quessex (Sousa, 2014). In addition,
as customers also mentioned, people prefer to pay a higher price for the
beer and be sure there is enough beer in stock.
