Link -
Cases
Below are six (6) example case studies. We can provide consulting assignment
experience relevant for your specific situation upon request.
(Click to select or scroll down)
ENGINEERED MATERIALS Company code name IM
The Situation: New deposits of unique materials are discovered in Brazil. They are potentially world class, higher value-added products but would require advanced processing technologies and global marketing capabilities. IM is a potential partner with a major Brazilian natural resource company.
Critical Items: Confirming materials qualities and processing options. Understanding and assessing major risks including (a) large capital expenditures, (b) mining, building pipelines and processing facilities, and a new port facility in the Amazon, (c), technology issues, (d) new product introductions on a global scale, (e) many management issues, etc., etc.. Internal and external interests groups added complexities. We worked with the client through the evaluations and the approvals process.
The Solution/Results: Capital expenditures and capacity needed to be phased to reduce risks. The initial market was Japan with trading partner Sumitomo. IM expanded later into Europe then North America. On-site management was required particularly during Greenfield construction, and later for process controls and product quality. This initiative is now a substantial contributor to IM’s earnings. For this same client we also provided (a) global strategic planning services, (b) investment evaluation services and (c) advice for business development including mergers and acquisitions.
Back to Top
Recognized global, HIGH TECHNOLOGY, PRIVATE EQUITY company code name G, headquartered in France
The Situation: A previously acquired business code named C has global sales and marketing and also production facilities in the US, UK, Germany and Singapore. It was acquired to gain access to the business’s top profile accounts including nearly all of the world’s major banks, credit card companies and large retailers including the parent company G. As its technical capabilities become more the industry standard, competition put heavy pressure on ever declining margins.
Critical Items: Are the customer relationships through C still needed? How Should G manage the margin pressures? Are there alternative scenarios for supply? Is this a global or local issue; where and what are the differences, if any? How will customers respond to G if major changes are made to C? What about cash flow vs. margins? Working within management, issues were clarified, and then led the implementation.
The Solution/Results: Led the process involving 60 top functional managers worldwide including (a) establishing a global key account program which also addressed pricing and order fulfillment, (b) downsizing/restructuring each manufacturing facility without sacrificing quality or customer service, each to its own regional needs and requirements and (c) preparing and carving out C’s components for sale in whole or in part (240 key decision/implementation points for each location); then actively selling the business units. Some were sold with good prices; others were retained for cash flow and/or contacts.
Back to Top
Global INSTRUMENTS company code named T, a division of a Fortune 250 company
The Situation: The North American operation which includes a production facility in New York begins to experience margin pressures for products and systems marketed to North American customers.
Critical Items: Across the board margin erosion. This includes 14 major product groups. The initial thought is to move production to Italy because of favorable current exchange rates. Also, T is about to spend $25 million on circuit board production enhancements. As an operations consultant, worked within and across the management of T looking for longer term, pragmatic solutions. A key finding was half of business was labor intensive; the other half was capital intensive. Other findings; everything made in house including nuts and bolts; large capital investment in gold to support circuit production without capability to keep abreast of changing technologies. Also, poor work flow through New York’s facilities.
The Solution/Results: All assembly operations are moved to Mexico at less than 10% of the cost, circuit board and other components are outsourced, work flow within remaining operations in New York is streamlined. The cost of goods sold was reduced by 16% the first year excluding the cash for the gold in inventory.
Back to Top
Global, highly respected FINANCIAL SERVICES Company code named F.
The Situation: F has been a leader in its industry and has actively pursued global markets. But, business outside of North America, particularly in its services offerings, clearly has room for improvement. Some customers have complaints, brokers have complaints, and certain regional managers have complaints. They believe there are four root causes. But, before taking specific action, we were retained to determine what is happening in services outside of North America.
Critical Items: They recognize that there may be some culture issues and that relationships particularly in emerging markets could (should by their standards) be better. Our findings point to different causes other than their four root causes. Most of the causes are region specific.
The Solution/Results: This research acted as a platform for rethinking of some of the client’s go to market practices for its services. On a broad cross border scale there were opportunities for revised training for field service personnel. On a regional level there are opportunities for partnerships in certain regions, opportunities to establish new, region specific industry standards, and in some regions a need to change customer relationship practices and employee retention. Overall, we concluded that F’s growth prospects appear bright in nearly all regions.
Back to Top
High growth global SPECIALTY CHEMICALS / MATERIALS business code named MT
The Situation: This company’s high growth was driven through advanced technologies for new products and differentiating distribution and sales practices. The business includes three operating segments. There is concern by the board and top management that growth while positive is slowing and may require changes in strategies and tactics, and whether or not the operating unit’s projections are overly optimistic.
Critical Items: MT’s fastest growing business is maturing. There is stiff competition in its second largest business. And, there are questions around the depth/breadth of its diversified business group. Not specifically asked but reviewed by us were other options at the corporate level to enhance shareholder value.
The Solution/Result: A review of the business unit strategic plans including some independent research indicated that their forecasts were indeed overly optimistic. For one segment the strategic and tactics were well thought out but needed to incorporate slower growth, more in North America versus other global markets. The second business had a good handle on strategic issues but needed to address competition and certain global regions more aggressively. The diversified business needed some rationalization to refocus toward earnings opportunities and question the long-term viability of a few product lines. MT as a total entity was given a number of recommendations and suggestions to enhance shareholder value. Eventually some top management changes were made and many of the recommendations were implemented. We also provided this client with business development services that helped to identify opportunities that offered higher earnings growth that leveraged technological competencies and provided strategic fit.
Back to Top
A PRIVATE EQUITY owned company recognized for its ability to provide products and services of a VERY HIGHLY SECURED nature code named IB
The Situation: After going through a difficult period, refinancing and new private equity ownership, the company is ready to move forward on a growth strategy. We were retained to assist in business development.
Critical Items: Management is open to new ideas. However, some key managers want to enter entirely new businesses and markets; another faction wants to look as business opportunities that employ similar technologies and serve similar customer groups.
The Solution/Result: Several business opportunity areas are identified and reviewed, and key acquisition/partnership opportunities are identified in a number of areas. Within nine months a key acquisition that was recommended is acquired. It is successful and remains an important earnings contributor for IB. Incidentally, it employs similar technologies and serves familiar customer groups.
Back to Top
|
