The company had grown rapidly over a very short period of time, but in doing so, a number of critical management weaknesses were exposed that led to it experiencing severe liquidity problems, threatening the future viability of the company.
We immediately introduced a range of controls to prevent further deterioration of the situation while at the same time guiding divisional managers through a series of exercises to identify the main contributing factors to the company's challenges. This was combined with group and one on one training to strengthen the management capacity of staff, who subsequently participated in the development of a recovery plan for the company.
>Staff were able to identify what went wrong and to then agree on actions to address the problems
>Full buy in from all divisional managers for the business recovery plan
>Company was restructured and got back to core business, making it simpler to manage by national staff
>All company debt was settled, property assets were secured
>Turnover was reduced while bottom line profit increased and cashflow improved significantly
The two partners in a proposed joint venture manufacturing operation previously completed a feasibility study immediately prior to political upheaval in this particular country, and as a consequence, the original market segment that they were intending to target had all but 'dried up'. They needed to know whether to proceed with the investment or not.
The original feasibility study was re-assessed and confirmed to be no longer viable in its current form. Market research that we conducted during the course of the re-appraisal identified an alternate market segment which, although requiring quite different products to the original one, represented a viable alternative in the new operating environment especially as the product range could be manufactured using the same technology as proposed for the original venture. A new feasibility study to 'bankable document stage' was developed, including five year projections, financial forecasts, market quantification and a risk mitigation strategy was prepared, with active input from the investment partners.
>The partners fully bought into the revised direction and segment for the proposed venture
>The joint venture operation was established early the following year once finances were in place
>Company achieved or exceeded all of its targets in terms of turnover and net profit in the first three years of operation
>The operation has now expanded into 5 additional countries and employs over 60 staff