Restructuring strategy and business plan for a leading shoes manufacturer
Situation
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The Company was an established manufacturer with a leading brand in the Sports Shoe market in Egypt almost a decade ago, before witnessing significant deterioration in its performance both, on the operational and financial front due to intense local and foreign competition
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The Company was acquired by investors who settled outstanding debt and were looking to design turnaround strategy for the Company
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Conducted detailed baseline assessment of the existing organization that included designing and applying an assessment framework tackling revenue and cost related “symptoms” as well as root-cause assessment across five dimensions (human capital, business process, commercial capabilities, machinery and infrastructure and corporate governance)
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Conducted an in depth assessment of the current financial performance and develop a cost allocation mode that involved allocation of costs across manufacturing stages and shoe models as well as calculating profitability margins on a product level
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Culminated the baseline findings into an issue assessment summary that incorporated issues on the quality, pricing, marketing & distribution, salary scale, productivity, among others
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Derived a clear vision, mission, as well as a turnaround strategy that rested upon four main pillars; market presence & product portfolio, operating model, production capabilities and human capital
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Further detailed the strategy into 20+ strategic initiatives including - pricing strategy & policy, branding awareness, distribution strategy, governance, CEO hiring, organization restructuring, priority processes, maintenance plan, hiring, among others
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Prioritized initiatives with accordance to their impact and ease of implementation, and developed a detailed implementation plan
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Built a financial model with forecasted 5-year plan that optimized product portfolio and maximized profitability, account for strategic and market constraints; variations in volumes, models and prices in light of market conditions, achievable capacity, capex & labor requirements, etc.
Contribution
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5 year strategy approved by Board of Directors