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A member of Kapgruppe Companies

General Management

Case 18: Resurrecting the Dead

Topic

Strategy, Management, Control

Company

A National Distributor of a Global Manufacturing Company

Problem

The company has lost money in the past 3 years doesn’t know what do to turn the company over.

Facts known

The company has been in business for 8 years and has been profitable only 3 years out of 8

Audit process

Observation and interview

Findings
  1. The leader of the business didn’t have the necessary characters to be a successful business leader
  2. The sales team didn’t really understand the products
  3. There was no mechanism to review progress weekly or monthly or at all
  4. The inventory was of incorrect level and of incorrect items because there was no form of planning or forecasting or review at all
  5. The lay out of the warehouse was very inefficient for unloading and uploading processes
  6. There was no ERP or any information system at all
  7. The team weren’t even half-skillled in their respective area of responsibility and there is no training at all
  8. Sales incentive scheme weren’t designed to affect behaviours correctly
  9. Discount structure wasn’t designed properly
  10. There was no review in the logistics function
  11. CRM (Consumer Relationship Management) barely existed
Action taken

After two weeks of review, steps were taken to correct all of those problems. The company started to make money and become profitable in month 4 after we arrived and continued to do so until we disengaged from the work which is 12 months after it started to make money.

Suggestions

Recruit a seasoned business manager to help run the company properly after diengagement with us.

Engagement

A little over a year

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