Case Study: Turnaround Management & Restructuring

Retail company for luxury products

The family-driven retail business with an attached production went into crisis despite stable markets and steady demand. One reason were the overlapping competences in the management. In addition sales were flying blind with no or old information on margins, delivered from an outdated inventory system.

Focusing on these two problem areas, priorities were defined to approach deficiencies in the structure of the organization and also in the processes from purchasing to final customers.

The IT system has been replaced, new pricing models defined and the staff specifically trained in using the new IT as well as sales basics. The transparent costing led to easier negotiations with customers and response times were greatly reduced. Customers previously lost due to long waiting times could now be recovered and thus the turnover has been greatly increased. Much more important was a leap of the average margin, and thus the total profit.

In addition to the above, employee goals and reward systems have been redefined.