CLIENT CASE -
International Heavy Machinery Company
Shareholders Nationality: Romanian & French Country of Operation: Romania
Case Study background:
This case is not a usual case study and represent a different problem that requires a different skill set to solve it.
MCBA was contacted by an international, leading heavy machinery company that operates for more than 20 years in the market, owned by French & Romanian shareholders. The business was going well and showed growth, but during that year, the company implemented a change within their management (Former manager wanted to retire).
New managers have been promoted into partnership positions. Meanwhile, the remote management from France created stress in the working environment which led into the “usual problems” of sales decrease, employees leaving the company, neglecting the required adaptation for the new market and disagreement between the parties in Romania and in France. Daily accusations was a routine and the atmosphere was toxic and a non-productive one
The Challenges:
-
Recreate the communication channels between the shareholders and trying to find common ground and amicable solutions.
-
Lack of operational management due to the constant nonproductive disputes.
-
The highly competitive rate of new companies that just joined the market, moving faster and offering better prices.
-
Lack of employees with the required technical skills, while the current employees are leaving the company.
-
Having no future nor an expansion plan, in this stage of the company’s growth, placed the company in a huge risk.
Goals:
-
Goal 1 – MCBA have analyzed the situation and proposed few amicable solutions to which were approved by the shareholders.
-
Goal 2 – Execute a new management plan, based on the shareholders guidelines and increasing trust. Follow up and guide the new management during the process.
-
Goal 3 – Analyzing the market and creating a leverage on the competitors
-
Goal 4 – Developing a retention program for the current employees, mainly the sales team, including new recruitment by special sources and methods. The salary rate and costs didn’t grow, so the cash flow remained under control.
-
Goal 5 – Creating an expansion plan that will allow the company to develop towards the next step while keeping their market leading position.
Results:
-
We succeeded to create a communicative channel between the parties and established a new share distribution and new management responsibilities between the parties. The solution resulted in a positive boosting for the company’s activity.
-
A management plan was developed and operated immediately.
-
A special training and marketing plan was developed and initiated which resulted in a sales increase of over 400% in the 3rd year.
-
Employee retention program was initiated by the company with long term benefit for employees. The company reached an employees' growth of 170%
-
An expansion plan was developed, alongside with commercial plan and takeover of several brand's exclusivity which resulted in controlling the local market share from 15% to 85%.
The change was huge and almost immediate, reflected first in having a better communication between us the shareholders and seeing a bright future for the company.
We needed help in finding again the common ground and believe in our power to generate success. Once we were on track we are again unstoppable.
H. Gaël - Founder & CEO