Corporate Strategy Design Consulting Report (PowerPoint PPT)

This is a corporate strategy design final report for a European sanitary product manufacturer by a leading consulting firm. Team assessed client's market, competitive environment and potential risk and opportunities, then re-designed its strategy.

This report depicts the following analyses:
1. Macro business environment
2. Market analysis of sanitary system
3. Strategy evaluation
4. Sales & marketing baseline
5. Financial situation
6. Organization and process
7. Restructuring options

The report delves into the macroeconomic environment of Country X, highlighting key indicators such as fixed asset investment and GDP growth, which reflect strong economic trends. Country X's construction industry, being the largest globally, offers immense potential for XXX's piping products. However, the significant price gap between HDPE and Mepla products and local alternatives could pose a barrier to market penetration. The report suggests that long-term commitment and effective marketing strategies are essential to overcome these challenges.

The financial section provides a detailed analysis of GSHA's precarious financial situation, with the company teetering on the brink of bankruptcy. The report outlines the lack of leadership and trust within the organization, leading to high staff turnover and low morale. It also highlights the inefficiencies in the current operational processes, which are production-oriented rather than market-oriented. This misalignment has resulted in a significant increase in operating losses, despite improvements in product mix.

The document also examines the organizational structure and process inefficiencies at GSHA. The frequent changes in organizational structure have not been effectively implemented, leading to overlapping functions and a lack of clear definition. The report emphasizes the need for a more market-oriented approach and better control over the entire process chain to improve efficiency and effectiveness. It also identifies the main problems in the process, including unsuitable process structure, inefficient process control, and the significant differences between document-based processes and real processes.

The restructuring options section explores various scenarios for foreign investment enterprises in Country X, including turnaround, equity structure restructuring, and withdrawal. The report provides a comparative analysis of these alternatives, considering factors such as cost, time, risk, and future integration. It concludes that bankruptcy should be the last resort for XXX, given the high costs, risks, and complexities involved. Instead, the report recommends focusing on equity structure restructuring to gain full control and ensure future success.