The document attached covers a detailed proposal shared by a worldclass consulting firm around organisational restructuring of a large chemical company in China.
Project Objectives
Improve sales capabilities to secure wins in business such as redecoration
Adapt Key Account management methodology to grow Project business
Expand sales coverage to 2nd tier and 3rd tier cities and attract more mid-class customers
Integrate distribution networks to reduce inefficiency
Align internal organization to support future growth
Proposal Coverage
Diagnose current "AS-IS" sales channel and organization structure
Benchmark industry intelligence and best practice
Identify gaps for improvement
Hold workshop with leadership to confirm preliminary analysis
Derive optimal sales channel structure
Integrate distributor network
Align internal organization to support new sales channel
Develop implementation plan
About the Client
CHEMICALS COMPANY A supplies a full range of interior and exterior decoration and protection products for both the professional and do-it-yourself (DIY) markets in China, including paints, lacquers and varnishes, as well as products for surface preparation (pre-deco products) In China, only BRAND and BRAND are identified as the front-line paints brands
Issues at hand:
External Sales Channel Structure
• Overloaded to distribution.
• Right now 80% of the sales are generated through distribution, 20% by Projects.
• The current capability can not support when the Project % rise to 40% ~ 50% as the management planned
• More than 4,000 distributors are very difficult to manage with current manpower
• Missing capabilities to win in traditional and emerging markets such as redecoration & mass market
Internal Organization Set-up
• Lack of synchronization with other functions such as Supply Chain Management, Marketing, etc.
• Slow response to market requirements and competitions due to internal inefficiency
• Centralized organization disenfranchises staff in the regional offices , created motivation issues
Consulting firms preliminary analysis:
• Where's the next growth area? Service? E-commerce?
• What are the business grow initiatives?
• What's the optimal product portfolio?
• How to make sure the culture fit between China and global?
External Sales Structures:
• How to profitably win in the traditional market, yet explore new channels such as modern trade and e-commerce?
• How to expend coverage to 2nd and 3rd tier cities?
• What's the right balance between Channel vs. Project, Key Account vs. Key Project, etc.?
• How to set up key account management team to grow Project business?
• How to integrate distribution network to be more efficient and cope with rapid growing # of distributors?
• How to improve distribution network to work cross different channel?
Internal organization Competencies:
• How to realign internal organization structure to support sales channel and regional? Key functions to consider include Sales, Marketing, SCM, and other supports.
• Centralized or Decentralized management? How to balance Central vs. Regional?
• What competencies does Sales organization need to have? Does CHEMICALS COMPANY A provide sufficient training?
• Can the current distribution sales force support Project? How many resources needed to support future growth model?
Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.
Source: Best Practices in Strategic Plan Example, Business Strategy Example, Strategy Development Example, Strategy Report Example PowerPoint Slides: Proposal for Organizational Restructuring (Big 4) PowerPoint (PPTX) Presentation Slide Deck, Shaleen Sinha
This PPT slide presents a framework for evaluating the decision to keep functions in-house versus outsourcing them, utilizing a capability mapping approach commonly employed by consulting firms. It categorizes various business functions and activities based on 2 key dimensions: economies of scale and strategic importance.
On the vertical axis, "Economies of Scale" ranges from low to high, indicating the potential cost benefits associated with scale in delivering specific functions. The horizontal axis represents "Strategic Importance," also ranging from low to high, which assesses how critical a function is to the organization’s core strategy and operations.
The slide identifies several general functions, including IT systems, facilities management, and HR, alongside quality and technical functions such as regulatory affairs and project management. These functions are positioned within the activity matrix, suggesting that functions with high strategic importance and high economies of scale may be better suited for in-house management. Conversely, those with lower importance and scale may be considered for outsourcing.
Specific activities are highlighted, such as "Consider Outsourcing or Discontinue," which suggests a proactive approach to evaluating less critical functions like canteen services and facility management. The framework also emphasizes the need for individual consideration in decision-making, particularly for functions that may not fit neatly into the matrix.
This structured approach aids organizations in making informed decisions about resource allocation, ultimately enhancing operational efficiency and aligning capabilities with strategic goals. The illustrative nature of the slide indicates that it serves as a guide rather than a definitive answer, encouraging further analysis tailored to the specific context of the organization.
Restructuring Problem Solving Process Mapping Progress Report Presentation Development Project Management Consulting Project Management Project Risk Customer Service Communications Strategy Information Technology Influence Change Management Team Management Self Improvement Specialized PowerPoint Templates Pyramid Principle Organizational Design Organizational Behavior Strategic Planning Strategy Development Example Business Transformation
![]() |
Download our FREE Strategy & Transformation Framework Templates
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more. |