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Strategy Development and Organizational Structure

Situation

  • The company is a leading market distributor of frozen drink products
  • The market is growing fast and expects continuing growth in future
  • The business is relatively profitable, but the number of retailers consolidating is increasing, which could in future force distributors out of business

Goal

  • To develop a corporate strategy for the holding and its business units, along with organizational structure and changeover plan

Our approach

  • A five-year plan was built into the business model to forecast changes in profitability for all the main market segments
  • As part of a brainstorming session, ideas were generated for the further development of the company. On the basis of these, the company’s management created six complex business models that united four different development directions
  • Analysis was conducted to assess the potential costs, ease of implementation and risks, allowing for three key businesses to be selected for the company’s future growth
  • Deep analysis of the chosen businesses showed that there was a clear strategy for each of them that would bets allow for potential value creation to occur
  • In combination with these strategies, a financial model was also constructed to forecast the company’s operational and financial indicators
  • A full organizational model was developed to realize the chosen strategy, along with a changeover model for the coming years
  • A strategic plan was developed and agreed on with the responsible managers, along with a list of control points and indicators based on the financial model

Results

  • The strategy was fully adopted by the shareholders and key managers of the company, and presented to the board of directors

 

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