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Plan to Increase Revenue

Situation

  • The 2008 crisis led to a reduction in the company’s profits of more than 20%, and reduced the quantity and quality of distribution
  • The management company developed and implemented anticrisis measures directed at reducing production costs and other expenses
  • In the short-term, this led to a correcting of the situation, however during the seasonal decline in sales, the measures taken were insufficient to break-even

Goal

  • To develop a plan to increase profit, allowing for the company to secure its breaking-even in seasonal declines, and assess the expected effect of actions for the long-term growth of the company

Our approach

  • Analyzed and identified the possibilities to increase the quality and quantity of the company’s distribution in the regional market and product segments
  • Analyzed and optimized the current product portfolio and analysed pricing based on the pricing of competitors
  • Analyzed and developed recommendations to improve interaction between the production unit and the marketing and sales departments in order to improve production planning to reduce losses from stock going out of date and from production costs
  • Developed a model to assess the effect from the introduction of the suggested initiatives and how they influence the company
  • Identified priority measures regarding the time needed and the expected value

Result

  • A plan to increase profit and allow the company to guarantee that it will break-even in the sale’s down season was developed

 

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