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Developing a growth strategy and preserving productivity levels

Situation

  • The client’s main activities were unprofitable, with the financial situation deteriorating from year to year
  • The client had a huge production complex in the center of Moscow, split into northern and southern parts (total area of 200 ha)
  • The client’s management decided to concentrate production on the southern part, though the possibility of developing its own model range was lost due to the compressed space, leading to the need to find alternatives. To unlock potential in the northern part, comprehensive redevelopment would be needed

Goal

  • To develop a growth strategy for the firm oriented on maintaining production (of luxury cars) and finding self-sustaining output
  • To create a strategy to develop the northern production space, meeting complexity needs, creating quality jobs bringing in high added value, and all in compliance with environmental standards

Our approach

Industrial production part

  • Analyzed the aims the key stakeholders had, highlighting their limitations. Audited resources, competencies and technical possibilities; analyzed the competitiveness of the productive units
  • Identified the potential directions the production facilities could go in expanding their productive area, and conducted a comparative analysis
  • Compiled a list of potential strategic partners and conducted negotiations with them
  • Prepared and presented to the government of Moscow presentation materials with the assessed options

Area for development

  • Analyzed the aims of the key stakeholders; analyzed the key characteristics of the territory; and identified the main advantages and disadvantages
  • Analyzed international and Russian best practice on how to give industrial zones new designations and lives
  • Formulated development alternatives, assessed them, and chose the best option. Prepared presentation materials for the government ofMoscow

Results

  • For the southern territory, it was recommended that assembly contracts be signed with global auto manufacturers. This option was accepted by Moscow’s government and negotiations with investors are ongoing
  • For the northern space, a “Technopolis” idea was recommended. This idea is supported by the organization NIIP General Plan for Moscow as well as the leading educational establishments of the Russian Federation, which are also prepared to get involved in implementing the plan

 

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