Realignment of business strategy and organization

Candy

Manager:

  • Customer:

    Confidential

  • Role:

    External Project Manager

  • Location:

    Germany

  • Turnover:

    2,5 Mio € (Projectstart) ~10 Mio € (aktually)

  • Time frame:

    8 month

  • No. of employees:

    12 (Projectstart) 25 (aktually)

About the Customer

The company is the European leader in the online marketing of confectionery, seasonal sweets and confectionery gift items. The sales performance has been continuously positive for years and grew at double-digit rates annually. The breakeven point has just been reached.

Testimonial from Сustomer

The risks found at the start of the project could be eliminated or significantly minimized. Within just two years of completing the project phase with changes in organizational responsibilities and processes, total sales almost quadrupled, and the break-even point was quickly clearly reached and continues to grow overproportionately. The company is today the most important partner of major manufacturers in the online marketing of their products. Mr. AH* has an excellent reputation in the industry for his great results on this project and is regularly recommended by the customer.

Situation (Challenge)

The company had reached its capacity limits in the current direction, so that a possible expansion without a massive introduction of debt capital was considered difficult to risky. The original task was to analyze which future market opportunities the company had, whether an expansion of business operations can be implemented in a sensible business sense and which organizational and personnel measures are necessary. First, an analysis of the current state of affairs and, in some special circumstances, a SWOT analysis was carried out. Likewise, the market developments in the respective online channels and countries were analyzed and evaluated. The danger potential lay in particular in the one-sided focus on a trading platform. The greatest opportunities lay in the creativity in creating customer-focused products, as well as excellent collaboration with market-leading manufacturers.

Solution (Achievement)

Based on the results, a concrete action package was proposed, the implementation of which was decided upon and accompanied. Many organizational changes have been made. Capacity bottlenecks in own product production were solved by outsourcing flexibly, cost-effectively and without jump-fixed costs. Responsibilities in operational processes were redefined, so that capacities for new product developments could be created. Up to now necessary pre-financing for goods purchase could be shifted as far as possible to suppliers. Likewise, the goods stocking and logistics were relocated to suppliers. Overall, purchasing conditions and logistics processes were significantly improved. Further business areas and sales channels were developed, successively introduced and implemented.