Case Study 3 – Restructuring of Emerging Growth Manufacturer
A developer of patented innovation and manufacturer of automotive performance products and accessories seeking to increase sales and grow the company.
What We Did
We conducted an extensive assessment of management and organizational issues within the company including their sales and marketing systems, customer relationships, organizational structure, and policies and procedures. We conducted a comprehensive analysis of the product line and examined profit margins by product line, leading to a recommendation that the company adopt a unilateral pricing (UP) policy, a method for helping companies with multi-tiered distribution identify their best channels and train them to sell on value instead of price. The rigor and discipline involved in the pricing analysis that took place over two months provided a roadmap for future product development and distribution. We also developed a framework for a new product development process to assist the company in its ability to more effectively plan and allocate engineering, plant operations and marketing resources.
The company adopted a more strategic approach to product development, saving money and time in the allocation of engineering resources. Key management positions were realigned and the sales team was restructured, resulting in increased sales and a stronger competitive positioning. New company-wide goals and performance metrics were established which bolstered employee morale and restored confidence in the leadership. With the development of a new strategic vision for the future, the company founder/CEO was able to gain support from outside investors and restore confidence in the company’s viability.