Task
A large manufacturer of reinforced concrete structures and products faced the problem of choosing a development strategy.
In the context of a reduction in funding for major customers and the completion of large government programs for the development of the construction industry, the volume of orders in the medium term could have decreased by 30-50%. In addition, the nature of receiving large orders, which form up to 70% of the proceeds, is highly selective and the competition in the context of market contraction has sharply intensified.
See Opportunities
IGM helped the owners develop a viable action plan: they made a market analysis to objectively assess the situation, revised plans for expanding production and were able to assess the investment potential of new projects. As a result, we developed a comprehensive development strategy that meets market trends and the company's capabilities.
Solutions
IGM consultants organized a study and assessed the company's position in the market, development trends, international experience in the development of similar enterprises, factors of influence, prepared a forecast for sales and market development for 5 years.
We analyzed the previously planned investment projects of the company: assessed the investment risks, developed financial and economic models of projects, made a summary analysis and assessed the effectiveness of investments in several scenarios for implementing the development strategy.
We conducted a series of strategic sessions with the management and owners of the enterprise, including a survey of key employees, analysis of internal indicators of the company's development, identified problem areas and reserves for productivity growth, developed a master plan on how to achieve goals with available resources.
Results
In a short time, a development strategy for the group of companies was developed and a new related production was launched 2.5 years earlier than the planned commissioning date. This made it possible to save more than 700,000 USD only on investment costs, to promptly launch a new source of income, to determine a clear vector for the development of the enterprise and investment priorities. Relevant measures were taken and the level of preparedness of top managers for unfriendly actions by competitors was increased. The assistance of IGM allowed the owners to achieve economic benefits in the amount of over USD 1.0 million.