This company has a clear focus again
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The crisis is not over yet, but you can still be a winner, even now. Our success stories show how effective our integrated approach is: many companies are now in much better shape. You too can benefit from our knowledge and experience. Together we will soon get you back in shape, by tackling your cost structure and strategy for instance.
This company is in manufacturing and depends on orders for new building work and maintenance contracts. The number of orders has fallen sharply because of the crisis and there is downward pressure on prices on the maintenance contracts. At the same time personnel costs are rising sharply due to a focus on substantial growth, with reduced profit as a result. A consultancy has carried out a strategic reorientation but the management is not satisfied with it. The conclusions do not square with the situation and there is no action plan. Taking this as a starting point they asked Deloitte to assess the strategy again and work out options for reducing costs in more detail.
Deloitte has drawn up a plan to reduce costs with the focus on personnel costs. In addition to a reorganisation, which will involve some redundancies, the terms of employment need to be made less generous. An annual unconditional bonus for the whole staff has to be reduced and linked to the company’s performance. Deloitte experts will assist with the selection and counselling of personnel who have to be let go.
The company is currently consulting the works council to obtain approval for the reorganisation. It has also tempered its ambitious plans somewhat and increased the focus on core activities in the domestic market. This company is ready to succeed again.