A company dedicated to the sale of consumer products for the automotive industry requests QMT to incorporate an interim manager as CEO for a period of 12 months.
The company is in a deep crisis because of diminishing sales and the P&L and the Balance sheet have deteriorated heavily. The shareholders decide to commission a new strategic plan from a prestigious consultant. This new plan includes changing the Board of Directors and the r General Manager.
QMT incorporates a CEO to the client for a period of 12 months, with the mission to reorganize the company in accordance with the strategic plan.
Results after 12 months
The new CEO of QMT validates the strategic plan and starts to implement it. The results are outstanding in all areas: commercial, operations, finance, and human resources.
- Product offer review and re-positioning: redesign of existing products and development of new ones.
- Review of the internationalization strategy: (i) new international markets are opened with distributors in key countries, and (ii)in existing international markets, agreements with existing distributors are adapted or replaced with new ones.
- The sales team is reorganized by customer type. This helps to focus the team’s work and improve their results.
Area of operations
- Reorganization of production. As a result, some parties are transferred to subcontractors in China. This allows to reduce staff in Spain and achieve significant savings in manufacturing costs.
- In finance, the balance sheet is managed professionally: (i) inventories and receivables are reduced, debt is restructured, short-term debt is changed to long-term to align it with the depreciation of fixed assets.
Human resources area
- The first and second executive level is restructured, 30 managers leave the company and are replaced by 12 new managers, including CFO, sales manager and human resources managers.
In a 14-month time span, the company is completely reorganized.
With these measures, the company increases sales by 10% in the first year, reaching the breakeven point at 7 months. In the second year, sales grow an additional 20% and the company is profitable. Subsequently, the shareholders decide to sell the company.