CASE
STUDY 1 Industry: Value added Equipment/software/service
Distributor-serving multiple industries Size: 30 employees. Entity: Non-public corporation. Situation: Growing sales, losses. Findings: Too diversified; no economies. No P&L information by business
segment. Equipment Service
contracts were under priced. Core industry –Banking. Action: Developed and implemented a
turnaround plan and strategy focused on the banking industry. Implemented a business segment
contribution margin P&L. Increased equipment
service prices 10%. Mobilized all efforts
towards the banking industry. Sold and/or closed down
all other business segments. Results: Eliminated losses. Achieved 11.1% pre owner
compensation margin on sales over a five-year period while growing sales 5
times. Company presently, doing
in excess of $100 million in sales with 300 employees. |