IE Provides Quick Response to Global Competition

The North American subsidiary of a European company had to respond swiftly to very aggressive global competitors. Rising feedstock costs were seriously impacting the financial performance of the subsidiary.

A seasoned interim executive with detailed knowledge of the U.S. and international business environment was brought in, assessing the state of the subsidiary and developing options for the shareholders. The management of the subsidiary was too occupied with day-to-day business decisions and lacked international experience.

After a detailed analysis of the product portfolio and the distribution channel of the business, the sales team was realigned, focusing on technically driven value-added products. Regional Distribution Centers were established in order to expand the distribution of the company's products. The company's product range of high volume, low margin commodities was transferred into a JV with a Mexican competitor, providing a significantly better cost position. Its North American asset base was utilized for growth in high margin products.

The interim executive led the change process in the subsidiary, coaching the Management Team in adapting to an increasingly global business environment.

TM