Business Strategy

Problem

Our client, an italian manufacturer of concrete products, had regular cash flow problems plus a constant rotation of the general manager position.  This continuous change in the leadership, caused the company to lose its course.  The company was relying on bank debt, injections of capital from the partnersstockholders,, or and capital from other sister companies.

 

Solution

Baeza & Asociados was hired to design a salvage strategy and to later assume the CEO general manager position via a management contract.  We implemented a back to basics strategy (together with a European group) which focused on the prefabricated structures market which enjoyed low costs production and easier efficient installation.

 

Result

We lead the salvage process (despite a severe cash flow problem) with excellent results.  The company was able to achieved a 75% market share, mainly due to reduction in costs from the recently designed systems and an excellent sales management.

 

After 18 months, the company was capitalized and a new general managerCEO was hired.  This manager has led the company for the last 10 years, achieving high profits without the cash flow problems that had characterized the company for the previous 2 two decades.  

Experience

Turn around

Management contract