Restructuring of shipyard operations and strategy development

Challenge:

A heavy production industrial client needs new development strategy and a restructuring plan as a result of market changes.

At that time, market position of the client in the heavy industry production was among top 5 in the world. The client asked consultants to review the existing and create a new strategy for the company development, as well as do the process of restructuring of its operations.

Approach:

Working out a clear vision for the strategy and a roadmap for its implementation as well as a list of initiatives to perform restructuring process.

Within ca. 4 months the team worked out the following scope of project:

• Diagnostic phase – review of market position, key products, competition and future trends important for the firm market development.
• Clarification of initial strategic options for the firm development.
• Organisational approach to implementation, investment scheduling, interdependencies & transition period planning.
• The plan for the strategy implementation and initial recommendation for the progress monitoring system.
• Restructuring plan: effectiveness of operations review, allocation of resources, profitability, pricing policy and product mix. Additional work was related to public aid that the firm received as well as business and legal consequences for the firm.

The internal competencies consisted of business, financial and legal ones.

Value:

New plan for the firm, and reorganised operations.

Based on the completed job and the prepared documentation, the company was thought to improve its operations, but as a result of ownership decisions and international relations, ca 2 yrs. after the project the firm shrunk and changed the way it used its assets.