Initial Situation
- Low Margins
- Second biggest company in the sector
- + 940 employees
- Elevated working capital cost
- Long-term receivable (~120 days)
- High dependence on large retailers
Strategy Designed
- Reduce Dependence on retailers
- Focus on small retailers (more margins and minor cash cycle)
- Creation a new business model (franchising)
- New products launch
- R&D
- Product Pipeline Review
Results
- Dependence on large retail fell from 67% to 37%
- 3 lines of production are reduced, impacting directly
- 17 new stores in the first year
- Profitability went from 4% to 14.5%
- Cash cycle reduced for 47 days
- Working capital need reduced impacting directly on cash generation