Transition to Growth/Restructuring--Renaissance consultants

Transition to Growth/Restructuring

Though rapid sales growth is always welcomed, it presents many problems of its own. Careful planning is essential so as not to run out of cash, and have the infrastructure to produce the incoming additional business at a profit. Many companies have failed due to this--Renaissance consultants call it the "whale in a rowboat" syndrome. Even the best plans must be carefully monitored and constantly adjusted to avoid the potential pitfalls of restructuring.

Type of Company:	Manufacturer of high quality instruments, metal components and assemblies sold to electronics, aerospace, metalworking and automotive industries
Type of Ownership:	Public: Division of Fortune 500 Company
Position:	General Manager

Problem:	Company had been losing money at an accelerating pace because operating management had failed to recognize changes in its key markets and did not modernize its facility and equipment.
Action:	Retained with full P&L responsibility, charged with relocating and making the company profitable. A comprehensive business plan was developed, approved and implemented. Restructured two key product lines, revising both the product design concepts and product line strategies.
Results:	Within one year, company was stabilized and successfully relocated. Within two and half years, a 13% loss became a 10% pre-tax profit.