Business Transformation - Three Way Operational Merger

Context

Three FMCG business which had been running as independent subsidiary operations were to be merged with a view to consolidating costs and boosting local business effectiveness.

Solution

Three businesses were merged across the East European region. One of these businesses was part of a state run organization before the Soviet Union opened up its markets and borders.

Vital statistics: 600 employees and roughly $250mio in combined sales.

The merger was successfully completed in six months. During the initial, phases, employee morale and the external market place were analyzed in addition to internal processes, functions and strategy.

The design and implementation phases were carried out in such a manner as to fundamentally change the internal culture into a positive, robust and professional one. This was critical to sustainable success. Employees were for the first time incentivized and rewarded. Significant skills transfer was part of the solution.

Benefits

Some of the benefits included :

• Reduced costs in marketing and sales
• New sales channels set up
• Revamped and streamlined sales and sales territories
• Streamlined product lines
• A workforce that went from gloomy, despondent, low self image to positive, nurturing and athletic