Assignment 22. 2007-2009
XYZ GmbH / Manufacturer and vendor of healthcare products
CEO (General Manager, Division Head, create a new division, hired by parent company)
Restructure the division. Head global business strategy and policy (for 40 countries). Product development, manufacturing (multiple plants), sourcing, purchasing, and distribution logistics. Initiate new strategic alliances, manage existing ones, and wind up expiring ones. Turn around the profit situation; spin off the division into a separate legal entity.ImplementationThe key to restructuring the division was to integrate the value chain. Originally, the division contributed a mere 10% of the company’s total net product which was not at all adequate to bring it into the black. A total restructuring was necessary, beginning with raw materials and manufacturing operations spread over several continents (Europe, Asia, USA). Co-ordination, association, allotment of each facility’s contribution to net product. Delivery logistics in a form that customers would be willing to pay for. Outsourced simple standard products, plus purchasing and delivery. Developed and launched new premium products.