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Stopping the Bleeding - Public Food Company
Consumer · Turnaround
1the challenge
Challenge: Business was struggling, results were poor, profitability was lagging, shareholder value was declining. Activist shareholders were mounting a proxy fight. Management asked for help. The board brought us in.
2the approach
Approach: A comprehensive review was conducted that included manufacturing operations, cost accounting systems, currency-hedging practices, sales, marketing, trade spending, and profitability by retail customer. A major piece of consumer research was also fielded including the testing of new product concepts.
3the result
Result: Unprofitable lines of business and unprofitable products were identified and pruned. The business was simplified and focused on the areas where it could compete and win profitably. Recommendations to improve both the top and bottom lines were approved by the board, paving the road to a successful sale of the business.