Sigem Business Consulting

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• Author: Anamarija Šmajdek, Photo: Dejan Arrigler, ZMCS Archive

The Corporate Group’s Strategy

• Profile of the client

  • Project demands: Preparation of the company's strategy of the client’s company, subsidiaries, and affiliated companies
  • Client: A leading company in Slovenia and the region
  • Sector: Food processing industry

• Client's demands and problems

  In the light of the development of events in our primary markets – opening up of the Yugoslavian market, insufficient development of the Croatian and Bosnian market, stagnation of one of the crucial sectors in which the company appears in Europe - the client (together with subsidiaries and affiliated companies) attempted to form an integral and complete group strategy. This strategy should enable them to make good use of the company's competitive advantages, namely the leading position in the production and development of their products, highly recognizable and well-known brands and good knowledge of regional markets and business practises. The realization of the strategy should enable the corporate group to use all of the potential synergy and thus achieve the desired growth during the next five years.

• Project goals and tasks of SIGEM Business Consulting

  Basic project goals: The formation and realization of an integral and comprehensive strategy of the corporate group which will guide the employees in the holding company, subsidiaries, and affiliated companies towards achieve common strategic goals.

  Operational goals: The strategy of the corporate group is comprehensive and involves all programmes / The strategy defines ways of penetrating regional geographic markets / The strategy is designed and verified with the market’s information and its development / The strategy of corporate group is comprehensive and includes market, operational, as well as financial standpoints.

  Tasks: Analysis of the business environment and trends of all strategically interesting markets / Analysis of the company’s position and potential / Formation of the most suitable group strategy / Formation of a market and operational strategy, as well as strategic plan / Determination of a programme portfolio, brand names, products, and sales and communication routes / Formation of a purchase policy, quality strategy guidelines, logistics strategy guidelines (In-Intern-Out), requirements for a measurement system and management of business operations performance, requirements for space and hardware, formation of the future position of business organization and determination of requirements of information support / Elaboration of all corresponding financial projections – balance sheets and account statements.

• Solution of SIGEM Business Consulting

  According to the organization and visionary needs of the client, the advisers of SIGEM Business Consulting developed six five-year programme strategies for corporate groups for a presence on the Slovenian market and three foreign markets. The strategies include a modernized portfolio of 2000 brands, several times as many products and precisely defined sales and communication routes for each group of products in all markets. Based on this, short-term, up to two-year operational development plans of the holding company and corporate group were formed, which included crucial elements of connecting companies in the group in the fields of development, marketing, and logistics - distribution. All strategic goals were accurately defined according to quantity, finance, and timing. With the implementation of an integrated company's strategy, the client unified the strategic view on the development of the corporate group – so far the companies have operated completely independently. On the basis of development plans, the client began with the realization of the company's strategy in practise.

• Service employed: Company's strategy