1.     Client

Leading Multinational Bio-Pharmaceutical Company in Germany

Situation

Interface with foreign partners and regulatory bodies was sub-optimal. As a result, responsiveness to partners’ requirements was unsatisfactory. Costs were being produced and resources were being tied up in response to client complaints. The Company executives desired a more efficient and effective way of managing relationships with its foreign partners. Modeste & Partners were engaged to analyze the situation and make recommendations regarding a more advantageous customer relationship management system.

Approach

We interviewed company liaisons, reviewed documents, and obtained further clarifications from key foreign customers. Using our broad knowledge and understanding of cultural peculiarities of the various partner organizations, we were able to synthesize the information gathered into a set of concrete recommendations regarding optimal procedures for quality communications.

Results

Upon implementation of our recommendations, satisfaction of all parties with the quality of communications improved significantly. The number of complaints as well as the cost to respond to the same decreased notably. Transparency improved, so that many questions that previously required executive intervention could now be resolved before these became urgent issues. Foreign partners acknowledged the changes and viewed these as welcome efforts to integrate them into the Company’s value added team.

2.     Client

Leading Global Supplier of Technical Solutions to the Automotive and Electronics Industries in Germany

Situation

Faced with a flattening period of growth, the Company desired a strategy to enable it to harvest greater value from its existing operations, while optimizing customer satisfaction and positioning itself to take advantage of future growth opportunities in a more competitive market.

Approach

Modeste & Partners analyzed the properties of the industries in which our client operated. We surveyed our client at executive, mid-management, and team-worker levels to determine the client’s current readiness to manage its strengths, weaknesses, opportunities, and threats.

Results

On the basis of our findings and our insights into the same, we were able to work with our client to devise a strategy that satisfied the essential requirements of improved efficiency and effectiveness. As a result of our intervention, employee satisfaction, motivation and productivity have increased markedly. Operational costs have been reduced and return on assets is at an all time high.

3.      Client

Leading Manufacturer and Distributor of Consumer Products in Germany and Europe.

Situation

Due to increasing foreign competition, the Company was losing market share in its core business. The Company’s executives realized that an innovative response was required in order to regain, hold, and expand market share.

Approach

Modeste & Partners conducted a detailed analysis of the company’s situation. We determined that the company’s products lacked differentiation. Consequently, low cost competitors were able to gain market share based solely on lower priced products. Low cost producers rely on price as the chief deciding factor in a customer’s decision to make a purchase. However, our experience shows that when the products concerned are used regularly and repeatedly, consumers welcome additional support from the supplier and are willing to spend more for the perceived added value. We therefore recommended a differentiation strategy to our Client.

Results

Using modern marketing tools and methods such as social media, the Client has been able to differentiate itself from its competitors by creating personal relationships with its customers. This has resulted in significantly greater brand awareness and customer loyalty. Repeat sales are up and related sales have increased considerably, as our client has succeeded in positioning itself as a preferred supplier of complete solutions. The Company is on track to achieve its strategic goals.

4.      Client

Leader in the Manufacture of Equipment for the Construction Industry in Germany and Worldwide

Situation

The Company’s internationalization had led to cross cultural challenges to management effectiveness. The critical role of human resources in delivering results had become apparent, as projects and operations suffered from sub-optimal teamwork.

Approach

Modeste & Partners surveyed the Company’s situation from the perspective of various stakeholders at headquarters and in foreign business units. Our insights revealed an important lack of understanding of and respect for individual differences had resulted in a failure to grasp the big picture of how one’s efforts impacted and interfaced with the Company’s overall vision. To improve cohesiveness and performance, corporate identity needed to be strengthened throughout the Company.

Results

We worked with our counterparts in the Human Resources department to adapt the Company’s human resource policies to better align with it desired destination. Rather than a strict focus on value, the scope of purview was expanded to include the values of the resourceful humans who constituted the multinational team. As a result of our intervention, the Company now has in place a system whereby it is able recognize, respect, and reconcile differences. The focus is on empowerment, shares values, and continuous improvement of competencies. Productivity is up and conflicts are down, as individual actions are now better aligned with Company goals.

5.      Client

Leading Manufacturer of Materials for the Construction Industry in Germany

Situation

Operating in a highly competitive market meant that the value harvested from activities was becoming increasingly challenging to maintain. Consequently, the Company was considering establishment of a new plant in a highly attractive region that had hitherto failed to attract greater investment, due to the perceived high risk associated with the contemplated investment.

Approach

Modeste & Partners were engaged to recommend a stable and flexible strategy to lead the Company to realization of its greenfield development ambitions. As this was an international expansion involving foreign direct investment, our focus was on devising appropriate measures to limit or mitigate the Company’s exposure to political risk in its target market. We advised the company regarding negotiation of concession agreements, planned divestment, and adaptation to host-country goals. Furthermore, we recommended operating strategies to anchor the Company as a good corporate citizen of its intended host country.

Results

The Company pursued and realized its expansion objectives in the host country. Our recommendations were adhered to and as a result the rate of return is consistent with planning projections. The company’s localization strategy has borne fruit and the company has obtained significant concessions in supplying its host country and surrounding markets. Shareholders are satisfied, as the performance of this venture significantly exceeds that of more mature home markets.

6.      Client

Leading Manufacturer of Forest Products in Russia

Situation

The Company wanted to reposition itself to take advantage of opportunities to expand into Western European markets. With its relative low cost structure and proximity to target markets, management perceived opportunities for the Company to expand its distribution network into Western Europe where it could harvest higher value.

Approach

Modeste & Partners analyzed the Company’s relative strengths and weaknesses. We determined that operations could be made more efficient through a reorganization and realignment of Company structure to reflect the demands of the target markets. In addition, we recommended our Customer seek strong partners in the target markets with whom synergies could be leveraged to mutual benefit.

Results

Our recommendations were accepted and implemented. The Company reorganized and streamlined its operations to reflect the demands for high quality products in its target markets. A strong Western partner was located and the Company was able to market and distributed its products in the target markets under the brand name of its local partner. The Company fully realized its goal of Western expansion. In the process, it gained a strong partner with whom it has been able to realize growth ambitions into further markets around the globe.

7.      Client

Medium-Sized Producer and Independent Distributor of Medical Products in Germany and Worldwide

Situation

The Company planned expansion of production facilities to North America in order to take advantage of closer proximity to its biggest market outside of Europe. The contemplated expansion implied a change in orientation from a local to an international business. Modeste & Partners were engaged to support the Company in the realization of its strategic goal.

Approach

We analyzed the Company’s situation and concluded that restructuring of the firm’s organization was necessary in order for it to better focus on satisfying the needs of customers. In order sustain the necessary degree of stability and flexibility; we also considered the issues of talent management and succession planning to be vital for the firm’s future international orientation.

Results

As a result of our recommendations, the Company restructured into several business units, each with focus on specific products. The proposed North America venture was established as a wholly owned subsidiary of the mother company. Talent management and succession plans were put in place to improve human resources competencies, retention and performance. The goal of international orientation has been achieved. The company is now more diverse with a number of staff members from different cultural backgrounds. It has retained its traditional stability while transforming itself into a flexible and innovative firm positioned to take full advantage of the talent of the resourceful humans it employs, as well as of the expanding opportunities arising in home and other markets.