A PROJECT to solve the problem of competition at Apex Co. PRESENTED by representatives of Hansen Management Consultants.

1rst partner : Let me introduce myself. My name is George Brown and I represent Hansen Management Consultants in Amsterdam.
First of all,  let me say that we have examined your company's performance and more particularly the electronic sector which was the main cause of your concern. We have come to the conclusion that, though you have some good products like fax machines and photocopiers, your prices are far from being competitive. We therefore think that the ideal solution would be to relocate some of your production facilities in South East Asia.

Let me now go over the main points of the project in detail.
First, as you can see here on the flipchart, (Shows first sheet of the paper board)  we plan to reduce production gradually in your European plants. At the same time, we suggest you set up new production facilities in South East Asia. That is to say : most of the electronic components would be manufactured there. Your existing plants in Europe would bring the final touches such as the product casing and the packaging which can vary according to national markets and seasonal fashions.

At this point of my presentation, I'd like to say a few words about the time necessary to implement this scheme... We estimate that this restructuring scheme should take about 8 months to be completed. And this includes the start up of the new production facilities in Asia. I'd like to point out that our experience in this type of structural change and our contacts in Asia would help speed things up.

My colleague will now take over and talk about the financial aspect.

2nd partner : Thank you, George. My name is Christina Greenfelt and I am more particularly concerned with the financial aspect of the project.

Let me just say a few words about the initial cost of this structural change. If we consider the cost of redundancy pay and of retraining the personnel, and if we add the expenses involved in setting up new plants, we come to an estimated cost of about $ 4 million.

I suppose you're going to tell me that this investment is too high. Well, let me put things into perspective. If you compare this initial sum with the anticipated savings in the following years in terms of raw material and labour, you realise that the original investment could be paid back within a period of 3 years.

To conclude, I'd like to stress that the project of relocating your production facilities in Asia will not only enable you to save money in the long run    but also make your products more competitive on the world market. I can assure you that many other European firms have already opted successfully for this solution.

We're now ready to answer your questions.
Last modified: lundi, 15 juillet 2013, 12:52