Preparing a Corporate and Business Unit Strategy for a Chemical Company in India

organisation review

Client Challenge

The client, an Indian chemical company was facing challenges like absence of clearly defined vision and values, stagnant turnover and declining net profits over the last 2 years, absence of a long-term corporate and business unit strategy, lack of industry leadership in any product, weak marketing set-up, lack of customer focus, eroding market share, weak HR function resulting in sub-optimal utilisation of employees’ skills, absence of a clear career growth plan, low morale of employees, high employee turnover in the marketing department (43% in the last year), unclear roles and responsibilities at all levels, poor inventory management, high level of receivables (more than 6 months) and poor customer service due to the complexity of the order fulfillment process.

Our Approach

To prepare the corporate and business strategy for the client, UC Strategy adopted the following approach:

  • Defined the vision and values for the company
  • Determined the businesses that the company should seek dominance in
  • Prepared a phase-wise implementation plan
  • Designed an organisation structure with a well-defined job description for each position
  • Designed a performance evaluation system for the company and linked it to compensations and promotions
  • Initiated an Inventory Reduction Program and Accounts Receivable Program
  • Redesigned the business processes in the organisation with a focus on customer satisfaction
  • Examined co-location opportunities to obtain the following benefits:
    • Manpower Savings
    • Lower Cost of Production
    • Simplicity in Planning Activities
    • Improved Communication

Our Impact

Based on UC Strategy’s recommendations, the client managed to achieve a 57% reduction in the number of activities and 50% reduction in the number of entities involved in the Order Fulfillment Process. The client received a clear corporate and business unit strategy and requested UC Strategy to undertake a 4-month Corporate Strategy engagement and a 2-month Organisation Design engagement.

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