Building a Sustainable U.S. Presence for a European Multinational
|
Situation. One of Europe’s leading engineering and construction companies had an operating history in the U.S. of inconsistent revenues and operating losses. Corporate management had undertaken several changes in organizational structure and management without any success in performance improvement. C3 was engaged by a corporate oversight executive to help develop a strategy to establish a sustainable competitive position with superior operating performance.
Actions. Conducted a fundamental review of business strategy and operating performance for multiple divisions. Assessed the changing structure of the U.S. E&C market by geographical and service segment. Evaluated divisional management capability and the potential for success given both U.S. and European resources and competencies. Profiled operating/management model of one superior performing business for “lessons learned.”
Recommendations. Divest/close one operating division. Focus on select geographic markets with independent operating units managing an expanded scope of operations and services. Build major national service business in segment driven by environmental factors.
Results. Division reduced to workout of existing contracts; losses stopped. Investment altered to support favored geographical markets. Key personnel added to ramp up national service business; successful bidding for major new contracts.
|
|