Loss-Making Business Unit Without Strategic Future
An international family-owned specialty chemicals company wanted to divest a loss-making business unit – without shutting it down. A sale to an investor was planned. However, the business unit was unprofitable and urgently needed to improve its earnings.
Two Key Hurdles
The company faced two main problems: insufficient profitability that deterred investors, and a lack of strategic direction that offered no clear perspective for value creation.
Three Steps to Value Creation
The interim CEO focused on three strategic levers: a comprehensive assessment of market, technology and capabilities; immediate cost and revenue optimization; and developing a clear growth strategy to make the business attractive to investors.
Rapid Measures with Clear Results
The market and technology analysis revealed strategic options, while cost reductions and personnel adjustments were swiftly implemented. The new strategy gained approval from the parent company and was put into action.
