Almasy Consulting: Case Experience
Industrial Products

















The following case descriptions provide details of key questions, issues and challenges that faced our clients. The level of the sponsoring client is indicated. Specific outcomes are provided where possible and when not in conflict with client confidentiality.

Packaging Start-Up – Founder and Principal Investor
How could a revolutionary new packaging technology (called foam-in-place) be protected from copycat competitors? What pricing and marketing strategy was needed to ensure rapid deployment and broad customer coverage? Outcome: The project determined that no patents or legal action would protect this emerging technology from look-alike competitors. An aggressive pricing and equipment leasing program was launched to support the rollout. The company continues to be the world leader of this type of packaging.

Steel Company – VP, Planning and Development
Could Canada’s leading steel company harness the power of the Internet to reduce purchasing cost and increase the efficiency of its procurement process? What type of electronic auction system would work best? Outcome: The project reviewed various uses of electronic commerce. A "Dutch" auction approach to purchasing was selected and implemented with up to 40% cost savings on certain commodity items.

Industrial Conglomerate – VP, Industrial Valves
How would the industrial valve division of the world’s largest manufacturer of flow devices deal with competitive imports and the impact of new manufacturing technology? What would be needed to keep channels of distribution loyal? Outcome: The project included a review of distribution channels that were subsequently recruited. It also made recommendations to replace sand casting foundry systems with die pressure casting technology. The division has moved to the new technology.

Genetics Company – VP, Operations
How could one of the leading genetics companies reestablish its market share position in poultry breeding stock? What was customer perception of the company’s brand? What were the major determinants of long-term product success? Outcome: An extensive survey of grower-customers identified a spotty record of service and series of missteps in disease control. Financial projections indicated that the firm would be unlikely to regain its lost share. The firm subsequently sold the division.

Forest Products Firm – Group President, VP, Sales & Marketing
Could a century-old West Coast forest products company remake itself from a regional, production-driven forest products company into a national, marketing-driven consumer products company? Outcome: Over a fourteen year period, provided strategic planning services to the company's Flexible Packaging, Non-Woven Fibers, Canadian, Chemicals, and White Papers divisions. Work consisted of strategy development, executive training, market research, pricing projects, new product development, and operations reviews.

Financial Conglomerate – CEO, Turbines Division
Could one of the leading suppliers of turbines and compressors identify ancillary products and services that had price insensitive demand? Could these new opportunities generate large profit streams and justify a separate channel of distribution? Outcome: The project determined that the cash flow of repair services and spare parts exceeded that of the main unit sales. Multiple methods for securing and enhancing this revenue were developed including: the purchase of aftermarket suppliers; selection of new distributors; and a new pricing plan.

UK Chemical Company – General Manager, International Paint
Could one of Europe’s largest specialty chemicals companies diversify into higher margin inks and coatings? Would the company be better off with a single large or several "string of pearls" acquisitions? Outcome: The project evaluated several candidates and reviewed their fit with the company's operations. Ultimately, in an acquisition contest, the firm lost the candidate to a competitor.

Aerospace Firm – Special Projects Team
Could one of the world’s leading defense contractors diversify into an unrelated technology business? Would the printing and graphics equipment business provide fertile ground? Outcome: The selected candidate did not pass final Board approval for acquisitionand the company chose not to diversify from aerospace and defense.

Recycling Company – EVP, Operations
Could the world’s largest recycling company redesign its factories to improve productivity and throughput? How would a semi-literate workforce respond to major changes in production layout? What was required of suppliers to ensure that supply chain and production worked together efficiently? Outcome: The project created a new production system incorporating altered layout, visual tools, and new performance measures. Supplier material flows were moderated by new planning tools and logistics programs. Both throughput and output increased 15-25% over the next eighteen months.

Graphics Firm – EVP, Printing Operations
How could diverse printing operations assembled through acquisition be rationalized and made more cost-efficient? Was there any benefit to national scale in printing to justify size? Outcome: The project identified several elements including sales, marketing, equipment purchase, and distribution that lent themselves to scale. At the same time, the project showed that individual printing plants required focus on customers and print type to be most successful.

Family Investment Firm – CEO, Controls Division
How would an Italian family venture business in North America and the United Kingdom rationalize its industrial and aircraft components business and establish key strategic positions with different distribution channels? Outcome: The project investigated tradeoffs between manufacture, importing, and distribution/resale to determine which fit best with overall family objectives, risk profile, and corporate strengths. Parts of the business were divested as a result of the work effort.

Fertilizer Cooperative – CEO
Could the largest fertilizer production company west of the Mississippi restructure itself and rebuild its production and distribution operations? Outcome: The project allowed VNP to come out of bankruptcy with an intact business by downsizing the company’s plants from five to two and increased the number of distributors by 250 percent.

Industrial Gas Company – Division Executive
Were there economies of scale in each customer call? Could revenue per sales be maximized or distribution expense dollar be reduced by providing the broadest range products/services with each delivery? Could the "drop ship" load be considered a key element of logistical strategy and distribution profitability? Outcome: The project developed a set of optimum drop shipment sizes for different customer segments. It also designed a new set of customer tankage and distribution vehicles. A new marketing and sales approach was developed for multi-product customers.

Abrasives Company – Division Executive, Coated Abrasives
How could the world’s largest supplier of coated abrasives (i.e., sandpaper) repel both large and small competitors who were undercutting its prices? What would be needed to keep channels of distribution loyal? Outcome: The project analyzed product costs and determined that average costing was responsible for the competitive pricing successes. A new pricing scheme based on actual costs was implemented which counteracted the problem. Also, as a result of the work, 8,000 products (out of 14,000) were dropped as uneconomical. Profitability and market share were restored.

Turbine Manufacturer – VP, Procurement and Purchasing
Would the second largest manufacturer of utility turbines in the United States be able to determine whether pricing had been competitive from the suppliers of its rotor castings (the largest cost component in turbine generators)? Was there a way to benchmark pricing for similar products and enforce market discipline? Outcome: The study created a system for checking castings prices against both similar products and industry cost trends. This system helped the company select the best supplier for each generator built.

Family Investment Firm – Managing Partner
How could an Italian family venture business in North America rationalize its automotive aftermarket businesses and establish a strong strategic position? What areas, ranging from manufacture to importing to distribution, would provide the best fit with overall family objectives, risk profile, and corporate strengths? Outcome: The organization review helped resolve inefficiencies in purchasing and customer relationships. The consolidated $500 million business was able to recruit an experienced CEO.

Process Controls Company – VP, Sales
Would the second largest supplier of industrial process controls for refineries, power, manufacturing, and paper plants be able to displace its primary competitor? How could a new sales organization support this effort? Outcome: The project included an evaluation of distribution and selling methods for both companies and recommended organizational changes. The company was able to reestablish itself as the number one supplier of process controls.

French Textile Equipment Manufacturer– CEO, U.S. Operations
How could the largest French textile equipment supplier enhance a regional strategy to regain its worldwide lead in spinning and texturizing equipment? What technology changes would most affect future competitive position? Outcome: The project assessed the relative competitive position of various European and Asian suppliers; established specific requirements of major customers; and prepared financial projections for the revised strategy. The company focused its resources by withdrawing from certain product lines and expanding in others.

Mexican Synthetic Fibers Producer – CEO
How could Mexico’s largest producer of synthetic fibers consolidate its position against foreign joint ventures? Would it be able to determine the optimum level of vertical integration, which new technology to buy, and how to define its product-markets? Outcome: The project analyzed competitors’ capacity, financial resources, and the strength of existing technology partners. There was a recommendation for a joint venture with DuPont’s Nylon de Mexico affiliate. The action was subsequently implemented; the joint venture has prospered.

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