Evaluated options for underperforming business unit
Situation:
A leading provider of consumer automotive aftermarket products engaged Kormac to analyze an underperforming business unit. Contributing only 3% of company revenue, the unit lacked leadership and oversight.
Actions:
- Analyzed all important performance dimensions: revenue, margin, cost, operating metrics, market conditions, vendors, customers, and more
- Identified issues and key drivers of profitability
- Articulated four Go-Forward options based on the client’s appetite for investment and risk – Grow/Invest in a “Field of Dreams,” Make Profitable at Existing Scale, Pare to Profit, or Exit the Business – and defined the pros, cons, risks, and next steps for each
Results: Within weeks, we provided a clear picture of the neglected unit’s drivers, inefficiencies, benchmarks, and opportunities. Our “deep dive” gave the company’s CEO, CFO, and Board members the actionable intelligence required to move forward with confidence.
