Explore the challenges faced by a Brazilian company in the commercial vehicle market, as it navigates through a crisis without recognizing early signals. Learn how strategic intervention, process reevaluation, and a proactive approach to succession planning are crucial for survival.

The case study serves as a valuable lesson in crisis management and the importance of recognizing early warning signs. From inefficient production practices to the need for succession planning, the blog highlights the multifaceted approach required to navigate a crisis successfully. Companies are urged to learn from this example and prioritize transparency, optimized administration, and strategic planning to ensure long-term prosperity.

In today's dynamic and competitive business landscape, having a seasoned and knowledgeable on-demand senior business development manager can be the key to unlocking remarkable growth and success. When seeking someone to spearhead your business ventures, consider the advantages of hiring a highly experienced professional with a background in entrepreneurship and emerging market development. This blog explores the immense value and experience we bring to the table, offering your organization a winning edge. By enlisting the expertise of a highly experienced on-demand Business Development Manager of iMB with a background in entrepreneurship and emerging market development, your business gains a decisive advantage in the competitive market. Our visionary outlook, market insights, extensive network, risk mitigation skills, holistic perspective, and proven track record will propel your organization forward and unlock new avenues of success. Embrace the power of experience and entrepreneurial acumen to elevate your business to greater heights.

While asset-light models in the manufacturing industry can be a beneficial way to reduce costs and increase efficiency, it is important to be aware of the potential significant drawbacks. Companies should carefully evaluate their asset-light model strategy to ensure that it is cost effective and beneficial to the business. This process of evaluation should never be done from the sole perspective of opportunity cost! Just in the last 2-3 years or so, we have seen startling examples of asset-light model projects. Effect: Clients lose the possibility to create really strategic scenarios, because only tactically determined actions exist. Creativity in free fall.

Business Development Coffee Shop Franchise - Part Three: Transformation of client relationship & migration to digital business models.

The original project focus when the project was placed at the beginning of 2020 was to develop a system to increase customer satisfaction and maintain it at a high level. During past years, our customer was in a crisis. Difficulties in the management of the company led to a loss of the profitability and customer satisfaction indices.

With the outbreak of the pandemic in Brazil in March 2020, the project focus expanded. In addition to the focus on customer satisfaction, the new situation was to be used to develop possible new business models using digital tools and fundamentally increase customer loyalty. The general idea could be summarized as follows: more agility through digital services.

Is it possible to design projects with open results?

That is not easy.

Especially not if the initial situation was an acute crisis in very recent times. The threatening dynamics made open- ended thinking almost impossible. So you can only move forward from success to success.

This time the project definition was more differentiated. It was not about acute crisis management, but rather about a strategy to consolidate the position, or better, a further expansion using the prevailing crisis scenarios in Brazil. It was clear, however, that no enthusiastic adventures should be undertaken and that any strategic assumption must be robustly backed by operational-tactical measures. The implementation of these tactical measures should then also define the next steps or be used to adapt the strategy.

In 2012, the economic situation in Brazil was still largely unproblematic. The country had the longest phase of an economic and social upswing in democratic times behind it. The financial crisis of 2008-2010 had been overcome extremely well, without really causing major upheavals. A new sociological- economic middle class had emerged in the context of the emerging global economies.

Starting in 2014, Brazil's situation deteriorated rapidly and an economic downturn occurred, which has not really stopped until today.

After one year, growth of over 25% was achieved at the beginning of 2017 and profits increased by 100% compared to the previous year. The installed simple financial control system improved efficiency and cash flow in the small local coffee store chain. All installed coffeeshops were back in the blue zone.

A global company specializing in property facades and energy efficient windows and doors executed the most emblematic projects in Brazil, but the company had not returned a profit from its Brazil office since 2001 and had recognized that a strong brand and quality product were not enough to succeed in the current market. The company’s headquarters in Europe was considering closing the Brazil office. However, it also recognized that Brazil is an emerging market with a large social middle class and an average age of 29 years, making this a potentially lucrative location if a successful turnaround could be executed. The business model is not matching to the local requirements. To survive, the model would have to be adapted, which would seem to be contrary to the European standard. Is that feasible?

We have been applying the Design Thinking mindset for many years, evaluating with every project. We see again and again that Design Thinking is probably one of the most important aspects on the path of corporate cultural change in a transformation. Therefore, we come to the project with the evolutionary knowledge of Design Thinking and implement this way of thinking. It should take root and stay in the project and in the client company.

How dangerous can paradigms be in a crisis?

Can an industry-wide paradigm lead to business blindness? Under what conditions has a paradigm developed?

If you think about costs too late, you ruin your company. Those who always think about costs too early kill creativity. Cost-cutting measures must be taken when you are earning a lot of money. Once you're in the red, it's too late. Many years of experience can sometimes narrow the view. There are people who think they know the bird very well because they have seen the egg from which it crawled out.

Sometimes you have to pull out trees to see if the root is still there. After many years of the paradigm of uncompromising outsourcing of all functions, we realize after many projects that this way has to be decided anew in every case and has to be checked at regular intervals for its still existing advantages. Paradigms must not be retained for convenience.

Thus, over the course of 2020/21, we clearly state that we as iManagementBrazil are committed to a purely partner-based model for the future. Partners can only be the founding partners as well as associated partners. And there should be deliberately few professionals. Our customer structure is clearly more international. Those who know us from projects know that we are always keen on turning your data into information. This philosophy is part of the DNA of iManagementBrazil. One of our strengths was and remains the so-called Data Design.