Background

A German Multinational transferred its Chemical business to a leading Malaysian Base Company . During the sale operations on internal transfer pricing was negotiated. As the Malaysian Based company started its operations they recognized that they had to operate on market price which was much lower than the internal transfer pricing. They forecasted that by selling at market price they will be incurring approximately 100mn in losses instead earning a profit of 100mn. The problem became severe and the need arouse to the point where they were starting to think of closing down the operattions..The newly appointed CEO had the task of salvaging the company through the “The Perfect Storm”



Region

Malaysia



Nature of Business

SUPPLIER OF CHEMICALS AND NUTRITIONAL INGREDIENTS



Pillar

Re-Engineering Organizational Culture & Change Management



Our Solutions

They approached us with the issue and after conducting diagnosis; the following suggestions were proposed:


  • Need to Re-stratagise; Instead of operating on as transfer pricing sister company to a large multinational they need to localize and start having a free market culture which is different than transfer pricing.
  • Need to develop a strong team leadership. Bring leaders together to create a shared vision community in order to move this organization out of trouble
  • We Co-create the Balanced Scorecard; Recommended a change in values and culture.

 

The Impact

1 year after the implementation of the proposed approach they witnessed drastic improvements within the organization in terms of financial gains and the new sense of direction gained through the newly created cultural values.

 

The results compelled them to opt for the the next course of action which was to strategize on how to improve their culture. Strategies were developed to strengthen their culture , along with making alignment & the culture blueprint along with involving senior management to improve their commitment levels.

 

Within a time span of a year the Company witnessed an 50% increase in commitment levels and became profitable to the extent that they were able to form a partnership with a Thai petroleum company.

 

 

Delivery & Deployment Methodology

  • Lecture
  • Presentation
  • Discussion
  • Simulations
  • Practice Activities
  • Case Studies
  • After Action Review