某咨询财务及组织分析报告课件.pptx

1、-122-C.Financial,organization and processes analysis-123-C1.Financial situation analysis-124-C1.1 Geberit Shanghai-125-Presently,GSHA is in serious corporate crisisPhases of corporate crisisWeakStrongPathology of crisis symptomsNormative misfitStrategic crisisResults crisisLiquidity crisisGeberitLow

2、HighBankruptcy crisisBack-up-126-All liabilities are short term and are increasing 4-fold.By the end of July 2000,liabilities are 75%of total assets Development of liabilities(%of total assets)RMB 0004,07515,35825,352199819992000(1-7)13.4%46.4%75%+522%Source:P&L Geberit(Shanghai),RB&P analysis-127-C

3、ompanys liquidity situation is deteriorating.Current liabilities are increasing much faster than current assets,the cash injection from the parent company is used to cover the running expenses in stead of building up assetsDevelopment of liabilities&assetsRMB 00011,50714,00715,7204,07515,35825,35098

4、992000(1-7)Current ratioQuick ratio2.821.710.910.430.620.25Current assetsCurrent liabilitiesSource:Balance sheet Geberit(Shanghai),RB&P analysis+37%+522%-128-The companys inventory increased by 91%,while current assets increased by 37%4,5177,2678,644199819992000(1-7)Development of inventoriesSource:

5、Balance sheet,Geberit(Shanghai),RB&P analysisCurrent asset structure(%of the current assets)+91%RMB 000199819992000(1-7)44%11%6%11%11%10%7%26%8%18%2%13%9%21%7%4%26%10%10%8%18%8%15%0%15,72014,00711,507Raw materialsWork in progressFinished goodsGoods purchased for resaleOther inventoriesTrade accounts

6、 receivable+37%RMB 000Cash&cash equivalentsOther accounts receivable-129-Due to huge losses,the company is solely financed by inter-company loans,the liabilities increase much far faster than assetsBalance sheet Geberit(Shanghai)19982000.7 RMB 000Back-up199819992000(1-7)Fixed assetsIntangible assets

7、Other prepaid expensesAdvanced payments to suppliersInventoriesAccount receivableCash&cash equivalentTotal assetsShare capitalRetained earningsNet income current yearTotal provisions&deferred revenuesTotal(liabilities)Total Shareholder Capitals&liabilities18,3185871004,5171,8625,11830,41241,426(5,42

8、0)(9,669)0407530,41260.2%1.7%0.0%0.0%14.9%6.1%16.8%100.0%136.2%(17.8%)(31.8%)0.0%13.4%100.0%18,9968725737,2673,6632,97933,09041,426(15,089)(10,177)1,57215,35833,09057.4%0.32%0.1%0.2%22.0%11.1%9.0%100.0%125.2%(45.6%)(30.8%)4.8%46.4%100.0%18,06002343918,6444,0972,35433,78041,426(25,266)(8,293)56325,35

9、033,78053.5%0.0%0.7%1.2%25.6%12.1%7.0%100.0%122.6%(74.8%)(24.6%)1.7%75%100.0%-130-The accumulated losses till September 2000 are 86%of share capital.Left alone the company will be insolvent by the end of this year Net income losses(1997.122000.09)RMB 0005,42041,42635,6779669101771041197(7-12)989900(

10、1-9)accumulatedlossesShare capitalSource:P&L Geberit(Shanghai),RB&P analysis86%-131-The company has been losing money since the foundation of JV,and the loss is continuously increasing in spite of the increase of sales-13,735-10,526-9,764+41%*:estimation199819992000*Source:Roland Berger&Partners ana

11、lysisSales developmentRMB 000Operating lossesRMB 00014,80115,56810,219199819992000*+45%-132-More than 70%of products sold in 2000(1-9),including Geberit locally produced products,have a negative gross profit marginMixture of product sold(2000.09)23.65%25.50%52.71%Lida productsGeberit local producedG

12、eberit importedGross profit margin2)(at actual cost)Gross profit margin1)(at standard cost)+25%+44%-6.93%-7.43%+38%+38%Lida productGeberit imported productsGeberit locally produced productsSource:Geberit(Shanghai),Roland Berger&Partners analysis1):Calculate based on the full capacity utilization rat

13、e(80%90%)2):Calculate based on the actual capacity utilization rate(20%30%)-133-The disproportional increase of operating expense results in the increase of operating loss in spite of the improvement of product mixSource:P&L Geberit(Shanghai),Roland Berger&Partners analysis19,29918,37915,01219981999

14、2000*+29%146.9%118.1%130.4%Total operating expenses 19982000RMB 000*Estimation%of sales-134-Among the cost of goods sold,cost of materials and labor are two major cost driversSource:P&L,Balance sheet,Geberit(Shanghai),Roland Berger&Partners analysisCost of goods sold(%of sales)GSHA 1999GSHA 2000(1-9

15、)Turnover15.568 million RMB10.514 Million RMBCost of goods sold12.87Million RMB(82.66%to sales)9.7 million RMB(92%to sales)Structure of cost of goods sold113618512154293455685Cost of materials*Labour costDepreciationEnergy consumptionMaintenanceOthers75212493120364856543948%16%8%4%3.6%2.8%2%4%3.3%11

16、%17%54%RMB 000RMB 000*note:the materials cost are the cost of all materials purchased,instead of materials actually consumed.-135-And among the sales cost,salaries and travelling are two major cost drivers.Meanwhile,promotion fees and staff training cost increaseSource:P&L,Balance sheet,Geberit(Shan

17、ghai)Sales cost(%of sales)GSHA 1999GSHA 2000(1-9)Turnover15.568 million RMB10.514 million RMBSales cost5.66 million RMB(36.35%to turnover)5.4 million RMB(52.4%to turnover)Structure of sales costSalaryTravelling costPromotion feeRoom rental&parkingCommunication feeStaff trainingOthers3158979588221291

18、02120%6.2%3.8%0.2%6.6%6.08%1.6%3.4%6%9%26%3.7%5761.4%0.6%269092558235216064626RMB 000RMB 000-136-Increase operating expenses results in increase of operating losses in spite of the improvement of salesBack-upProfit&loss statement Geberit(Shanghai)19982000 RMB 000199819992000(112)SalesCost of materia

19、ls Gross profitpersonnel expenses Energy/maintenanceDepreciationMarketing expensesAdministration expensesOther operating expensesTotal operating expensesOperating profit(loss)Net income10,2194,9385,2486,8101,2361781855,76783615,012(9,764)(9,669)100.0%48.3%51.4%66.65%12.1%1.7%1.8%56.4%8.2%146.9%(95.5

20、%)(94.6%)15,5687,5217,8539,3451,6701,7811,2384,72230718,379(10,526)(10,177)100.0%48.3%50.4%60.0%10.7%11.4%8.0%30.3%2.0%180.1%(67.6%)(65.4%)14,8018,0036,6409,6081,5221,9881,3202,3172,54419,299(13,735)(14,656)100.0%54.35%44.9%64.9%10.3%13.4%8.9%13.7%17.2%130.4%(92.8%)(99.0)%Source:Geberit(Shanghai),Ro

21、land Berger&Partners analysis-137-The company can not generate enough cash from business operations and it solely relies on the continuous cash injection from the parent company for survivalSource:Cash flow,Geberit (Shanghai)Cash inflow and outflow,2000(1-6)RMB 000-6545-8615554-1878-8615-192Operatin

22、gWorking capitalInvestmentCash before financingInter company loan-138-C1.2.Geberit Daishan-139-GDAIs sales have continuously improved,and cost are reducing;the inter-company sales increased much faster than to third party2)Including write-offs for obsolete materials:1 million RMB&other unclear accou

23、ntsSales development RMB 000Operating losses development RMB 00012%29%31%69%71%88%1998199920001)+136%+36%1)Estimation(8,561)(10,706)(6,490)199819992)20001)-24%+74%328444517763Third partyInter-companySource:Geberit(Daishan)-140-GDAIs operating losses are decreasing due to reduction of costsSource:P&L

24、 Geberit(Daishani)Cost structure RMB 000199819992000(1-9)11%15%10%21%1%4%36%8%12%1%3%23%29%13%3%16%5%29%22%19%16%Other operating expensesAdministrationMarketingEnergy maintenancePersonnel expensesCost of materialDepreciation 10,05814,44411,668359%325%206%of total sales-141-As a result of cost contro

25、l,operating losses are reducing in line with the improvement of salesBack-upProfit&loss statement(Geberit Daishan)RMB 000SalesCost of materials Gross profit(loss)personnel expenses Energy/maintenanceDepreciationMarketing expensesAdministration expensesOther operating expensesManagement feeTotal oper

26、ating expensesOperating profit(loss)Net income199819992000(19)3284(939)2168(4195)(427)(2267)(171)(2422)(1247)0(10729)(-8561)(-8659)100.0%28.6%66.0%127.7%13.0%69.0%5.2%73.8%38.0%0%326.7%-260.7%-263.7%4451(4211)240(3361)(464)(2280)(170)(1756)(1719)483(10233)(10706)(-11052)100.0%94.6%5%75.5%10.4%51.2%3

27、.8%39.5%39%10.9%229.1%-240.5%-248.3%4866(2224)2574(2959)(540)(1659)(321)(1309)(978)0(7834)(5255)(5401)100.0%45.7%52.9%60.8%11.1534.1%6.6%26.9%20.1%0%160.6%107.7%110.5%Source:Geberit(Daishan),Roland Berger&Partners analysis2000(112)*7763(4000)3425(3947)(721)(2241)(427)(1742)(555)(100)(9915)(6490)(722

28、3)100.1%51.5%44.1%50.8%9.3%28.5%5.5%22.4%7%1.3%127.7%83.6%93%*Estimation-142-8.8%24.3%48.2%Short-term interest bearing debt increased nearly 4 fold,leading the short-term liabilities increase by 123%.This amounted to 68.5%of total assets by the end of July,2000Source:Balance sheet,Geberit(Daishan),R

29、oland Berger&Partners analysisLiabilities DevelopmentLiabilities Development,98-00(1-7)9,25914,25120,642199819992000(1-9)+123%RMB 000Short-term interest-bearing debt development 98-00(1-7)2,4807,02714,549+487%199819992000(1-9)RMB 000%of total assets%of total assets32.9%50.2%68.5%-143-0.850.420.600.3

30、60.490.28As a result of the disproportional use of current assets and current liabilities,GDAIs liquidity situation is deterioratingSource:Balance sheet Geberit(Shanghai),RB&P analysis7,8848,54710,2049,25914,25120,64298992000(1-7)Current ratioQuick ratioCurrent assetsCurrent liabilities+29%+127%Deve

31、lopment liabilities and assets RMB 000-144-Due to huge losses,the company is solely financed by inter-company loans.Liabilities increase faster than assets.Balance sheet Geberit(Daishan)19982000.7 RMB 000Back-up199819992000Fixed assetsIntangible assetsInventoriesOther prepaid expensesAccount receiva

32、ble(net)Cash&cash equivalentTotal assetsShare capitalRetained earningsNet income current yearTotal liabilities&provisions Total share capital&liabilities16,3093,9423,2967302,2861,57228,13535,447(8,372)(8,659)9,71928,13558.0%14.0%11.7%2.6%8.1%5.6%100.0%126.0%-29.8%-30.8%34.5%100.0%16,4173,4323,124222

33、2,3252,87628,39640,901(17,031)(11,052)15,59628,39657.8%12.1%11.0%0.8%8.2%10.1%100.0%143.9%-59.9%-38.1%54.9%100.0%17,0103,1353,9993082,3823,33530,16941,201(28,083)(3,919)20,97030,16956.4%10.4%13.2%1.0%7.9%11.1%100.0%136.6%-93.1%-13.0%69.5%100.0%Source:Geberit(Daishan)-145-C2.Organization&processes-14

34、6-C2.1.Organization structure-147-GDAIs organisation structures and management team have been improved after the change of the ownership,providing the basis for further improvementGDAIBase for further improvement is establishedWholly controlled by GeberitOrganisation structure is clear and followedA

35、uthorities and responsibilities are clearGMs management skills are accepted by the employeesChinese middle management team is set-upReporting system has set-upPositive corporate culture is formingInternal communication and co-operation have been improvedEmployees are generally motivated and have the

36、 positive attitude to the future of the company-148-In GSHA,Geberit and Lida have not integrated well from the foundation of JV.This creates a lot of internal conflicts and management chaosGSHALidaGeberitCorporate cultureManagement style/skillsProduct linesMarketsWork style-149-HRHRHRHRMore importan

37、tly,in GSHA,the official organization structure is not implemented Official organization structureOrganization structure in realityGMDpt.GMSales&marketingProduction&logisticCCSAdmin Two parties exist leading to internal conflicts and complexities Unclearly defined authorities and responsibilities,le

38、ading to overlap of some functions CCS is separated from the companys system,leading to inefficient co-operation and low efficiency GMDpt.GMCCSSales&marketingProduction&logisticAdmin-150-General manager is directly in charge of sales and administration by being the department manager,leading to no m

39、iddle management team.Most 3rd tier managers are newly appointed,which results in lacking continuity in management 1):Employees from Lida2):The management team of sales department is relatively stable,but the turnover of sales staff is relatively highGMH.SchuetteSales&marketing2)H.SchuetteProduction

40、&logisticKen Leung 7 monthsCCSK.KoenigslehnerAdministrationH.SchuetteProcess engineering 24 yearsQuality control1 monthLogistic 5 monthsOutside purchase 5 monthsProduction control 32 yearsProduction 3 monthsMaintenance5 monthsLocal purchase2 yearsControlling1 yearEDP2 monthsDoc.Admin17 yearsMaterial

41、 Dev.2 monthsPersonnel 32 yearsAccounting2 yearsProduction dep.Past-timeQuality management N/NProcess dep.N/N 6 months 3-6 months 3 months1)1)1)1)1)-151-C2.2.Management structure-152-The high hierachy management design in GSHA leads to low efficiency,and slow decision making processOrganization&Mana

42、gement structureDecision-making processGMDpt.GMDep.ManagerRegional ManagerSectional management2111421Total:48,upto 32%of total employeesGMDpt.GMTotal:12 people report to GM directly-153-Personnel expenses in GSHA have been up to 73.5%of total sales in July 2000,as a result of the change of personnel

43、 structure Personnel development&structure 1997-2000*Turnover per employee*RMB 0001997199819992000*exclude staff in Beijing Office7410598199819992000*EstimationProductionAdminSalesCCS11%2%6%6%15%17%19%31%29%25%23%59%54%52%52%129138148151+13%0%-154-The general manager can not gain necessary and corre

44、ct data from the company for decision-makingMain problems of data/reportingNo control of data input(e.g.no cross check in the warehousing)Data inputA lot of useful data arent available(e.g.scrapped product report)Data processingNo strict control system(e.g.no comparison of actual cost and standard c

45、ost)Data is only for document,not for analysisData controllingToo high figures in budgeting and sales forecastPlanningPoor quality decision basis-155-Performance evaluation and incentive system in GSHA is very weak,leading to low motivation and commitmentProblemsEvaluation&promotionImpactsNo defined

46、 procedure&criteria were found for evaluationNo clear criteria for promotionPoor cooperationIrresponsible workIncentive system&TrainingNo incentive schemeNo personnel development program Not enough training programs Low motivation among staffLow commitment to the companyLow quality of employeesHigh

47、staff turnover-156-GSHA does not have the proper management system,therefore it is run inefficientlyMain problems in managementMain problems in management systemControlling system is not followedLack of performance evaluation system No incentive schemeUnclearly defined authorities&responsibilitiesNo

48、 reliable information for decision-making(e.g.actual cost)Quality of data is poorNo formal reporting system to collect dataOfficial structure isnt implementedGM doesnt have leadershipRedundant management level leads to prevarication&inefficiencyManagement team isnt integrated and huge turnover in th

49、e middle managementNo motivating corporate cultureNo trustworthiness between GM&local staffDecision-MakingControlling,promotion&evaluationManagement structureCulture,morale,communicationLow morale/motivationLow commitment to the companyInefficient internal communicationUnclear criteria for promotion

50、-157-C2.3.Key process analysis-158-Currently,in GSHA the production-oriented process leads to unawareness of the market,as a result,there are no right products in the right marketProductionSalesMarketingHRR&DFinanceLogisticsAfter-sales serviceCorporate strategyBusiness unit strategyProduct strategyP