罗兰贝格财务及组织分析报告课件.ppt

1、-122-SHA-4309-03690-08-15c.PPTC.Financial,organization and processes analysis-123-SHA-4309-03690-08-15c.PPTC1.Financial situation analysis-124-SHA-4309-03690-08-15c.PPTC1.1 Geberit Shanghai-125-SHA-4309-03690-08-15c.PPTPresently,GSHA is in serious corporate crisisPhases of corporate crisisWeakStrong

2、Pathology of crisis symptomsNormative misfitStrategic crisisResults crisisLiquidity crisisGeberitLowHighBankruptcy crisisBack-up-126-SHA-4309-03690-08-15c.PPTAll liabilities are short term and are increasing 4-fold.By the end of July 2000,liabilities are 75%of total assets Development of liabilities

3、(%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-SHA-4309-03690-08-15c.PPTCompanys liquidity situation is deteriorating.Current liabilities are increasing much faster than current assets,the cash injection from the parent com

4、pany is used to cover the running expenses in stead of building up assetsDevelopment of liabilities&assetsRMB 00011,50714,00715,7204,07515,35825,35098992000(1-7)Current ratioQuick ratio2.821.710.910.430.620.25Current assetsCurrent liabilitiesSource:Balance sheet Geberit(Shanghai),RB&P analysis+37%+5

5、22%-128-SHA-4309-03690-08-15c.PPTThe companys inventory increased by 91%,while current assets increased by 37%4,5177,2678,644199819992000(1-7)Development of inventoriesSource:Balance sheet,Geberit(Shanghai),RB&P analysisCurrent asset structure(%of the current assets)+91%RMB 000199819992000(1-7)44%11

6、%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 receivable+37%RMB 000Cash&cash equivalentsOther accounts receivable-129-SHA-4309-03690-08-15c.PPTDue to huge losses,the comp

7、any 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 assetsOther prepaid expensesAdvanced payments to suppliersInventoriesAccount receivableCash&cash equivalen

8、tTotal assetsShare capitalRetained earningsNet income current yearTotal provisions&deferred revenuesTotal(liabilities)Total Shareholder Capitals&liabilities18,3185871004,5171,8625,11830,41241,426(5,420)(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%18,99687

9、25737,2673,6632,97933,09041,426(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)56325,35033,78053.5%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-SHA-4309-03690-08-

10、15c.PPTThe 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(1-9)accumulatedlossesShare capitalSource:P&L Geberit(Shanghai),RB&P analysi

11、s86%-131-SHA-4309-03690-08-15c.PPTThe 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 analysisSales developmentRMB 000Operating lossesRMB 0

12、0014,80115,56810,219199819992000*+45%-132-SHA-4309-03690-08-15c.PPTMore 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 producedGeberit importedGross prof

13、it 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 rate(80%90%)2):Calculate bas

14、ed on the actual capacity utilization rate(20%30%)-133-SHA-4309-03690-08-15c.PPTThe 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

15、2000*+29%146.9%118.1%130.4%Total operating expenses 19982000RMB 000*Estimation%of sales-134-SHA-4309-03690-08-15c.PPTAmong 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 sal

16、es)GSHA 1999GSHA 2000(1-9)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%

17、16%8%4%3.6%2.8%2%4%3.3%11%17%54%RMB 000RMB 000*note:the materials cost are the cost of all materials purchased,instead of materials actually consumed.-135-SHA-4309-03690-08-15c.PPTAnd among the sales cost,salaries and travelling are two major cost drivers.Meanwhile,promotion fees and staff training

18、cost increaseSource:P&L,Balance sheet,Geberit(Shanghai)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&parkingCom

19、munication feeStaff trainingOthers315897958822129102120%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-SHA-4309-03690-08-15c.PPTIncrease operating expenses results in increase of operating losses in spite of the improvement of salesBack-upProfit&loss state

20、ment Geberit(Shanghai)19982000 RMB 000199819992000(112)SalesCost of materials Gross profitpersonnel expenses Energy/maintenanceDepreciationMarketing expensesAdministration expensesOther operating expensesTotal operating expensesOperating profit(loss)Net income10,2194,9385,2486,8101,2361781855,767836

21、15,012(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%)(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%6

22、4.9%10.3%13.4%8.9%13.7%17.2%130.4%(92.8%)(99.0)%Source:Geberit(Shanghai),Roland Berger&Partners analysis-137-SHA-4309-03690-08-15c.PPTThe company can not generate enough cash from business operations and it solely relies on the continuous cash injection from the parent company for survivalSource:Cas

23、h flow,Geberit (Shanghai)Cash inflow and outflow,2000(1-6)RMB 000-6545-8615554-1878-8615-192OperatingWorking capitalInvestmentCash before financingInter company loan-138-SHA-4309-03690-08-15c.PPTC1.2.Geberit Daishan-139-SHA-4309-03690-08-15c.PPTGDAIs sales have continuously improved,and cost are red

24、ucing;the inter-company sales increased much faster than to third party2)Including write-offs for obsolete materials:1 million RMB&other unclear accountsSales development RMB 000Operating losses development RMB 00012%29%31%69%71%88%1998199920001)+136%+36%1)Estimation(8,561)(10,706)(6,490)199819992)2

25、0001)-24%+74%328444517763Third partyInter-companySource:Geberit(Daishan)-140-SHA-4309-03690-08-15c.PPTGDAIs operating losses are decreasing due to reduction of costsSource:P&L 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 operat

26、ing expensesAdministrationMarketingEnergy maintenancePersonnel expensesCost of materialDepreciation 10,05814,44411,668359%325%206%of total sales-141-SHA-4309-03690-08-15c.PPTAs a result of cost control,operating losses are reducing in line with the improvement of salesBack-upProfit&loss statement(Ge

27、berit Daishan)RMB 000SalesCost of materials Gross profit(loss)personnel expenses Energy/maintenanceDepreciationMarketing expensesAdministration expensesOther operating expensesManagement feeTotal operating expensesOperating profit(loss)Net income199819992000(19)3284(939)2168(4195)(427)(2267)(171)(24

28、22)(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%3.8%39.5%39%10.9%229.1%-240.5%-248.3%4866(2224)2574(2959)(540)(1659)(321)(1309)(978)0(7834)(5255)(540

29、1)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)(7223)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-SHA-4309-03690-08-15c.P

30、PT8.8%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),Roland Berger&Partners analysisLiabilities DevelopmentLiabilities Developmen

31、t,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-SHA-4309-03690-08-15c.PPT0.850.420.600.360.490.28As a result of the disproportional use of

32、 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%Development liabilities and assets RMB 000-144-SHA-430

33、9-03690-08-15c.PPTDue 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 receivable(net)Cash&cash equival

34、entTotal 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%16,4173,4323,1242222,3252,87628,39640,901(17

35、,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-SHA-4309-03690-08-15c.PPTC2.Organization&processes-14

36、6-SHA-4309-03690-08-15c.PPTC2.1.Organization structure-147-SHA-4309-03690-08-15c.PPTGDAIs 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 Ge

37、beritOrganisation structure is clear and followedAuthorities 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 impr

38、ovedEmployees are generally motivated and have the positive attitude to the future of the company-148-SHA-4309-03690-08-15c.PPTIn GSHA,Geberit and Lida have not integrated well from the foundation of JV.This creates a lot of internal conflicts and management chaosGSHALidaGeberitCorporate cultureMana

39、gement style/skillsProduct linesMarketsWork style-149-SHA-4309-03690-08-15c.PPTHRHRHRHRMore importantly,in GSHA,the official organization structure is not implemented Official organization structureOrganization structure in realityGMDpt.GMSales&marketingProduction&logisticCCSAdmin Two parties exist

40、leading to internal conflicts and complexities Unclearly defined authorities and responsibilities,leading 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-SHA-4309-0369

41、0-08-15c.PPTGeneral manager is directly in charge of sales and administration by being the department manager,leading to no middle 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 depart

42、ment is relatively stable,but the turnover of sales staff is relatively highGMH.SchuetteSales&marketing2)H.SchuetteProduction&logisticKen Leung 7 monthsCCSK.KoenigslehnerAdministrationH.SchuetteProcess engineering 24 yearsQuality control1 monthLogistic 5 monthsOutside purchase 5 monthsProduction con

43、trol 32 yearsProduction 3 monthsMaintenance5 monthsLocal purchase2 yearsControlling1 yearEDP2 monthsDoc.Admin17 yearsMaterial 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-SHA-4309-03690-08-15c.

44、PPTC2.2.Management structure-152-SHA-4309-03690-08-15c.PPTThe high hierachy management design in GSHA leads to low efficiency,and slow decision making processOrganization&Management structureDecision-making processGMDpt.GMDep.ManagerRegional ManagerSectional management2111421Total:48,upto 32%of tota

45、l employeesGMDpt.GMTotal:12 people report to GM directly-153-SHA-4309-03690-08-15c.PPTPersonnel expenses in GSHA have been up to 73.5%of total sales in July 2000,as a result of the change of personnel structure Personnel development&structure 1997-2000*Turnover per employee*RMB 0001997199819992000*e

46、xclude staff in Beijing Office7410598199819992000*EstimationProductionAdminSalesCCS11%2%6%6%15%17%19%31%29%25%23%59%54%52%52%129138148151+13%0%-154-SHA-4309-03690-08-15c.PPTThe general manager can not gain necessary and correct data from the company for decision-makingMain problems of data/reporting

47、No 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 cost)Data is only for document,not for analysisData controllingToo high figu

48、res in budgeting and sales forecastPlanningPoor quality decision basis-155-SHA-4309-03690-08-15c.PPTPerformance evaluation and incentive system in GSHA is very weak,leading to low motivation and commitmentProblemsEvaluation&promotionImpactsNo defined procedure&criteria were found for evaluationNo cl

49、ear 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 staff turnover-156-SHA-4309-03690-08-15c.PPTGSHA d

50、oes 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 reliable information for