Case study №10 – GDPR compliance project in the metal processing sector

Client

One of our clients is a mid-sized private company, operating internationally within the metal elements and components manufacturing, with over 150 members of staff and average revenue of approximately $16 million.

Challenge

In relation to the newly adopted GDPR regulations in the EU, in effect as of 25 May 2018, the client had to implement all required procedures and policies for the purpose of being fully compliant with the new data protection rules and administrative processes and standards.

Approach

For the purpose of ensuring our client was fully compliant with the new GDPR regulations, we had to carry out in-depth analysis of the existing organisational structure and working processes within various departments. This was a necessary procedure, which was meant to identify any weaknesses, vulnerabilities and missing protocols within the personal data protection practices applied by the client as part of their routine operations and interactions with employees, clients, partners and other counterparts.
We had to familiarise ourselves with the organisational dynamic and pertinent processes, as well as provide adequate staff training and all necessary documentation, thus ensuring the smooth transition of the entity, as well as full compliance with new GDPR regulation regarding data management, internal controls and processes and general business interaction on an international level.

Results

By way of applying a detailed systematic approach, we managed to identify and correct any aspect, which could have acted as hurdles to achieving full compliance of the entity with the new GDPR regulation. During this process we managed to avoid disruptions and interruptions to the manufacturing and administrative processes of the entity.
We also prepared and delivered a customized training course for both staff and management, which introduction was meant to provide a straightforward and practical guide to the new data protection laws.

All documentation and procedures, which we developed for the client ensure full compliance with GDPR requirements and are a high-quality addition to the otherwise uninterrupted and successful business processes of the company.

Case study №9 – local registration and admin support for a Danish e-commerce entity

Client

One of our clients is a mid-sized e-commerce private company based in Denmark. The entity reports average annual revenue of approximately $96 million, with estimated market value of around $325 million.

Challenge

For the purpose of improving after-tax profits and entering new markets, the company required assistance with setting up a legal entity (subsidiary) in Bulgaria. The client also required our services for legal and administrative support, as well as management of the entity, in line with local commercial rules and regulations.

Approach

After registering a subsidiary in Bulgaria, per our client’s instructions, with all relevant licenses and permits, the client managed to quickly establish a strong customer network in the region. We leveraged our local contacts within the IT sector to provide a quality technical assistance to client, for the purpose of developing high-level digital infrastructure, which successfully and efficiently facilitate the entity’s activities in the region and allowed for a strong start, for the Danish entity’s local branch, within this highly competitive IT field.

Results

Furthermore, we were able to offer and deliver our expertise as part of tax optimisation, transaction support and processing, directorship, as well as bookkeeping, payroll and accounting services. Based on our support per the above, we managed to improve the client entity’s structure and boost profits, which further assisted the expansion and positioning of the subsidiary in the region.
The low corporate and dividend taxes in Bulgaria, combined with quality admin, legal and support services, are crucial prerequisites for successful business development and market expansion, not only in the Balkans region, but also the European Union.

Case study №8 – business advisory for a 3D printer start-up

Client

We were recently approached by a local entrepreneur, operating 14-month old business within the tech sector – more precisely, manufacturing and distribution of 3D printers. The proprietor sought out our help with evaluating the existing business model and approach, as well as mapping out future actions to be taken for developing a successful enterprise in the long-run. The first year reported revenue was BGN 248 000, with the following split: 35% manufacturing, 57% distribution (reselling) and 8% services.

Challenge

The client requested a review of their entity’s current position, performance and business model, as well as preparation of competition analysis, long-term development strategy and business plan (for internal and external purposes, including long-term financing). The client was particularly concerned about all the critical decisions to be made and actions to be taken, at this early stage of business development, which would potentially have deep long-term effects on their business. The proprietor needed a team of experts to make recommendations and comments on the progress made so far, as well as the future of the business – strategies for growth, expansion and moving forward.

Approach

We carried out multiple interviews with the proprietor and key personnel, spent time on-site and got familiar with the client’s product range. We performed a concise financial analysis of the current position and performance of the business, although this is not a common tool for analysing start-up entities. We reviewed and commented on the existing business model in the context of the current competitive environment, economic climate, industry fundamentals and market trends. We recommended several enhancements to the existing model related to product placement and pricing, introduction of new service line, supply chain optimization, more efficient staff allocation, etc. We produced a detailed business plan for the company to be used for attracting strategic investors and/or raising additional capital, through debt financing, which we assisted the client with. Finally, we spent a substantial amount of time on drawing a detailed 3-year plan (including precise timetable) for business development purposes – to be used as a strategy playbook by the owner. This timeline was meant to build on all positive aspects of the progress made so far and to introduce new concepts and actions to be taken in the mid-term, including the financing of certain aspects of the business, expanding the marketing efforts and sales team, diversifying supplier portfolio and improving the distribution network (mainly in terms of product placement and logistics).

Results

Our experts produced a detailed 136-page report (within 27 business days) with all our findings, observations, analysis and recommendations, as well as business plan and timeline. All key results and recommendations of the report were presented to the proprietor and key personnel in person. The company implemented most of our immediate-action recommendations and also accepted the recommended timetable. The business plan we delivered was put to good use within 2 weeks of completion and as a result the client was able to obtain a substantial (for the entity’s scale) 6-year business loan for purchasing manufacturing equipment, fixtures and fittings, ERP and sales software, mid-seized warehousing facility, several transportation vehicles, etc. The proprietor also managed to secure a substantial working capital credit line. The loan terms and covenants for both financing instruments were better than average for the market.

Case study №7 – sales process optimization in a professional apparel company

Client

Some time ago, we were approached by a private company based in Greece, which operated 15 apparel stores in different major towns throughout Bulgaria, as well as a fairly popular specialized professional clothing website. The entity’s average revenue (for the last 3 years) was approx. BGN 8.2 million. Revenue split: 20% production (own brand); 75% resale and distribution; 5% other services. The client had experienced an average annual revenue drop of 2.6% for the last 3 years.

Challenge

The client asked us to look at their sales processes (including marketing) and commercial teams, for the purpose of reviewing existing practices and recommending improvements. Management requested complete overhaul recommendations for their sales department structure and processes for the purpose of improving the customer conversion and retention rates on existing product lines, as well as incorporating several new product lines and target markets in the existing commercial model. The company management believed that sales were down due to issues within the sales department, with no apparent deviations in other factors, variables and general market forces.

Approach

Our consultants observed the existing revenue processes and sales team dynamics, interviewed key staff members and reviewed any relevant revenue-related documentation, including key customer contracts, invoicing and credit department practices, receivables ledgers and ageing. We reviewed the order-to-sale process, website and physical customer experience, as well as related IT and ERP applications. We thoroughly documented all tests and procedures performed, as well as key findings.

Results

As part of our sales team and commercial processes optimization service we produced, for company management purposes, a detailed report, which included our approach and procedures performed, as well as all the quantitative and qualitative data we collected, analysed and presented visually. The report took approx. 15 business days to complete and managed to:

• identify several marketing and user experience shortcomings
• suggest 3 alternative process structures to improve efficiencies
• point out 2 sales-team weak links (in terms of personnel and team roles)
• suggest one improvement to customer credit policy
• develop several new customer service protocols
• recommend several sales software improvements (and recommended existing off-the-shelf solutions)
• overhaul the entire bonus and incentives scheme for sales staff

Approximately 95% of our recommendations were introduced by mid-year – by the end of the fiscal year total revenue was up by 3.7%.

Case study №6 – market research and analysis in the modular construction business

Client

We recently carried out a market research and analysis for a private local enterprise, which operates within the modular construction industry. The entity’s average revenue (for the last 3 years) was approx. BGN 6.3 million and total assets for the same period were BGN 8.5 million. Revenue split: 24% manufacturing; 18% resale and distribution; 58% construction services.

Challenge

The client commissioned the preparation of detailed market research and analysis in relation to foreign markets export opportunities. The company was planning on expanding export production and needed to obtain a better understanding of global trends and pricing within their sector.

Approach

We compiled and analysed import and export data for more than 60 countries (on 6 continents) worldwide. We then reviewed (on average) over 20 suppliers per country, for the purpose of identifying local modular construction trends (in terms of technology, design and materials applied) and pricing. We also researched local demand patterns, standards and volumes. At the end, we identified and recommended lucrative potential markets, which the manufacturer could penetrate, based on local demand levels, standards, preferred construction technology and optimal pricing.

Results

The market research and analysis report was completed within 32 business days and the resulting deliverable was over 100 pages long, including technical description, market information, data tables and visual representation of results and findings. The report also presented primary and prominent secondary sources used within the report. The key part of the compounded report were our researchers’ data comments and analysis, as well as recommendations for potential target markets. Out of 10 recommended markets, the company has already entered 4 successfully, with 2 more in the process of being set up.

Case study №5 – strategic analysis of a medical equipment business

Client

We were approached by a private Bulgarian company operating within the medical equipment manufacturing, distribution and maintenance sector. Approximately 65% of the entity’s’ revenue is generated via export to most Balkan states, Hungary, Poland and Greece. The entity’s average revenue (for the last 5 years) was approx. EUR 38.1 million. The enterprise’s revenue split was: 34% manufacturing; 50% resale and distribution; 16% services.

Challenge

The client requested a full-blown in-depth strategic analysis of their current position, as well as detailed recommendations as to the future strategic direction of development for the enterprise. Management needed a stress test analysis of the business’ attributes and competencies in terms of their external environment (incl. sectoral fundamentals and competitive landscape), for the purpose of determining the company’s ability to grow and evaluating different future strategic options.

The client also required our perspective in relation to effective resource allocation, future investment considerations and key revenue drivers.

Approach

As part of completing the engagement, we performed detailed analysis of the company’s business performance via:

• SWOT analysis
• PRIMO-F analysis
• 5C analysis

We also spend some time reviewing the existing business model as a whole, which we carried out via detailed Value Chain analysis. Our consultants spent some time reviewing key organisational elements by applying the concepts of the McKinsey 7-S Framework.

As far the external environment analysis is concerned, we focused on applying the following tools:

• PESTEL analysis
• Porter’s 5 forces

We reviewed in detail the product and industry cycles for the entity, for the purpose of determining the phase of development the company exists in. This was achieved mainly through sector benchmark and analysis of key fundamentals for the industry, as well as the following analysis tools:

• Ansoff matrix
• BCG matrix

We made multiple recommendations on the efficient resource allocation, based on the 9-M model, as well as the concepts of several popular operational models:

• 4-Vs
• Just in Time (JIT)
• Total quality management (TQM)
• Supply chain management (SCM)

Using the SMART goal-setting strategy we laid out our vision for the future business-development actions to be taken by management and presented all potential risks that the business could face going down this road – we also suggested risk management strategies for these, based on the TARA model. Furthermore, we set-up a balanced scorecard for the client to use as a results-measuring technique going forward.

Results

We completed the engagement within 13 business days and delivered a detailed segmented report addressing the company’s internal and external environment, analysing the existing business model and resource allocation, benchmarking product and company positioning, as well as introducing future development goals and investment opportunities. The report listed out numerous actionable recommendations and best practice examples in all of the above areas. Two weeks later, we were copied in a company-wide email communication, which detailed the introduction of several process and organisational changes to reflect some of our most crucial recommendations. We carry out quarterly catch-up calls with the client to assess progress, discuss recent developments and address concerns.