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Johnson Pte Ltd (JPL) a public non-listed subsidiary of fast

moving consumer godos (FMCG) group based in southern Indian


region.
The company was taken by Hong Kong group companies with
80% acquisition of the shareholding.
JPL manufactured and distributed a wide range of product foods ( frozen, chicken, noodles, pastries, bread product, yeast
and fats), commodities (oil), restaurant business and owned
ratailing outlet.
Azmi new CEO had been assigned by the chairman to plan and
execute a turnaround programmed for the company.
The problem of the company was their continuous decline in

Credit Control &


Inventories
Management

Shareholders

Dealers &
Wholesalers

Azmi (CEO)

Competitors
Board
Membership

Chairman
JPL

Directors of:
-Sales & Marketing
-Finance & Accounting
-Production & Services
-Human Resources

Hong Kong
Group / HK
head office
Indian
Govt

Players in
the FMCG

Losses (continuous decline of


the sales, rising of the operating
cost)

Ineffective advertising:
- negative cashflow
- excessive spending in advertisement and promotional costs
Poor management of assets:
- number of empty factories with old Steel structures intact for
the last 10 years
- heaps of absolete spare parts left untouched in the store room
- vehicles more tan 5 years old & zero net BV
Poor credit control & inventories management:
- insufficient bank guarantees
- decline in sales and rising in operating cost
Too many retail outlets:
- increase in operating cost
- non strategic location

Expectation/Objective
cost

revenue,

Constraints
1) low entry barriers
2) multiple private labels
3) external forces
4) weak of management skills
Result ( Main Problem) losses (decline
of the sales, rising of the operating cost)

Quick response from shareholders, employees & the company


management. Create 2 ways of communication.
Invest heavily in R&D, advertisement & promotion.
Focusing to stop outflow of cash & to control negative cash flow.
Management replacement.
Review SWOT analysis.
Close few retail outlets non-strategic locations (

cost)

Reemphasis Product Development / Technology Innovation

Management
replacement

Review again each department :


- Sales & marketing
- Accounting & finance
- Production & services
- Human resources
Assess management in term of
competence, industry experience
& loan guarantees.

Review
SWOT
analysis

Find strong supplier and dealer


Find lowest or reasonable raw
material Price (sourcing from lowcost cpountries)

Lack of concern towards relationship between organizational


team & management.
Risk to find wrong management team.
Review only the impact itself & not the impact of the whole
company.
Compete more with others find lowest raw materials (

cost)

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