Machinery/Electronics/Materials
In brief
Project example
Merger of the operations of an industrial equipment manufacturer and an overseas subsidiary
Industrial equipment maker, Company A, had acquired a foreign maker in order to gain a top industry position. However, the company’s performance did not improve as expected. Company A thus decided to pursue greater synergistic results by spinning off its own operating division and completely integrating the foreign subsidiary. Roland Berger worked at both A and its subsidiary, helping client project members ensure smooth integration. The first issue was organizational restructuring. The subsidiary had been a multi-department vertical organization, which was a detrimental factor. Thus a new organization with clear profit responsibility by operation was needed. Meanwhile, the departments on the Japanese side were slim, and pursued high efficiency with businesses that straddled operations. Introducing a simple organization divided by operation would have many demerits, while forcedly integrating two geographically and psychologically distant operations might negate the merits of integration. Thus we recommended and Maker A chose a hybrid organization that combined the merits of both a functionally- and operationally-based organization.
As the industry was subject to intense cost competition, a drastic production-side strategy was also needed. With the project members, we reviewed the production components and process on both sides, redefining the core technologies behind the unique value necessary for internal manufacturing. As a result, it was decided to actively pursue a basic policy of outsourcing. While differences in accounting standards and practices made it difficult to compare production costs, giving the production department a reason to oppose abandoning production, we were able to create a more rational, production-intensive plan by introducing a unified calculation method. Furthermore, we conducted significant restructuring, including the back office of the subsidiary, strengthening the prospect of major profit improvement.
Our support also extended broadly to the finance system, purchasing, sales, designing and beyond. The promotion of two-way communication between the Japanese and foreign operation, which is vital in this kind of integration work, was also an issue. To tackle this, the managers of each department participated in a workshop during which they reviewed the issue and developed a work policy. With our help, they succeeded in building relationships that rose above cultural and linguistic differences.
Major projects
- Support for the restructuring of the operational framework of a construction equipment maker
- Business process reengineering for a steel manufacturer
- Integration support for an electronics manufacturer following a merger
- Vision building for a nonferrous metal manufacturer
- Strengthening of the marketing function for a nonferrous metal manufacturer
- Reform in R&D investment for an electronics manufacturer
- Creation of a technology strategy for an electronics manufacturer
- Help for an equipment manufacturer in shortening development time
- Building of a partnering strategy for a foreign telecom equipment manufacturer
- Competitor benchmarking for a foreign plastic molding equipment manufacturer
- Development of a Japan entry strategy for a foreign nickel alloy manufacturer
our experts
Link to global Mechanical Engineering team
