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Ideas for improvement

Ideas for improvement. How can we structurally improve our current business model ?. Remarks current model. Sub headline. ACL’s current business volume is too small. ACL has problems with market coverage & competitiveness.

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Ideas for improvement

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  1. Ideas for improvement How can we structurally improve our current business model ?

  2. Remarks current model Sub headline • ACL’s current business volume is too small. ACL has problems with market coverage & competitiveness. • ACL’s gross margin & bottom line are not sufficient enough to be self – financing. • ACL does not yet profit enough from assets, that other TWE group companies like A&N&A & Botec have to offer. • Companies within the TWE group with similar activities all have an individual strategy/dynamic and don’t share any core functions.

  3. Our intension Sub headline Together, we want to develop a business plan to fix the current shortcomings in order to achieve the following objectives: Within the next coming years we want to obtain a significant part of the (retail) market in the Benelux for TWE/ A&N&A product range. ✓ We want to develop a successful European strategy for our cleaning tools business, and obtain a relevant market share Europe-wide. ✓

  4. Milestones Sub headline The business plan could be divided into different milestones: Milestone 1 Maximizing/optimizing usage of elements already existing within the TWE Group. Milestone 2 The acquisition of additional market share in the Benelux Milestone 3 Development of Pro Alliance into an international shared service platform, together with Turtle Wax.

  5. 1sth Milestone Sub headline Maximizing/optimizing usage of elements already existing within the TWE Group. striving to optimize synergies and channeling all individual efforts into one direction.

  6. 1sth Milestone Sub headline Short term possibilities: • Improving intercompany price structure between A&N&A/Botec and ACL, in an effort to boost ACL’s competitiveness and gross margin (ACL should be able to purchase and sell at the same prices as A&N&A). • Improving & internationalizing packaging in complete synergy with A&N&A. At the moment, ACL’s packaging can not compete with A&N&A, Nicols, Nedac Sorbo,… (f.e. samples). • Synchronizing commercial efforts within the Benelux & France, between A&N&A and ACL (f.e. Hornbach).

  7. 1sth Milestone Sub headline Long term possibilities: A profound adaptation of the intercompany set-up within the TWE group, by creating a new entity (JVC) - Where all existing efforts (A&N&A, Botec, ACL) will be joined and channeled into the same direction. - Where an international strategy towards our customer base (European retailers) will be developed and managed. - Where a number of strategic core functions can be shared (like f.e. strategic purchasing activities, product management, marketing).

  8. 1sth Milestone: Idea for new set-up Sub headline CUSTOMERS Marketing principle “DIRECT” Marketing principle “Aqualine” Deutschland. Benelux. ... France. Production & packaging units. Local sales units International.

  9. 2nd Milestone Sub headline The acquisition of additional market share in the Benelux - Acquiring the volume will help improve the development of gross margin and bottom line. - The extra volume will enable possibilities to extend our market coverage, in terms of sales structure. - Depending on the acquisition, it can also enable cross selling

  10. 2nd Milestone Sub headline 2 options • Buying a local wholesaler who does a majority of its turnover in the TWE/ A&N&A range • Increase share of own production by buying a producer, who is strong in household products other than current production share. • Enable cross selling • Increase commercial footprint (customers can make synergies)

  11. 3rd Milestone Sub headline Develop PAL into an international shared service platform together with Turtle Wax. • Luxbross and TW have negotiated a LOI. • TW wants to share all of is non-core functions with us. • TW suggested that PAL is turned into a JVC between the trading companies instead of a daughter company of Luxbross.

  12. 3rd Milestone Sub headline If developed further, PAL can enable important strategic and competitive advantages for our business • It enables economies of scale on an intercompany level, significantly improving the bottom line of its partners. • For Pro Alliance, shared services also means running these service activities like a core business, creating a whole new dynamic in your non-core functions. It offers a better continuity & quality of service than the companies using the platform would be able to guarantee individually. • It could increase the commercial footprint of its partners.

  13. The next step.. Sub headline ???

  14. Thank you for your attention.

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