Explore the challenges faced by a Brazilian company in the commercial vehicle market, as it navigates through a crisis without recognizing early signals. Learn how strategic intervention, process reevaluation, and a proactive approach to succession planning are crucial for survival.

The case study serves as a valuable lesson in crisis management and the importance of recognizing early warning signs. From inefficient production practices to the need for succession planning, the blog highlights the multifaceted approach required to navigate a crisis successfully. Companies are urged to learn from this example and prioritize transparency, optimized administration, and strategic planning to ensure long-term prosperity.

Business Development Coffee Shop Franchise - Part Three: Transformation of client relationship & migration to digital business models.

The original project focus when the project was placed at the beginning of 2020 was to develop a system to increase customer satisfaction and maintain it at a high level. During past years, our customer was in a crisis. Difficulties in the management of the company led to a loss of the profitability and customer satisfaction indices.

With the outbreak of the pandemic in Brazil in March 2020, the project focus expanded. In addition to the focus on customer satisfaction, the new situation was to be used to develop possible new business models using digital tools and fundamentally increase customer loyalty. The general idea could be summarized as follows: more agility through digital services.

Is it possible to design projects with open results?

That is not easy.

Especially not if the initial situation was an acute crisis in very recent times. The threatening dynamics made open- ended thinking almost impossible. So you can only move forward from success to success.

This time the project definition was more differentiated. It was not about acute crisis management, but rather about a strategy to consolidate the position, or better, a further expansion using the prevailing crisis scenarios in Brazil. It was clear, however, that no enthusiastic adventures should be undertaken and that any strategic assumption must be robustly backed by operational-tactical measures. The implementation of these tactical measures should then also define the next steps or be used to adapt the strategy.

In 2012, the economic situation in Brazil was still largely unproblematic. The country had the longest phase of an economic and social upswing in democratic times behind it. The financial crisis of 2008-2010 had been overcome extremely well, without really causing major upheavals. A new sociological- economic middle class had emerged in the context of the emerging global economies.

Starting in 2014, Brazil's situation deteriorated rapidly and an economic downturn occurred, which has not really stopped until today.

After one year, growth of over 25% was achieved at the beginning of 2017 and profits increased by 100% compared to the previous year. The installed simple financial control system improved efficiency and cash flow in the small local coffee store chain. All installed coffeeshops were back in the blue zone.

Just over 10 days ago, we received a survey sent to us by a renowned consultancy. A few hundred companies in Brazil participated in the survey, which was conducted between the mid-Q1 and the middle of Q2 2022. Data which immediately and then surprisingly catches the eye are: … .

As it has been common practice for several years, in the last quarter of 2021 we have also worked together with some clients in their process of revising the business plan and the possible scenarios to set up an outlook on Brazil 2022. This time there were six companies from the sectors automotive suppliers, engineering oil and gas, mining, B2B startup and a local coffee shop franchise group. The national origin of the companies was from Brazil, France and North America.