Business Analysis Case

Introduction

Our client is a family business in the retails sector. They had been in business for three years and both partners were pushing hard to grow the business and wondered why the business was growing so slowly. In the last year the business achieved only 3% growth in revenue but net profit decreased by 17%.

Restructuring

We reviewed and analysed the business thoroughly and the result of our analysis revealed that although the partners are members of one family they had different visions and values and were implementing different strategies in the business. We worked with the partners to reconcile their differences and it was agreed they were better off working separately. We put together an exit plan for one of the partners and helped introduce another partner with similar vision and values to the remaining partner.

Strategic Planning

We then worked with the remaining partner and the new partner and put together a strategic plan and marketing strategies for the next three years. The goal of the plan is to double net profit for the current shop in six months and then set up two new shops that will generate similar profit levels. We created a comprehensive action plan for the partners to achieve these goals. In February 2008 the only shop they had, achieved revenue targets. In November 2008 the second shop was established and the business is very close to achieving profitability targets.