Company dealing in used printer cartridges and mobile phones. Two divisions: Global trade in electronic wasteFactories for recycling printer cartridgesActivities divided between several locations during period of unbridled growth. Trading division generates insufficient returns due to inefficiency. Limited management information and insufficient cohesion between divisions. Recycling division makes losses due to rapidly increasing competition from low-wage countries. Insufficient working capital due to increasing losses. Lack of liquidity inhibits trade. Company faces major continuity crisis.
Managing director restructuring corporate group, eliciting turnaround in recycling division and rationalising trade division. Implement management information systems. Discontinue unprofitable product groups. Closure of Dutch recycling plant and expansion of activities in Eastern Europe. Introduce leaner, more agile organisational structure.
Profitability and liquidity restored. Intelligent logistics and ERP systems lead to growth of trading division. Relocation of recycling division leads to renewed competitiveness: becomes supplier for leading European private labels. Targeted restructuring leads to sale of recycling division to strategic partner. Exclusive focus on trade lays the foundation for becoming market leader in Europe.