A European outsourcing company faces a difficult challenge: The company’s large international clients expect from the management to not longer produce in Europe but instead to establish a more cost-efficient production in Asia. It is time for the company to enter unknown terrain.
Initial Situation – Silkhair is a global leader in the world of body care from head to toe. In 2006, the company entered a new business segment. Through substantial investment in formulations, product development and customer service, a new brand and a full range for hair stylists and upscale hair salons was developed.
Initial Situation – A German mechanical engineering company had a 75% interest in a joint venture in Thailand . A Thai partner, which also managed day-to-day operations, had a 25% stake. The German parent company did not spend much time worrying about its Thai subsidiary. The sales figures were not bad enough to draw the attention of its executives, although its share of the market was unknown. The results seemed “in order” according to German standards.
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