Food MNC - Business reorganization

For a UK-based vertically integrated food multinational – Designing and delivering a full business reorganization to enable value creation before the sale of the business

The client and context:

· The client is a vertically integrated food business, with activities from agriculture to processed food and produce distribution and food logistics.

· The business had grown internationally with acquisitions and JV.

· The business is organised per geography, across the activities undertaken by the group.

· The shareholders were planning to sell within the next 2 to 3 years.

The challenges:

· The business had to be reorganised in order to evolve from a “group of company” ways of working to an “integrated group” ways of working.

· The structure was not scalable and not allowing for additional growth.

· Entities were competing between themselves, destroying value for the group.

· Multiple tasks were duplicated at group level, resulting in an insufficient performance.

What we Did:

· We held a number of strategic workshops with the senior leadership team as well as the subsidiaries’ MDs.

· Identification of the group’s key processes and mapping of such processes.

· Reorganisation of the group around 5 pillars, grouped by type of activities conducted rather than geographies with the creation of a global governance and support functions for each division

· Streamlining of group functions and processes.

· Improvement of the use of critical group resources by centralising group technical teams.

· Restructured some of the group entities to separate IP bearing entities from operational entities in North-America, as we identified this as a prerequisite for the sale of the business.