SERVICES

Liberalisation of trade and improvement in market transparency creates opportunities for companies.  Increasing number of countries and companies participate in international competition.  Those that can adapt to the rapidly changing environment succeed.

Strategic thinking, awareness and agility  are among the principal elements necessary to seize the opportunities in the global competitive environment.  Kurdoğlu Danışmanlık offers consultancy services in three specific areas: institutionalisation, competitiveness strenghthening and pricing strategy.

 

INSTITUTIONALISATION

 

Competitiveness of a company is correlated with with its credibility, agility in decision making, successful risk management and good governance quality.

It is often claimed that family owned companies  survive for three generations; it is  equally plausible to claim that companies which have not completed their institutionalisation and have not installed formal governance structures cannot sustain their presence in the markets.

There is no single recipe which helps  family owned enterprises to transform their traditional governance and to achieve effective and efficient institutionalisation with one single effort.  This is a process.

Successful institutionalisation implies transparent definition of partnership rights and obligations, as well as of exit mechanisms and procedures.  In this context institutionalisation delivers the installation of appropriate governance mechanisms.

 

Reviewing  Governance Quality

  • Study and redesign of the existing governance structure to create  value added in a globally competitive environment; benchmarking with local and international companies.
  • Description of the duties and responsibilities of the equity owners, senior management and executives.
  • Review of the company organisation and of the reporting system, recommendations  towards their improvement to strengthen competitiveness.
  • Description of  the qualifications, responsibilities and remuneration schemes of  the executive and non-executive members of the board and of the governance, risk management and knowledge management committees.

Performance and Risk Management

  • Design of key performance indicators applicable to members of the board and to executive management.
  • Design of an operational efficiency audit and an operational  risk management system.
  • Change management in cases of merger and acquisition as well as during major shifts in the corporate paradigm.

Family Owned Companies

  • Design of the family charter.
  • Design of the family council.
  • Design of the shareholders agreement
  • Review and/or design of a succession scheme and mechanisms.

 

Financial Management

 

It is considered to be an advantage for family owned companies to be led by founders during periods of economic and/or fiscal difficulties.

However, availability of the founder as a rescuer should  not encourage moral hazard.

Family owned companies often do not  take into consideration that capital has a cost; a benign neglect which may lead to  economically unsustainable decisions.

The company should prepare itself to overcome difficulties due to managerial or cyclical reasons  on its own means and through the market.

Following Services are proposed:

  • Preparation of annual budgets and introduction of mechanisms to monitor the operations including investments and assessment of key performance indicators alongside budget principles.
  • Introduction of monitoring systems concerning investment decisions and yield policies.
  • Introduction of internationally acceptable financial reporting systems to ensure fiscal transparency.
  • Introduction of early warning systems.
  • Company valuation.
  • Preparation of the company for eventual merger and acquisition or company sale, negotiation and closing of such merger and acquisition or company sale.

 

Strengthening Competitiveness

 

Globalisation has been defined as an evolution whereby the world  becomes  a global village.   In today’s world competitive power is defined by the positioning of a manufacturer or a service supplier along its respective value chain..

Successful companies are often those which position themselves on the value chain to increase their value added. Technological progress influences changes in production modelling. 

Production processes are redesigned according to the capabilities of companies along the value chain;  the resulting vertical specialisation  impacts on intra industry trade

In view of those observations Kurdoglu Danismanlik offers the Following Services:

  • Preparation of the competitiveness inventory of the company.
  • A workshop on a scenario to strenghten competitiveness.
  • Review of the position of competition, national economic and industry policies.
  • Study of strategic collaboration, investment and procurement alternatives to strengthen competitiveness and to increase company value.
  • Review of the company’s technological, innovation capabilities, design of  policies to exploit those capabilities, introduction of knowledge management systems.

 

Pricing Strategy

 

Pricing is the most underleveraged profit driver.  Companies often fail to extract full value from their sale of good or services.

Warren Buffet said: “If you have to have a prayer session before raising prices,.. then you’ve got a terrible business”.

Likewise, Jeffrey Immelt of GE said: “When it comes to prices we pay, we study them, we map them, we work on them. But with prices we charge, we are too sloppy”.

Kurdoglu Danismanlik collaborates with Simon-Kucher Partners (http://www.simon-kucher.com/)  which has specialized in pricing strategy for over 25 years, in 17 countries.