Case introduction

Situation

Our client, Appliance Co., owned by a private equity fund, wants to improve performance in three areas: sales growth, profitability and cash flow - all of which are declining.

Bain has been engaged to support the client during the transformation process by: 1) identifying three to five initiatives that will create the most value and driving them through a program office structure; and 2) providing operation support on core initiatives.

Complication

Raw material prices have increased recently impacting negatively our client margin.

Market demand has reduced due to construction market slow down.

Key Questions

• What is the baseline level of performance of the business?
• What are the three to five key opportunities for value creation?
• What critical initiatives are required to capture these opportunities?

The case represented a collaborative effort by Bain and client teams across Europe and Americas.