Arthur D. LittleArthur D. Little

Publications / Case Studies

Fast Moving Consumer Goods Company in the Kingdom of Saudi Arabia

A fast moving consumer goods company faced an increased threat of multi-national companies entering its home market. At the same time the continuous growth required a change from a family-run, mid-sized company into an international player in the Middle-East. Arthur D. Little was asked to develop individual SBU strategies, cross-SBU processes, organizational set-up, and a new corporate governance model.

Challenge

  • Increased threat of multi-national companies entering the market
  • Changes in legal constraints of shareholding and direct investments
  • Continuous growth and the required change from a family-run, mid-sized company to become an international player in the Middle-East
  • As part of the establishment of a long term vision and corporate strategy for the Group, Arthur D. Little was asked to develop individual SBU strategies, cross-SBU processes, organizational set-up, and a new corporate governance model

Approach

Arthur D. Little approach:

  • Step 1: Current situation: internal & external analysis, benchmarking, opportunities
  • Step 2: Determine stakeholder visions, family governance
  • Step 3: Evaluate strategic options evaluation: scenario development, criteria, model selection
  • Step 4: Develop strategies including marketing, sales, production, supply chain, R&D, sourcing; financial rojections; sensitivity analysis
  • Step 5: Organizational development
  • Step 6: Implementation plan

Value

  • Full corporate strategy developed: Governance structure, roles and responsibilities of the management, group vision
  • Strategic Business Units:
    • Operating model: SBU strategy, resource requirements, org. set-up and cross-SBU processes
    • Business modeling: profit & loss statement developed as basis for further detailing
  • Audit results to compare client’s operations with benchmarks: manufacturing, IT, logistics, and M&A / Private Equity

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