Roland Berger & Partner GmbH International Management Consultants Barcelona Beijing Berlin Brussels Bucharest Budapest Buenos Aires Delhi Detroit Dsseldorf Frankfurt Hamburg Kiev Kuala Lumpur Lisbon London Madrid Milan Moscow Munich New York Paris Prague Riga Rome So Paulo Shanghai Stuttgart Tokyo Vienna Zurich AMT 网站专用：网站专用：http:/club.amteam.org Implementation Support for Geberit China Proposal Geberit China Shanghai, December 6th, 2000 PDF 文件使用 pdfFactory Pro 试用版本创建 - 2 - Contents Page A. Project background and objectives 3 B. Contents, scope and methodology 4 C. Project organization 6 D. Time schedule 6 E. Consulting fee 7 F. Terms of payment 7 G. Confidentiality 7 PDF 文件使用 pdfFactory Pro 试用版本创建 - 3 - A. Project background and objectives Roland Berger ( Shanghai ) International Management Consultants Ltd (here- after refered to as Roland Berger) has conducted a 3- month- project commencing from August, 2000 for Geberit. In this project Roland Berger reviewed Geberits current business operation in China and developed a concept to restructure Geberits two operations (GSHA & GDAI ) in order to achieve the turnaround by 2002. The corner stones of the restructuring concept include: Negotiation for termination of JV to turn GSHA into WFOE ( via buyout with obligation to take over Lida employees by the Chinese partner ) Production stop in Shanghai for 23 years Closure of Ningbo office, transfer of operation to Shanghai Reorganization / merger of operations Optimization of product portfolio Restructuring of sales organization into 3 business units (channel - orientation) Massive downsizing (from 285 to 126 employees) Reduction of expatriates from 8 to 3 Review of Daqu in 23 years, consideration of Shanghai as production location for fitting Break even by the end of 2002 In order to speed up the restructuring process, Roland Berger is asked to support Geberit in the immediate implementation. Since the key issues of the restructuring depend to a large extent on the outcome of the negotiation with the Chinese partner, the project proposed here is focused on the restructuring of the Marketing & Sales function which needs to be reorganized rather independently of the negotiation. Thus, the key objectives are: To fine- tune the new structure of the Marketing & Sales function consisting of three channel based business units for OEM, piping and sanitary products To design the sales processes for the piping and sanitary business units To develop the reporting and controlling system for the three sales business units To formulate the job description of the key positions of Marketing & Sales To develop a performance based salary system for Marketing & Sales To evaluate the existing distributors in Shanghai, Guangzhou and Beijing and identify potential new distributors. Based on these, recommendation for Geberit to strengthen the distributor network is to be worked out To support Geberit in the negotiation with the Chinese partner on an on- demand base PDF 文件使用 pdfFactory Pro 试用版本创建 - 4 - B. Contents, scope and methodology Roland Berger proposes to structure the project into 3 fields: 1. Marketing & Sales restructuring 2. Distributor assessment 3. On- going negotiation support 1. Marketing & Sales restructuring Processes in Marketing & Sales Based on the organizational framework described in the final report, Roland Berger will finalize the organizational restructure for Marketing & Sales jointly with Geberit. Thereafter, the detailed sales processes for the piping and sanitary business units will be designed. Roland Berger will focus on the key processes of Marketing & Sales, including: Acquisition of new distributor Identification of potential projects Selling process Monitoring of distributor performance Project implementation (order fulfillment) After- sales service Review of project completed Performance assessment of sales personnel Reporting and controlling system Roland Berger will develop a tailor- made reporting and controlling system for Marketing & Sales. This includes budgeting, reporting and review processes. Each process will be described according to the initiator, standard forms, frequency, person in charge and actions to be taken if irregularities arise. Salary and incentive systems To develop a performance based competitive salary and incentive system, Roland Berger will analyze the existing system used at GSHA and GDAI to understand the structure of the current system. In addition, face to face interviews will be conducted with top and mid level manag