13f2533b3f3836e54adc9f476833f9e420b9a7e3

DODO S.r.l.

Pordenone via G. B. Bertossi, 6 - 33170 - Italy
tel. +39 0434 1852041 | fax +39 0434 1691252

info@dodosrl.it

573e17f4cbcbe083546421fff9073818844f574b

Internationalization and establishment of Joint Venture with Hong Kong for streamlining operations and opening new markets

Context: Italian company in the Milan area, active for 40 years, mechanical sector related to components. Turnover > €25 million, of which 60% abroad, number of employees > 80.

Problem

Strong market contraction due to increasing competition from Asian players, decline in turnover. Need to create strategic alliances in response to the globalization of markets with a tool to implement a common project Joint Venture thanks to the union of resources that allows each company to maintain its own legal and economic autonomy where each partner is responsible for the execution of its own part.
Need to identify an Asian partner where part of the production can be relocated.
Lack of scenario analysis and fundamental elements such as:

Proposed solution

Temporary Management with the following work plan.
Study and drafting of the company budget broken down into sales budget, raw material purchase budget, personnel cost budget, investment budget.
Identification of the partner with equal community of interests.
Definition of investment risk and degree of responsibility.
Definition of economic cooperation and technical-commercial collaboration.
Complete and exhaustive examination of all legal aspects.
Negotiation and definition of the J.V. contract with all relations between partners: - establishment - allocation of shares - partners' responsibilities - fields of intervention - supply - research and training - management - production and sales plans - strategies and marketing.

Timing

10 months.

Results achieved

Joint Venture established.
Reduced instability from competition.
Rationalized some mature, unprofitable processes in Italy.
Created and exploited synergies.
Entered the Asian market (with a solid position).
Obtained products and capabilities.
Optimized planned investments.

Lack of financial resources.
Growth of international trade for low-margin products.
Maturity of some industrial sectors.
Need to identify where to make technological investments.
Fierce competitive battle.
Interdependence of different national economies.
Situation of vulnerability of the individual company.

DODO S.r.l.

Pordenone via G. B. Bertossi, 6 - 33170 - Italy
tel. +39 0434 1852041 | fax +39 0434 1691252

info@dodosrl.it