财务及组织分析报告课件

-,163,-,Click to add title,Click to change format,Level 1,Level 2,Level 3,SHA-4309-03690-08-15c.PPT,C. Financial, organization and processes analysis,SHA-4309-03690-08-15c.PPT,C1. Financial situation analysis,SHA-4309-03690-08-15c.PPT,C1.1,Geberit,Shanghai,SHA-4309-03690-08-15c.PPT,Presently, GSHA is in serious corporate crisis,Phases of corporate crisis,Weak,Strong,Pathology of crisis symptoms,Normative misfit,Strategic crisis,Results crisis,Liquidity crisis,Geberit,Low,High,Bankruptcy crisis,Back-up,SHA-4309-03690-08-15c.PPT,All liabilities are short term and are increasing 4-fold. By the end of July 2000, liabilities are 75% of total assets,Development of liabilities (% of total assets),RMB 000,13.4%,46.4%,75%,+522%,Source: P&L,Geberit,(Shanghai), RB&P analysis,SHA-4309-03690-08-15c.PPT,Companys liquidity situation is deteriorating. Current liabilities are increasing much faster than current assets, the cash injection from the parent company is used to cover the running expenses in stead of building up assets,Development of liabilities & assets,RMB 000,Current ratio,Quick ratio,2.82,1.71,0.91,0.43,0.62,0.25,Current assets,Current liabilities,Source: Balance sheet,Geberit,(Shanghai), RB&P analysis,+37%,+522%,SHA-4309-03690-08-15c.PPT,The companys inventory increased by 91% , while current assets increased by 37%,Development of inventories,Source: Balance sheet,Geberit,(Shanghai), RB&P analysis,Current asset structure (% of the current assets),+91%,RMB 000,44%,11%,6%,11%,11%,10%,7%,26%,8%,18%,2%,13%,9%,21%,7%,4%,26%,10%,10%,8%,18%,8%,15%,0%,15,720,14,007,11,507,Raw materials,Work in progress,Finished goods,Goods purchased for resale,Other inventories,Trade accounts receivable,+37%,RMB 000,Cash & cash equivalents,Other accounts receivable,SHA-4309-03690-08-15c.PPT,Due to huge losses, the company is solely financed by inter-company loan,s, the liabilities increase much far faster than assets,Balance sheet,Geberit,(Shanghai),19982000.7 RMB 000,Back-up,1998,1999,2000(1-7),Fixed assets,Intangible assets,Other prepaid expenses,Advanced payments to suppliers,Inventories,Account receivable,Cash & cash equivalent,Total assets,Share capital,Retained earnings,Net income current year,Total provisions & deferred revenues,Total (liabilities),Total Shareholder Capitals & liabilities,18,318,587,10,0,4,517,1,862,5,118,30,412,41,426,(5,420),(9,669),0,4075,30,412,60.2%,1.7%,0.0%,0.0%,14.9%,6.1%,16.8%,100.0%,136.2%,(17.8%),(31.8%),0.0%,13.4%,100.0%,18,996,87,25,73,7,267,3,663,2,979,33,090,41,426,(15,089),(10,177),1,572,15,358,33,090,57.4%,0.32%,0.1%,0.2%,22.0%,11.1%,9.0%,100.0%,125.2%,(45.6%),(30.8%),4.8%,46.4%,100.0%,18,060,0,234,391,8,644,4,097,2,354,33,780,41,426,(25,266),(8,293),563,25,350,33,780,53.5%,0.0%,0.7%,1.2%,25.6%,12.1%,7.0%,100.0%,122.6%,(74.8%),(24.6%),1.7%,75%,100.0%,SHA-4309-03690-08-15c.PPT,The accumulated losses till September 2000 are 86% of share capital. Left alone the company will be insolvent by the end of this year,Net income losses(1997.122000.09),RMB 000,Source: P&L,Geberit,(Shanghai), RB&P analysis,86%,SHA-4309-03690-08-15c.PPT,The company has been losing money since the foundation of JV, and the loss is continuously increasing in spite of the increase of sales,+41%,*:,estimation,1998,1999,2000*,Source: Roland Berger & Partners analysis,Sales developmentRMB 000,Operating losses,RMB 000,+45%,SHA-4309-03690-08-15c.PPT,More than 70% of products sold in 2000 ( 1-9 ), including,Geberit,locally produced products, have a negative gross profit margin,Mixture of product sold,(2000.09),Lida,products,Geberit,local produced,Geberit,imported,Gross profit margin,2),(at actual cost),Gross profit margin,1),(at standard cost),+,25%,+,44%,- 6.93%,- 7.43%,+38%,+ 38%,Lida,product,Geberit,imported products,Geberit,locally produced products,Source:,Geberit,(Shanghai), Roland Berger & Partners analysis,1): Calculate based on the full capacity utilization rate (80%90%),2): Calculate based on the actual capacity utilization rate (20%30%),SHA-4309-03690-08-15c.PPT,The disproportional increase of operating expense results in the increase of operating loss in spite of the improvement of product mix,Source: P&L,Geberit,(Shanghai), Roland Berger & Partners analysis,+29%,146.9%,118.1%,130.4%,Total operating expenses,19982000,RMB 000,*,Estimation,%,of sales,SHA-4309-03690-08-15c.PPT,Among the cost of goods sold, cost of materials and labor are two major cost drivers,Source: P&L, Balance sheet,Geberit,(Shanghai), Roland Berger & Partners analysis,Cost of goods sold (% of sales),GSHA 1999,GSHA 2000 (1-9),Turnover,15.568,million RMB,10.514,Million RMB,Cost of goods sold,12.87,Million RMB (82.66% to sales),9.7,million RMB (92% to sales),Structure of cost of goods sold,Cost of materials*,Labour,cost,Depreciation,Energy consumption,Maintenance,Others,7521,2493,1203,648,565,439,48%,16%,8%,4%,3.6%,2.8%,2%,4%,3.3%,11%,17%,54%,RMB 000,RMB 000,*,note: the materials cost are the cost of all materials purchased, instead of materials actually consumed.,SHA-4309-03690-08-15c.PPT,And among the sales cost, salaries and travelling are two major cost drivers. Meanwhile, promotion fees and staff training cost increase,Source: P&L, Balance sheet,Geberit,(Shanghai),Sales cost (% of sales),GSHA 1999,GSHA 2000 (1-9),Turnover,15.568,million RMB,10.514 m,illion RMB,Sales cost,5.66,million RMB (36.35% to turnover),5.4,million RMB (52.4% to turnover),Structure of sales cost,Salary,Travelling cost,Promotion fee,Room rental & parking,Communication fee,Staff training,Others,3158,979,588,221,29,1021,20%,6.2%,3.8%,0.2%,6.6%,6.08%,1.6%,3.4%,6%,9%,26%,3.7%,576,1.4%,0.6%,2690,925,582,352,160,64,626,RMB 000,RMB 000,SHA-4309-03690-08-15c.PPT,Increase operating expenses results in increase of operating losses in spite of the improvement of sales,Back-up,Profit & loss statement,Geberit,(Shanghai),19982000 RMB 000,1998,1999,2000 (112),Sales,Cost of materials,Gross profit,personnel expenses,Energy/maintenance,Depreciation,Marketing expenses,Administration expenses,Other operating expenses,Total operating expenses,Operating profit (loss),Net income,10,219,4,938,5,248,6,810,1,236,178,185,5,767,836,15,012,(9,764),(9,669),100.0%,48.3%,51.4%,66.,65%,12.1%,1.7%,1.8%,56.4%,8.2%,146.9%,(95.5%),(94.6%),15,568,7,521,7,853,9,345,1,670,1,781,1,238,4,722,307,18,379,(10,526),(10,177),100.0%,48.3%,50.4%,60.0%,10.7%,11.4%,8.0%,30.3%,2.0%,180.,1%,(67.6%),(65.4%),14,801,8,003,6,640,9,608,1,522,1,988,1,320,2,317,2,544,19,299,(13,735),(14,656),100.0%,54.,35%,44.9%,64.9%,10.3%,13.4%,8.9%,13.7%,17.2%,130.4%,(92.8%),(99.0)%,Source:,Geberit,(Shanghai), Roland Berger & Partners analysis,SHA-4309-03690-08-15c.PPT,The company can not generate enough cash from business operations and it solely relies on the continuous cash injection from the parent company for survival,Source: Cash flow,Geberit,(Shanghai),Cash inflow and outflow, 2000 (1-6),RMB 000,Operating,Working capital,Investment,Cash before financing,Inter company loan,SHA-4309-03690-08-15c.PPT,C1.2.,Geberit,Daishan,SHA-4309-03690-08-15c.PPT,GDAIs,sales have continuously improved, and cost are reducing; the inter-company sales increased much faster than to third party,2),Including write-offs for obsolete materials: 1 million RMB & other unclear accounts,Sales development RMB 000,Operating losses development RMB 000,1998,1999,2000,1),+136%,+36%,1),Estimation,1998,1999,2),2000,1),-24%,+74%,3284,4451,7763,Third party,Inter-company,Source:,Geberit,(,Daishan,),SHA-4309-03690-08-15c.PPT,GDAIs,operating losses are decreasing due to reduction of costs,Source: P&L,Geberit,(,Daishani,),Cost structure,RMB 000,1998,1999,2000 (1-9),11%,15%,10%,21%,1%,4%,36%,8%,12%,1%,3%,23%,29%,13%,3%,16%,5%,29%,22%,19%,16%,Other operating expenses,Administration,Marketing,Energy maintenance,Personnel expenses,Cost of material,Depreciation,10,058,14,444,11,668,359%,325%,206%,%,of total sales,SHA-4309-03690-08-15c.PPT,As a result of cost control, operating losses are reducing in line with the improvement of sales,Back-up,Profit & loss statement (,Geberit,Daishan,),RMB 000,Sales,Cost of materials,Gross profit (loss),personnel expenses,Energy/maintenance,Depreciation,Marketing expenses,Administration expenses,Other operating expenses,Management fee,Total operating expenses,Operating profit (loss),Net income,1998,1999,2000(19),3284,(939),2168,(4195),(427),(2267),(171),(2422),(1247),0,(10729),(-8561),(-8659),100.0%,28.6%,66.0%,127.7%,13.0%,69.,0%,5.2%,73.8%,38.0%,0%,326.7%,-260.7%,-263.7%,4451,(4211),240,(3361),(464),(2280),(170),(1756),(1719),483,(10233),(10706),(-11052),100.0%,94.6%,5%,75.5%,10.4%,51.2%,3.8%,39.5%,39%,10.9%,229.1%,-240.5%,-248.3%,4866,(,2224),2574,(,2959),(,540),(,1659),(,321),(,1309),(,978),0,(7834),(5255),(,5401),100.0%,45.7%,52.9%,60.8%,11.15,34.1%,6.6%,26.9%,20.1%,0%,160,.6%,107.7%,110.5%,Source:,Geberit,(,Daishan,), Roland Berger & Partners analysis,2000(112)*,7763,(4000),3425,(3947),(721),(2241),(427),(1742),(555),(100),(9915),(6490),(7223),100.1%,51.5%,44.1%,50.8%,9.3%,28.5%,5.5%,22.4%,7%,1.3%,127.7%,83.6%,93%,*,Estimation,SHA-4309-03690-08-15c.PPT,8.8%,24.3%,48.2%,Short-term interest bearing debt increased nearly 4 fold, leading the short-term liabilities increase by 123%. This amounted to 68.5% of total assets by the end of July, 2000,Source: Balance sheet,Geberit,(,Daishan,), Roland Berger & Partners analysis,Liabilities Development,Liabilities Development,98-00 (1-7),1998,1999,2000(1-9),+123%,RMB 000,Short-term interest-bearing debt development 98-00 (1-7),+487%,1998,1999,2000(1-9),RMB 000,%,of total assets,%,of total assets,32.9%,50.2%,68.5%,SHA-4309-03690-08-15c.PPT,0.85,0.42,0.60,0.36,0.49,0.28,As a result of the disproportional use of current assets and current liabilities,GDAIs,liquidity situation is deteriorating,Source: Balance sheet,Geberit,(Shanghai), RB&P analysis,Current ratio,Quick ratio,Current assets,Current liabilities,+29%,+127%,Development liabilities and assets,RMB 000,SHA-4309-03690-08-15c.PPT,Due to huge losses,the company is solely financed by inter-company loans. Liabilities increase faster than assets.,Balance sheet,Geberit,(,Daishan,),19982000.7 RMB 000,Back-up,1998,1999,2000,Fixed assets,Intangible assets,Inventories,Other prepaid expenses,Account receivable (net),Cash & cash equivalent,Total assets,Share capital,Retained earnings,Net income current year,Total liabilities & provisions,Total share capital & liabilities,16,309,3,942,3,296,730,2,286,1,572,28,135,35,447,(8,372),(8,659),9,719,28,135,58.0%,14.0%,11.7%,2.6%,8.1%,5.6%,100.0%,126.0%,-29.8%,-30.8%,34.5%,100.0%,16,417,3,432,3,124,222,2,325,2,876,28,396,40,901,(17,031),(11,052),15,596,28,396,57.8%,12.1%,11.0%,0.8%,8.2%,10.1%,100.0%,143.9%,-59.9%,-38.1%,54.9%,100.0%,17,010,3,135,3,999,308,2,382,3,335,30,169,41,201,(28,083),(3,919),20,970,30,169,56.4%,10.4%,13.2%,1.0%,7.9%,11.1%,100.0%,136.6%,-93.1%,-13.0%,69.5%,100.0%,Source:,Geberit,(,Daishan,),SHA-4309-03690-08-15c.PPT,C2. Organization & processes,SHA-4309-03690-08-15c.PPT,C2.1. Organization structure,SHA-4309-03690-08-15c.PPT,GDAIs,organisation structures and management team have been improved after the change of the ownership, providing the basis for further improvement,GDAI,Base for further improvement is established,Wholly controlled by,Geberit,Organisation structure is clear and followed,Authorities and responsibilities are clear,GMs management skills are accepted by the employees,Chinese middle management team is set-up,Reporting system has set-up,Positive corporate culture is forming,Internal communication and co-operation have been improved,Employees are generally motivated and have the positive attitude to the future of the company,SHA-4309-03690-08-15c.PPT,In GSHA,Geberit,and,Lida,have not integrated well from the foundation of JV. This creates a lot of internal conflicts and management chaos,GSHA,Lida,Geberit,Corporate culture,Management style/skills,Product lines,Markets,Work style,SHA-4309-03690-08-15c.PPT,HR,HR,HR,HR,More importantly,in GSHA,the official organization structure is not implemented,Official organization structure,Organization structure in reality,GM,Dpt. GM,Sales & marketing,Production & logistic,CCS,Admin,Two parties exist leading to internal conflicts and complexities,Unclearly defined authorities and responsibilities, leading to overlap of some functions,CCS is separated from the companys system, leading to inefficient co-operation and low efficiency,GM,Dpt. GM,CCS,Sales & marketing,Production & logistic,Admin,SHA-4309-03690-08-15c.PPT,General manager is directly in charge of sales and administration by being the department manager, leading to no middle management team. Most 3rd tier managers are newly appointed, which results in lacking continuity in management,1): Employees from Lida,2):,The management team of sales department is relatively stable, but the turnover of sales staff is relatively high,GM,H.,Schuette,Sales & marketing,2),H.,Schuette,Production & logistic,Ken Leung 7 months,CCS,K.Koenigslehner,Administration,H.,Schuette,Process engineering 24 years,Quality control1 month,Logistic 5 months,Outside purchase 5 months,Production control 32 years,Production 3 months,Maintenance5 months,Local purchase2 years,Controlling,1 year,EDP2 months,Doc. Admin17 years,Material Dev.2 months,Personnel 32 years,Accounting2 years,Production dep.Past-time,Quality management N/N,Process dep. N/N, 6,months, 3- 6,months, 3,months,1),1),1),1),1),SHA-4309-03690-08-15c.PPT,C2.2. Management structure,SHA-4309-03690-08-15c.PPT,The high,hierachy,management design in GSHA leads to low efficiency, and slow decision making process,Organization & Management structure,Decision-making process,GM,Dpt. GM,Dep. Manager,Regional Manager,Sectional management,21,1,1,4,21,Total: 48,upto,32% of total employees,GM,Dpt. GM,Total: 12 people report to GM directly,SHA-4309-03690-08-15c.PPT,Personnel expenses in GSHA have been up to 73.5% of total sales in July 2000, as a result of the change of personnel structure,Personnel development & structure 1997-2000*,Turnover per employee *,RMB 000,1997,1998,1999,2000,*,exclude staff in Beijing Office,1998,1999,2000,*,Estimation,Production,Admin,Sales,CCS,11%,2%,6%,6%,15%,17%,19%,31%,29%,25%,23%,59%,54%,52%,52%,129,138,148,151,+13%,0%,SHA-4309-03690-08-15c.PPT,The general manager can not gain necessary and correct data from the company for decision-making,Main problems of data/reporting,No control of data input (e.g. no cross check in the warehousing),Data input,A lot of useful data arent available (e.g. scrapped product report),Data processing,No strict control system (e.g. no comparison of actual cost and standard cost),Data is only for document, not for analysis,Data controlling,Too high figures in budgeting and sales forecast,Planning,Poor quality decision basis,SHA-4309-03690-08-15c.PPT,Performance evaluation and incentive system in GSHA is very weak, leading to low motivation and commitment,Problems,Evaluation & promotion,Impacts,No defined procedure & criteria were found for evaluation,No clear criteria for promotion,Poor cooperation,Irresponsible work,Incentive system &,Training,No incentive scheme,No personnel development program,Not enough training programs,Low motivation among staff,Low commitment to the company,Low quality of employees,High staff turnover,SHA-4309-03690-08-15c.PPT,GSHA does not have the proper management system, therefore it is run inefficiently,Main problems in management,Main problems in management system,Controlling system is not followed,Lack of performance evaluation system,No incentive scheme,Unclearly defined authorities & responsibilities,No reliable information for decision - making (e.g. actual cost),Quality of data is poor,No formal reporting system to collect data,Official structure isnt implemented,GM doesnt have leadership,Redundant management level leads to prevarication & inefficiency,Management team isnt integrated and huge turnover in the middle management,No motivating corporate culture,No trustworthiness between GM & local staff,Decision - Making,Controlling, promotion & evaluation,Management structure,Culture, morale, communication,Low morale/motivation,Low commitment to the company,Inefficient internal communication,Unclear criteria for promotion,SHA-4309-03690-08-15c.PPT,C2.3. Key process analysis,SHA-4309-03690-08-15c.PPT,Currently, in GSHA the production-oriented process leads to unawareness of the market, as a result, there are no right products in the right market,Production,Sales,Marketing,HR,R&D,Finance,Logistics,After-sales service,Corporate strategy,Business unit strategy,Product strategy,Profits,Corporate culture,Morale,Management capabilities,Cooperation with Chinese partners,SHA-4309-03690-08-15c.PPT,CCS does not have enough market information which leads to long development time and limited number of new products,Product Initiation,Product Development,Product Launch,No clear product development strategy, no comprehensive market research, no detailed quantitative forecast and non market oriented method lead to low number of successful products and waste of resources,Not enough manpower and technology resources and lack of cooperation and communication with other departments (e.g. production and sales) leads to poor design and limited number of new products,Long time -to-market leads to missed market opportunity ( especially for,Daishan,),SHA-4309-03690-08-15c.PPT,In GSHA,process control in production system is inadequate, leading to high production cost,Production planning,Purchasing,Imprecise sales forecast figure from sales department and too many “Daily Sales Order”lead to difficulties in arranging the production schedule and purchasing. This least to high inventory level and delivery delay,No MIS for purchase plan leads to high amount of storage or shortage of some materials,No evaluation of suppliers leads to high price and poor quality,Selection and review of suppliers are all done by purchasing department which leads to difficulties for further improvement,Frequent change of suppliers leads to unsustainable quality and high waste ( e.g. PVC),SHA-4309-03690-08-15c.PPT,In GSHA, process control in production system is inadequate,leading to high production cost (continued ),Control of input/output,Production,Storage control,CCS can not provide all the necessary technology standards for quality inspection, leading to poor quality inputs.,The recycling materials are sold directly to outsiders without approval from QC, leading to waste of materials,Low utilization of machinery leads to high production cost,Old-age machinery and molds and low quality workers lead to high production waste and low productivity (esp.,Lida,products),Safety stock level is unreasonable for current situation, leading to high inventory level,No MIS for inventory management, warehousing only checks the documents instead of the exact amount of goods with no cross check in the whole process. Finance dept is not actively involved in inventory management. This leads to high amount of storage or shortage of some materials and discrepancies between bookkeeping and real amount,SHA-4309-03690-08-15c.PPT,Inefficient focus and control, as well as lack of product know-how are the main problems for sales department in GSHA,Planning,Sales,No strict requirement to achieve the plan leads to the