Our problem - construction of strategy of the enterprise.
Our problem - construction of strategy of the enterprise.
Interview to vice-president Boston Consulting Group
SHarbelom Akkermanom and the project head
Stanislav Tsyrlinym.
RTSB: Mr. Akkerman, the purpose of our interview - to find out a role
Consulting firms in processes of direct investments. But for
The beginnings would be desirable to know your point of view that
Occurs in sphere of management of actives (asset management) in
Russia.
SH. A:. We consider, that now the market of management of actives in
Russia it is not developed absolutely not. Total volume of actives various
Economic subjects makes an order 202 mlrd dollars
Having excluded from this sum those components, which basically not
Can be base for management of actives, we see, that
The potential size of the market for funds is great enough and
Makes approximately 80 mlrd dollars
If to look, that really is in funds under
Management it is possible to allocate four groups of funds.
The first are Russian PIFS. On the end of 1997 at them under
The considerable capital, except was not management practically
The own.
The second group are banks which operate an abacus
Corporate clients are made also by the decisions on investment
Or to favorable placing of means.
The third are offshore funds their Big part is engaged
portfelnymi investments into the Russian securities.
The fourth group - funds of direct investment, and examples
Here very much ogranichenny. Direct investment is in
Origin stages, funds while are engaged in game in the market of the valuable
Papers and investments in more liquid actives in comparison with
Direct investments.
The actives potentially accessible to the confidential
Managements, are presented on fig. 1 and 2.
RTSB: In Russia there are many enterprises, which at
Condition of their competent re-structuring can successfully work.
Who carries out search of such companies?
SH. A: In our opinion, for the funds which are engaged in straight lines
Investments, it is interesting to involve consulting firms for
Search of the similar enterprises though it is not our straight line
Job. Search is a direct problem of the fund and
Those people who are responsible for investment. Experts
Fund are obliged to come on the enterprise and to define the real
Enterprise cost to make the investment proposal. Them
The problem - to pick up "target" for investment, and then from it
To leave.
We can develop the plan of re-structuring of factory, when
The fund has already carried out investments, but considers, that potential at
The enterprises very high. Funds, as a rule, have no
The big commands, which zanima lis re-structuring or,
Let's admit, marketing. Theoretically such role of our company
Would be very interesting, but in practice of similar projects at
Us was a little. Often happened on the contrary - we did
Re-structuring, developed strategy, and then involved
Investments.
RTSB: Mr. Tsyrlin, what basic stages of your job on
Re-structurings of the enterprises?
With. TS: it is possible to illustrate the Basic stages of our job
On an example of the project of re-structuring of one of the Russian
Manufacturers of beer.
The basic problem of the Russian manufacturers of the goods
National consumption is the organisation of sale and marketing.
Therefore the decision of this problem also makes the first part of ours
Jobs.
The second problem - to help the enterprise to understand with a choice
Production - what production should be made, on what
To be focused, how to establish the prices for production and
To define its profitableness. It was the uneasy problem, as
Those systems of internal accounting which were at the enterprise,
Did not allow to define precisely real costs on
Manufacture of this or that grade of beer.
Was considered, that the least profitable beer - unpacked, and
The most profitable - expensive beer in firm bottles. When
We have developed principles of definition of costs and the cost price
Beer according to the western techniques of the administrative account,
It has appeared, that all on the contrary - the most expensive beer least
Profitable, and unpacked - more profitable, because those
Costs which carried on unpacked beer, anything the general with
It had no.
At the same stage job on an assortment choice is spent -
What production the most perspective and profitable from a point
Sight of current monetary streams and from the point of view
Strategic development. So we have come to conclusion, that
Firm beer too should be made, especially at an exit
On the market of other regions. From the point of view of profitableness
Absolutely it was impossible to stop release of unpacked beer, so
As it is very favourable for making, it has a constant
Local commodity market. Definition of assortment it is perfect
Not trivial problem for the Russian enterprise.
I wish to underline, as at assortment definition, and at
Construction of system of the internal account our role
Besides the strategic. We describe, what are
Possibilities, and together with the enterprise it is involved the system
Integrators.
The third part of our job - working out together with
Technical experts of the program of re-structuring of the enterprise
And definition of requirements for investments that
To provide necessary assortment and the size of sales.
The fourth part are recommendations about reorganisation,
Reorganisation of the higher operating link. For example,
The general director of the given brewery had 12-15 lines
The direct reporting. Its time passed in the continuous
Meetings with that or other assistant on all questions, from
Strategic to the smallest. As a result at it was not
Time to be focused on the important questions.
Our recommendations were - reorganisation of the higher
Managements, definition of intermediate levels
Responsibility, creation of such situation, when on level
The general director would leave only strategic and
The major administrative decisions, and all others would be accepted
At lower level.
The fifth stage is an introduction. Here to the Russian enterprises
Support as they do not have experience of introduction is necessary and
Attraction of the western or Russian investments, abilities
To keep at negotiations with investors.
RTSB: At what stage of job, the investment is defined
The program and its volume?
With. TS: It is planned at the initial stage when dares
The strategic problem - is defined potential of this market and
The given enterprise. For beer factory we have established, as will be
To grow the market in general to Russia and a market segment, on which we
We will be focused, what share will be occupied with factory on him.
For example, we have defined, that market potential in 5-7 years
Will allow to sell in 2 times of more production, than in the present
Time can make the enterprise. The decision was accepted about
Volume, that our enterprise should have the such in 3-4 years
Capacities. Further we together with engineers discussed, what
The equipment for the given capacities and data is necessary
Assortment of production, what cost of this equipment,
On what conditions it can be received now and in the future.
The project with beer factory is a good example real
Investments into the equipment and infrastructure. After the termination
To the first part of the project we have offered a management three variants
Developments.
The first - minimalist - quality improvement, upgrade
Manufactures without substantial growth of capacities,
Development restriction by the regional market and nearby
Regions.
The program-maximum - to become the national player,
To be advertised on the Central TV etc.
The intermediate variant - to become the strong regional player
Without the claim for national domination.
For each variant of development we have defined time terms
And requirements for investments. After that a management during
Month was made by the decision, on what way they will be
To develop. After the choice has been made, became approximately
The volume of investments is clear. After that we have made the concrete
The investment program from which have started to leave on
Investors. Have let out about 50 investment memorandums,
Which have received both strategic, and financial
Investors.
RTSB: Let's return to more general questions. In what
sektory the industries, in your opinion, first of all will be
To go direct investments?
SH. A: First of all it is sector of consumer goods.
This market is very important for the international companies, and we
We observe constant growth of such companies which increase
Local manufacture by construction of the new enterprises. It
Concerns both to food, and to not food
To the goods. I think, such tendency will be saved.
Inflow of direct investments to such branches, as is possible
Logistics, in re-structuring of system of distribution in Russia
(For example, distribution of medicines, a foodstuff). Cities
Type of Moscow will involve direct investments in sphere
Retail trade and the real estate (for example, building
New hotels).
It is necessary to expect investments into projects on assemblage of cars,
That will lead to the subsequent investments into manufacture of the spare
Parts. As the economy will leave crisis,
Investments into heavy mechanical engineering are probable (it is possible
To observe on an example of countries of Eastern Europe).
RTSB: What preconditions for inflow of investments in these
sektory?
SH. A: As to sector of consumer goods, it
First of all very big market, and presence scale on him
The international participants justifies local investments.
Investments into motor industry will strongly
To depend on the industrial policy of the state and successful
Realisations of already existing projects.
Whether RTSB ^ you Agree that straight lines foreign
Investments will go to the branches sated with money,
I.e. on which production there is a solvent demand?
SH. A: It not always so. For example, in the industry
Building materials the share of barter calculations is very great.
Intermediate term investors in such branches, as metallurgy or
Manufacture of building materials, will choose between potential
For growth of pure actives of the enterprise and data "saturation"
Sectors money. In any case, a share of "live" money in
Branch calculations - not the unique factor accepted in
Attention investors.
//* an information Source: the Securities market, 20.08.98
//* Reg. Nom. - 1080800310.03-------------------------------------------
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