Main findings:
- A long-standing, family business with a reputation of a leading footwear product.
- Large customer – 85% – the IDF.
- Other customers – 15% – local market.
Organization’s status – lack of job descriptions; unreasonable appointment of CEO; emotion rather than logic controls ongoing work; problematic personal relationship within the family (son versus brother-in-law); miscorrelation between organization size and scope of sales – production capacity is 4 times the actual sales capacity.
All the above have resulted in the collapse of the plant, appointment of a receiver and preparation of a recovery plan.
In the course of 9 months the following actions have been executed:
- Change of the mix in favor of domestic, civil market + export
- Cutting down equipment and infrastructures and adjustment to sales capacity
- Definition of gauges and targets on customer/product/agent levels
- Participation in tenders of institutional clients – Egged, El-Al, Bezeq, the Israel Electricity Corporation, Israeli Prison Service.
- Acquisition of models from an Italian designer for the purpose of participating in export exhibitions.
End result
The company has undergone a recovery process and continues its activity in the market.
