Corona crisis 2

 Corona crisis 3

Corona crisis 4

To that end we built a control and reporting system for the project administration and recruited some 70 consultation agencies for the purpose of providing individual guidance to the various managers/companies included in the project. Throughout the years, as a result of the scope of activity, control and command centers of the project have been deployed in 4 regions in Israel.

The project has so far encompassed and included more than 12,000 companies and plants across the country and won the Kaplan Award.

As many plants experienced various difficulties, the State established assistance foundations for the purpose of producing “working capital”. However, uneducated use of the foundations’ funds did not help these companies/plants to overcome their day-to-day difficulties.

We were asked to handle and guide several plants into which we would introduce managerial technology for the purpose of allowing for their growth and business enhancement.
The full story is in the following article.

• 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.

Actions taken:

• Production – closing unprofitable production lines
• Customers – reducing number of customers with small profit potential
• Suppliers – locating new suppliers for raw materials
• Personnel – adjusting the number of employees to the sales and production capacity
• Financials – raising money for operation for the purpose of working capital
• Profit centers – every production line started operating as a profit center

End result – high profitability during the operating period and locating an investor for the factory.

The following changes have been implemented:

• Rehabilitation of the group
• Restoring investors’ faith in the group
• Appointment of a new board of directors for the group – to restore investors’ faith
• Appointment of new CEOs to the subsidiaries for improved management
• Expanding subsidiary Kopel brand to “New Kopel”
• Raising bank financing for increasing number of transactions
• Selling the group’s non-profitable operations

After a period of two years and the rehabilitation of the group, subsidiaries were sold to potential investors, and investors’ entire money was returned.

Sold companies:

• Ishtak Capital Markets
• Ishtak Technologies
• New Kopel Leasing