RolandBerger&PartnerGmbH–InternationalManagementConsultantsBarcelona–Beijing–Berlin–Brussels–Bucharest–Budapest–BuenosAires–Delhi–Detroit–DüsseldorfFrankfurt–Hamburg–Kiev–KualaLumpur–Lisbon–London–Madrid–Milan–Moscow–MunichNewYork–Paris–Prague–Riga–Rome–SãoPaulo–Shanghai–Stuttgart–Tokyo–Vienna–ZurichImplementationSupportforGeberitChina–Proposal–GeberitChinaShanghai,December6th,2000-2-ContentsPageA.Projectbackgroundandobjectives3B.Contents,scopeandmethodology4C.Projectorganization6D.Timeschedule6E.Consultingfee7F.Termsofpayment7G.Confidentiality7-3-A.ProjectbackgroundandobjectivesRolandBerger(Shanghai)InternationalManagementConsultantsLtd(here-afterreferedtoasRolandBerger)hasconducteda3-month-projectcommencingfromAugust,2000forGeberit.InthisprojectRolandBergerreviewedGeberit’scurrentbusinessoperationinChinaanddevelopedaconcepttorestructureGeberit’stwooperations(GSHA&GDAI)inordertoachievetheturnaroundby2002.Thecornerstonesoftherestructuringconceptinclude:�NegotiationforterminationofJVtoturnGSHAintoWFOE(viabuyoutwithobligationtotakeoverLidaemployeesbytheChinesepartner)�ProductionstopinShanghaifor2~3years�ClosureofNingbooffice,transferofoperationtoShanghai�Reorganization/mergerofoperations�OptimizationofproductportfolioRestructuringofsalesorganizationinto3businessunits(channel-orientation)�Massivedownsizing(from285to126employees)�Reductionofexpatriatesfrom8to3�ReviewofDaquin2~3years,considerationofShanghaiasproductionlocationforfitting�Breakevenbytheendof2002Inordertospeeduptherestructuringprocess,RolandBergerisaskedtosupportGeberitintheimmediateimplementation.SincethekeyissuesoftherestructuringdependtoalargeextentontheoutcomeofthenegotiationwiththeChinesepartner,theprojectproposedhereisfocusedontherestructuringoftheMarketing&Salesfunctionwhichneedstobereorganizedratherindependentlyofthenegotiation.Thus,thekeyobjectivesare:�Tofine-tunethenewstructureoftheMarketing&SalesfunctionconsistingofthreechannelbasedbusinessunitsforOEM,pipingandsanitaryproducts�Todesignthesalesprocessesforthepipingandsanitarybusinessunits�Todevelopthereportingandcontrollingsystemforthethreesalesbusinessunits�ToformulatethejobdescriptionofthekeypositionsofMarketing&Sales�TodevelopaperformancebasedsalarysystemforMarketing&Sales�ToevaluatetheexistingdistributorsinShanghai,GuangzhouandBeijingandidentifypotentialnewdistributors.Basedonthese,recommendationforGeberittostrengthenthedistributornetworkistobeworkedout�TosupportGeberitinthenegotiationwiththeChinesepartneronanon-demandbase-4-B.Contents,scopeandmethodologyRolandBergerproposestostructuretheprojectinto3fields:1.Marketing&Salesrestructuring2.Distributorassessment3.On-goingnegotiationsupport1.Marketing&SalesrestructuringProcessesinMarketing&SalesBasedontheorganizationalframeworkdescribedinthefinalreport,RolandBergerwillfinalizetheorganizationalrestructureforMarketing&SalesjointlywithGeberit.Thereafter,thedetailedsalesprocessesforthepipingandsanitarybusinessunitswillbedesigned.RolandBergerwillfocusonthekeyprocessesofMarketing&Sales,including:�Acquisitionofnewdistributor�Identificationofpotentialprojects�Sellingprocess�Monitoringofdistributorperformance�Projectimplementation(orderfulfillment)�After-salesservice�Reviewofprojectcompleted�PerformanceassessmentofsalespersonnelReportingandcontrollings...