While the core business was strong, the company’s liabilities were effectively excessive due to losses from past side businesses. The company was unable to obtain support from financial institutions due to a lack of global consolidation and low transparency in disclosure.
We increased capital and supported the human resource function, including the introduction of the CFO, to improve the transparency of consolidated financial figures and normalize bank transactions.
The company’s offices were dispersed throughout Asia and operated independently, there was no centralized management function. Therefore, company-wide issues that crossed the borders between locations remained unresolved and piled up.
J-STAR’s Value Creation Team stayed at the site for a certain period to provide a business management function. The team led company-wide meetings and facilitated collaboration among locations.
The heads of each division began to proactively discuss issues outside of their divisions, leading to the awakening of mid-level executives and the production of the next generation of management team members.
Away from dependence on specific customers The company used to be highly dependent on specific customers and their sales activities also relied on particular individuals. After the investment, we shifted the sales force to the head of each business location and improved profitability and business conditions through centralized inspection and negotiation of the profitability of each transaction.
In addition, each location promoted the cultivation of new customers, diversifying the clientele and the product lineup other than seat covers.