- Customer is considering to enter the Bangkok real estate development business
- Concerns due to the real estate market slump after 2019 and the spread of COVID-19
- Understand the current state of the Bangkok condominium market and future prospects
- Organize risk information for making investment decisions
- Due to the spread of COVID-19 and movement restrictions in each country etc., the real
estate market conditions cannot be expected to recover until 2021, so a more cautious
investment decision need to be made (on hold).
Preparation for survey
Perform survey, analysis
Information gathering and analysis capabilities that enable highly acc surveys. , even without data available in publie domain.
Desk research & interviews in Thai language by Thai researchers to analyze data based on certain hypothesis.
Wide network in Thailand
Conducted interviews with experts involved in the real estate business incollaboration with governmental research institutions.
- Employees complained about the current personnel system (grade, compensation, evaluation)
- There was no clear personnel system in place, and even the management could not grasp the whole picture.
- Construction of new personnel system (grade, remuneration, evaluation)
- Built and introduced a new personnel system that is clear and easy to understand, which is highly convincing for employees, because it was created in collaboration with the client’s employees.
Understanding the personnel system and identifying issues
Aims for the formulation of new personnel system
Initial operation / improvement under the new system
Implementation of evaluator training
Fostering employee awareness
By promoting the construction of a new personnel system under the initiative of client’s employees, it led to an improvement in the sense of belonging to the company and the ability to solve problems.
Realization of potential company-wide issues
Since the interviews are conducted directly with employees, it is possible to grasp not only the personnel system but also company-wide issues / problems (fraud, etc.).
- The situation of the Group (Japan HQ, Thai(JV)) was significantly deteriorated.
- Structural problems in the business model and issues in decision-making as a JV.
- Business revitalization and business reorganization as a group.
- Due to insufficient decision-making function of Thai JV, inefficient organizational from due to JV (duplication of functions, etc.) and difficultly in cash flow, etc., the equity shares of the JV were transferred to the JV partner.
Understand current status and identify causes of plight
Plan improvement measures
Organization of improvement measure implementation system
JV resolution negotiation support
Causes1 “Defective decision making function”
Parent companies of the JV will stall each other so decision-making related to company-wide policies will not progress.
Causes2 “Limits of labor-intensive manufacturing”
Competitive advantage of labor-intensive manufacturing industry in Thailand declined due to soaring labor costs and rise of neighboring countries with low wages.
Unable to change the business domain in response to change in the external environment, and escape from the low value-added domain.
- Fraud was rampant during the predecessor’s management term (the MD himself was also involved in fraud)
- The current MD was from sales and had weaknesses in business management.
- Construction of a fraud prevention system (governance)
- Strengthening the business management system
- Building a fraud prevention system through business process changes and job rotation
- Visualize key performance indicators (KPIs) by preparing management materials
Understanding business processes and identifying issues
Direction of improvement / Creation of action plan
Support for execution of improvement measures
Creation of monthly business management materials
Understanding the actual situation by Thai consultants
Draw out the true intentions of employees through form analysis by Thai consultants and employee interviews, and grasp the actual situation of the company that is difficult for Japanese management to see
Execution support in the field
Provide support for implementing measures through regular interviews with the PIC
Visualization of management indicators
Visualize points that need to be improved to improve business performance by organizing management materials
- Decided to withdraw from Thailand to relocate production bases in other Asian countries, even though the performance of the Thai subsidiary is good.
- Consider ways to minimize financial losses and risks
- Examination of withdrawal method to minimize the impact on employees and business partners
- Completed liquidation procedure after settlement with labor union related to economic compensation and sale of real estate.
①Transfer of equity
1. Support for local employees
2. Cancellation of license
3. Elimination of insolvency
4. Tax audit