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MANAGEMENT CONSULTING

We are Yamada Consulting & Spire (Thailand)

The staggering growth of Asia-Pacific in recent decades has reshaped the global economy. But as we move further into what is widely predicted to be the “Asian Century” the story is unlikely to be one of growth alone. The same transformative forces—social, political, ecological and technological—that are accelerating innovation and instability elsewhere in the world are very much at home in Asia-Pacific. Investment and go-to-market strategies for the region must be designed to take this into account or risk falling far short of expectations.

Case ①

Market Research

Investigate the current state, future outlook and risks of
the condominium market in Bangkok to make investment decisions
for the real estatedevelopment business

Project Outline

Background

- 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

Aim

- Understand the current state of the Bangkok condominium market and future prospects
- Organize risk information for making investment decisions

Result

- 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).

Services Provided

1
Phase

Research Preparation

Research design

  • Determination of research items and research methods
  • Conduct pre-research (information that can be acquired by desk research)
  • Selection of interviewees

 

Preparation for survey

  • Obtain and adjust appointments for interviewees

2
Phase

Research Report

Perform survey, analysis

  • Conduct desk research and interviews
  • Information organization, data aggregation, analysis

 

Reporting

  • Preparation and reporting of survey report

Key Service Points

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.

Report Sample

Case ②

Personnel System

Understand the actual situation of the local subsidiary in Thailand
Total support from construction to introduction and operation of new personnel system

Project Outline

Background

- 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.

Aim

- Construction of new personnel system (grade, remuneration, evaluation)

Result

- 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.

Services Provided

1
Phase

Current Status Analysis

Understanding the personnel system and identifying issues

  • Understand the current personnel system and identify issues through interviews with employees and confirmation of various regulations.

2
Phase

System Design

Aims for the formulation of new personnel system

  • Prioritize issues and consider the grades, rewards, and evaluation criteria that the system should aim for

3
Phase

Preparation for Implementation

Initial operation / improvement under the new system

  • Trial-run of new personnel system
  • Extract issues through trials and plan and implement correction measures

4
Phase

Operation / Definition

Implementation of evaluator training

  • Conducted evaluator training for managers to evaluate their subordinates
  • Plan and implement measures to correct bias and tendencies in evaluation by evaluators

Key Service Points

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.).

Report Sample

Case ③

Business Revitalization

A case where, as a result of understanding the actual conditions of the Thai subsidiary (JV) and identifying the cause if plight, the JV was finally dissolved and the company withdrew from Thailand

Project Outline

Background

- 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.

Aim

- Business revitalization and business reorganization as a group.

Result

- 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.

Services Provided

1
Phase

Current Status Analysis & Plan Improvement Measures

Understand current status and identify causes of plight

  • Conduct financial & business DDs to identify possible causes of plight

 

Plan improvement measures

  • Consider improvement measures to remove identified causes
  • Policy prioritization

2
Phase

Improvement Measures Implementation Support

Organization of improvement measure implementation system

  • Facilitation for discussion and consensus formation with management of JV partner company

 

JV resolution negotiation support

  • Negotiation with the JV partner and closing support to resolve the JV
  • Support for formulation and execution of business revitalization plan after dissolution of JV

Key Service Points

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.

Report Sample

Case ④

Governance Reconstruction Support

Understanding the actual situation of a local subsidiary in Thailand and strengthening the business management system (building a fraud prevention system, visualizing management indicators)

Project Outline

Background

- 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.

Aim

- Construction of a fraud prevention system (governance)
- Strengthening the business management system

Result

- Building a fraud prevention system through business process changes and job rotation
- Visualize key performance indicators (KPIs) by preparing management materials

Services Provided

1
Phase

Current Situation Analysis

Understanding business processes and identifying issues

  • Interview with local employees
  • Understand the business process
  • by viewing the management forms
  • Identify governance issues

2
Phase

Direction of improvement Create Action plan

Direction of improvement / Creation of action plan

  • Create improvement measures and action plans to overcome governance issues

3
Phase

Improvement measures Execution support

Support for execution of improvement measures

  • Regular execution support to the PIC of execution of the action plan 
  • Support for creating management format

4
Phase

Business management system Strengthening support

Creation of monthly business management materials

  • Support for the introduction of monthly business management materials in order to grasp the profit and loss situation of the company in a timely manner (establishment of the head office reporting system)

Key Service Points

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

Report Sample

Case ⑤

Withdrawal Support

Decided to withdraw from Thailand to relocate production bases in other Asian countries. Liquidation procedure was reached after a settlement with a labor union and the sale of real estate.

Project Outline

Background

- Decided to withdraw from Thailand to relocate production bases in other Asian countries, even though the performance of the Thai subsidiary is good.

Aim

- Consider ways to minimize financial losses and risks
- Examination of withdrawal method to minimize the impact on employees and business partners

Result

- Completed liquidation procedure after settlement with labor union related to economic compensation and sale of real estate.

Services Provided

1
Phase

Review phase

Initial analysis

  • Consideration of withdrawal scheme ((1) transfer of equity, (2) liquidation)
  • Fund simulation, clearing BS creation

 

①Transfer of equity

  • Creation of IM etc.
  • Candidate list up
  • Initial consultation with potential sellers

 

②Liquidation

  • Organize the impact on business partners and response policies
  • Detailed schedule creation

2
Phase

Execution phase

②Liquidation

  • Support for explanations to suppliers / customers
  • Implementation of employee information sessions
  • Implementation of license cancellation procedure
  • Sale of real estate, disposal of various equipment

Key Service Points

1. Support for local employees

  • If there is a labor union, it is often difficult to discuss the amount of economic compensation to be paid.
  • Please note that there are cases where employees in charge of clearing procedures leave their post.

2. Cancellation of license

  • It takes time to cancel BOI, so caution is needed (excluding procedures for imported raw materials exempt from tariffs).

3. Elimination of insolvency

  • It is necessary to eliminate insolvency by increasing capital before liquidation.

4. Tax audit

  • After registration of dissolution, it may take 1 to 2 years for a tax audit to be conducted.

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