Today
17
10
,
2019
28.09.2016
Global Spirits (TM “HORTITSA”)
Transformation of a Ukrainian holding company by proactive systemic growth into undisputed market leadership

Transformation of a Ukrainian holding company by proactive systemic growth into undisputed market leadership

Global Spirits is the market leader in the spirits sector and has offices in all the regions of Ukraine as well as in Russia. They are the official distributor of the Hortytsya, Blagoff, Medovukha, and  OREANDA brands.

Project duration: 12 months

Period undetaken: 2003-2004

PROJECT OBJECTIVES:

Despite strong sustained growth and profit rise, the company decided to take a long view of business with the help of a business model and increasing pressure on margins. Consequently it was decided that a radical transformation of the holding company would take place.

STRATEGIC’S APPROACH:

The project was put together in three major stages:

  1. Creating an artificial crisis
    • Check system for robustness; across-the-board training
    • Replacement of part of the senior management by representatives of other cultures, talented “system builders”
    • Creation of an organisation-wide sense of the necessity and inevitability of change
  2. Redefining the very DNA of the system
    • Formulating Strategic Idea and Strategy for the holding company
    • Removing “process-rituals” and the introduction of new business processes; Reworking of the approach to responsibility
    • Changes in the team: rotation, introduction of “new blood” and the rebuilding of the communication system
    • Purchase and construction of production facilities
  3. Promoting change
    • Support for “hunger for innovation”, including innovation management and export-import ideas
    • Creating the necessary infrastructure: the formation of a corporate centre of excellence, putting in place new IT systems

PROJECT OUTCOMES:

  • Implementation of the vision
  • Updated business model
  • Expanded geography of business (CIS, Europe, USA)
  • Installation of process management
  • Business culture changes

BUSINESS RESULTS:

  • The company has become number one In its sector in Ukraine — the leading player by a wide margin in both market share and in profitability
  • Profit increased 10-fold
  • Growth in business capitalization achieved
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