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Case Study:

Sustaining Business Amidst Key Employee Turnover in Construction

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YOU ARE WHERE YOU ARE: A construction business specializing in renovations and new constructions faced a critical juncture with the impending loss of key employees. The company’s continuity hinged on these essential staff members, and the prospect of their departure threatened its very foundation.

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IconWE MEET YOU WHERE YOU ARE AT: The business found itself at a crossroads, having to reassess its operational stability. Expenses were stable, but a deeper analysis was required, covering customer and supplier dynamics, pricing mechanisms, and financial statements. The complexity of their pricing structure emerged as a key area needing improvement.

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IconPICK A STARTING POINT: The company embarked on a journey of introspection and strategic overhaul. An in-depth look into various aspects of the business was conducted, focusing on understanding the impact of current pricing strategies and identifying opportunities for growth.

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IconCONDUCT A WORKSHOP: A series of strategic workshops were held to unravel the complexities of  the business:                                                                                                                                                              

  • Customer Analysis: Understanding the customer base and their preferences.
  • Supplier Analysis: Evaluating supplier relationships and their impact on the business.
  • Financial Statement Review: A thorough examination of financial health and profitability.

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Solve A ChallengeSOLVE A CHALLENGE

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The core challenge was the company’s overly complicated pricing mechanism:

  • The business restructured its pricing strategy to simplify and make it more attractive to customers.

  • This shift led to a significant increase in sales and profit margins, indicating the direct impact of pricing on business growth.

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Expand And ScaleExpand And Scale

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Outcomes:

  • By changing its pricing strategy, the company saw a 27% increase in sales and a staggering 140% increase in profit.

  • The following year, sales grew by 54% from the base year, and profits soared by 213%.

  • A clear understanding of the most profitable product lines was established, and the customer base was expanded, contributing to sustained business growth.

This case study demonstrates the transformative power of strategic introspection and pricing restructuring in the construction industry. By identifying and addressing a key operational issue, the company not only averted a potential crisis due to the loss of key employees but also unlocked new levels of growth and profitability, setting a precedent for agility and resilience in business operations.

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