Executive review 2/2008

Martin Eisenhut and Thomas Ring

Most businesses in Germany's engineered products sector still have well-filled order books. So there is no cause for panic, even if darker clouds are undeniably appearing on the horizon. This has always been a cyclical industry, and the current financial crisis will once again very probably have a negative impact on its business.
It is therefore high time for us to kick a few tires and explore a few avenues that can lead companies to winning ways even as the economy flattens or turns down.

"Be flexible – Prepare for tougher times in the engineered products business." This was the name of a recent Roland Berger study, whose findings are presented in this edition of the executive review. The study shows how successful companies can exploit business cycles to stay that crucial step ahead of their rivals.

In an interview, Grego Peters explains how Bombardier is using an intelligent platform strategy to adopt a more flexible stance – and is meeting with considerable success in the transportation and mobility industry.

Drawing on hands-on project experience and further Roland Berger studies, our consultants go on to show how individual links in the value chain can be put to profitable use even when times are hard.

Creative pricing strategies, responsive cross-functional purchasing and production networks, flexible production strategies to reduce fixed costs, and the intelligent management of working capital all have a valuable part to play.

We trust that this issue will once again give your organization food for thought.