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Definition of governance and corporate structure in multinational Retailer

A multinational Retail company corporatized its regional business to enhance control, generate efficiencies, and accelerate local operations


Background and identified issues
  • Retail company had a significant performance gap between its headquarter operation and the rest of the operations in the region

  • The current management structure was based on a Country Manager who managed their own P&L

  • The challenge was to accelerate the development of the countries in the region by leveraging the learning curve of its main operation

Main actions
  • The process began with the definition of the end-game corporate structure

  • Organizational (governance, roles and responsibilities, and incentives) and management model (tools, systems and processes) enablers were developed

  • Transition structures were defined that allowed moving towards a phased corporate structure

Impact of the project
  • The company successfully progressed in corporatizing, implementing the learnings from the headquarters operation into its local operations

  • Along the way, headcount efficiencies of USD 8 MM were captured; and a roadmap was established to capture USD +25 MM in commercial value

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