EastAgri – a CEI networkEastAgri – a CEI network2005 Annual Meeting2005 Annual Meeting

OverviewOverview

TurnAround Management and Business TurnAround Management and Business Advisory Services Programme Team Advisory Services Programme Team

at the EBRDat the EBRD

( TAM/BAS Programme Team )( TAM/BAS Programme Team )

AgendaAgenda

What is TAM/BAS Programme What is TAM/BAS Programme Team?Team?

How does TAM/BAS How does TAM/BAS Programme Team work?Programme Team work?

Case StudyCase Study

What has TAM/BAS Programme What has TAM/BAS Programme Team achieved?Team achieved?

What is TAM/BAS Programme Team?What is TAM/BAS Programme Team? Mission Mission

““Assisting private small and medium sized Assisting private small and medium sized enterprises (SMEs) to transform themselves, so enterprises (SMEs) to transform themselves, so

as to survive and compete in market as to survive and compete in market economies”economies”

What is TAM/BAS Programme Team?What is TAM/BAS Programme Team? Facts Facts

27 countries27 countries

2 tools:2 tools:

– Turn Around Management Programme (TAM) andTurn Around Management Programme (TAM) and

– Business Advisory Services Programme (BAS)Business Advisory Services Programme (BAS)

Not-for profitNot-for profit

100% Donor funded100% Donor funded

EBRD BankingEBRD Banking

Channels to approach TAM/BAS Programme TeamChannels to approach TAM/BAS Programme Team

EBRD Regional Offices

EBRD Banking Teams

Chambers of Commerce

Professional Organisations

Word of mouth/ Business contacts

Directly

Enterprise Selection CriteriaEnterprise Selection Criteria

TAMTAM BASBAS

OwnershipOwnership PrivatePrivate

EmployeesEmployees 250-1000250-1000 15-50015-500

TurnoverTurnover > $1m> $1m At least 2 years in At least 2 years in businessbusiness

IndustryIndustry Any business area, except: tobacco, military, Any business area, except: tobacco, military, gambling and banking/ financial services.gambling and banking/ financial services.

TAM vs. BAS Project:TAM vs. BAS Project: Key Tasks Key Tasks

TAM:TAM:

- Carry out a profound enterprise restructuringCarry out a profound enterprise restructuring

- Build a sustainable management resourceBuild a sustainable management resource

BAS:BAS:

- Provide a targeted solution to a specific business issueProvide a targeted solution to a specific business issue

- Develop local consultant capacityDevelop local consultant capacity

TAM vs. BAS Project:TAM vs. BAS Project: Operations Operations

LengthLength 12-18 months12-18 months 2-3 months2-3 months

CostCost FreeFree 50% (up to EUR 50% (up to EUR 10,000)10,000)

TypeType Tailor made Tailor made Short-term Short-term profound profound intervention with intervention with

rapid rapid restructuring restructuring paybackpayback

Carried out byCarried out by TAM Team*TAM Team* Local consultantsLocal consultants

*Senior Industrial Advisor, Specialist(s) and TAM Team Country Coordinator*Senior Industrial Advisor, Specialist(s) and TAM Team Country Coordinator

AchievementsAchievements

> 80% success rate> 80% success rate

Donor Funding €m)

Years in operation

No of Projects

Countries Local Offices

TAM 66 10 >1100 27 0

BAS 36.5 9 3000 12 13

PAIN D’OR BAKERY - BulgariaPAIN D’OR BAKERY - Bulgaria

EnterpriseEnterprise

Problems and IssuesProblems and Issues

– Short-termShort-term

– Long-termLong-term

BAS SolutionsBAS Solutions

TAM SolutionsTAM Solutions

Final ResultFinal Result

TIKVES WINERY- MacedoniaTIKVES WINERY- Macedonia

The Problem:

Tikves needed to improve product quality consistency and improve production facilities

The Solution:

BAS funded consultancy assistance in the development of a business and investment plan

2 million EUR Loan from an Italian Commodity Credit line approved for new equipment to meet above objectives

Problem

The company wished to extend its

facilities to to comply with up-to-date

standards and to develop new markets

BAS Assistance

- Performed feasibility study on expansion plans- Research study into potential new markets

ASHTARAK DAIRY - ArmeniaASHTARAK DAIRY - Armenia

Dimitar Madjarov EOOD - BulgariaDimitar Madjarov EOOD - Bulgaria

Company problem: no adequate

marketing/sales to match premium product

What BAS did for Madjarov: Consultant carried

out a review of market, competition, Madjarov product,

target groups, SWOT, brand equity and developed a

marketing and communication strategy;

Results:

Company has identified its brand value and market position;

Marketing and sales activities are now important contributor

to better distribution and higher sales;

In 2004 Madjarov posted 17 % increase in annual sales;

Vori OOD - MacedoniaVori OOD - Macedonia

The project consist of preparation of a feasibility study for building a small Hydro Power Plant using the existing hydro potential of the water going out of the company’s fishpond.

The construction of a small hydro power plant will enable the company to increase production of the fish for 30% during the year.A decrease in the expenses for energy is expected of more than 6,000 EUR/year

““MALES” Bakery -MacedoniaMALES” Bakery -Macedonia

“MALES” is a bakery business whose sanitation and production capacity was not on a satisfactory level….The manager of the company has identified new market opportunities for its bakery business and has decided to increase the production capacity, product range and sanitation by investing in new machinery and relocation of the entire production at new premises….

The new bakery was planned to be opened in the center of the city at new premises with an area of 250m2 owned by MALES.

BAS Programme supported project preparation of a Business Plan for the New Investment

Solvex Mira - BulgariaSolvex Mira - Bulgaria

Company problem:

No formal quality procedures and controls; export customers pressure for quality certification;

What BAS did for Solvex Mira: Consultant developed and implemented a quality management system according to the requirements of ISO 9001:2000;

Results:

Sustainable quality standards;

Improved marketing profile;

Continued sales growth;

Vori - MacedoniaVori - Macedonia

The company was facing a growing demand for its products in foreign markets. The production capacity was insufficient to meet the increased demand. The company planned to increase its production with investment in new equipment.

BAS supported the project for Business plan preparationThe company received a credit line. New equipment was purchased and installed. The production capacity was increased by 100%, and improvement in the quality of products.

CEO QuotesCEO Quotes

TAMTAM

““We would not have survived without TAM intervention. We would not have survived without TAM intervention. Following the TAM project, our enterprise has attracted Following the TAM project, our enterprise has attracted a major foreign investor and its turnover is expected to a major foreign investor and its turnover is expected to double”. double”. (Slovakia)(Slovakia)

BASBAS

““I have never used consultants before. Now I know that it I have never used consultants before. Now I know that it is a very effective tool to develop my business. Thanks is a very effective tool to develop my business. Thanks to BAS now I have the opportunity to appreciate that”.to BAS now I have the opportunity to appreciate that”. (Armenia)(Armenia)