Composite illustrative case
Distributor acquisition: thesis and withdrawal
Transparent application of the method to a realistic hypothetical situation.
Integrity disclosure: Composite illustrative case. It combines recurring patterns and hypothetical figures to explain the method; it does not represent an identifiable client or a verifiable result from a specific engagement.
Situation
Mid-sized European company with 11% nominal growth, a four-point decline in operating margin, commercial concentration and rising cost to serve.
Problem
Management attributed deterioration to raw-material cost. Initial analysis showed that price, discounts, mix, urgent logistics and payment terms explained a larger share.
Method applied
- Diagnose: ET-013 y ET-019.
- Prioritise: ET-007 y ET-014.
- Decide: límites de descuento y condiciones por cliente.
- Execute: ET-018 con revisión quincenal.
- Review: análisis de margen y caja por cohorte.
Illustrative outcome
In the composite scenario, price review, removal of exceptions, mix change and fewer urgent shipments recover 2.3 margin points in nine months. The figure is illustrative and not a performance promise.
Lessons
- Growth may conceal value destruction.
- A visible cost is not always the dominant cause.
- Measures require limits to avoid damaging commercial capability.
- Review must separate margin, cash and revenue quality.