EastAgri – a CEI network 2005 Annual Meeting Overview TurnAround Management and Business Advisory Services Programme Team at the EBRD ( TAM/BAS Programme Team )

   Agenda What is TAM/BAS Programme Team? What is TAM/BAS Programme Team? How does TAM/BAS Programme Team work? How does TAM/BAS Programme Team work? Case Study Case Study What has TAM/BAS Programme Team achieved? What has TAM/BAS Programme Team achieved?

   What is TAM/BAS Programme Team? Mission “Assisting private small and medium sized enterprises (SMEs) to transform themselves, so as to survive and compete in market economies”

   What is TAM/BAS Programme Team? Facts 27 countries 27 countries 2 tools: 2 tools: –Turn Around Management Programme (TAM) and –Business Advisory Services Programme (BAS) Not-for profit Not-for profit 100% Donor funded 100% Donor funded EBRD Banking EBRD Banking

   Channels 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 Criteria TAMBAS OwnershipPrivate Employees Turnover > $1m At least 2 years in business Industry Any business area, except: tobacco, military, gambling and banking/ financial services.

   TAM vs. BAS Project: Key Tasks TAM: - Carry out a profound enterprise restructuring - Build a sustainable management resource BAS: - Provide a targeted solution to a specific business issue - Develop local consultant capacity

   TAM vs. BAS Project: Operations Length12-18 months2-3 months Cost Free50% (up to EUR 10,000) Type Tailor made Short-term profound intervention with rapid restructuring payback Carried out by TAM Team*Local consultants *Senior Industrial Advisor, Specialist(s) and TAM Team Country Coordinator

   Achievements > 80% success rate Donor Funding €m) Years in operation No of Projects CountriesLocal Offices TAM6610> BAS

   PAIN D’OR BAKERY - Bulgaria Enterprise Enterprise Problems and Issues Problems and Issues –Short-term –Long-term BAS Solutions BAS Solutions TAM Solutions TAM Solutions Final Result Final Result

   TIKVES 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 - Armenia

   Dimitar 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 - 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 -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 - 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 - 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 preparation The 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 Quotes TAM “We would not have survived without TAM intervention. Following the TAM project, our enterprise has attracted a major foreign investor and its turnover is expected to double”. (Slovakia) BAS “I have never used consultants before. Now I know that it is a very effective tool to develop my business. Thanks to BAS now I have the opportunity to appreciate that”. (Armenia)