GARLIC Support Services
What Is Renewed Growth? Renewed growth is the phase in which a company builds on its assets and know-how, transforms its business structure, and increases its enterprise value. Value creation This requires strengthening two key drivers: 1. Competitiveness through higher sales and profits 2. Market Appeal through stronger brand power To achieve this, both management and employees must adopt a growth-oriented mindset and act proactively. Revenue and Profitability (Competitiveness) Brand Equity (Market Appeal) Transition from defensive financial restructuring to offensive business transformation 1
Beyond Stabilization: Transformation for Growth Financial Restructuring(Stabilization) ➢ Debt reduction ➢ Streamlining unprofitable businesses In the shift from stability to growth, simply extending existing policies and activities is often not enough to achieve renewed growth. It is essential to build new business models, products, markets, and operations that go beyond the conventional path. ➢ Improving cash flow Just as importantly, organizational design and internal culture are critical to success. Business Transformation(Growth) Building a Growth-Oriented Organization and Culture ➢ Redefining products and optimizing the portfolio ➢ Clear roles and responsibilities ➢ Rebuilding the business model ➢ Defined decision-making authority and faster decisions ➢ Expansion into new markets ➢ A culture that encourages clarity and embraces new challenges ➢ Digitalization & IT transformation ➢ Leveraging IT for digitalization and greater efficiency 2
Bringing the best of Japan to the world Japan is home to many products made with traditional ingredients, craftsmanship, and design. Yet because many of them are still sold mainly in the domestic market, a great number remain unknown and undiscovered by consumers around the world. For SMEs with little experience in overseas expan-sion, the first step is to start small, begin with what they can do, and move forward through trial and error. We help them take that first step into the world. Market Development what we can do Partnership with leading local companies Export Overseas market Local retailers etc. ⚫ In overseas markets, we go beyond simple exporting by partnering with strong local companies and creating direct sales opportunities with local retailers, enabling stable business and revenue growth. ⚫ Rather than exporting products alone, we build the business together with local partners. This helps protect product development and operational know-how, makes imitation more difficult, and sustains long-term competitive advantage. 3
Giving the best of Japan a new form To help a product become loved by even more people, it is essential to reach those who have not yet encountered it - to catch their attention, invite them to pick it up, and make them feel that it is worth trying. By envisioning new customer segments, we help transform products into something that resonates with them. This may involve changing the product itself, redesigning the packaging, reshaping its image, or rethinking where and how customers encounter it. We help give products a new form and connect them with new customers. Product Development what we can do Domestic retailers (at International airports) Products for foreign tourists Inbound tourists ⇒Product rebranding ⇒Product repackaging ⚫ We develop products tailored to the souvenir needs of inbound travelers as a first step toward future overseas expansion. ⚫ We redesign packaging to clearly communicate a product’s Japanese identity and key features to international customers, and help establish sales channels at international airports frequented by inbound travelers. 4
Creating a positive mindset for new challenges When people step into a new world - into unfamiliar and uncharted territory - they often hesitate, search for reasons not to act, or struggle to find the confidence to take on the challenge without fear of failure. That is why it is essential to build a company and organization that encourages employees to take courageous steps forward, and a culture in which challenges are valued even when they do not succeed. We help create the organizational structures, HR systems, and internal mechanisms needed to foster that culture - so employees can move toward new challenges with confidence and a positive mindset. Human Development what we can do HR Management Operational Improvement Profit Growth Organizational Restructuring Motivation Improvement Overseas Expansion ⚫ As the company pursued overseas market expansion, many employees hesitated to step into unfamiliar territory, slowing the pace of development. ⚫ By reviewing its HR systems, organizational structure, and ways of working, the company created an environment in which employees could engage more actively in new markets and businesses. This increased internal initiative and ultimately improved performance. 5
Actions Required for Renewed Growth Build the Strategy ➢ Redefine your strengths — products, markets, human resources, and intangibles ➢ Realign the business and resource portfolio Find the Right Partners ➢ Identify, evaluate, and partner with external collaborators ➢ Execute M&A and strategic alliances Put Plans into Motion ➢ Explore new markets and sales channels ➢ Develop new product concepts, packaging, and marketing Engage and Motivate ➢ Strengthen internal organization and governance — structure and HR systems ➢ Build employee motivation and mindset through clear communication Build the Operating System ➢ Scrap and rebuild the business model ➢ Refine products and go-to-market through test marketing — adjust direction as needed 6
H o w We R u n O u r P r o j e c t s Creative / Networking ➢ Convert workshop ideas into actionable plans across product development, channel expansion, social media, and other initiatives. ➢ Assign clear owners and teams to each initiative, with hands-on support from GARLIC. Workshop (Discussion) ➢ Leverage GARLIC’s network to support overseas expansion through market intelligence, introductions, and negotiations. ➢ Hold agenda-focused workshops with crossfunctional teams and GARLIC. ➢ Uncover challenges and align on solutions and next steps. ➢ Institutionalize the workshop as a bi-weekly forum. Test Marketing (Trial) ➢ Once a new product or channel is set, run a small-scale test to tune the offer and strategy before scaling. ➢ For new products and new markets, awareness is the primary objective —promotions should follow a test-and-learn approach. 7