24 September 2009

Kuoni in Ã¢â¬ËœfundamentalÃ¢â¬â¢ shake-up

The entire Kuoni group is undergoing its first "fundamental" re-organisation in decades.

The objective is to create a more customer-focused organisation, according to the Swiss-based operator.

The Kuoni Group will change from a decentralised to a functional organisation in a move due to be completed by the middle of 2010.

The new organisation focuses on marketing and sales and on efficiencies offered by global procurement and production.

It is designed to deliver "substantial cost savings".

But head of the group’s ‘style’ business division covering premium and specialist travel, Reto Wilhelm, is quitting Kuoni due to a "difference of opinion" over implementation of the strategy.

The shake-up is part of an investment and cost reduction programme instigated at the start of the year.

The new group structure features two market regions - North (including the UK) and South - and a single procurement and production unit for both market regions. Destinations remains as a global division.

Changes to the group executive board from next month involve Leif Vase Larsen and Stefan Leser heading market regions North and South respectively.

The new procurement and production unit will be run by Rolf Schafroth, in addition to his existing duties as head of destinations.

All three will serve on the group executive board together with CEO Peter Rothwell and CFO Max Katz.

Rothwell said: "This new organisation, which focuses on marketing and sales on the one hand and procurement and production on the other, will provide us with more customer focus, further growth opportunities, improved profitability and efficient cost management."

He added: "Our new group structure is closely aligned to the existing model at Kuoni Scandinavia, which has proved to be highly performing, very efficient and effective.

"The model has been modified to pay due regard to the more varied product range and differing demands within the broader Kuoni Group."

by Phil Davies

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Your Comments (2)

Hopefully it doesnt mean this

Quote"The new organisation focuses on marketing and sales and on efficiencies offered by global procurement and production." Lets hope this doesn't mean big online discounts to direct clients booking on the web. It was hard to compete when they did this and damaged their relationship with the trade.

By Martyn Fisher, Monday, October 5, 2009
you wot ?

Could someone kindly translate this article and tell me what it means ? I don't think it is in English

By Nick Cooper, Thursday, September 24, 2009