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Copyright © 1993-2008 SCQuARE International Limited

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Hockey Tour Presentation to Bob to persuade him to let his wife join the Hockey Tour

Family Grocers Distribution plan for Family Grocers Division of Standard Products Ltd

Robin Hood Plan to get Robin a normal life

Ferarra Restructuring plan arising from demands of multiple retailers

Solko Recovery plan for Solko Soft Drinks

Mericana Recovery plan for Mericana Rio Football Club

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Dubai Promotion plan for the Dubai Tourist Board

One Chance Pitch Sale & Marketing Presentation to Jim Albright for non-salary benefits

Causal Chains Review of Causal Chains


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Surbiton Women’s Hockey Club

Presentation to Bob Scott


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Last year hockey – this year holiday

• Sue has decided after nine years touring with us that she is taking a break this year for a family sailing holiday with you, the kids & your parents in the Isle of Wight

• At the same time, we will be going on our annual hockey tour to The Hague.

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Special anniversary tour with gold medal award

• This is the 10th anniversary of the 1st women’s hockey 7’s tournament, returning to the original venue – the Hague

• The EWHSF want to recognise Sue’s contribution to the sport– Only original team member

– Has played in every event

– Gold medal planned for her

• Clearly, both the organisers & Sue herself would be upset if she could not attend

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The question we must ask ourselves is:

How can we reschedule events so that: Sue plays a full role in your family holiday Whilst getting the recognition she deserves

So that you can enjoy a full family holiday?

PQ


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We have a solution that will ensure that you have a full holiday with Sue & the kids, at lower cost and in more luxury, whilst Sue is able to receive the medal. This will require a minor revision to you planned schedule

1. Start holiday as planned

2. On the Friday evening (night of the presentation dinner), we will fly you & your family (at our expense) to Holland.

3. You will then be chauffeured to the Royal Nederlander Hotel, staying in your own suite.

4. The family will be able to attend the presentation dinner & share in Sue’s award

5. We will then fly you back to the Isle of Wight the following morning to continue your holiday.

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One Chance Pitch

Sales & Marketing

Presentation to Jim Albright

Aim: To Stay Market Leader


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Fantastic Results Last Year

• Sales last year totalled $804m• Profits $90m, 9% up on budget• Market Share 53% up 8% on last year• Inflation was at 6%


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Aggressive Budget for This YearAggressive Budget for This Year

• Sales Budget of $905 – up 15% on last year• Profits up 20% to $108m• Market Share static at 53%


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Best Sales Team in Country

• Based on a S&M team of 38 people• Aggressive, ambitious highly motivated team• Recruit the best: Graduates, MBA’s, pick of

the best from variety of backgrounds• Typically rewarded mid-Upper-Quartile plus:

– Annual profit bonus

– Contributory pension,

– 3weeks leave pa; 4 weeks after 10 years


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Cherry stealing our people & know how

• CherryPhone acquired HappyPhone late last year with declared aim to “double their market share”– As market leaders we are the main target

• They are stealing our key staff offering salaries 20-30% greater than ours– 9 staff lost already– 6 more under offer

• We are losing key information– Key contacts– Know-how, pricing and plans

• Impossible to recruit when major competitor is offering so much more


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First Quarter Results down 10%

• Cherry;s activities have impacted our results:– 1st Qtr Sales and profits are down 10% on last year

– Year-end Forecast will be down a similar amount unless we take rapid action

• We must act now to reverse this situation


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Salary increases not an Option

• We will maintain the Main Board’s policy of not increasing salaries above inflation

• We have examined alternative non-salary options

• These have been reviewed with HR, MD and key staff

• We need your sign-off to proceed


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• How can we remunerate our key staff without increasing salaries above inflation to– Retain those currently under offer

– Recruit replacements for those already lost

• So that we can get back on budget by the year end and maintain our position of Market Leader?


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We can achieve Sales of $905m and Profits of $108 by year-end if we

• Introduce short-term, self-financing bonuses

• Commit to longer-term loyalty programmes


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Standard Products LimitedFamily Grocers Division(FGD)

Distribution plan

Presentation to the Executive Board


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Today’s Agenda

• Market review.• FGD’s market position & contribution to SPL.• The changes required in distribution and the

options.• Strategies and Recommendations for approval.

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Aiming for profitable no.1

SPL’s corporate mission is to be the leading confectionery supplier in every market in which it operates, and to increase shareholder value annually by at least 5% more than Market Indices.

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Stretching budget

• Annual volume of 6.5m cases, up 5% on previous year;

• Net Profit of $40m, up $5m vs previous year;• Market Share 26%, up 1 point vs previous

year.

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Large, Fragmented Market

• Family grocers account for 25% of the country’s confectionery market - $500m by value; 24.8m cases by volume.

• 31,250 family grocer shops, nationwide:– 25,500 concentrated in 20 major cities;– 90% (28,125) independently owned and family run;– more than 60% are owned by Indians.

• Serviced by approximately 10 different major suppliers via: direct delivery, wholesalers, merchandising services and cash & carry warehouses.

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Star performer in SPL Group

• Last year sales of $125m (6.2m cases) - up 8% vs. the previous year, compared to a flat performance by the rest of SPL.

• FGD are market leader with 25% SOM vs SPL’s 18% national average; 10% points greater than our main competitor.

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Availability Key to Success

• FGD has 25,000 customers:– 80% of all family grocers in the country;

– 84% of the independent customers.

• FGD delivers direct to 22,000 outlets, 80% located in the 20 largest cities.

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Causal Chain


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Board demands distribution savings for re-investment

• The SPL Main Board has decided to cease all direct distribution to save $20m over 3 years (to be re-invested in brand building).

• Estimated savings of $15m in FGD could be nullified by the potential loss of the family grocers business which has been built around:– our availability nationwide;

– servicing 88% of our customers through direct delivery.

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Walkers to mount negative PR campaign

• Our main competitor Walkers, with only 15% of this sector, has confirmed their policy of direct delivery by renewing their main fleet contracts.

• They will almost certainly mount a campaign accusing us of deserting the family grocers.

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We must steal share

• Pressure from multiples is forecast to keep growth below 2% (ACN Economic Forecast).

• We cannot hit our stretching objectives via organic growth

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Combination solution required

• There is no single alternative system that offers the same coverage;– Patel, the leading wholesalers, reaches only 60% of

family grocers shops;

– Cash & Carry outlets (e.g., Smiths) demand promotional allowances with no assurances or guarantees;

– The various merchandising services vary enormously in coverage and quality. The most reliable is Rhonda’s.

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• How can we combine the strengths of the alternative distribution options to:– Maintain nationwide coverage;

– Deliver $15m savings from FGD by the end of the plan;

– Reassure our customers that FGD is not deserting them in the face of the potential threat from Walkers;

• to ensure we meet budget, secure market share growth and increase shareholder value annually by at least 5% more than market indices?

PQ


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FGD can secure a 26% market share and meet the budget of 6.5m cases and $40m net profit, provided we retain 80% coverage. This will require an investment of some of the distribution savings across three crucial areas:

1. Nationwide distribution deals with, Patel InterCity Wholesalers; Smiths Cash & Carry chain; Rhonda’s Mobile Merchandising Group.

2. A loyalty-building promotion.

3. Investment in new display cabinets.

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STRATEGY 1: Nationwide distribution deals with Patel, Smiths and Rhonda’s.

• 3 years is our plan period and FGD needs Patel to commit to our plans.• Patel has committed to volume sales, dropping all competitive brands,

as follows:Cases Year 0 Year 1 Year 2 Year 3000’s 250 3,900 4,200 4,800

• Joint-funding will ensure that Patel implements our programmes to increase SOM.

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Patel – we will sign a three-year rolling contract with two components:1. A minimum annual volume agreement;2. Joint funding of in-store promotion activity.

HOW

WHY


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STRATEGY 1: Nationwide distribution deals with Patel. 1.1 Annual volume agreement

• Patel will accept a lower margin (7.5% vs 10%) for volume and an over-riding discount on sales over $70m to increase SOM.

• Patel has a 50 strong telesales team supporting 100 salespeople nationwide calling on 16,000 businesses monthly. They will hire 25 new salespeople exclusively for family grocers.

FGD will commit to annual volume incentives for Patel: • 2.5% over-riding discount on sales over $70m – the cost will be

offset by a lower discount on sales below $70m.• $500K sales force incentives.

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HOW

WHY


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• Joint ownership of display cabinets will double the total spend to $800K, encourage placement of displays by Patel and secure 100% coverage in 2 years (see Strategy 3);

• PIW Monthly is circulated to all Indian owned family grocers, and Patel has agreed to a 30% discount on their standard rates. $100K will secure 52 weeks back-page copy.

FGD commits to jointly promote retailer loyalty:• $400K over two years in new display cabinets (see Strategy 3).• $100K per annum advertising in Patel’s PIW Monthly journal,

promoting the new in-store initiatives.

STRATEGY 1: Nationwide distribution deals with Patel. 1.2 Joint funding of in-store promotion activity.

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HOW

WHY


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• Walkers will mount a negative campaign, claiming we have deserted the family grocer.

• Retaining customer loyalty will be the key to success in the first year of our switch to third party deliveries.

• Air miles are popular with Indian shopkeepers – many of whom have large families. The promotion will encourage frequency of purchase.

Air miles promotion based on individual purchases gaining in value over frequency of order and value:1 - 3 orders = 1 mile per $100.4 - 6 orders = 2 miles per $100.7 - 12 orders = 4 miles per $100.Total cost £3.2m over 3 years.

STRATEGY 2 Support distribution deals by investing in a high profile loyalty promotion backed by PR and advertising.

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HOW

WHY


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• Retaining customers is five times cheaper than regaining them: We must show our commitment to family groups. Madhur Jaffrey’s wide appeal will demonstrate that our

programmes are exclusive, not bland and impersonal.

Launch a PR programme costing $300K: hire Madhur Jaffrey the famous Indian actress and writer on Indian cooking to support the promotion with personal appearances.


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HOW

WHY


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• Our PR campaign must be advertised: PIW Monthly is published in three Indian languages. The Grocer and Marketing Week is UK’s largest circulation trade

magazine.

Support promotion through advertising in: • Patel’s own journal, PIW Monthly, included in back-page copy

(for costs see Strategy 1);• The Grocer and Marketing Week, for launch period (first 3

months) costing $75K.


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HOW

WHY


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• Most family grocers have room for only one display unit. We must be first.

• Watsons, at $64 vs $87 per unit, is the most competitive supplier.

• 12,500 units will give 50% coverage in the first year;

• Watsons offer a 15% reduction on 12,500

Commission Watsons to manufacture 12,500 new upright, gravity-fed display units costing $800K in year 1 (net $400K with $400K from Patel).

STRATEGY 3 Retain and improve in-store presence by investing £800K in new display cabinets for stocking exclusivity.

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HOW

WHY


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• Display units offer a proven +20% uplift in sales - $25.0m on a full year’s sales; $6.25m in the first year.

• 200 cases equates to 9 months average sales. This will secure loyalty.

• Display material is key to loyalty:• Customised units will give incentive for Patel and Smiths to place

and display.

• Offer units (through our two distribution agents) free to our customers in return for

• 200 cases per annum commitment;• Exclusivity of display for our products.

• Offer custom-built displays for Patel and Smiths.

STRATEGY 3 Retain and improve in-store presence by investing $800K in new display cabinets for stocking exclusivity.

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HOW

WHY


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Marketing activity Year 1Cost & Responsibility

Summary Marketing activity ($000)

Sales incentives 500 SalesPatel advertising 100 Trade MarketingAir Miles programme 3,200 Trade MarketingPR 300 Consumer

MarketingDisplay units 800 Sales & TMAdvertising 75 TMContingency 150 GMTotal £5,125

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000 Cases Year 0 Year 1Year 2Year 3Direct 5,800 -- -Patel 2503,9004,200 4,800Smiths 100 1,6001,7502,000Rhonda’s 50 1,0001,0501,200Totals 6,200 6,5007,0008,000

Plan Summary - Volume build benefit RE

WHY


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$000’ s Year 0 Year 1 Year 2 Year 3Sales 125,000 127,000 140,600 161,700Direct Costs (45,000) (50,000) (56,000) (64,000)A&P (2,500) (5,125) (5,000) (5,500)Distribution (30,000) - - -Overheads (12,500) (31,875) (34,500) (37,000)Net Profits 35,000 40,000 45,100 55,200

Plan Summary - 3 year forecast results RE

WHY


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DUBAIFUN IN THE SUN!

Presentation to the Dubai Tourist Board


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AGENDA

• Dubai today• Challenges of Tourism• Proposals and Recommendations for approval


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BUILDING A TOURIST INDUSTRY

• The Dubai tourist board has the aim of establishing Dubai as a major European tourist winter destination.

• They are budgeting for 150,000 winter visitors per annum from Europe, generating $500m revenue in invisible earnings

Easily accessible

• Dubai is less than six hours flight from most of Europe's major capital cities

• Emirates – the flagship airline – serves all the major capitals of Europe with regular daily flights


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SUPERB INFRASTRUCTURE

• $50bn in the last 10 years has been invested on infrastructure – roads, airport, harbours and state of the art telecommunications

• In 1999, the world’s tallest and most luxurious hotel - seventy-six stories – was completed

• The new airport terminal, opened in March 2000 is state of the art, hassle-free and superbly equipped


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NATURAL BEAUTY & GRACIOUS HOSPITALITY

• Dubai has 12 hours per day of Winter sunshine, & beautiful, unspoiled beaches and gracious Arab hosts

• Superb snorkeling, Deep-sea fishing & magnificent desert scapes

• Gracious Arab hospitalityo Bazaars

o Medieval Arab towns

• Desert Oases


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LIBERAL SAFE, AND SOPHISTICATED ENVIRONMENT

• The alcohol laws have long been liberalised so that they are now comparable with most Western countries

• Western dress is accepted and crime is minimal – visitors can wander unmolested and unhindered in most areas

• Dubai has staged some elite major international events such as golf competitions & horse racing


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EVERY TASTE ACCOMMODATED

• Government co-operation with international leisure corporations has resulted in the development of every kind of leisure and entertainment facility:

• Excellent English, Italian, French, German, Chinese and Indian restaurants abound

• Hotels, Nightclubs and shows to suit all pockets• Fabulous shopping malls with duty free bargains• Marinas, racecourses, and magnificent green

golf courses


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COMPETITION STEALING VISITORS

• Last year, the total number of winter tourists from Europe was 90,000, up 5% on the prior year but 40% below the target of 150,000.

• This compares unfavorably with Tunisia & Morocco who both reported hotel occupancy up 17%, with European winter visitors at a record high of over 500,000 between them


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BACKERS NERVOUS

• 2 major International hotel groups with substantial investments in Dubai are questioning the long term viability of Dubai’s tourist industry.

• There is a concern that they may decide to scale down their investments, or worse still, may withdraw from Dubai completely.


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ELITIST AND NARROW FOCUS

• International events: the Dubai Desert Classic golf tournament, and the Dubai Cup horse race, although very successful, are seen as narrow, male dominated & pursuits of the rich elite.

• Moreover, they do nothing to illustrate the liberal laws, or help to showcase the other major attractions.


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MESSAGE NOT RECEIVED

• Recent surveys* reveal that most Europeans:

Are unaware of Dubai's liberal alcohol laws

Do not know about the relaxed dress code

See it as a luxury resort for wealthy Arabs only

Continue to identify Dubai with the fundamentalism

of Saudi Arabia or Iran, & fear Middle Eastern

terrorism. *EuroSurveys: Dubai Holiday Survey

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GROWING INTERNATIONAL EVENTS CALENDAR

• Fashion houses such as Zara, Versace, Gap, Gucci and Yves St Laurent are all interested in exotic venues to show & display their new fashions

• Wine growers in Australia, S America and S Africa have expressed interest in a winter wine festival


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How can the Dubai Tourist Board develop the appropriate marketing programs and associated

awareness campaign to:Overcome

• Competition from Tunisia & Morocco

• Nervousness of backers

• The perception that existing events are only for the “rich and famous”

• Low awareness of the alcohol and dress laws, and safe environment

Exploiting

• The growing International events calendar

And achieve our budgeted visitors & revenues thus building a viable Winter tourist industry?


MenuDubai can become a major winter holiday destination for Europeans, achieving 150,000

visitors & $500m revenue annually

by staging events that differentiate Dubai (from its neighbours) as a liberal and hospitable country:

1. Setting up a Desert Safari & Bedouin Nights theme attraction

2. Sponsoring a (pre-Christmas) Southern Hemisphere wine festival

3. Hosting a January Summer Fashion week

4. Pan-European Advertising & Promotions


MenuStrategy 1 Setting up a Desert Safari & Bedouin Nights theme attraction

How

• Setting up a Desert Safari & Bedouin Nights theme attraction (Cost $22.5m - $5m annual cost).

WHY– We will be able to showcase all the different coastal, mountain

and desert landscapes Day & night time attractionWide appeal (not elitist)Demonstrates liberal laws & funEstimated additional 40k visitors each winter


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How

• Appoint P-Y Gerbeau as GM to Manage design and construction & recruit management team (cost $1.5m)

• Establish Desert Safari operation using both Camel & 4 wheel drive caravans (cost $1m, lead time 2 months)

Why– He has experience in 2 major European attractions (Disney

Europe & the Dome), is well respected & immediately available

– Showcases culture & heritage. Offers authentic travel or comfort options. Minimal set up costs & lead time.

Strategy 1 Setting up a Desert Safari & Bedouin Nights theme attraction


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How• Bedouin Night attraction to include

– Valentino Zone (Oasis site with 5-star tented accommodation)– Belly dancing zone (offering traditional Arab & western

cabaret options) – Hotels, Restaurant & bars to cater for 800 guests.

• Cost $20m, timescale 12 months. (see full project plan in Appendix 1)

Why– Valentino zone targeted at honeymooners, valentines day & other

romantic occasions, not just male pursuits. – 80% of western females have had fantasies about Valentino & see him

as the ultimate romantic male.– Belly dancing zone has wide entertainment appeal & emphasizes fun,

demonstrating the relaxed laws.

Strategy 1 Setting up a Desert Safari & Bedouin Nights theme attraction


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How• Sponsoring an annual December (pre-Christmas) Southern

Hemisphere wine festival. Total cost: $1.36mWhy

– Australian, Chilean, Argentinean and South African Wine growers will have their latest summer offerings available. All produce top-quality wines

– The Southern Hemisphere countries will want to sell to Europeans for the Christmas season

– There is currently no venue for these growers– Wine will attract an up-market European interest (incremental

20k visitors) and demonstrate Dubai’s liberal alcohol laws– It will get free coverage in the leading TV food and drink

programs and Sunday Specials (estimated TV viewing 14m; circulation 24m, readership 12m)

Strategy 2Sponsoring an annual December (pre-Christmas) Southern Hemisphere wine festival. Total cost: $1.36m


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How• Appoint a Wine Week Director (cost $150K)• Invite the top three leading wine critics from each of

France, Germany, Italy and UK to form a panel of judges (cost $210k)

• Invite top six growers from each country to present their best wines

Why• To ensure that the event is well-managed.• To ensure that the wine festival has credibility. They will

have a ready forum for writing about the festival• You want a variety of quality wines represented

Strategy 2 (cont.)Sponsoring an annual December (pre-Christmas) Southern Hemisphere wine festival. Total cost: $1.36m


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How• Offer a Gold, Silver and Bronze medals for wines in each

class: Red, White, Rose, Sparkling, Fortified, Dessert, Best Value (cost $500K)

• Stage rounds in different Dubai Hotels (cost $400K)• Stage the final in the best hotel (cost $100K)Why• To ensure that as many growers as possible leave with a

prize. TV coverage 14m. Sunday Specials coverage 26m• To secure wide coverage of the attractions offered in

Dubai• To showcase the best hotel in the country

Strategy 2 (cont.)Sponsoring an annual December (pre-Christmas) Southern Hemisphere wine festival. Total cost: $1.36m


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How• Hosting an annual January Summer Fashion week. Total Cost

$1.1mWhy• Targets female visitors with attractions predominantly for them

(incremental 25k visitors)• Fashion houses such as Zara, Versace, Gap, Gucci and Yves St

Laurent would all welcome a new venue (currently limited to Paris, Milan, London and New York) to display their new male and female fashions

• The event will give Dubai an opportunity to show-case the wonderful hotels and demonstrate their relaxed dress codes

• It will secure massive photo-coverage of in-door and out-door locations

Strategy 3Hosting an annual January Summer Fashion week. Total Cost $1.1m


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How• Recruit a fashion week director & team (cost $500K)• Appoint a panel of leading fashion writers from the main

fashion magazines: Vogue, Harpers & Queen, Cosmopolitan, Elle, Woman (cost $250K)

• Secure a famous model to host the event (cost $100K)Why• To ensure the event is well-managed• To ensure that their magazines give full coverage of the

event. To agree rules of decorum• To ensure a glamorous event, attracting TV and

magazine coverage

Strategy 3(cont.) Hosting an annual January Summer Fashion week. Total Cost $1.1m


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How• Offer prizes for the top three fashions in the categories, each for

women and men:– Evening wear– Day wear– Swim wear– Casual wear– Sports wear

• Cost $250KWhy• To encourage photo-opportunities in appropriate settings in Dubai

(Famous hotels, Shopping, Beaches, Marinas and Golf courses)• Magazine circulation estimated at 26m (18m readership)• TV coverage – news bulletins, fashion programs. Estimated reach

113m

Strategy 3 (cont.)Hosting an annual January Summer Fashion week. Total Cost $1.1m


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How• Promotional packages will be offered to leading tour

companies to coincide with the events (Cost $200K)• Leading commentators and opinion leaders will be offered

special rates• Generic Quarterly Pan-European advertising in all colour

supplements (cost $800k)Why• To generate interest and excitement about the forthcoming

events• To encourage them to promote the events• Our events must be advertised. Quarterly communication

will maintain awareness

Strategy 4Pan-European Advertising & Promotions(Cost $200K)


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INVESTMENT FOR THE FUTURE

$m

Set up costs • Desert Safari & Bedouin Nights 22.5

Annual Running costs:• Desert Safari & Bedouin Nights 5.0• Wine Festival 1.3• Fashion week 1.1• Pan-European promotion 1.0

Total annual costs 8.4


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PR COVERAGE MEANS VISITORS

Extra Visitors(‘000)

PR Coverage(m)

Safari & Bedouin nights

40 22

Wine festival 20 16

Fashion week 25 31

Totals 85 69


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Fun in the Sun

• With all the key concerns of potential European visitors With all the key concerns of potential European visitors addressed, namelyaddressed, namely

• Safety• Relaxed alcohol laws• Relaxed dress codes• We predict the target of

150,000 visitors will be easily exceeded


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Ferrara Footwear

Distribution Review


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Agenda

• Market position• Business configuration• New distribution imperative• Options available• Strategies

To grow profits and sales by 10% annually


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Fastest growing shoe company

• Ferrara’s business is concentrated in North and Central Italy, which accounts for 72% of the total Italian domestic shoe market

• It has grown its share of the market from 9% to 15% over three years

• Last year the company achieved $52m profit before tax on $326m Sales

• The plan is to increase this by at least 10% annually over the next 3 years


MenuQuality products from a loyal, productive workforce

• The company enjoys higher than average productivity due to less time lost per annum in industrial action (2% v 11% national ave)

• The workforce is highly skilled due to low staff turnover with average tenure of 12 years

• The company has always prided itself on its excellent workforce producing our quality range of male and female fashion, leisure and sports footwear


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Organised for direct distribution

Lorries/Trucks & Drivers 100

Sales 50

Marketing 15

Manufacturing, Admin, Accounts & Distribution

2,000

TOTAL Headcount 2,165

The total annual payroll is $33m


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Multiples provide 55% of profit

• A highly profitable export business relying on distributors contributes 5% to Sales generating 10% of Profits

• 5,000 Independent retailers account for 25% of Sales and 35% of Profits

• Four main retail chains with 2,500 outlets account for 70% of Sales and 55% of Profits


MenuDistribution change threatens current success

• Due to economies of scale, the four chain retailers wish to move to centralised warehousing and distribution, within 3 months– they are requesting a 15% reduction in cost price

• They will only source from suppliers conforming to the new system

• Contributing 55% of our profits, we cannot afford to refuse them

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MenuChange will cause surplus resources

DISTRIBUTION Current System Proposed System

Multiple 2,500 4

Independents 5,000 5,000

Total Outlets 7,500 5,004

• Under this system, 70% of Ferrara’s turnover will go to 4 distribution points, rather than 2,500.

• We will have 350 excess people, 25 trucks & drivers and 4000sqm warehouse space.


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Redundancy a last resort

• With a heavily unionised workforce and long tenure (12 years), redundancy costs will be huge (estimated at $5m).

• Redundancies also open the company up to the threat of industrial action amongst employees, impacting productivity and distribution . . .


MenuIndependent distributors must be protected

• 5,000 independent retailers will be concerned about increased competitiveness of Multiples

• They are more vulnerable to industrial action than the 4 Multiples

• It is essential that we retain their goodwill & current service levels.


MenuMarket areas for growth can be explored

• We have only 15% of our main market (North and Central Italy)

• We have a 1% SOM in South Italy with a market valued at $1Bn.

• Exports to EU and USA via distributors are highly profitable. We should consider a more proactive policy

• 70% of our main customers have expressed positive interest in our experimental “Ferarra for Kids” range


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Ferarra’s Pivotal Question

• How can we re-deploy our surplus distribution resources to

• satisfy the demands of the multiples, • maintain service levels to the independents• develop opportunities for new products and

new markets without impacting employee relations and maintaining sales and market share growth?


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We can grow profits to at least $62m next year and satisfy the four multiples by

• Developing South Italy• Building on our export success• Growing our main market with new product

lines• Underpinning product and market

diversification by retraining and relocating surplus staff


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Mericana Football Club

The team of the third millennium

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Today’s Agenda

• Club aims• Review of club history• Challenges faced • Options for progress• Strategic recommendations for your approval

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Aiming for the top

• Our mission is to be Brazils most profitable & successful club both on and off the field

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Prestigious History

• 3 League Championships• Won FA cup twice• S. American Cup winners in 1990• Best supported club in Brazil

– 45k per game V's 38k league average

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Community focus gives us pool of new talent

• Support RDA ‘Sport in Community’ programme

• Good source of youth talent• Respected as focal point in high unemployment

area

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Value pricing fills 51k capacity stadium

• 10k seats @ $15 (Vs $20 at other clubs)• 41K standing @ $10 (Vs $15)• 20 Home games per season

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Balanced cash flow

• $10m per season from ticket sales• $20m from sale of youth talent to European

leagues• Paid off loans & funded minor ground

improvements• No overdraft or external investment

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Poor team performance

• Bottom half of league with no trophies for 8 years

• Players too old due to policy of selling youth to fund cash flow

• Buoyant transfer market fuelled by European salary explosion

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MenuDeclining Supporters = Declining Revenue

• Last years crowd of 45k was down from 50k in previous years

• Next years season ticket sales down 25%• Projecting 30% loss of revenue ($3m) if we do

not improve on field performance.

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MenuFans demand $30m investment in new talent

• We need a minimum of 6 top quality players• Average cost per player = $5m• This equates to 3 years ticket sales revenue

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We must have all seating stadium within 2 years

• Law change after stadia disasters• 80% of our ground is terracing• Conversion of standing to seats will cost $18.5m

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RDA insist on 51k capacity = $25m investment

• Fears of vote loosing if capacity reduced• Want MRFC to remain focal point• We will need more land & brand new facility -

estimate $25m cost

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Raising ticket prices is not an option

• Area of high unemployment• We have a long history of supporting our

community, not ripping them off• Alternate sources of finance are required

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Other clubs have taken a commercial route

• Sponsorships are readily available at both local & international levels

• Merchandising of kit and other items can be very lucrative

• Satellite & cable TV companies are buying up rights (Av. Deals = $15m p.a.)

• Food concessions are low risk/high yield• Many European clubs have gone public

C


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There is talent available in the market

• Rivaldo is a local boy who would return to Brazil for love not money

• Most of the Man. UTD squad prefer the sun to an English winter

• Many German players are shell shocked following England’s stunning 5-1 victory & are seeking somewhere to recuperate

C


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• How can we generate an additional $55m without increasing ticket prices in order to:– Improve team performance – Comply with the law change – Satisfy the RDA requirements for 51k capacity

• Exploiting the commercial opportunities available & our strong heritage

• so that we achieve our aim of being Brazils most successful club both on & off the field?

PQPQ


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MRFC can be top of the league within 2 years in a brand new 51k capacity stadium if we implement the following strategies:

1. Raise funds via: Sponsorship, TV rights, merchandising, Concessions & floatation

2. Commission Botchit & Scarper to build new stadium

3. Buy 6 top players from available pool of talent

4. Set up youth development programme

A


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Solko Soft Drinks

Putting the fizz in to Poland

Presentation to Rodski Holdings Board


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Today’s Agenda

• Solko aims• Review of company strengths• Challenges faced • Options for progress• Strategic recommendations for your approval

SS


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Corporate Aims

Our mission is to rejuvenate Solko to become a major player in the Polish Soft Drinks Market

SS


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Great tasting drinks with high awareness

• 3 core brands = 98% of volume (Cola, Orange & Lemonade) + 14 natural flavours, all in regular variants

• Most preferred taste (52% v 38% JoltCo)• Highest prompted awareness (57%)

SS


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Consistent growth in volume, turnover & profits

• Average growth 15% per annum• Last year 34m cases, $95.8m sales, $17.2m

profit, 6.7% Share of market.

SS


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Strong in most profitable channels

• Specialise in 1Ltr glass returnable bottles as result of $3m production investment in 1996

• Complimented by 33cl cans• 65% of volume & 75% of profits from bars &

kiosks

SS

Causal Chain


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Market shift nullified glass strategy

• We opted for glass at the same time JoltCo launched plastic in 1, 1.5 & 2Ltr sizes.

• Market changed overnight (plastic now outsells glass 3:1)

• RHP board lost all confidence in Solko

CC


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No confidence = no investment in growth areas

• Diet is 34% of market (from 8% in ’95) – we are only in regular

• Vending grown 15 fold & is double margin ($6 per case) but we are only testing

• Supermarket sales have doubled whilst bars & kiosks (our traditional strengths) are virtually static

CC


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We are losing market share & internal credibility

• 70% growth in last 4 years – we’ve not kept pace

• Share down from 9.5% in ‘96 to 6.7%• 4 GM’s in 3 years, best sales staff have left,

remainder de-motivated

CC


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Growth opportunities abound

• Soft drink market to grow at 25% pa for next 5 years

• Poland’s consumption less than half US & below W. European levels

• JoltCo alienated the trade by refusing packaging demands for large sizes (3 & 4ltr)

CC


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Major capital expenditure not an option

• We must find low cost options to enter the growth areas

• Plasbotski contract bottlers could package large plastic varieties under licence

• Vendco operate a managed service for their 300k machines nationwide

CC


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How can we develop a low risk entry in to the growth areas of the soft drink market in order to:– Restore board confidence

– Improve staff morale

– Reverse market share decline

And achieve our mission of rejuvenating Solko to become a major player in the Polish Soft Drinks Market?

PQPQ


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Solko can become market leader in Poland within 5 years, with annual profits of $100m, if we implement the following:

• Develop diet variants of our top 3 flavours

• Produce plastic packaging via licence agreement with Plasbotski

• Use Vendco to distribute to Vending sector

• Restructure & re-motivate the sales-force

AA


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Presentation to Robin HoodCharter Consultants

MCIIVC


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Agenda

We will be covering the following matters:• A review of political situation and your

progress to date;• The main problems that you now face;• Our recommendation;• A detailed action plan for your aproval;

All dedicated to achieving your main aim of a normal life in a just society for you and your Merrie Men.

S


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Unjustly outlawed in Richards absence

• Good King Richard captured one year ago, and there is no early prospect for his release.

• Consequently, Prince John, cruel insecure, greedy, and untrustworthy, is the Regent.

• The Sheriff of Nottingham, oppressive, corrupt and unjust is Prince John’s representative, and it was your defiance of the Sheriff’s injustice that caused him to declare you outlaw, three years ago.

S


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3 YEARS CONTINUOUS GROWTH

• Your protest has won you many loyal followers and renown as a daring, strong leader.

• Your policy “rob rich to give to poor” ensures the loyalty the poor.

• As a result, you have best intelligence network in the country with 130 spies giving reliable information about all travellers and especially the Sheriff and his men.

• Your food stocks for the winter are secure.

S


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LARGEST OUTLAW EMPLOYER IN ENGLAND

• Your reputation has enabled you to develop the band from nothing to over 1,000 followers.

• You have four excellent lieutenants, and have developed a good functional organisation, with 250 active fighters, backed by 750 supporters.

• Your able support services produce excellent weapons, mead and beer, with a potential income of 16,800 Marks a year.

S

Causal Chain


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Victim of your own success

• Too rapid recruitment has lead to lack of control:– Discipline problems;– Unreliable types, spies and thieves;

• Not only do these discipline problems distract you and your key lieutenants, but they endanger the lives of all, and are detracting from your main activities of foiling the Sheriff and aiding the poor.

C


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VULNERABLE TO ATTACK

• Concentrated in one area, your camp is too easy to find and defend.

• The large numbers make your band cumbersome.Together, these factors make you very vulnerable to

surprise attack.• The Sheriff grows stronger than you, day-by-day.

Moreover, your intelligence reliably informs you that the Sheriff is known to be planning a Spring attack. Killing him is not a serious option as this would cause Prince John to simply replace him and or to launch massive reprisals.

There is no prospect of a pardon from either the Sheriff or Prince John without totally compromising your principles - something we are sure you will never do - and in any case, neither can be trusted to honour any agreement.

C


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Summer food shortages

• Your large band is has over-hunted the local forest and as a result your men have to travel further for food.

• Your numbers require large supplies of provisions, and these require scarce wagons for transport.

• The only people that have such resources are the prince regent, the high sheriffs & some mighty barons.

C


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Facing negative cash flow in 1 year

• Rich people (your main source of income) avoiding forest causing declining revenues - a deficit of 2000 Marks is forecast for 1194

C


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Richard holds the key to your pardon

The Barons, recognising your loyalty to King Richard have, made an approach:

• They used Maid Marion, whom they trust, as a go-between;

• They are asking for your help in raising 30,000 Marks towards the ransom for the release of Big Dick in Austria.

• This will take 2 years to raise;• Secrecy is essential, as they risk their

entire families if Prince John discovers them.

C


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TIME IS THE MAIN ENEMY

• The prospect of cash, food and logistic problems, with the band large and unwieldy, beset by discipline problems, means that unless you do something radical before spring you are almost certain to be attacked and possibly defeated.

• But there are some hopeful signs and opportunities that we think you can build upon:

Spr

ing

Sum

mer

Win

ter

Aut

umn

Spr

ing

Sum

mer

Win

ter

Aut

umn

Spr

ing

Sum

mer

Win

ter

Aut

umn

Spr

ing

Sum

mer

Win

ter

Aut

umn

1192 1193 1194 1195

Big

Dic

k in

N

ick

Thi

s pr

esen

tati

on

She

riff

’s

atta

ck

Sup

plie

s ex

haus

ted

Ran

som

C

olle

cted

Big

Dic

k ou

t of

Nic

k

C

Run

out

of

cash


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THERE ARE OPPORTUNITIES FOR TRADE

• Your Band produces some excellent products which, if you had the capability to distribute them, would greatly alleviate your cash flow problems:

• Forest Beer and Honey Mead with ready markets in Sheffield, York and Leeds;

• Quality weapons that Baron Fortmain is desirous of buying;

C


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PIVOTAL QUESTION

The question you must ask yourself, Robin, is,How can you restructure your band of Merrie

Men so as to • Remove the band’s vulnerability/disorder• Avoid attack by the Sheriff;• Restore your incomes to provide for the poor

and contribute to the ransom;• Ensure food and other supplies for the bandat the same time as you,• develop markets for your products;• Secretly exploit the opportunity of the Barons’

recognition of your loyalty to King Richard;so that you can achieve a normal life in a fair

society?

PQ


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ANSWER

You can achieve your ambitions of a normal life with Maid Marion in a castle, with horses, serfs, ten kids, and the occasional crusade against the French by pursuing the following strategies:

• Reorganising the band into five groups.• Increasing your revenues.• Making a deal with the Barons.

A


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Reorganise the band into five groups

HOW• Assign 50 men to yourself and each of your

key lieutenants.WHY• You have four trusted lieutenants who have

all-around abilities.• The groups will be more mobile, thereby

easily escaping the Sheriff. The entire band cannot be trapped.

• To survive you must avoid an outright confrontation with the Sheriff.

RE


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HOW• Send four groups to the four corners of the

forest.WHY• You will stop over-hunting parts of the forest.• Each group will be able to seek out travellers

avoiding the direct routes through the forest. Income will increase 70% to eliminate your operating deficit.

• You will be able to maintain your help for the poor ensuring their support.

RE


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HOW• Retain 50 of the most trusted people under

your direct command.WHY• You must be protected.• You need to maintain confidential

communications with your lieutenants.HOW• Use Much Miller’s network as couriers

between the bands.WHY• Communications are the key to control.

RE


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Increase your revenues

HOW• Acquire the six wagons requested by Friar Tuck via trade

with barons.WHY• You need to get your products to market.HOW• Do a deal to supply Baron Fortemain with weapons at a

discount..WHY• He has expressed strong interest in arming his men with

your weapons.• When the other Barons see Fortemain getting too strong

they will want to arm their men to the same standard.• Each sale will bring in revenues. We estimated an annual

profit of 12 ,000 Marks.

RE


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HOW• Barter the first two shipments of arms to the

Barons in exchange for wagons.WHY• The Barons are the only available source for

wagons and will want your weapons.• Research shows that one load of arms

exchanges for three wagons.

RE


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HOW• Reposition the forest beer as “Outlaw Micro-

Brew Ale” and sell it and the Honey Mead in the towns.

WHY • Micro-Brew is a real 12 Century buzz word.• We forecast a demand for real ale.• “Outlaw” gives it a wide appeal to the

rebellious youth.• Honey mead is the ideal accompaniment to

venison.

RE


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HOW• Deliver the Outlaw Micro-Brew and Honey

Mead to the main towns around Sherwood Forest using the wagons.

WHY• You have a ready market and the products will

raise 18,000 Marks a year.• In two years you can deliver 30,000 Marks to

the Barons.

RE


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Making a deal with the Barons

HOW• Use Maid Marion as a go-between.WHY• The Barons obviously trust her, as do you, and

secrecy is imperative.• Marion will think you are wonderful.HOW• Use the funds raised from selling weapons

and booze as your contribution to the fund.WHY• You must make a positive contribution to

show commitment.

RE


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Making a deal with the Barons

HOW• Demand a written covenant, declaring the

loyalty and innocence of you and your band your contribution of 30,000 Marks to the Free Richard fund.

WHY• You must have guarantees that will ensure

you get a pardon when Richard returns: enforcing it on Richard’s release will restore you and your followers to a normal life.

RE


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HOW IT ALL WORKS

• The Merrie Men are secure and well-supplied for two years.

• The poor will continue to think you are wonderful.• The Barons will think you are wonderful.• The King will think you are wonderful and will have

to pardon you.• Marion will know you are wonderful.• You will be able to:

– Buy a fancy castle or two; – Own shares in a couple of viable businesses with a well-

trained workforce;– Afford to marry Marion;– Have lots of kids,

and have time to slip away for the occasional foray abroad.

RE


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Causal ChainsCausal Chains

What causes this problem?

What does this problem

cause?

Can we fix these?

What are the consequences?

What if we do nothing?

So, what options do we have?


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Insight Insight

into into

IssuesIssues


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Causal Chains

Why do them?

• To understand all the issues and the consequences of each one;

• to see how they relate (if at all) to one another;

• to identify any common issues;

• to explore options; to derive the main action for the Pivotal Question.

In the last resort, you are seeking to solve the current problems.


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Take a current (pressing) problem or crisis point that needs fixing - any problem will do! Do the same with any other current problems.

There is little to be gained by fixing the current problems if they are just the symptoms of a deeper, root problem; conversely, there is no point trying to fix an underlying issue if the current problems are likely to be fatal (because of, say, time constraints, or other factors, e.g., money) before underlying issues can be dealt with.

Causal Chains


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Business RealitiesIf you cannot explain the consequences

you do not understand the issue

If you cannot live with the consequences of an issue

you must identify and fix the cause

If you cannot fix the cause

you must find an alternative way to avoid the consequences

If you cannot fully expose the consequences

your answer will be incomplete and thereby flawed


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Avoid jumping to conclusions. Go step by step.

Avoid emotive or judgemental words:

Instead of •Use

Band too big Size of band

Redundant staff Surplus staff

Prices too high Product pricing


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Stop Direct Distribution

Rising costs

Wage InflationFuel

Costs Spiral

Board decision

Lower costs

Brand Building

Lose 80% AvailabilityNegative PR

threat

AIM: Maintain FGD’s Market Leadership

Savings not realised

No re-investment in

brands

Budget at risk

Back


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Visitors (90K) down 40% vs. target (150K) Dubai associated with

“Muslim fundamentalism” & “ME terrorism”

Visitors prefer Tunis & Morocco

Do nothing

AIM: to establish Dubai as a major European tourist winter

destination

Investors deterred

No Growth

Back

Europeans unaware of

liberal laws & dress codes

Events seen as narrow

elitist

Events do not illustrate liberalism


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All-seater stadium in 2 years

Mission: to be Brazils most profitable & successful football club both on and off the field

Poor team performance

Lower turnout of supporters50K – 45K

Lower season ticket sales

Lower season ticket sales

Not winning – sinking in the

leagues

Lower revenues and profits

Fans demand (5) new

players Cost $30m

Revamp to 36K seats

(cost $18m)

RDA veto: want 51k

Build new 51,000 seater

stadium

Cost circa $30m

Change in Law

Sale of young players

Do nothing

Closed down

Back


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Robin Hood

Causal Chains


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food shortage Start with a current Start with a current

problemproblem

Start with a current Start with a current problemproblem

You are looking for any [common] issues that you can deal with; trying to understand the consequences of

each problem; and exploring possible options (including, e.g., “do nothing”

so that you can close off non-starters) or solutions.

AIM: Normal Life in a Just Society for RH and his MM


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food shortage

A normal life in a fair & just society

What directly causes the food shortage?



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food shortage

over-hunting

What directly causes Over-hunting?



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food shortage

over-hunting

lack of mobility

What directly causes The lack of mobility?



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food shortage

over-hunting

lack of mobility

size of camp

What does the food shortage directly cause?



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food shortage

over-hunting

lack of mobility

size of camp


do nothing

What does the food shortage cause if you

do nothing?



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food shortage

over-hunting

lack of mobility

size of camp


do nothing

collapse

What options are there?



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food shortage

over-hunting

lack of mobility

size of camp


do nothing

?collapse

What other options are there?



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food shortage

over-hunting

lack of mobility

size of camp


do nothing

disbandcollapse

What other options are there?



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food shortage

over-hunting

lack of mobility

size of camp


do nothing

disband

sub-divide ?

collapse



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food shortage

over-hunting

lack of mobility

money shortage

size of camp

do nothing

disband

sub-divide ?

collapse

What directly causes the money shortage?



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food shortage

over-hunting

lack of mobility

money shortage

rich detouring

size of camp

do nothing

disband

sub-divide ?

collapse



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food shortage

over-hunting

lack of mobility

money shortage

rich detouring

size of camp

do nothing

disband

sub-divide ?

collapse

increased expense

giving to poor



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food shortage

over-hunting

lack of mobility

money shortage

rich detouring

increased expense

giving to poor

size of camp


do nothing

disband

sub-divide ?

collapse

size of camp



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food shortage

over-hunting

lack of mobility

size of camp


do nothing

disband

sub-divide ?

collapse

money shortage

rich detouring

increased expense

giving to poor

size of camp

lack of discipline

?



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food shortage

over-hunting

lack of mobility

size of camp

lack of discipline

indiscriminate recruitment

rapid growth


do nothing

disband

sub-divide ?

collapse

money shortage

rich detouring

increased expense

giving to poor

size of camp

size of camp



Menu

food shortage

over-hunting

lack of mobility

sheriff's attack

size of camp

lack of discipline


rapid growth

do nothing

disband

sub-divide ?

collapse

money shortage

rich detouring

increased expense

giving to poor

size of camp

size of camp

?



Menu

food shortage

over-hunting

lack of mobility

sheriff's attack

size of camp

lack of discipline


rapid growth


do nothing

disband

sub-divide ?

collapse

money shortage

rich detouring

increased expense

giving to poor

size of camp

size of camp

getting stronger

?



Menu

food shortage

over-hunting

lack of mobility

sheriff's attack

size of camp

lack of discipline


rapid growth


do nothing

disband

sub-divide ?

collapse

money shortage

rich detouring

increased expense

giving to poor

size of camp

size of camp

getting stronger

can launch

surprise attack

?



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food shortage

over-hunting

lack of mobility

sheriff's attack

camp easy to

find ?

size of camp

lack of discipline


rapid growth

do nothing

disband

sub-divide ?

collapse

money shortage

rich detouring

increased expense

giving to poor

size of camp

size of camp

getting stronger

can launch

surprise attack



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food shortage

over-hunting

lack of mobility

sheriff's attack

getting stronger

can launch

surprise attack

camp easy to

find lack of mobility

size of camp

lack of discipline


rapid growth

do nothing

disband

sub-divide ?

collapse

money shortage

rich detouring

increased expense

giving to poor

size of camp

size of camp

size of camp



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food shortage

over-hunting

lack of mobility

sheriff's attack

size of camp

lack of discipline


rapid growth

do nothing

disband

sub-divide ?

collapse

money shortage

rich detouring

increased expense

giving to poor

size of camp

size of camp

? ?

getting stronger

can launch

surprise attack

camp easy to

find lack of mobility

size of camp



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You can start further back, but the logic can lead you down long unproductive dead-ends, or cause you to overlook current problems and the chain can get very unwieldy. Nevertheless, it does work: here is the Robin Hood Causal Chain starting with the underlying issue of being made an outlaw

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?

made outlaw

?



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?

made outlaw

corrupt sheriff


?



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?

made outlaw

corrupt sheriff

greedy PJ

You can start with any of these, but the action

“made outlaw” is the onethat affects Robin



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?

made outlaw

corrupt sheriff

greedy PJ ?



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?

made outlaw

corrupt sheriff

greedy PJ KR in prison



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?

needed support

made outlaw

corrupt sheriff

greedy PJ KR in prison



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rapid growth

needed support

made outlaw

corrupt sheriff

greedy PJ

?

KR in prison



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rapid growth

needed support

made outlaw

corrupt sheriff

greedy PJ

?

large camp

KR in prison

You now have to start digging to

find the problems that the large

camp causes – not as easy as working back

from the current problems



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rapid growth

needed support

made outlaw

corrupt sheriff

greedy PJ


? large camp

KR in prison



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rapid growth

needed support

made outlaw

corrupt sheriff

greedy PJ


thieves & spies large camp

KR in prison

?



Menu

rapid growth

needed support

made outlaw

corrupt sheriff

greedy PJ



KR in prison


lack of mobility?



Menu

rapid growth

needed support

made outlaw

corrupt sheriff

greedy PJ



KR in prison


?

lack of mobility

rich detour



Menu

rapid growth

needed support

made outlaw

corrupt sheriff

greedy PJ



KR in prison

money shortage

lack of mobility

rich detour

?



Menu

rapid growth

needed support

made outlaw

corrupt sheriff

greedy PJ



KR in prison

money shortage

lack of mobility

rich detour

lack of mobility



Menu

rapid growth

needed support

made outlaw

corrupt sheriff

greedy PJ



?

KR in prison

money shortage

lack of mobility

rich detour

lack of mobility



Menu

rapid growth

needed support

made outlaw

corrupt sheriff

greedy PJ



KR in prison

money shortage

lack of mobility

rich detour

lack of mobility

over- hunting



Menu

rapid growth

needed support

made outlaw

corrupt sheriff

greedy PJ



KR in prison

money shortage

lack of mobility

rich detour

lack of mobility

over- hunting ?



Menu

rapid growth

needed support

made outlaw

corrupt sheriff

greedy PJ



KR in prison

Food shortagemoney

shortage

lack of mobility

rich detour

lack of mobility

over- hunting



Menu

rapid growth

needed support

made outlaw

corrupt sheriff

greedy PJ



?

lack of mobility

KR in prison


Food shortagemoney

shortage

lack of mobility

rich detour

over- hunting



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rapid growth

needed support

made outlaw

corrupt sheriff

greedy PJ



easy to find

lack of mobility ?

KR in prison


Food shortagemoney

shortage

lack of mobility

rich detour

over- hunting



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rapid growth

needed support

made outlaw

corrupt sheriff

greedy PJ



money shortage

lack of mobility Sheriff's

attack

KR in prison


Food shortage

lack of mobility

rich detour

easy to find

over- hunting

Back



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ferrara footwear

The starting point here is the demand by the 4

multiples for the distribution to be

consolidated


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ferrara footwear

The starting point here is the demand by the 4

multiples for the distribution to be

consolidated


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Central distribution 2,500 down to 4

Do nothing

Revenue & profits down

Lose multiples

Economies of scale

Surplus staff & resources

Do nothing

Costs up

Redundancy?

Redundancy circa 300, cost $1.5m

Strike

Pre-set objectives: Increase Ferrara profits by 10% year on year

Re-deploy?

Domestic market

Southern Italy

Export

New products

Rabbit: this cannot zoom in out of nowhere – you would have to set it up in opportunities

Back

Service to independents suffers


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Not in growth areas(diet, Plastic,

Supermarkets)

Our mission is to rejuvenate Solko to become a major player in the Polish Soft Drinks Market

Solko’s big problem is that they have lost the confidence of their parent company & therefore have not had the investment to compete in the growth areas of the Polish soft drink Market. This case is a good example of a complication not being a change, i.e. their problems stem from a bad decision several years ago, which has resulted in under-investment. They therefore must seek to regain board confidence to obtain investment in the growth sectors via low risk strategies.

No Investment

Low confidence from board

Misread market trends Competition opened plastic market

Missing profit opportunities

Do nothing

Niche player in declining market

sector

High staff turnover

Low Morale Declining Market share

Back


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Plans are devised in order to make progress. Progress can only be achieved by doing something – taking action, making changes. In any organisation all actions must relate to (or be constrained by) one, or a combination, of the following:

People:

Customers, markets, employees, competition, government, opinion-makers

Assets (tangible or intangible):

Plant, machinery, hardware, products, raw materials, software, know-how, patents, copyrights, goodwill

Cash

Cash, money bank balances, borrowings, loans, equity

Time

The time available or the time needed to undertake any action

PROGRESS


MenuMAIN ACTION

•People

– hiring, firing, retiring, reorganising (variants: re-engineering, redeploying, managing, de-layering)

•Assets

– buying, selling, increasing, reducing (variants: replacing, modernising, revamping, de-bottlenecking)

Money

– Raising, investing, increasing, reducing (variants: equity, loans, capitalising, focusing, refocusing)

•Time

– Opportunities and threats always have a time element (variants: now, timely, urgently)

The main action will be a word from one (or more) of the the four categories that reflects any common issues that underlie the current

problems or crisis points

Documents

Copyright © 1993-2008 SCQuARE International Limited Menu SCQuARE ® MODEL ANSWERS & TEMPLATES