2Main Menu Hockey Tour One Chance Pitch Family Grocers Dubai Robin Hood Presentation to Bob to persuade him to let his wife join the Hockey TourOne Chance PitchSale & Marketing Presentation to Jim Albright for non-salary benefitsFamily GrocersDistribution plan for Family Grocers Division of Standard Products LtdDubaiPromotion plan for the Dubai Tourist BoardRobin HoodPlan to get Robin a normal lifeFerarraRestructuring plan arising from demands of multiple retailersSolkoRecovery plan for Solko Soft DrinksMericanaRecovery plan for Mericana Rio Football ClubCausal ChainsReview of Causal Chains
3Surbiton Women’s Hockey Club Presentation to Bob Scott
4Last 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 WightAt the same time, we will be going on our annual hockey tour to The Hague.
5Special 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 HagueThe EWHSF want to recognise Sue’s contribution to the sportOnly original team memberHas played in every eventGold medal planned for herClearly, both the organisers & Sue herself would be upset if she could not attend
6The question we must ask ourselves is: PQHow can we reschedule events so that:Sue plays a full role in your family holidayWhilst getting the recognition she deservesSo that you can enjoy a full family holiday?
7A Start holiday as planned 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 scheduleAStart holiday as plannedOn the Friday evening (night of the presentation dinner), we will fly you & your family (at our expense) to Holland.You will then be chauffeured to the Royal Nederlander Hotel, staying in your own suite.The family will be able to attend the presentation dinner & share in Sue’s awardWe will then fly you back to the Isle of Wight the following morning to continue your holiday.
9Presentation to Jim Albright Aim: To Stay Market Leader One Chance PitchSales & MarketingPresentation to Jim AlbrightAim: To Stay Market Leader
10Fantastic Results Last Year Sales last year totalled $804mProfits $90m, 9% up on budgetMarket Share 53% up 8% on last yearInflation was at 6%
11Aggressive Budget for This Year Sales Budget of $905 – up 15% on last yearProfits up 20% to $108mMarket Share static at 53%
12Best Sales Team in Country Based on a S&M team of 38 peopleAggressive, ambitious highly motivated teamRecruit the best: Graduates, MBA’s, pick of the best from variety of backgroundsTypically rewarded mid-Upper-Quartile plus:Annual profit bonusContributory pension,3weeks leave pa; 4 weeks after 10 years
13Cherry 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 targetThey are stealing our key staff offering salaries 20-30% greater than ours9 staff lost already6 more under offerWe are losing key informationKey contactsKnow-how, pricing and plansImpossible to recruit when major competitor is offering so much more
14First Quarter Results down 10% CFirst Quarter Results down 10%Cherry;s activities have impacted our results:1st Qtr Sales and profits are down 10% on last yearYear-end Forecast will be down a similar amount unless we take rapid actionWe must act now to reverse this situation
15Salary increases not an Option We will maintain the Main Board’s policy of not increasing salaries above inflationWe have examined alternative non-salary optionsThese have been reviewed with HR, MD and key staffWe need your sign-off to proceed
16PQHow can we remunerate our key staff without increasing salaries above inflation toRetain those currently under offerRecruit replacements for those already lostSo that we can get back on budget by the year end and maintain our position of Market Leader?
17We can achieve Sales of $905m and Profits of $108 by year-end if we Introduce short-term, self-financing bonusesCommit to longer-term loyalty programmes
19Standard Products Limited Family Grocers Division(FGD) Distribution planPresentation to the Executive Board
20Today’s Agenda S Market review. FGD’s market position & contribution to SPL.The changes required in distribution and the options.Strategies and Recommendations for approval.
21Aiming for profitable no.1 SSPL’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.
22Stretching budgetSAnnual 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.
23Large, Fragmented Market SFamily 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.
24Star 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.
25Availability 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.Causal Chain
26Board demands distribution savings for re-investment CThe 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.
27Walkers 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.
28We must steal shareCPressure from multiples is forecast to keep growth below 2% (ACN Economic Forecast).We cannot hit our stretching objectives via organic growth
29Combination 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.
30The question we must ask ourselves is: PQHow 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?
31A Nationwide distribution deals with, A loyalty-building promotion. 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:ANationwide distribution deals with,Patel InterCity Wholesalers;Smiths Cash & Carry chain;Rhonda’s Mobile Merchandising Group.A loyalty-building promotion.Investment in new display cabinets.
32STRATEGY 1: Nationwide distribution deals with Patel, Smiths and Rhonda’s. REPatel – we will sign a three-year rolling contract with two components:A minimum annual volume agreement;Joint funding of in-store promotion activity.HOW3 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 4,800Joint-funding will ensure that Patel implements our programmes to increase SOM.WHY
33RE HOW WHY FGD will commit to annual volume incentives for Patel: STRATEGY 1: Nationwide distribution deals with Patel. 1.1 Annual volume agreementREFGD 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.HOWPatel 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.WHY
34RE HOW WHY FGD commits to jointly promote retailer loyalty: STRATEGY 1: Nationwide distribution deals with Patel. 1.2 Joint funding of in-store promotion activity.REFGD 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.HOWJoint 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.WHY
35STRATEGY 2 Support distribution deals by investing in a high profile loyalty promotion backed by PR and advertising.REAir miles promotion based on individual purchases gaining in value over frequency of order and value:orders = 1 mile per $100.orders = 2 miles per $100.orders = 4 miles per $100.Total cost £3.2m over 3 years.HOWWalkers 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.WHY
36STRATEGY 2 Support distribution deals by investing in a high profile loyalty promotion backed by PR and advertising.RELaunch a PR programme costing $300K: hire Madhur Jaffrey the famous Indian actress and writer on Indian cooking to support the promotion with personal appearances.HOWRetaining 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.WHY
37RE HOW WHY Support promotion through advertising in: STRATEGY 2 Support distribution deals by investing in a high profile loyalty promotion backed by PR and advertising.RESupport 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.HOWOur 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.WHY
38STRATEGY 3 Retain and improve in-store presence by investing £800K in new display cabinets for stocking exclusivity.RECommission Watsons to manufacture 12,500 new upright, gravity-fed display units costing $800K in year 1 (net $400K with $400K from Patel).HOWMost 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 12,500WHY
39STRATEGY 3 Retain and improve in-store presence by investing $800K in new display cabinets for stocking exclusivity.REOffer units (through our two distribution agents) free to our customers in return for200 cases per annum commitment;Exclusivity of display for our products.Offer custom-built displays for Patel and Smiths.HOWDisplay 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.WHY
44Presentation to the Dubai Tourist Board DUBAI FUN IN THE SUN!Presentation to the Dubai Tourist Board
45AGENDA Dubai today Challenges of Tourism Proposals and Recommendations for approval
46BUILDING 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 earningsEasily accessibleDubai is less than six hours flight from most of Europe's major capital citiesEmirates – the flagship airline – serves all the major capitals of Europe with regular daily flights
47SUPERB INFRASTRUCTURE $50bn in the last 10 years has been invested on infrastructure – roads, airport, harbours and state of the art telecommunicationsIn 1999, the world’s tallest and most luxurious hotel - seventy-six stories – was completedThe new airport terminal, opened in March 2000 is state of the art, hassle-free and superbly equipped
48 NATURAL BEAUTY & GRACIOUS HOSPITALITY Dubai has 12 hours per day of Winter sunshine, & beautiful, unspoiled beaches and gracious Arab hostsSuperb snorkeling, Deep-sea fishing & magnificent desert scapesGracious Arab hospitalityBazaarsMedieval Arab townsDesert Oases
49 LIBERAL SAFE, AND SOPHISTICATED ENVIRONMENT The alcohol laws have long been liberalised so that they are now comparable with most Western countriesWestern dress is accepted and crime is minimal – visitors can wander unmolested and unhindered in most areasDubai has staged some elite major international events such as golf competitions & horse racing
50EVERY 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 aboundHotels, Nightclubs and shows to suit all pocketsFabulous shopping malls with duty free bargainsMarinas, racecourses, and magnificent green golf courses
51COMPETITION 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
52BACKERS NERVOUS2 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.
53ELITIST 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.
54MESSAGE NOT RECEIVED Recent surveys* reveal that most Europeans: Are unaware of Dubai's liberal alcohol lawsDo not know about the relaxed dress codeSee it as a luxury resort for wealthy Arabs onlyContinue to identify Dubai with the fundamentalism of Saudi Arabia or Iran, & fear Middle Eastern terrorism.*EuroSurveys: Dubai Holiday SurveyCausal Chain
55 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 fashionsWine growers in Australia, S America and S Africa have expressed interest in a winter wine festival
56How can the Dubai Tourist Board develop the appropriate marketing programs and associated awareness campaign to:OvercomeCompetition from Tunisia & MoroccoNervousness of backersThe perception that existing events are only for the “rich and famous”Low awareness of the alcohol and dress laws, and safe environmentExploitingThe growing International events calendarAnd achieve our budgeted visitors & revenues thus building a viable Winter tourist industry?
57Dubai can become a major winter holiday destination for Europeans, achieving 150,000 visitors & $500m revenue annuallyby staging events that differentiate Dubai (from its neighbours) as a liberal and hospitable country:Setting up a Desert Safari & Bedouin Nights theme attractionSponsoring a (pre-Christmas) Southern Hemisphere wine festivalHosting a January Summer Fashion weekPan-European Advertising & Promotions
58Strategy 1 Setting up a Desert Safari & Bedouin Nights theme attraction HowSetting up a Desert Safari & Bedouin Nights theme attraction (Cost $22.5m - $5m annual cost).WHYWe will be able to showcase all the different coastal, mountain and desert landscapes Day & night time attraction Wide appeal (not elitist) Demonstrates liberal laws & fun Estimated additional 40k visitors each winter
59Strategy 1 Setting up a Desert Safari & Bedouin Nights theme attraction HowAppoint 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)WhyHe has experience in 2 major European attractions (Disney Europe & the Dome), is well respected & immediately availableShowcases culture & heritage. Offers authentic travel or comfort options. Minimal set up costs & lead time.
60Cost $20m, timescale 12 months. (see full project plan in Appendix 1) Strategy 1 Setting up a Desert Safari & Bedouin Nights theme attractionHowBedouin Night attraction to includeValentino 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)WhyValentino 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.
61Strategy 2 Sponsoring an annual December (pre-Christmas) Southern Hemisphere wine festival. Total cost: $1.36mHowSponsoring an annual December (pre-Christmas) Southern Hemisphere wine festival. Total cost: $1.36mWhyAustralian, Chilean, Argentinean and South African Wine growers will have their latest summer offerings available. All produce top-quality winesThe Southern Hemisphere countries will want to sell to Europeans for the Christmas seasonThere is currently no venue for these growersWine will attract an up-market European interest (incremental 20k visitors) and demonstrate Dubai’s liberal alcohol lawsIt will get free coverage in the leading TV food and drink programs and Sunday Specials (estimated TV viewing 14m; circulation 24m, readership 12m)
62Appoint a Wine Week Director (cost $150K) Strategy 2 (cont.) Sponsoring an annual December (pre-Christmas) Southern Hemisphere wine festival. Total cost: $1.36mHowAppoint 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 winesWhyTo 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 festivalYou want a variety of quality wines represented
63Stage rounds in different Dubai Hotels (cost $400K) Strategy 2 (cont.) Sponsoring an annual December (pre-Christmas) Southern Hemisphere wine festival. Total cost: $1.36mHowOffer 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)WhyTo ensure that as many growers as possible leave with a prize. TV coverage 14m. Sunday Specials coverage 26mTo secure wide coverage of the attractions offered in DubaiTo showcase the best hotel in the country
64Strategy 3 Hosting an annual January Summer Fashion week. Total Cost $1.1m HowHosting an annual January Summer Fashion week. Total Cost $1.1mWhyTargets 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 fashionsThe event will give Dubai an opportunity to show-case the wonderful hotels and demonstrate their relaxed dress codesIt will secure massive photo-coverage of in-door and out-door locations
65Recruit a fashion week director & team (cost $500K) Strategy 3(cont.) Hosting an annual January Summer Fashion week. Total Cost $1.1mHowRecruit 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)WhyTo ensure the event is well-managedTo ensure that their magazines give full coverage of the event. To agree rules of decorumTo ensure a glamorous event, attracting TV and magazine coverage
66Magazine circulation estimated at 26m (18m readership) Strategy 3 (cont.) Hosting an annual January Summer Fashion week. Total Cost $1.1mHowOffer prizes for the top three fashions in the categories, each for women and men:Evening wearDay wearSwim wearCasual wearSports wearCost $250KWhyTo 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
67Strategy 4 Pan-European Advertising & Promotions(Cost $200K) HowPromotional packages will be offered to leading tour companies to coincide with the events (Cost $200K)Leading commentators and opinion leaders will be offered special ratesGeneric Quarterly Pan-European advertising in all colour supplements (cost $800k)WhyTo generate interest and excitement about the forthcoming eventsTo encourage them to promote the eventsOur events must be advertised. Quarterly communication will maintain awareness
68INVESTMENT FOR THE FUTURE Set up costsDesert Safari & Bedouin NightsAnnual Running costs:Desert Safari & Bedouin Nights 5.0Wine Festival 1.3Fashion week 1.1Pan-European promotion 1.0Total annual costs 8.4
69PR COVERAGE MEANS VISITORS Extra Visitors(‘000)PR Coverage(m)Safari & Bedouin nights4022Wine festival2016Fashion week2531Totals8569
70We predict the target of 150,000 visitors will be easily exceeded Fun in the SunWith all the key concerns of potential European visitors addressed, namelySafetyRelaxed alcohol lawsRelaxed dress codesWe predict the target of 150,000 visitors will be easily exceeded
73Agenda Market position Business configuration New distribution imperativeOptions availableStrategiesTo grow profits and sales by 10% annually
74Fastest growing shoe company Ferrara’s business is concentrated in North and Central Italy, which accounts for 72% of the total Italian domestic shoe marketIt has grown its share of the market from 9% to 15% over three yearsLast year the company achieved $52m profit before tax on $326m SalesThe plan is to increase this by at least 10% annually over the next 3 years
75Quality 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 yearsThe company has always prided itself on its excellent workforce producing our quality range of male and female fashion, leisure and sports footwear
76Organised for direct distribution Lorries/Trucks & Drivers100Sales50Marketing15Manufacturing, Admin, Accounts & Distribution2,000TOTAL Headcount2,165The total annual payroll is $33m
77Multiples provide 55% of profit A highly profitable export business relying on distributors contributes 5% to Sales generating 10% of Profits5,000 Independent retailers account for 25% of Sales and 35% of ProfitsFour main retail chains with 2,500 outlets account for 70% of Sales and 55% of Profits
78Distribution change threatens current success Due to economies of scale, the four chain retailers wish to move to centralised warehousing and distribution, within 3 monthsthey are requesting a 15% reduction in cost priceThey will only source from suppliers conforming to the new systemContributing 55% of our profits, we cannot afford to refuse themCausal Chain
79Change will cause surplus resources DISTRIBUTIONCurrent SystemProposed SystemMultiple2,5004Independents5,000Total Outlets7,5005,004Under 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.
80Redundancy 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 . . .
81Independent distributors must be protected 5,000 independent retailers will be concerned about increased competitiveness of MultiplesThey are more vulnerable to industrial action than the 4 MultiplesIt is essential that we retain their goodwill & current service levels.
82Market 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 policy70% of our main customers have expressed positive interest in our experimental “Ferarra for Kids” range
83Ferarra’s Pivotal Question How can we re-deploy our surplus distribution resources tosatisfy the demands of the multiples,maintain service levels to the independentsdevelop opportunities for new products and new markets without impacting employee relations and maintaining sales and market share growth?
84We can grow profits to at least $62m next year and satisfy the four multiples by Developing South ItalyBuilding on our export successGrowing our main market with new product linesUnderpinning product and market diversification by retraining and relocating surplus staff
86Mericana Football Club SMericana Football ClubThe team of the third millennium
87Today’s Agenda Club aims Review of club history Challenges faced Options for progressStrategic recommendations for your approval
88SAiming for the topOur mission is to be Brazils most profitable & successful club both on and off the field
89Prestigious History 3 League Championships Won FA cup twice S. American Cup winners in 1990Best supported club in Brazil45k per game V's 38k league average
90Community focus gives us pool of new talent Support RDA ‘Sport in Community’ programmeGood source of youth talentRespected as focal point in high unemployment area
91Value pricing fills 51k capacity stadium 10k $15 (Vs $20 at other clubs)41K $10 (Vs $15)20 Home games per season
92Balanced cash flow $10m per season from ticket sales $20m from sale of youth talent to European leaguesPaid off loans & funded minor ground improvementsNo overdraft or external investmentCausal Chain
93CPoor team performanceBottom half of league with no trophies for 8 yearsPlayers too old due to policy of selling youth to fund cash flowBuoyant transfer market fuelled by European salary explosion
94Declining Supporters = Declining Revenue Last years crowd of 45k was down from 50k in previous yearsNext years season ticket sales down 25%Projecting 30% loss of revenue ($3m) if we do not improve on field performance.
95Fans demand $30m investment in new talent CFans demand $30m investment in new talentWe need a minimum of 6 top quality playersAverage cost per player = $5mThis equates to 3 years ticket sales revenue
96We must have all seating stadium within 2 years CWe must have all seating stadium within 2 yearsLaw change after stadia disasters80% of our ground is terracingConversion of standing to seats will cost $18.5m
97RDA insist on 51k capacity = $25m investment Fears of vote loosing if capacity reducedWant MRFC to remain focal pointWe will need more land & brand new facility - estimate $25m cost
98Raising ticket prices is not an option Area of high unemploymentWe have a long history of supporting our community, not ripping them offAlternate sources of finance are required
99Other clubs have taken a commercial route Sponsorships are readily available at both local & international levelsMerchandising of kit and other items can be very lucrativeSatellite & cable TV companies are buying up rights (Av. Deals = $15m p.a.)Food concessions are low risk/high yieldMany European clubs have gone public
100There is talent available in the market CThere is talent available in the marketRivaldo is a local boy who would return to Brazil for love not moneyMost of the Man. UTD squad prefer the sun to an English winterMany German players are shell shocked following England’s stunning 5-1 victory & are seeking somewhere to recuperate
101The question we must ask ourselves is: PQThe question we must ask ourselves is:How can we generate an additional $55m without increasing ticket prices in order to:Improve team performanceComply with the law changeSatisfy the RDA requirements for 51k capacityExploiting the commercial opportunities available & our strong heritageso that we achieve our aim of being Brazils most successful club both on & off the field?
102Commission Botchit & Scarper to build new stadium MRFC can be top of the league within 2 years in a brand new 51k capacity stadium if we implement the following strategies:Raise funds via: Sponsorship, TV rights, merchandising, Concessions & floatationCommission Botchit & Scarper to build new stadiumBuy 6 top players from available pool of talentSet up youth development programme
103Putting the fizz in to Poland Presentation to Rodski Holdings Board Solko Soft DrinksPutting the fizz in to PolandPresentation to Rodski Holdings Board
104Today’s Agenda S Solko aims Review of company strengths Challenges facedOptions for progressStrategic recommendations for your approval
105Corporate AimsSOur mission is to rejuvenate Solko to become a major player in the Polish Soft Drinks Market
106Great tasting drinks with high awareness 3 core brands = 98% of volume (Cola, Orange & Lemonade) + 14 natural flavours, all in regular variantsMost preferred taste (52% v 38% JoltCo)Highest prompted awareness (57%)
107Consistent growth in volume, turnover & profits Average growth 15% per annumLast year 34m cases, $95.8m sales, $17.2m profit, 6.7% Share of market.
108Strong in most profitable channels Specialise in 1Ltr glass returnable bottles as result of $3m production investment in 1996Complimented by 33cl cans65% of volume & 75% of profits from bars & kiosksCausal Chain
109Market shift nullified glass strategy CWe 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
110No confidence = no investment in growth areas Diet is 34% of market (from 8% in ’95) – we are only in regularVending grown 15 fold & is double margin ($6 per case) but we are only testingSupermarket sales have doubled whilst bars & kiosks (our traditional strengths) are virtually static
111We are losing market share & internal credibility 70% growth in last 4 years – we’ve not kept paceShare down from 9.5% in ‘96 to 6.7%4 GM’s in 3 years, best sales staff have left, remainder de-motivated
112Growth opportunities abound CSoft drink market to grow at 25% pa for next 5 yearsPoland’s consumption less than half US & below W. European levelsJoltCo alienated the trade by refusing packaging demands for large sizes (3 & 4ltr)
113Major capital expenditure not an option We must find low cost options to enter the growth areasPlasbotski contract bottlers could package large plastic varieties under licenceVendco operate a managed service for their 300k machines nationwide
114The question we must ask ourselves is: PQHow can we develop a low risk entry in to the growth areas of the soft drink market in order to:Restore board confidenceImprove staff moraleReverse market share declineAnd achieve our mission of rejuvenating Solko to become a major player in the Polish Soft Drinks Market?
115A Develop diet variants of our top 3 flavours Solko can become market leader in Poland within 5 years, with annual profits of $100m, if we implement the following:ADevelop diet variants of our top 3 flavoursProduce plastic packaging via licence agreement with PlasbotskiUse Vendco to distribute to Vending sectorRestructure & re-motivate the sales-force
117Presentation to Robin Hood Charter ConsultantsMCIIVC
118Agenda 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.
119Unjustly 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.
1203 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.
121LARGEST 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.Causal Chain
122Victim 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.
123VULNERABLE TO ATTACKCConcentrated 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.
124Summer food shortagesCYour 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.
125Facing 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
126Richard 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.
127TIME IS THE MAIN ENEMYCThe 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:Big Dick out of NickSupplies exhaustedRansom CollectedBig Dick in NickThis presentationSheriff’s attackRun out of cash1192119311941195SpringSummerAutumnWinterSpringSummerAutumnWinterSpringSummerAutumnWinterSpringSummerAutumnWinter
128THERE ARE OPPORTUNITIES FOR TRADE CYour 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;
129PIVOTAL QUESTION PQ The question you must ask yourself, Robin, is, How can you restructure your band of Merrie Men so as toRemove the band’s vulnerability/disorderAvoid 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?
130ANSWERAYou 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.
131Reorganise the band into five groups HOWAssign 50 men to yourself and each of your key lieutenants.WHYYou 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.
132Reorganise the band into five groups HOWSend four groups to the four corners of the forest.WHYYou 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.
133Reorganise the band into five groups HOWRetain 50 of the most trusted people under your direct command.WHYYou must be protected.You need to maintain confidential communications with your lieutenants.Use Much Miller’s network as couriers between the bands.Communications are the key to control.
134Increase your revenues HOWAcquire the six wagons requested by Friar Tuck via trade with barons.WHYYou need to get your products to market.Do a deal to supply Baron Fortemain with weapons at a discount..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.
135Increase your revenues HOWBarter the first two shipments of arms to the Barons in exchange for wagons.WHYThe Barons are the only available source for wagons and will want your weapons.Research shows that one load of arms exchanges for three wagons.
136Increase your revenues HOWReposition the forest beer as “Outlaw Micro-Brew Ale” and sell it and the Honey Mead in the towns.WHYMicro-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.
137Increase your revenues HOWDeliver the Outlaw Micro-Brew and Honey Mead to the main towns around Sherwood Forest using the wagons.WHYYou 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.
138Making a deal with the Barons REHOWUse Maid Marion as a go-between.WHYThe Barons obviously trust her, as do you, and secrecy is imperative.Marion will think you are wonderful.Use the funds raised from selling weapons and booze as your contribution to the fund.You must make a positive contribution to show commitment.
139Making a deal with the Barons REHOWDemand a written covenant, declaring the loyalty and innocence of you and your band your contribution of 30,000 Marks to the Free Richard fund.WHYYou 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.
140HOW IT ALL WORKSREThe 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.
141Causal Chains What does this problem cause? What if we do nothing? What are the consequences?So, what options do we have?Causal ChainsWhat causes this problem?Can we fix these?
143Causal 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.
144Causal ChainsTake 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.
145Business Realities If you cannot If you cannot If you cannot explain the consequencesyou do not understand the issueIf you cannotlive with the consequences of an issueyou must identify and fix the causeIf you cannotfix the causeyou must find an alternative way to avoid the consequencesIf you cannotfully expose the consequencesyour answer will be incomplete and thereby flawed
146Instead of Use Avoid jumping to conclusions. Go step by step. Avoid emotive or judgemental words:Instead ofUseBand too bigSize of bandRedundant staffSurplus staffPrices too highProduct pricing
148AIM: Maintain FGD’s Market Leadership Budget at riskNo re-investment in brandsBrand BuildingSavings not realisedLower costsLose 80% AvailabilityNegative PR threatStop Direct DistributionBoard decisionRising costsWage InflationFuel Costs SpiralBack
149AIM: to establish Dubai as a major European tourist winter destination Investors deterredNo GrowthDo nothingVisitors (90K) down 40% vs. target (150K)Dubai associated with “Muslim fundamentalism” & “ME terrorism”Visitors prefer Tunis & MoroccoEvents seen as narrow elitistEuropeans unaware of liberal laws & dress codesEvents do not illustrate liberalismBack
150Mission: to be Brazils most profitable & successful football club both on and off the field Fans demand (5) new players Cost $30mLower revenues and profitsCost circa $30mRDA veto: want 51kNot winning – sinking in the leaguesLower season ticket salesBuild new 51,000 seater stadiumDo nothingClosed downRevamp to 36K seats (cost $18m)Lower turnout of supporters50K – 45KLower season ticket salesAll-seater stadium in 2 yearsPoor team performanceChange in LawSale of young playersBack
152AIM: Normal Life in a Just Society for RH and his MM 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.Start with a currentproblemfood shortage
153A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MMfood shortageWhat directly causesthe food shortage?
154AIM: Normal Life in a Just Society for RH and his MM food shortageover-huntingWhat directly causesOver-hunting?
155AIM: Normal Life in a Just Society for RH and his MM food shortageover-huntinglack of mobilityWhat directly causesThe lack of mobility?
156AIM: Normal Life in a Just Society for RH and his MM What does the foodshortage directly cause?food shortageover-huntinglack of mobilitysize of camp
157A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MMWhat does the foodshortage cause if youdo nothing?do nothingfood shortageover-huntinglack of mobilitysize of camp
158A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MMcollapseWhat optionsare there?do nothingfood shortageover-huntinglack of mobilitysize of camp
159A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MM?collapseWhat other optionsare there?do nothingfood shortageover-huntinglack of mobilitysize of camp
160A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MMdisbandcollapseWhat other optionsare there?do nothingfood shortageover-huntinglack of mobilitysize of camp
161? A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MMdisbandcollapsedo nothingsub-divide?food shortageover-huntinglack of mobilitysize of camp
162AIM: Normal Life in a Just Society for RH and his MM disbandcollapsedo nothingsub-divide?food shortagemoney shortageWhat directly causesthe money shortage?over-huntinglack of mobilitysize of camp
163AIM: Normal Life in a Just Society for RH and his MM disbandcollapsedo nothingsub-divide?food shortagemoney shortageover-huntingrich detouringlack of mobilitysize of camp
164AIM: Normal Life in a Just Society for RH and his MM disbandcollapsedo nothingsub-divide?food shortagemoney shortageover-huntingrich detouringgiving to poorlack of mobilityincreased expensesize of camp
165? A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MMdisbandcollapsedo nothingsub-divide?food shortagemoney shortageover-huntingrich detouringgiving to poorlack of mobilityincreased expensesize of campsize of camp
166? A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MMdisbandcollapsedo nothingsub-divide?food shortagemoney shortagelack of disciplineover-huntingrich detouringgiving to poor?lack of mobilityincreased expensesize of campsize of camp
167? A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MMdisbandcollapsedo nothingsub-divide?food shortagemoney shortagelack of disciplineover-huntingindiscriminate recruitmentrich detouringgiving to poorlack of mobilityrapid growthincreased expensesize of campsize of campsize of camp
168? AIM: Normal Life in a Just Society for RH and his MM disband collapsedo nothingsub-divide?food shortagemoney shortagelack of disciplinesheriff's attackover-huntingrich detouringgiving to poorindiscriminate recruitment?lack of mobilityrapid growthincreased expensesize of campsize of campsize of camp
169? A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MMdisbandcollapsedo nothingsub-divide?food shortagemoney shortagelack of disciplinesheriff's attackover-huntingindiscriminate recruitmentrich detouringgiving to poorgetting strongerlack of mobilityrapid growthincreased expense?size of campsize of campsize of camp
170? A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MMdisbandcollapsedo nothingsub-divide?food shortagemoney shortagelack of disciplinesheriff's attackover-huntingrich detouringgiving to poorindiscriminate recruitmentgetting strongerlack of mobilityrapid growthcan launch surprise attackincreased expensesize of campsize of campsize of camp?
171? AIM: Normal Life in a Just Society for RH and his MM disband collapsedo nothingsub-divide?food shortagemoney shortagelack of disciplinesheriff's attackover-huntingindiscriminate recruitmentrich detouringgiving to poorgetting strongerlack of mobilityrapid growthcan launch surprise attackincreased expensesize of campsize of campsize of campcamp easy to find?
172? AIM: Normal Life in a Just Society for RH and his MM disband collapsedo nothingsub-divide?food shortagemoney shortagelack of disciplinesheriff's attackover-huntingrich detouringgiving to poorindiscriminate recruitmentgetting strongerlack of mobilityrapid growthcan launch surprise attackincreased expensesize of campsize of campsize of campcamp easy to findsize of camplack of mobility
173? AIM: Normal Life in a Just Society for RH and his MM disband collapsedo nothingsub-divide???food shortagemoney shortagelack of disciplinesheriff's attackover-huntingindiscriminate recruitmentrich detouringgiving to poorgetting strongerlack of mobilityrapid growthcan launch surprise attackincreased expensesize of campsize of campsize of campcamp easy to findsize of camplack of mobility
174You 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 outlawBack
175AIM: Normal Life in a Just Society for RH and his MM ?made outlaw?
176A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MM?made outlawcorrupt sheriff?
177AIM: Normal Life in a Just Society for RH and his MM ?You can start with any ofthese, but the action“made outlaw” is the onethat affects Robinmade outlawcorrupt sheriffgreedy PJ
178AIM: Normal Life in a Just Society for RH and his MM ?made outlawcorrupt sheriffgreedy PJ?
179AIM: Normal Life in a Just Society for RH and his MM ?made outlawcorrupt sheriffgreedy PJKR in prison
180AIM: Normal Life in a Just Society for RH and his MM ?needed supportmade outlawcorrupt sheriffgreedy PJKR in prison
181AIM: Normal Life in a Just Society for RH and his MM ?rapid growthneeded supportmade outlawcorrupt sheriffgreedy PJKR in prison
182AIM: Normal Life in a Just Society for RH and his MM ?large campYou now have to start digging to find the problems that the large camp causes – not as easy as working back from the current problemsrapid growthneeded supportmade outlawcorrupt sheriffgreedy PJKR in prison
183AIM: Normal Life in a Just Society for RH and his MM indiscriminate recruitment?large camprapid growthneeded supportmade outlawcorrupt sheriffgreedy PJKR in prison
184AIM: Normal Life in a Just Society for RH and his MM indiscriminate recruitmentthieves & spieslarge camp?rapid growthneeded supportmade outlawcorrupt sheriffgreedy PJKR in prison
185A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MMindiscriminate recruitmentthieves & spieslarge camplack of mobility?rapid growthneeded supportmade outlawcorrupt sheriffgreedy PJKR in prison
186A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MMindiscriminate recruitmentthieves & spieslarge camprich detourlack of mobilityrapid growth?needed supportmade outlawcorrupt sheriffgreedy PJKR in prison
187AIM: Normal Life in a Just Society for RH and his MM indiscriminate recruitmentthieves & spieslarge camp?rich detourlack of mobilityrapid growthmoney shortageneeded supportmade outlawcorrupt sheriffgreedy PJKR in prison
188AIM: Normal Life in a Just Society for RH and his MM indiscriminate recruitmentthieves & spieslarge camplack of mobilityrich detourlack of mobilityrapid growthmoney shortageneeded supportmade outlawcorrupt sheriffgreedy PJKR in prison
189AIM: Normal Life in a Just Society for RH and his MM indiscriminate recruitmentthieves & spieslarge camplack of mobilityrich detourlack of mobilityrapid growthmoney shortage?needed supportmade outlawcorrupt sheriffgreedy PJKR in prison
190AIM: Normal Life in a Just Society for RH and his MM indiscriminate recruitmentthieves & spieslarge camplack of mobilityrich detourlack of mobilityrapid growthover- huntingmoney shortageneeded supportmade outlawcorrupt sheriffgreedy PJKR in prison
191AIM: Normal Life in a Just Society for RH and his MM indiscriminate recruitmentthieves & spieslarge camplack of mobilityrich detourlack of mobilityrapid growthover- huntingmoney shortage?needed supportmade outlawcorrupt sheriffgreedy PJKR in prison
192AIM: Normal Life in a Just Society for RH and his MM indiscriminate recruitmentthieves & spieslarge camplack of mobilityrich detourlack of mobilityrapid growthover- huntingFood shortagemoney shortageneeded supportmade outlawcorrupt sheriffgreedy PJKR in prison
193A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MMindiscriminate recruitment?thieves & spieslarge camplack of mobilityrich detourlack of mobilityrapid growthover- huntingFood shortagemoney shortageneeded supportmade outlawcorrupt sheriffgreedy PJKR in prison
194A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MMindiscriminate recruitmenteasy to findthieves & spieslarge camplack of mobility?rich detourlack of mobilityrapid growthover- huntingFood shortagemoney shortageneeded supportmade outlawcorrupt sheriffgreedy PJKR in prison
195A normal life in a fair & just society AIM: Normal Life in a Just Society for RH and his MMindiscriminate recruitmenteasy to findthieves & spieslarge camplack of mobilitySheriff's attackrich detourlack of mobilityrapid growthover- huntingFood shortagemoney shortageneeded supportmade outlawcorrupt sheriffBackgreedy PJKR in prison
196ferrara footwearThe starting point here is the demand by the 4 multiples for the distribution to be consolidated
197ferrara footwearThe starting point here is the demand by the 4 multiples for the distribution to be consolidated
198Pre-set objectives: Increase Ferrara profits by 10% year on year Service to independents suffersRevenue & profits downDomestic marketSouthern ItalyExportNew productsStrikeCosts upRedundancy circa 300, cost $1.5mRe-deploy?Do nothingRedundancy?Lose multiplesSurplus staff & resourcesRabbit: this cannot zoom in out of nowhere – you would have to set it up in opportunitiesDo nothingCentral distribution 2,500 down to 4Economies of scaleBack
199Our mission is to rejuvenate Solko to become a major player in the Polish Soft Drinks Market Niche player in declining market sectorLow MoraleDeclining Market shareSolko’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.Do nothingHigh staff turnoverMissing profit opportunitiesNot in growth areas(diet, Plastic, Supermarkets)No InvestmentLow confidence from boardMisread market trendsCompetition opened plastic marketBack
200PROGRESSPlans 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-makersAssets (tangible or intangible):Plant, machinery, hardware, products, raw materials, software, know-how, patents, copyrights, goodwillCashCash, money bank balances, borrowings, loans, equityTimeThe time available or the time needed to undertake any action
201MAIN ACTIONThe 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 pointsPeoplehiring, firing, retiring, reorganising (variants: re-engineering, redeploying, managing, de-layering)Assetsbuying, selling, increasing, reducing (variants: replacing, modernising, revamping, de-bottlenecking)MoneyRaising, investing, increasing, reducing (variants: equity, loans, capitalising, focusing, refocusing)TimeOpportunities and threats always have a time element (variants: now, timely, urgently)