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Strategy Development

Situation

  • The client is a leading distributor of frozen drink products.
  • The market had been growing rapidly and forecasts were for continuing long-term growth.
  • The business is now highly profitable, though the number of retailers consolidating may push distributors out of business in future.

Goal

  • To develop a corporate strategy for the holding and its business units, as well as designs for their structure and transition plans.

Our approach

  • A five-year forecast constructed to enable changes in profitability to be understood in the basic business models for all segments of the market
  • As part of a brain storming session, the company’s future direction identified. Following this, the company’s management selected six business models united by four possible development strategies.
  • These strategies were analyzed from the point of view of their potential to increase value, ease of implementation and risk. Three strategies – key for the development of the company’s business – were chosen.
  • Thorough analysis of the businesses showed that in each of them there was a clear strategy that would best allow for the creation of the maximum potential value to the business.
  • In combination with the strategy, a financial model was built able to forecast the company’s financial and operational indicators.
  • An operational model was developed for the entire organization to meet the strategy, along with a temporary transitional model for the nearest future.
  • A strategy realization plan was developed and agreed on with the necessary managers, along with control points and indicators based on the financial model.

Results

  • The strategy was adopted by the shareholders and key managers of the company in full when presented by the Board of directors.

 

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