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Long-Term Development Strategy

Situation

  • The company occupies a key position in Moscow’s heating market and is one of the largest global energy firms
  • The key problems hindering development were unfavourable tariff regulations, operational inefficiency and a lack of diversification in the enterprise’s profitable activities

Goal

  • To assess the current condition of the business, and highlight the strengths and weaknesses in the business
  • Analyzed the availability and feasibility of opportunities to diversify and expand geographical coverage
  • To analyze the best practice in the sector and assess the possibilities for these practices to be adopted by the client
  • To provide expert opinion on the initiatives to increase operational efficiency as proposed by the client’s management
  • To assess the potential to increase the company’s value. To assess risks and the company’s attractiveness to investors
  • To develop a plan of moving to the business’s aimed-for model

Our approach

  • Analyzed the existing business model and the company’s positioning on the market, assessing its strong and weak points in the light of international experience
  • Analyzed the possibilities to increase operational efficiency, diversify, and bring changes to integrate the production chain and widen the scale of operations
  • Developed a financial and economic model to assess the various development alternatives: diversification into various related businesses, and the possibilities of merging with other companies in the housing sector
  • Developed a detailed plan for the enterprise in order to achieve the strategy

Results

  • Developed strategy for the firm’s long-term growth, guaranteeing increase in the company’s value by reducing the burden on the city budget and providing high-quality heating
  • Developed action plan providing responsibilities and KPIs for achievement of the project based on the following development directions: guaranteeing quality heat supplies, increasing the efficiency of internal processes and systems, active participation in shaping the regulation shaping the system, and also diversification into the regions

 

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