Flevy strat dev discussion deck

Strategy DevelopmentDiscussion Deck Template

This is a discussion deck template for a corporate strategy development session. In this discussion, we go through a 2-prong approach to growth and evaluate the merits of various growth drivers. From the 2-prong approach, various scenarios can be generated in the discussions and dashboards are used to evaluate each scenario.

Flevy (www.flevy.com) is a marketplace for business documents—specifically, documents used by folks who work in a business function (e.g.Marketing, Corporate Finance, IT, etc.). These documents can range from Excel Financial Models to customizable PowerPoint Templates to "How-To" Business Frameworks.

Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn.

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•[email protected]

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http://www.flevy.com/

http://flevy.com/function/Marketing-Strategy

http://flevy.com/function/Corporate-Finance

Contents

•Introduction to Prong 1 and Prong 2 Concept

•Prong 1 Overview

•Prong 1 Scenarios

•Prong 2 Overview

•Prong 2 Scenario

Introduction to Prong 1 and Prong 2 (1 of 3)

TODAY TOMORROW DAY AFTER

OPTION A

Boost performance of existing business model

(STAY WITH THE CORE)

OPTION BFirst, boost

performance of existing business model

(STAY WITH THE CORE)

Next, transform the business into aTechnology Manufacturing Company

(GO FOR MORE)

OPTION C

Immediately transform the business into a Technology Manufacturing Company

(GO FOR MORE)

• COMPANY can either work on boosting the performance of its core business and let the business continue as is

• This is LOW RISK

• COMPANY can further the first option by transforming the business into a Technology Manufacturing Company for sustainable growth

• This is MEDIUM RISK• The final option is for COMPANY to immediately begin its transformation into a Technology Manufacturing Company

• This is HIGH RISK

Highurgency


Our options essentially boil down into 2 sets of scenarios:Stay with the Core (AKA Prong 1)

Go for More (AKA Prong 2)

PRONG 1

Stay with the Core•Continue to develop COMPANY’s core business of ible circuits

•Any potential M&A will be a tuck-in•The primary objective is to boost the performance of COMPANY’s existing business model, which is an immediate need

PRONG 2

Go for More•Extend beyond the core business of ible circuits

•Any M&A will operate outside the current organization

•The primary objective is to grow COMPANY’s portfolio of offerings and transform it from a ible circuits manufacturer to a Technology Manufacturing Company


Manufacturing& Operations

Process & ProductEngineering Customers

Our business has 3 primary drivers of value—these drivers provide a framework to evaluating growth and transformation

scenarios

• We are nearing its manufacturing capacity, so there is an impending need to expand capacity—either through building a new plant or acquiring one

• We currently have process and engineering IP associated with ible circuit products

• To transform into a competitive Technology Manufacturing Company, we should increase our process and product engineering IP

• We have great customers, including the 2 largest customers

• However, on of our biggest risks is also customer concentration, with 1 contributing 80% of our gross margin

Contents


•Prong 1 Overview


•Prong 2 Overview

•Prong 2 Scenario

Prong 1 – Stay with the Core

PRONG 1

Stay with the Core

How should we grow?

Grow organically

Grow inorganically

What do we acquire?


Process & Product

EngineeringManufacturing& Operations

EXAMPLE 1Stick to your knitting, grow organically

EXAMPLE 2Stick to your

knitting, acquire facility

EXAMPLE 3Stick to your

knitting, acquire like company

Acquire facility

Acquire like company

ScenariosExample 1: Stick to your knitting, grow organically

PRONG 1

Stay with the Core

PRONG 2

Go for More

STAY THE COURSE



EXISTING EXISTING EXISTING

Reaches capacity limits due to organic growth—build new plantrication facility

Organic growth of customers if incremental (and not proportional to the increase in capacity)

Benefi

t

ScenariosExample 2: Stick to your knitting, acquire facility

PRONG 1

Stay with the Core

PRONG 2

Go for More

XXXX MODEL




Acquire new circuit plant to meet growing capacity demands for COMPANY’s existing products

Acquired plant also brings new customers

Benefi

t

ScenariosExample 3: Stick to your knitting, acquire like company

PRONG 1

Stay with the Core

PRONG 2

Go for More

XXXX MODEL




Acquire a new plant that can produce COMPANY’s current circuit products, as well as new related products

Acquired plant also brings new customers

New plant brings engineering capabilities beyond circuits

Benefi

t

Contents


•Prong 1 Overview


•Prong 2 Overview

•Prong 2 Scenario

Scenarios<SCENARIO X> Dashboard

PRONG 1

Stay with the Core

PRONG 2

Go for More

IMPACT ON CORE DRIVERS OF VALUE



OVERVIEW

FINANCIAL ANALYSIS

• Filler text• Filler text• Filler text





CORE OBJECTIVES Revenue growth 1 3 4 5 (Highest)

Margin growth 1 2 3 5 (Full satisfaction)

CORPORATE RISKS Direct labor unrest 1 2 3 4 5 (Full

satisfaction) Customer concentration 1 2 3 4 5 (Full

satisfaction) Pricing and margin pressures 1 2 3 4 5 (Full

satisfaction) Technology innovation 1 3 4 5 (Full

satisfaction) Talent management, BCP 1 2 3 4 5 (Full

satisfaction) TECH MFG COMPANY 1 2 3 4 5 (Full

satisfaction)

EVALUATION CRITERIA

DASHBOARDTEMPLATE FOR

PRONG 1 SCENARIOS

Contents


•Prong 1 Overview


•Prong 2 Overview

•Prong 2 Scenario

Prong 2 – Go for More

Grow inorganically

Process & Product

Engineering

EXAMPLE 4Transform the business, extending

your value chain

Extend Manufacturing Capabilities Financial

buy

PRONG 2

Go for More

What is our strategic

goal?


Extend Design/Engineering

Capabilities ?

ScenariosExample 4: Transform the business, extending our value chain

PRONG 1

Stay with the Core

PRONG 2

Go for More

CISCO MODEL




Acquire new company with existing manufacturing facilities and capabilities; and management team and capabilities

Acquired company brings IP and engineering capabilities

Acquired company has existing established customer base

NEW NEW NEW

Manufacturingsynergies

Engineering & IP synergies

Customer base synergies

Contents


•Prong 1 Overview


•Prong 2 Overview

•Prong 2 Scenario

Scenarios<SCENARIO X> Dashboard

PRONG 1

Stay with the Core

PRONG 2

Go for More

IMPACT ON CORE DRIVERS OF VALUE

CORE OBJECTIVES Revenue growth 1 3 4 5 (Full

satisfaction) Margin growth 1 2 3 5 (Full

satisfaction) CORPORATE RISKS Direct labor unrest 1 2 3 4 5 (Full

satisfaction) Customer concentration 1 2 3 4 5 (Full

satisfaction) Pricing and margin pressures 1 2 3 4 5 (Full

satisfaction) Technology innovation 1 3 4 5 (Full

satisfaction) Talent management, BCP 1 2 3 4 5 (Full

satisfaction) TECH MFG COMPANY 1 2 3 4 5 (Full

satisfaction)

EVALUATION CRITERIA



OVERVIEW

FINANCIAL ANALYSIS






DASHBOARDTEMPLATE FOR

PRONG 2 SCENARIOS

Flevy (www.flevy.com) is a marketplace for business documents—specifically, documents used by folks who work in a business function (e.g.Marketing, Corporate Finance, IT, etc.). These documents can range from Excel Financial Models to customizable PowerPoint Templates to "How-To" Business Frameworks.

Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn.

Contact UsPlease contact us with any questions you may have about our company.

•General Inquiries [email protected]

•Media/PR [email protected]

•[email protected]

Write to UsFlevy.com 315 W. 33rd St., Ste. 35C New York, NY 10001

Flevy strat dev discussion deck

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