Business Model Sample - 2013

Presented by :Shereef Abdelmalek, MBA, MIS, Eng.

Presentation Content :

1- Structure& Organization Vision.

2- Wholesale and Retail Operations & Associated Business

Channels' Vision.

3- ABCO Business Model & Roadmap.

1- SME sample Structure& Organization VisionBusiness model core points & key middle management positions:

1- Modular Wholesale and Retail structure using modular business units approach.

2- Coordinator, Admin.& HR Specialist reporting to the General Manager& coordinates with Retail and

Wholesale with back office Operations .

3- Business Channels & Below the Line Marketing Specialist (Marketing& comm. Specialist) reporting to

the General Manager& coordinates with the Wholesale and Retail Departments.

4- HR, Business Operations & Internal Corp. Communication Manager reporting to the GM& coordinates

with the Back office operational departments and Sales Departments (Wholesale and Retail) .

5- IT Specialist reports to the GM& coordinates with the Wholesale and Retail Departments, the

Operation Manager& the HR Manager.

6- Training& People Development Specialist reporting to the HR Manager& coordinates with the Operation

Manager, the Wholesale and Retail Managers& the Financial Manager.

7- The five middle management positions in addition to the Wholesale and Retail modular structure

ensure efficiency, connectivity& dynamic business structure with organization grid Mapping.

ABCO Structure Q1/2013

CEO

Director of Operations & Development

Director of Production & New Projects

Chairman

GM

HR, Administration

& IT Dep.

Ware-House & Logistics

Finance & AccountingRetail Dep.

Wholesale Dep.

Production & Buying Dep.

Coordination & External Communication Supervisor

Coordination, Administration & Internal Communication Supervisor

Marketing, PR & Communications

New Projects

Unit

Wholesale Department Structure Q1/2013

GM

Wholesale Executive (UAE & GCC Market)

Wholesale Supervisor (UAE & GCC)

(Hyper, Market & Else)

Wholesale Executive (Hyper & UAE Market)

Wholesale Executive (Hyper & UAE Market)

KSA Sales OperationsCoordination & External

Communication Supervisor

Retail Department Structure Q1/2013

GM

Retail Manager (UAE)

SOMBRA Retail Stores (UAE)

Other Retail Concepts (UAE)

Coordination, Administration & Internal

Communication Supervisor

Production Department Q1/2013

Director of Production & New Projects

GM

Production & Buying Manager

Senior Buyer and/or Designer

Production & Buying

Coordinators

China Office Operations

Sales & Logistics Communications

Coordinator

ABCO Q1/2013 Structure Guiding Rules & Communication Lines

Temporary Structure Guidelines:1- Authority & Power Line.2- Authority Line.3- Two way communication Line.4- This temporary structure is valid until issue the final Hierarchy, structure &

Organization. (for a maximum period of 3 months)5- The Production and Buying Dep. To be issued separately after final revision

including China Production office within 30 days (before December 15th.)6- Two Vacant key positions (First is the coordination, administration and

Internal Communication Supervisor and acting as HR manager & the second is Marketing, PR & Communications Specialist acting as Marketing Manager.

7- This structure is going to be announced and activated starting Monday November 19th after final revision and approval from the CEO and Board of Directors.

8- The associated responsibilities and roles for the key positions to be issued separately later on based on the actual roles and responsibilities upon applying this structure.

1.1 Structure& Hierarchy Final VisionGeneral Manager

Financial Manager

Wholesale and Retail Managers

Head of Marketing & Operations

HR Manager

9Structure& Organization Vision

1.2 Marketing & Operation Section Final Vision

Head of Marketing & Operations

Business Operations & Internal Corp. Communication

Specialist

Business Channels& Below the line

marketingBusiness Unit Managers

Area or Group Managers

Accounts / Stores Managers

10Structure& Organization Vision

Customer Service & Experience

1.3 Wholesale and Retail Section

Wholesale & Retail Managers

Products & Brands

Specialists

Above the line marketing& External

corp. communication.(Accounts, Image,

Identity, Positioning, Public Promotions&

PR).

Foreign affairs&

Procurement management.

Supply Chain& Logistics

Management.

11Structure& Organization Vision

1.4 Financial Section

Financial Manager

Financial Analysis& Planning.

(Cash Flow, Budgets,

Profitability,…)

General Accounting & Reporting

Banking Operations.

(LCs, LGs, Loans,

Facilities,…)

Foreign Affairs

Financials

IT Manager

12Structure& Organization vision

1.5 HR& People Development Section

HR& People Development

Manager

HR Planning.(Manning

guide, grading,

competencies,…)

RecruitmentTraining& People Development

Personnel& Staff Affairs

Benefits& CompensationManagement

13Structure& Organization Vision

2- Wholesale and Retail Operations & Associated

Business Channels' Marketing Vision

Based on the modular Wholesale and Retail business units' concept with associated business channels.

Whole-sale & Trading Channels Structure and Breakdown (Sample)

Special Production & Import Channel

50%

Hyper Regular Channel

20%

Market (non-Hyper) Regular Channel

30%

Current (Panda KSA & Carrefour UAE)

25%

NEW prospects

(BMA, Red Tag, Land Mark, LULU, Coop. AD, Sanaa, Alnasr &

else)20%

New MENA and Global Prospects

5%

Current (Carrefour & Panda in GCC)

10%

New UAE prospects (spines, Coop AD,

Fatima, West Zone & others)

7%

Other MENA Hyper (Egypt, Sudan,

Morocco & KSA)3%

Local UAE Customers in 2 levels (24 cust.)

15%

GCC Customers (KSA, Kuwait & Oman)

7%

Trading and visiting customers

3%

2.1 Business Units Operational concept

1- Divide the current & Future Operations into 3: 5 Business Units based on (5) aspects:

- Current annual revenue per account(or expected annual

revenue for new& less than 1 year Accounts or Stores). (W&R)

- Account & Store average value per sold unit. (W&R)

- Account & Store location. (W&R)

- Total store area in square meters. (Retail)

- Store average annual revenue per square meters. (Retail)

RA Operation& Business Channels’ Marketing Structure 16

2.1 Business Units Operational concept“continued”

2- Each Business Unit Manager is going to Operate, Follow up & Audit’s assigned unit typical to the following STANDARDS :

- Business Unit segmentation typical to the previous Wholesale and Retail aspects considering business unit ‘s supply needs, manning& related general segmented marketing .

- Each business unit day to day operational standards considering following up Accounts, in- store daily operation, image, display, service, discounts, deals, daily problems solving, monthly achievements& daily supply needs.

- Wholesale and Retail day to day operational standards considering store and account Opening, shifts, display, supply needs, cleaning, uniform,…).

- Accounts & In-Store supply for arising& growing demands rapid handling.- Monitor the unit’s revenue, average value per unit, staff

performance& handle the Accounts and stores’ problems & arising needs.- Perform all essential training& orientation needs for both

managers& staff to ensure probe store performance, image, service& up selling procedures.

ABCO Operations& Business Channels’ Marketing Structure 17

2.2 Business Units Audit, Treasury, RMA& Efficiency

3- Business Unit periodic audit typical to unit’s revenue achievements, running operational cost, supply management, day to day performance.

4- Issue& apply distinct professional segmented below the line marketing plans (Presales business channels) to ensure business units targets achievement& revenue stability based on the concept illustrated on the wholesale and Retail business model.

5- Monitor and Manage business unit's revenue, cost of operation, treasury management& Risk management analysis.

6- Quarterly evaluate& update business unit’s distinct operation& general marketing plans to ensure optimum efficiency.

7- Annual audit, evaluation& revision considering the total units achievement and the related Treasury management& RMA.

ABCO Operations& Business Channels’ Marketing Structure 18

2.3 Wholesale and Retail Operations& Units’ Business Channels General Marketing Structure Abstract

• (3: 5) professional business units are going to be segmented, operated, followed up and audited as per the previous illustrated standards.

• Each business unit is going to manage, operate, monitor, enhance& develop the unit’s assigned accounts and stores typical to the accounts and in-store standards, supply needs& performance monitoring.

• Issue& apply a distinct segmented below the line marketing plan (presales business channels) per each business unit to ensure unit’s target achievement& revenue stability.

• Quarterly Monitor& Audit each unit’s periodic performance.

• Annual Treasury, RMA& efficiency analysis and management.

ABCO Operations& Business Channels’ Marketing Structure 19

3- ABCO Wholesale and Retail Business Model vision Abstract

Based on Modular Med. Scale Wholesale and Retail management connected to Supply

Chain management based on Hybrid dynamic Operations Libraries.

3. General Business Model Vision

ROADMAP

• Set up the Business Model. (Modular, Hybrid, Dynamic& Mapped)

• Analyze the Corporate Performance. (Audit, Resources, Calibers& SWOT)

• General Marketing vision overview. (ATL, BTL, Pro BTL& Comm. And PR)

• General Marketing vision aspects. (Operations, Analysis& Best Practices)

• Corporate Operations. (Process, Optimization, Libraries& Corrective Actions)

• People Development & the HR related tasks.(Competencies& learning curve)

• Quality of the performance. (Evaluation, Standards& Bench Marks)

ABCO Retail and Wholesale Business Model 15

3.1 Set up the Business Model– Set up the model based on the current market aspects, the corporate business sector, and its’

strategic target and allocated finance.

– Tailor the business model that fit the corporate structure and its’ strategic target.

– The corporate business model includes:1- Re-Set up the corporate vision& mission for its’ Strategy.

2- Business plan typical to the Master Plan associated with action plans for:

• General Marketing Section (Communication, advertising, segmented marketing channels, professional marketing channels).

• People Development & the HR related tasks (recruitment, training, manning guide, people communication & HR planning).

• Operation (all associated and related operations for corporate management & administration policies).

• Measure the quality KPIs of the performance.

• Evaluate and update action plans with BUP and Corrective Actions.

• Quarterly, Bi-annually, & annually monitoring& reporting.

ABCO Retail and Wholesale Business Model 22

3.1 Set up the Business Model“continued”

3- Identify the Corporate Business Channels associated with risk assessment for

each channel with risk management, and all required treasury analysis.

4- Business Channels forecasting.

5- All essential budgets allocation covering the corporate cost and Profit centers.

ABCO Retail and Wholesale Business Model 23

3.2 Analyzing Current Corporate Performance

• Audit the Current Business Channels, Corporate Identity& Current Market Positioning.

• Audit existing Internal & External corporate communications.

• Analyze current operations policies& procedures.

• Current structure efficiency concerning sections performance regarding main aspects (manning guide, salary scale, quality of recruitment…etc).

• Audit current financial structure efficiency and associated allocated budgets regarding corporate revenue.

• Evaluate current Business Channels efficiency.

ABCO Retail and Wholesale Business Model 18

3.3 General Marketing Vision Overview1st: Above the line marketing plan.2nd: Below the line marketing plan:

a- Below the line marketing activities.b- Indirect below the line marketing activities.c- Marketing communications plan.

General Retail fashion marketing strategy sample overview

Above the line Below the line(Advertising)

1- Outdoors.2- Newspapers& magazines ads. 3- Video (TV ads).4- Animation & generic E-marketing. Direct below the line Indirect below the line5- Events. (Segmented marketing) (Professional marketing)6- P.R & People communication.

* using filtered ranked database. 1- Marketing contracts1- SMS periodic (seasonal Campaigns). (Corporate, Associations, Federations,…)2- E-mailing periodic (seasonal Campaigns). 2- Marketing affinity Programs .3- VIP selected segment 3- Marketing protocols4- Direct mailing campaigns. 4- Marketing projects.5- Set of loyalty programs. 5- Market & competitors Analysis for awareness& positioning.

5.1 Retail club membership5.2 Retail ladies club..5.3 Retail youth club.5.4 VIP (extreme) club.

All based on added value services& pointing scheme.

ABCO Retail and Wholesale Business Model 19

3.4 Marketing Vision Overview Aspects

• Using below the line channels as pre-sales business channels to ensure growth rates, stability& achieving targeted revenue.

• Use the above the line channels to serve Identity, communications, branding& positioning (for both Corporate& Brands).

• Build the annual agenda based on (4) quarters all include marketing channels suitable to each quarter.

• Overall marketing budget starts with (10%) of the expected growth income in the 1st year then (8%) in the 2nd year and (7%) in the 3rd year.

• Ensure achieving strategic targets in sales, identity, image, positioning& enhancing business channels efficiency.

ABCO Retail and Wholesale Business Model 20

3.5 Corporate Operations

• Follow up the day to day operations.

• Set up the Customer service & care operations typical to Business Standards with Customer Experiences Libraries.

• Ensure proper performance in all corporate sections typical to its standards.

• Ensure on time Reporting & administrative work efficiency.

• Enhance Connectivity, communications & business roles.

ABCO Retail and Wholesale Business Model 21

3.6 People Development & HR Related Tasks

• Recruitment (staffing based on untraditional resources & outsourcing).

• Training & Orientations (based on operating section standards).

• Personnel & employees affairs.

• Set up the Benefits & compensation standards (including salary scale).

• Core Competencies, KPIs, Mapping & Balanced score cards.

• HR planning(JDs, manning guide, reporting lines& Succession Planning)

• Set up the internal corporate communications channels& Influencers.

ABCO Retail and Wholesale Business Model 22

3.7 Quality of the Performance

• Based on certain operational standard as six sigma (6 δ)standard concerning the environment& the culture of the targeted market.

• Ensure the proper performance of all Business Channels regarding marketing, sales, revenue and associated allocated budgets of each typical to its time frames and operational standards. (PMI Standard Implementation then 6 δ Operations with own Libraries and Practices)

ABCO Retail and Wholesale Business Model 23

Sample Budget Master StructureWholesale, Trading & Retail

37 % (9.25 million)Buying Budget

Wholesale, trading & Retail

7% Operations Budget

Wholesale, China & Retail

14%Manning & Staff Expenses

HO, Warehouses & Retail Stores

5%Rental, Deposits & Insurance

HO, Warehouses & Retail Stores

5%Decorations, Infra-structure & re-inov.

Wholesale, Retail & China

7%Marketing, Adv. & Comm.

Wholesale2%Sales Operations &Support

Wholesale & Retail6%Banking, financing & Risk

ABCO 2013 Expected Revenues & Net Profit

Net ProfitAmountsRevenue

Wholesale

Retail

Trading

Other Revenues

Growth Turn Over

“Small Consistent Steps …….

Make The Real Difference.”

“Down to Earth Operations …….

Up to The Sky Expectations”

Thank you