cambridge elite business circle

Elite Cambridge Business Circle

Presented By : Michael Carr

©Carr Management Consultants 2011

What do you mean by Strategy?

Business Plan Content

Notable Examples of strategy

What works and what doesn’t?

Is your Organisation aligned to your Strategy?

Test Point – KPI’s


How far ahead do you think?

What constraints do you operate under?

Do you have ownership of the plan?

Are you an influencer or stakeholder?

What tools do you use?


Organisation

Strategy

Financial Plan Operational Plan

Sales &

Marketing

Plan


“These are organisations that take an active note of the competitive landscape and then determine a strategy that has been thought through, to deliver the most thorough and potentially positive realisation to the stakeholders benefit”

“A Business Plan is just an articulation of that strategy”


China◦ $3t Liquid Assets and applying that cash to :-

Security – Purchased Secondhand Ukrainian Aircraft Carrier

Manufacturing – Purchasing bankrupt industrial plants – e.g. MG and SAAB

Investment in supply chain e.g. Raw Minerals - Africa

Hedging – protecting their investments - e.g. Eurobonds and Italy

USA◦ HP – Withdrawing from hardware manufacture

Purchased Autonomy Cambridge UK software house for £7.1b

◦ Microsoft & Nokia

Seeking to gain market share invested in Nokia with $1b investment


Arcadis/Geraghty & Miller publicly state their position on strategy

2000 Strategic review and course change

2005 Strategy 'Choices for Growth'

2008 Strategy 'Building Global Leadership'

2010 Strategy 'Leadership, Balance, Growth'


Permison Homes

◦ The Group’s financial and operational performance is subject to a significant number of risks, which are subject to continual assessment by management to mitigate and minimise these risks. There are also many risks which are outside of our control which can affect our business. Our principal risks are:

◦ Strategy - The Board has adopted its present strategy as it believes it is the one most likely to add the greatest value for shareholders and stakeholders. It is possible that, with time, factors become known that indicate that the strategy currently being pursued is not the most effective…….

◦ ……all employees have a clear understanding of the potential benefits and risks of the strategy.


Additional Tools

◦ Cluster Modelling

◦ Portfolio Management

◦ Product Life Cycle

◦ Integration into TOP


◦ Attributes Example

$

Speed MHZ

Competitor X

Competitor Z

Competitor M

Competitor K

Competitor H


Boston Box

DOG -ve

PROBLEMCHILD

-ve

RISING STAR+ve & -ve

CASH COW+ve


Product Life Cycle

£

TIME

Sales

Margin

2010 2014


Commonly used within engineering e.g. Motor manufacture will strip down a competitor vehicle

Equally applicable to the supply chain – the point at which value is added or removed for the end user/consumer.

This is the model used by Direct Line in establishing it’s insurance service in 1990


What are you trying to achieve?

Are your three core elements aligned?

Examine current profit stream management

Evaluate opportunity risk/reward methodology

Write it down


Don’t get bogged down – Keep it simple.

Think long-term but insure against the short- term

Stay focused

Use your KPI’s and if you don’t know ask.

Use your mind and trust your instincts.


www.carr-consultants.co.uk


cambridge elite business circle

Business

strategy leadership

strategy choices

present strategy

principal risks

significant number of

competitor vehicle

global leadership

b microsoft nokiaseeking