Core structure

Food Processing

& Distribution

Institutional CateringQSR

Specialty Restaurant

Property & Development

Reve

nue

80%

10%

Core competitenciesCORE COMPETENCY SUBSEQUENT STRENGTHS COMPETITIVE ADVANTAGE

Effective food processing and distribution

operations

Quality

Trust from customers

Ability to change perceptions

Efficiency

Adaptability

Cost savings

Strategy misfit inhibits entrance into blue ocean

Market positioning

Dis

trib

ution

net

wor

kCo

ncen

trat

edEx

tens

ive

Low-endHigh-end

Red Ocean

Blue Ocean

iRobot

iRobot has 3 main expansion options

• Popularize robotics to boost and grow the industry.

• Infuse robotic technology into everyday products to further the human experience and make life easier and funner.

BUILD OWN BRAND

Diversify product lines under iRobot brand

name.

LICENSE TECHNOLOGY

Sell patented technology to external companies.

STRATEGIC ALLIANCE

Form agreements with market leaders to push

out new products together.

Independence

Fina

ncia

l Inv

estm

ent

Implementation timeline

Recruit R&D staff

Design, develop, modify

Launch productPartner with sales org

Continuous monitoring and improvement

Evaluate sales team performance

March 2011 March 2012 March 2013 March 2014

Com

mer

cial

cl

eane

rM

owbo

tAd

verti

sing

ca

mpa

ign

Recruit R&D staff

Design, develop, modify Launch product

Continuous monitoring and improvementExpand distribution

capacity

Contract ad agency

Negotiate with network

Develop and produce ad Launch ad

Measure effectiveness

Begin subsequent campaign

Launch ad

Market

Share

Inno

vatio

n

Low High

High

Target

Core Growth options

Strategic Bets

TalentModel

Supply Chain

Winning Formula

Optimize production using new technology

Solar Wafer Manufacturer Precision Robotics

Penetrate Solar Power Segment

Strategic Fit

Technological know-how

Financial Capabilities

Strategic bets

i-shine – Strategic Bets in Solar

Analyzing the market mix

Alternatives

1 Consumer robots in US

2 Military robots in US

3 Consumer robots in non- US

4 Military robots in non- US

5 Aerospace in US

6 Alternative energy in US

7 New Segment in non-USGeographical Market

Segment

US Non US

New

Current

1

23

4

5

6 7

Three Step ApproachEnhancing iRobot’s product and contract strategies

Maximize Patent Value

Awareness Campaign

International Presence

Customer Adoption

Goal: Complement core competencies with informal strategic alliances

Leverage R&D

Mitigate Contract Risk

Create® for Military

Informal Alliances

Situation Analysis Alternatives Recommendation Implementation Results

Promote Innovation

Robotics Competition

Academic Research

weRobot Solutions

Roadmap to Success

15

Situation Analysis

Alternatives

Recommendation

Financial Impact

Implementation

Wrap-Up

Categorizing Your Challenges

Current Road Blocks Future Growth

What can be done about import ban?

Achieving Better Synergies

Sustainability

Acquire new producers / build plants

Lobby FDA for timely resolution

Strengthen quality control

processes

+/--

+

2 Key Areas

Financial Implications

17

2012 2013 2014 2015 2016 2017 2018

$(40,000,000)

$-

$40,000,000

$80,000,000

$120,000,000

$160,000,000

Net Cash Flows (Sensitivity Analysis)

Base Case Pessimistic Optimistic

Mill

ion

s o

f US

D

$1.5 billionNET PRESENT VALUE(=6.5 times 2010 Profit)

$2.5 billionNET PRESENT VALUE(=11 times 2010 Profit)

Growth12.3% pharmaceutical

industry growth per year

Cost of Capital13%

Assumptions

Market Share5% innovative drug market

share by 2018

Projected Sales and Costs

18

Pharmaceutical Market$20 billion

Generics90%

Innovative10% - $2 billion

Ranbaxy3% - $60 million

Other Firms97%

Transfer Pricing

28% of revenues10% premium

Selling, General & Administrative

Expenses

15% of revenues

Marketing Expenses

$8.5 million$3 million / year

Costs

Sales (2015)

$20 billion

$2 billion$60 million

Current Situation

Touring Shows Merchandising Resident Shows

40% 10% 50%

Tent Shows Arena Shows

Executive Summary

Current Situation

By efficiently rearranging the schedule of current touring shows and by extending customer experience with a restaurant, Cirque will be able to:

Expand its sustainable business model;

Optimize ticket sales to achieve an

Enhance customer experience, increasing yearly revenue by $19m to $35m;

incremental revenue of $8M to $15m yearly.

Key Issues

Changing toy market

Key Issues Symptoms

Seasonality of demand

Changing retail channels

Rising oil costs

↓ Toy market

↑ Inventory & obsolenscence

↓ Margins

↑ Costs & ↓ margins

1

2

3

4

Key Issues

AAHK succeeds today because its model delivers value to multiple stakeholder groups

Sustainable growth = delivering value forever

Current Successes

Current Situation

Employees

HR partners

Franchisees

Airlines

Passengers

Cargo shippers

RetailersGovernment

EnvironmentRelated businesses

MediaTourism