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    Mark@ Mark@ Presentation Transcript

    • MARK@
    • Our team is the best candidate for the final tour Polina Ruska Yriy Naniev Natalia Markevichus Grigoriy Grachev2 MARK@
    • Decomposition map of the project describes the way to achieve our main goals Analysis of Strategy Analysis of current Construction of Construction of How to achieve goal Partners and Realization Main goal and tasks situation Strategic map Financial model competitors•The main •Analyze current •The main goal of •The main goal •The main goal •The main goal •Determine how strategic goal is situation on the analysis of of analysis of of construction of construction the whole to build a Russian current situation Strategy of Strategic map of Financial strategy will be national consulting is to determine Partners and is to determine model is to realized in order strategist with a market. opportunities of competitors is to the main reason maximize profit to achieve the global presence •Analyze our future growth determine key why the current •Construction of main goal. in key markets of position and key and threats that characteristic of model is efficient •Determine term the Russian competitor’s could prevent Strategy inefficient and financial model structure and business. characteristics. achieving of the Partners and the methods how to based on the when operating•External: •Build business main strategic main make the main best chosen goals will be Leadership in model with goal. competitors to goal achievable. alternative achieved. the Russian different •Main decide whether •Construction of •Providing market of alternatives. characteristics of we are able to complex sufficient strategic Russian achieve our business model arguments •Choose the best consulting on consulting strategic goal. with at least 3 proving that the alternative. the key markets market •Key development model is optimal •Build efficient of Russian •Segmentation of characteristic variation. and is the best financial model. business. the Russian matrix for all •Valuation of variant for •Realization of market•Internal: consulting alternatives. current the project. participants *The growth of market •Choosing of the situation, as well the office 3 •Identification of •SWOT analysis best alternative. is suitable for times in 4 years. “profit zones” •4 P achieving *Increase •Porter’s 5 forces •BCG matrix strategic goal. business value •Product /Market •Brand analysis from $80 to expansion matrix •Internal $120 million by 2016. structure of the *Build a new company business model •What should be - a combination changed and of strategic how to achieve consulting it? services and corporate finance. 3 MARK@
    • Russian consulting market is perspective and has great potential1. The consulting marketin Russia still has thereputation as immatureand evolving.2. The lack ofunderstanding ofconsulting servicespurpose.3. As consulting market Consulting market tendency, annual rate growthdepends on the wholemacroeconomic 60%situation. 50% 50% 40% 40% 35% 30% 20% 20% 10% 0% 0% 0% 2004 2005 2008 2009 2010 2011 Analysis of 4 current situation MARK@
    • Right choice of segment allows Strategy Partners to build an effective strategy Corporate finance and strategy Segment 1 Segment service 7 Strategy consulting Segment 2 Organization consulting Segment 3 Segment 4 Practises Human resources consulting Segment 5 Operating consulting Marketing consulting Segment 6 Finance Global market CIS Russia Other Trade Metallurgy Manufacturing Transport Telecom Energy Oil&Gas Institutions Government Geography Client industries Segments 1,2,5Segments of the first priority are corporate finance Segments3,7and strategy service, strategy consulting, operatingconsulting in different industries. Segments of the second priority are organization consulting in Segments4,6 different industries and government sector. Strategy Partners will mainly concentrate on segments from the 1st and 2nd priority because it will give them maximum profitability Analysis of 5 current situation MARK@
    • Strategy partners should Focus on the most profitable spheres such as machine building, power engineering; most perspective sphere – telecommunications; our strong side - non-profit sectorManufacturingGovernment 2007 2008 2009Energy&MiningFMCG 15% 16% 11%Finance 22% 23% 20% 9%TMT 19% 19% 10% 18% 20% 12% 14% 38% 15% 10% 9% 2011 2010 10% 11% 26% 25% 10% 10% 11% 11% 24% 19% 13% 30% Analysis of 6 current situation MARK@
    • Well-positioning is a key factor of success Market niche for Strategy Partners, based on size of the businessWe suggest medium-size business as SP’s key focus. Another key focus is Public sector organizations, government and non-profit organizations:Strategic expansion opportunities for Strategy Partners are in conquering CIS-countries markets , these markets arecharacterized as markets with low competition level and substantial growth potential. Analysis of 7 current situation MARK@
    • We suggest entering the CIS countries expansion strategy, therefore, we will divide them in 3 macroregions: Eastern Europe, Caucasus and Middle AsiaAccording to World Bank and IFC research the overwhelming majority of post-soviet countries have better business climateand better doing business potential than Russia. Developing rapidly - they´ll need consulting services. Most them havesmall competition level. Analysis of 8 current situation MARK@
    • SWOT analysis of Strategy Partners Group shows us that the company has good potential and has its own competitive advantages Strengths Weaknesses 1. Leading Russian strategic 1. Not so famous brand consultant. 2. Tender competition 2. Unique business model. 3. Works in specific sector. 3. Successful in different practices. 4. High quality of work. 5. Work with the public sector and non-profit organizations. 6. Career growth Opportunities Threats 1. New clients. 1. Not all companies are willing to pay 2. Free spheres. money at the level of market rates. 3. Great growth opportunities 2. Public sector is specific. Analysis of9 Strategy Partners and competitors MARK@
    • Analysis of key characteristics of the company and its competitors CPI Product Price Brand •Strategy development and •Lower than of our key implementation competitors awareness Accenture 10 •Operational efficiency 9 ATK •Building efficient 8 organization and 7 6 Bain leadership 5 •Corporate financesNumber of 4 Number of BCGemployees 3 clients 2 1 Booz&Company 0 McKinsey Promotion Place Monitor •Low quantity of •Concentrates mainly on promoting measures Russian market in Oliver Wyman concrete areas (machine •Strategy Partner’s journal Geographical online and for building, non-profit Revenue Roland Berger coverage subscription sector, power Strategy Partners engineering) Strategy Partners has its own key characteristics and unique model that gives company a good basis for future competition Analysis of 10 Strategy Partners and competitors MARK@
    • Strategy Partners operates in competitive market but has its own competitive adventures Number of Revenue in Cost of project inCompanies professionals Number of partners Number of associate partners Russia, mln USD Russia, ths USD / monthA.T. KearneyBainBCGBooz&CoMcKinseyMonitor GroupRoland BergerStrategy Partners Analysis of 11 Strategy Partners and competitors MARK@
    • BCG Matrix 1 – Strategy consulting 2 – Operational consulting 1 3 – Organizational consulting 4 – Finance consultingBusiness growth rate 4 3 2 Market share Analysis of 12 Strategy Partners and competitors MARK@
    • Building up our strategy we should take into account our competitors SP main Competitors by sectors, large capitalization clients 12 10 8 International Consultants Strategy Partners have the quality 6 International Auditors best price/quality ratio. 4 Strategy Partners Russian Consultants 2 0 0 2 4 6 8 10 12 price Analysis of13 Strategy Partners and competitors MARK@
    • Branding Strategy Partners brand is based on Results of completed projects and customer’s feedback Adrertising + PR Articles, comments, interviews Own periodical Vestnik are on the web site of the Strategy.ru company Professional exhibitions Cooperation with business Publications in magazines schools Client’s informational support Conferences Authority specialist’s opinion Analysis of14 Strategy Partners and competitors MARK@
    • Decision making process and marketing 1. Client does not realize the problem 2. Client faces some difficulties 3. Tries to manage it all alone 4. Looks for information about problem 5. Gets an idea to invite experts 6. Makes a choise 1. Demonstrate competence, market monitoring 2. Advertising and PR in publications 3. Persuade that consulting is essential, seminars 4. Books, official site, conferences, exhibitions 5. Recommendations, experience, reputation 6. Trust Analysis of15 Strategy Partners and competitors MARK@
    • HR strategy should comply with competitive strategy Innovation Improving the Reduction of strategy quality costs• High qualification of stuff • Relatively repetitive and predictable • Relatively repetitive and predictable• Creative behavior • Long-term or medium-term orientation • Short-term orientation• Long-term orientation • Moderate level of cooperative behavior • Standalone or individual actions• The high level of cooperative behavior • Great attention to quality • A moderate attention to the quality of• Equal degree of attention to processes • Moderate amounts of attention to • Much attention to the amount and outcomes • Much attention to the processes The focus of the results• Readiness to take risks • Weak risk appetite • Weak risk appetite• High tolerance for ambiguity • Commitment to the organizatio For consulting company HR is the main resource. So efficiency of the company is based on efficiency of HR management and it why company should focus on that. HR strategy should comply with competitive strategy. When we build working- Innovation team for SP we are basing on such criteria as high strategy qualification of stuff, creative behavior, long- term orientation, the relatively high level of cooperative behavior, equal degree of attention to processes and outcomes, willingness to take risks, high tolerance for ambiguity. Because Strategy Partners choose innovation strategy. Analysis of 16 Strategy Partners and competitors MARK@
    • To provide the growth of the office 3 times in 4 years we should answer on two questions: how to recruit stuff and how to keep it Answer on question how to recruit stuff: To answer We should decide witch way we will prefer for question each block of stuff. Strategy Partners can use recruitment agencies to find a good how to specialist, but the problem is that there is deficit of professionals on consulting labor recruit stuff market. As solution Strategy Partners can take specialist from manufacturing and others segments and train for consulting firm. The growth of the office (the number of analysts, consultants, managers, directors and partners) 3 times in 4 years. To answer question how to keep stuff : Status Relation Supervisi ships on To answer question employee how to Pay and motivation Job benefits security keep stuff Working Compan conditio y ns policies Analysis of17 Strategy Partners and competitors MARK@
    • Our staff is our core resource, therefore, HRM-efficiency determines company’s market performance To provide effective system of Recruiting Temporary human resources management: professionals strategy We have: 1) Good (unique) system of Temporary employment career growth doesnt not provide high 2) Permanent training programs quality of our service. It 3) Bonus system has bad influent on 4) Competitors salary goodwill . We should make monitoring a effective system of Permanent human resources We need : management to provide 1) System of moral employment encouragement high quality of our service 2) System of feed back Analysis of18 Strategy Partners and competitors MARK@
    • Efficiency HR management depends on combination of image of the organization, corporate structure, quality of services Y quality of services - Х image of the organization– Y corporate structure - Z X The main rule: reduction in one parameter (x / y / z) will lead to less effective structure.Z If our company wants to get maximum profit it should use this cube for making internal structure work well. The main idea of this model is to maintain and save balance between quality of services, image of the organization and corporate structure. If the company reduces one of the parameters it won’t get maximum efficiency and in that case won’t get maximum profit. Analysis of 19 Strategy Partners and competitors MARK@
    • Strategy partners is going to increase the quantity of staff 3 times by 2016 Professional staff Organizational structure A.T.Kearney 9% 10% Partners and junior partners Strategy 20% Partners Bain 13% 7% Directors and managers Roland Berger 11% 30% Monitor Group Consultants BCG 5% 21% Analysts McKinsey 40% 27% Booz&Co 7% People in team (total) 800 700 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Analysis of20 Strategy Partners and competitors MARK@
    • Strategic map Go abroad and broaden our strategy to the CIS market Focus on the most profitable spheres such as machine building, power engineering; most perspective sphere – telecommunications; our strong side - non-profit sector Maintain balance between public sector and medium-sized business with growth potential Growth Modify current intercompany system in order to build effective HR management Strengthening of the brand New business model Focus only on the Russian market without any attempt to broaden our bordersNational strategist with Focus only on the main spheres that will for sure give us profit (machine building, powera global presence in key Stabilization engineering, non-profit sector)markets of the Russian business in 5 years Focus only on the government sector Leave everything inside the company as it is Do not create new model and concentrate only on the consulting Do the same as it was in the branding system Leave Russian market and find a new one Decrease spheres in which company works Reduction Try to leave market with the least costs as possible Do not spend money on any branding measures Decrease interaction with government Construction of Reduce quantity of the staff 21 Strategic map MARK@
    • Strategy Partners Group’s Business ModelKey partners Key activities and market segmentation Value propositions and customer Channels relationshipsSberbank Sectors: Helping clients in developing their 1.Awareness – throughTroika Dialog Machine building, strategies, leading to effective using of branding (activeClients Non-profit sector intellectual, material and financial participation in allFinancing Power engineering resources in order to maintain scientific events, mass-Informational providers Telecommunications leadership. media) Public sector Strategy Partners Group uses its 2.Evaluation –Key Resources Medium-sized business with growth potential unique combination of reputation, the increasing quality andKey resources in consulting are Services: best international practice and speed of contractspeople -> all other resources Corporate finance and strategy service standards of doing business with deep 3.After sales –depend on them (intellectual, Strategy consulting knowledge of Russian practice. constant consultationsphysical, financial) -> the more Operating consulting with owners of thepeople you have the more you will Organization consulting business (how they areget and the more you will have to dealing now)spend.Cost Structure Revenue StreamsPeople in team Direct costs (22%)  Benchmarkingpartners (3%) Direct labour 21% Optimization of key processes and systemsprincipals (2%) Business trips 1%  Risk-managementmanagers and directors (25%) Other 1%  Management by objectivesconsultants (30%) Gross margin 59%  Innovative strategyanalysts (40%) Expenses 20%  Increasing productivityRevenue per consultant (ths USD/ person) COM&BEN for consulting staff 18%  Business plans for innovative companiesTotal Revenue (ths USD) Business trips 1%  Finance strategiesCOGS (19%) Other 1%  Mergers and acquisitionsExperts 35% G&A 20%  Strategy planningAdditional personnel (35%) Other COM&BEN for consulting staff 7%  Global markets analysisWork with famous companies (30%) COM&BEN for administrative staff 6%Rev net (81%) Maintainceandutilities 5% For all these customers are paying approximately 250 thousand $ Other 2% per month. EBITDA 19% Construction of 22 Strategic map MARK@
    • Financial model People in team (total)800 750600 469 500 625 Average price of the400 375200 217 257 250 contract per person = 337 167 183 0 ths USD (by 2016) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total Revenue (ths USD) 80000 75737.79346 70000 60000 58985.82045 50000 44101.548 40000 38640.375 30000 28890 20000 18018 18000 10000 12025 11000 12980 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Construction of23 Financial model MARK@
    • Financial model (continue)Total Revenue (ths USD) COGS (19%) Direct costs (22%) Expenses (20%) G&A (20%) EBITDA (19%) EBITDA Our value will grow to 120 35000 mln USD -> market value 30000 28710.68274 of the company 25000 22360.34482 increased by 50%. 20000 16718.01482 At the same time we can 15000 14647.79336 10951.6212 see that EBITDA 10000 6830.26344 6823.44 increased 4 times. 5000 4558.437 4169.88 4920.4584 So, Value / EBITDA in 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 will less than in 2011. Construction of24 Financial model MARK@
    • RealizationFirst of all we should make our services work well and with high quality. We will begin 1st and 2nd priority services in 1 month difference intime.Secondly, our key segments should be standardized and information should be delivered to all staff.According to our key services and segments we will recruit staff. It will be done according to our plans eventually. Recruiting should beginfrom the January of every year.Fourthly, we will enter all CIS markets before busy seasons in specific countries.The last one, is that we will be printed once a month in printed versions and every week will publish our own online-edition; take part inconferences in every season; give seminars every month Realization 25 MARK@
    • ConclusionWe will choose growth strategy based on these elements:1. ENTER CIS MARKET2. FOCUS ON MACHINE BUILDING, NON-PROFIT SECTOR, POWER ENGINEERING, TELECOMMUNICATIONS3. MAINTAIN BALANCE BETWEEN PUBLIC SECTOR AND MEDIUM-SIZED BUSINESSES WITH GROWTH POTENTIAL4. EFFECTIVE HR MANAGEMENT5. BRAND STRENGTHENING6. NEW BUSINESS MODEL Leader on the Russian consulting market The growth of the office 3 times in 4 years Increase business value from $80 to $120 million by 2016 Effective business model26 MARK@
    • Thank you for your attention! Best regards, MARK@27 MARK@