Strategy Outline presented in Moscow

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Outline for designing business strategy to attract investors and potential partners. Presentation made in Moscow, Russia.

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Strategy Outline presented in Moscow

  1. 1. Moscow, Russia Presentation 2006 Strategy and Capital for New Companies and Technologies By: Juan Ramon Zarco Magellan International Jrzarco2001@yahoo.com Magellan International U.S.: 1- 703-376-4893
  2. 2. Public Macro Economics Environment Micro Economics Financials EVA SWOT ADDRESSABLE Milestones MARKET Product/Service Strategies Advertising/PR Strategy/Tactics Company Competitive Environment Environment jrzarco2001@yahoo.com 2 Magellan International
  3. 3. Strategies and Capital • Situational Analysis • Strategies • Financials • Valuations • Capital jrzarco2001@yahoo.com 3 Magellan International
  4. 4. Situational Analysis Macro Environment, SWOT, Task Environment, Competitive Environment, Regulatory Environment, Technology, Marketing Objectives, Alternatives, Branding
  5. 5. Macro Environment • Population • G.D.P., Purchasing Power • Demographic • Economic trends – incremental growth per annum • Energy costs • Inflation • Addressable Market Is the Macro Environment growing fast enough and is the Addressable Market attractive? jrzarco2001@yahoo.com 5 Magellan International
  6. 6. Company Environment • SWOT – Strengths – Weaknesses – Opportunities – Threats • Management Team: experience and background; example, Quantum Photonics jrzarco2001@yahoo.com 6 Magellan International
  7. 7. Task Environment • Suppliers • Distribution Channels – Direct – Resellers – Relabeled (Branding, Stronger Distribution), Original Equipment Manufacturing Supplier • Customers – Profile. Who is the final Customer? Example: Linguateq jrzarco2001@yahoo.com 7 Magellan International
  8. 8. Competitive Environment • Generic Competitors: Product Form, Enterprise • Direct Competitors • Current Market Position, Current Direct Competitors, Future Market Analysis • Successful/Unsuccessful Market entrants, their marketing methods • How to identify, out maneuver, reposition jrzarco2001@yahoo.com 8 Magellan International
  9. 9. Regulatory Environment • Government policy, rules and regulations, e.g., Antitrust – Sherman, F.D.A., F.C.C. • Impact on marketing • Political ambiance • Community • Press • Public Relations jrzarco2001@yahoo.com 9 Magellan International
  10. 10. Technology • Incremental costs and benefits • Source and origination • Pain to resolve • Barriers to Entry – Patents – Copyrights – Trade secrets • Regulatory environment pitfalls jrzarco2001@yahoo.com 10 Magellan International
  11. 11. Marketing Objectives • Specific and Measurable and Achievable! • Market share or niche? • Sales in units or dollar amounts • Leadership position in the addressable market • Resolve a “pain” and satisfy an urgent need - Polaroid • Example: Achieve sales of US$47 mill. through shipments in five (5) years, 5% of Addressable Market. jrzarco2001@yahoo.com 11 Magellan International
  12. 12. Alternative Strategy • Alternative secondary strategy – Second choice – Different tactic • Achieve main objective in leadership jrzarco2001@yahoo.com 12 Magellan International
  13. 13. Brand and Positioning • How is product placed in the competitive environment • Highest quality at lowest price? • Branding and differentiation – E.g., Hertz, Avis, Enterprise Rent a Car • Consumer’s perspective jrzarco2001@yahoo.com 13 Magellan International
  14. 14. Strategies and Tactics
  15. 15. Implementation Strategies Phase Strategies must flow from the Situational Analysis and must be geared to achieve the marketing objectives. The strategies must focus to take advantage of the opportunities and set up a defense against threats, to exploit the company’s strengths and background, and compensate for its weaknesses. SWOT.
  16. 16. Define Strategies • Product strategies • Advertising/Promotion – 4 Ps-product, pricing, • Public Relations positioning, promotion • Distribution - logistics • Service strategies • Testing/Research – Maintenance, • Product line extensions – guarantees One trick pony, • Ad Spending Continuity and Exhaustion • Personal selling jrzarco2001@yahoo.com 16 Magellan International
  17. 17. Milestones-Action Programs • Tactics, Time tables, GANTT Charts • Month to month • Week by week • Sales Forecasts • Market share analysis • Controls and Variance analysis jrzarco2001@yahoo.com 17 Magellan International
  18. 18. Valuations and Financials
  19. 19. Financials • 3 to 5 Year Projections • Pro Forma • Operational Budgets • Profit and Loss – Will the Product make money? • Sources and Uses of Funds • Week to week, Month to month, Year to Year • Week to Month to Year to 5 Year Projections jrzarco2001@yahoo.com 19 Magellan International
  20. 20. Valuation of Strategy • EVA • ROI • NPV • Exit strategies – liquidity of investments • Minimum Hurdle Rates, Vested Management Capital • Risks- International, Management, Environments jrzarco2001@yahoo.com 20 Magellan International
  21. 21. Capital • Private Equity – Venture Capital, Angel, Tranche capital, L.B.O. – Advantages – Disadvantages, ROI 25-30% • IPO – Sabarnes Oxley (SOX) – Accounting standards – S.E.C. – Blue Sky laws • High Yield Debt – Junk bonds • Bank debt • Joint Ventures, Licensing jrzarco2001@yahoo.com 21 Magellan International
  22. 22. The Meaning of Valuation against Milestones 60 50 40 Valuation 30 Milestones 20 10 0 1st 2nd 3rd 4th 5th Year Year Year Year Year jrzarco2001@yahoo.com 22 Magellan International
  23. 23. Valuation of Intellectual Property • Licensing • Present Valuation – Barrier to Entry? • Duration – Competitive environment – Market demand and elasticity • Patent – the meaning of filing, examination and due diligence. Example: Azygo • Distribution and Marketing Costs jrzarco2001@yahoo.com 23 Magellan International
  24. 24. Business Plan Sample Business Plan Mozoom, Inc. “Financial Empowerment and Self Improvement Digital Tools for Generation Y” jrzarco2001@yahoo.com 24 Magellan International
  25. 25. Sample Financials Mozoom, Inc. 2005 August September October November December TITLE Annual Starting Salary ('000's) USA-Head EXECUTIVE STAFF CEO $ 175 1 1 1 1 1 COO 150 1 1 1 1 1 CTO 140 0 0 0 0 0 CFO 150 0 0 0 0 0 VP Operations 120 0 0 0 0 0 VP Marketing 140 0 0 0 0 0 VP Finance 100 0 0 0 0 0 VP Controller 90 0 0 0 0 0 Sub total Executive Count 2 2 2 2 2 MARKETING/SALES STAFF Salesmen $ 100 0 0 0 0 0 Customer Relations 65 0 0 0 0 0 Media Buyers 65 0 0 0 0 0 Business Development 100 0 0 0 0 1 Account Executives 71 0 0 0 0 0 Distribution Channel Manager 105 0 0 0 0 0 Partner Manager 95 0 0 0 0 0 Content Specialist 60 0 0 0 0 0 eCommerce Sales Director 130 0 0 0 0 0 Sub total Marketing/Sales Count 0 0 0 0 1 MIDDLE MANAGERS Billing Manager $ 56 0 0 0 0 0 Bookkeeper-General Ledger 39 0 0 0 0 0 Public Relations Manager 95 0 0 0 0 0 Content Manager 105 0 0 0 0 0 Instructor Manager 95 0 0 0 0 0 Online Traffic Coordinator 35 0 0 0 0 0 Audio Editors 53 0 0 0 1 1 Accountants - Costs 46 0 0 0 0 0 Sub total Middle Managers 0 0 0 1 1 TECHNICAL STAFF Software Aggregation Engineer $ 75 0 0 0 0 0 MS/Unix Support Specialist 51 0 0 0 0 0 Online Software Systems Engineer 75 0 0 0 0 0 System Architect Programmer 110 0 0 0 0 0 Database Architect and Administrator 96 0 0 0 0 0 Data Security Analyst 68 0 0 0 0 0 Sub total Technical Staff 0 0 0 0 0 CUSTOMER SUPPORT STAFF Customer Support specialist $ 55 0 0 0 0 0 jrzarco2001@yahoo.com 25 Magellan International
  26. 26. Conclusions • Marketing Strategy and Situational Analysis • Financials • Valuations • Capitalization • Exit Strategy • PriceWaterhouseCoopers Moneytree – Investment Trends – Capital Sources jrzarco2001@yahoo.com 26 Magellan International
  27. 27. Thank you! jrzarco2001@yahoo.com Juan Ramon Zarco Magellan International Washington, D.C., U.S.A.

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