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October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
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October 25, 2009 Aspe Presentation
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October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
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October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
October 25, 2009 Aspe Presentation
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October 25, 2009 Aspe Presentation

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This workshop is designed to help companies manage for success in these turbulent times. When economic conditions so completely change the rules of the game, it is necessary to take a fresh new …

This workshop is designed to help companies manage for success in these turbulent times. When economic conditions so completely change the rules of the game, it is necessary to take a fresh new approach to how you formulate your go to market strategy and actions. This workshop helps you to understand what changing economic conditions mean for your company over the next 12 to 15 months and the best practices to succeed. It takes a practical, 360 degree integrated approach, to the actions that will harness your core strengths and competencies to improve your branding and drive sales and revenues while improving cost structures. It addresses goal setting and tracking, including segmenting markets, key performance drivers, developing human capital, adding value for employees, and financial elements such as inventory levels, credit strategies, receivable aging, and banking relationships. By making these elements top of mind this interactive workshop encourages participants to create organization specific action steps to increase revenues and grow profits over the next 12 to 15 months.

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  1. L. R. Levin Consulting, L.L.C.<br />1<br /> Advanced<br /> Management<br /> University <br />Workshop Series<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  2. L. R. Levin Consulting, L.L.C.<br />© Copyright 2008 L. R. Levin Consulting, L.L.C. All rights reserved.<br />2<br />The “Blueprint for <br /> Growing Profits <br /> During This Recession,”<br />how to achieve growth and profits as this business cycle unfolds.<br />
  3. L. R. Levin Consulting, L.L.C.<br />3<br />The Institute For Trend Research (ITR), a premiere economic forecasting organization and our strategic partner, forecast :<br />The Institute For Trend Research<br />September Report<br />(September 2008)<br />“bad tidings in the general <br />Economy” through 2009 <br />and early 2010. <br />(September 2009) ITR has <br />said “For now, the hard <br />evidence is for a better economy in 2010.<br />Lowest in<br />26 years<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  4. L. R. Levin Consulting, L.L.C.<br />© Copyright 2008 L. R. Levin Consulting, L.L.C. All rights reserved.<br />4<br />Reactive Behavior (Panic) vs. Planning<br />Focused Scenario<br />Strategic Planning<br />The Focused Strategic View - <br /> Key Action Steps<br />
  5. L. R. Levin Consulting, L.L.C.<br />5<br />5 Basic scenarios<br />For A Downturn<br />Increasing unemployment, deflation, and low interest rates. Depression<br />Increasing unemployment, deflation, and high interest rates. Severe Recession<br />3. Increasing to slightly decreasing unemployment, both level cost of living and interest rates. Mild Recession to <br /> Early Recovery<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  6. L. R. Levin Consulting, L.L.C.<br />© Copyright 2008 L. R. Levin Consulting, L.L.C. All rights reserved.<br />6<br />5 Basic scenarios<br />4. Increasing to slightly decreasing unemployment, inflation, and low interest rates. Stagflation<br />5. Increasing to slightly decreasing unemployment, inflation, and high interest rates. Severe Stagflation<br />
  7. L. R. Levin Consulting, L.L.C.<br />© Copyright 2008 L. R. Levin Consulting, L.L.C. All rights reserved.<br />7<br />What are some of the key drivers that cantrack which path the economy will follow<br />Petroleum Prices<br />Natural Gas Prices<br />Exports<br />Retail Sales<br />Strength of the Dollar <br />M2 Money Supply<br />Industrial Production<br />Raw Material Prices<br />[the 8 trackers]<br />
  8. L. R. Levin Consulting, L.L.C.<br />8<br />Total Borrowings of Depository Institutions From the Federal reserve (BORROW)<br />Source: Board of Governors of the Federal Reserve System<br />(Billions of Dollars)<br />200<br />150<br />100<br />50<br />0<br />-50<br />2<br />0<br />0<br />9<br />2<br />01<br />0<br />1<br />9<br />29<br />1910 1925 1940 1955 1970 1985 2000 2015<br />Shaded areas indicate US recessions as determined by NBER.<br />2008 Federal Reserve Bank of St. Louis: http://research.stlouisfed.org/ <br />Provided by the Institute For Trend Research<br />© Copyright 2008 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  9. L. R. Levin Consulting, L.L.C.<br />9<br />M2 Money Supply<br />The Institute For Trend Research<br />September Report<br />The 12MMA is currently 8.3% above its year<br />ago levels.<br />“highest level since 2003, when the monetary pumping that fueled the housing bubble was going full steam”<br />ITR: “We think the monetary surge evident today will show up in actionable trends” 6 to 10 months from now.<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  10. L. R. Levin Consulting, L.L.C.<br />10<br />ITEM Cost in Billions<br />Bear Stearns buyout facilitation $30<br />Money Market Funds FED loan $540<br />Swaps on FED balance sheet<br /> With Investment Banks AO 10/1/08 $105<br />Freddie Mac & Fannie Mae $49<br />Housing Bailout $300<br />AIG* $150<br />Troubled Asset Relief Program(1/2)** $354 (initially)<br />Lehman Cost-to facilitate JP Morgan Acq. $87<br />Mutual fund bailout reserve $72<br />Total $1.687 Trillion<br />*AIG $60 billion Loan, $40 billion Preferred Stock, $50 billion Capital. Govt equity 79.9% interest in AIG.<br />**Second $300 Billion requested from Congress<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  11. L. R. Levin Consulting, L.L.C.<br />11<br />Appropriations Through<br />September 30, 2009<br /> Billions<br />Stimulus packages $787<br />Omnibus Act $410<br />Supplemental Act $200<br />Total $1.397 Trillion<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  12. L. R. Levin Consulting, L.L.C.<br />12<br />Term Asset-Backed Securities Billions<br /> Liquidity Facility (TALF)<br /> Projected $700<br /> Active February 2009 Federal Reserve Bank of New York<br /><ul><li>backed by credit card receivables
  13. student loans
  14. auto loans
  15. auto leases and dealer floor plan loans
  16. SBA-guaranteed loans</li></ul>Troubled Asset Relief Program $350<br />2nd half<br />Total $1 Trillion<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  17. L. R. Levin Consulting, L.L.C.<br />13<br />Volker suggested Purchase of poor performing assets:<br />$4 to $5,000,000,000,000!<br />(4 to 5 Trillion Dollars)<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  18. L. R. Levin Consulting, L.L.C.<br />14<br />Deficit Comparisons<br />WW II Deficit 30% of GDP<br />Post WW II record 1983 6% GDP<br />Fiscal 2007 Deficit $162 Billion<br />Fiscal 2008 Deficit $455 Billion <br />2008 Deficit 3.2% of GDP<br />Fiscal 2009 Deficit 1.4 Trillion 10.24% of GDP<br />** Congressional Budget Office<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  19. 15<br /> L. R. Levin Consulting, L.L.C.<br />Federal Tax Receipts for 2009<br /> -16.6%<br />Village of Glencoe, Illinois Income Tax 2009<br />-24%<br />Village of Glencoe, Illinois sales Tax 2009<br />-22.14%<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  20. 16<br /> L. R. Levin Consulting, L.L.C.<br />Projected Further Borrowing<br />Based on (CBO) estimates, if interest rates go up ½%, debt service as a percent of total budget outlays will grow to:<br />201020122025<br />13.0%25.5%34.1%<br />Currently new borrowing<br /> $160 Billion per week<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  21. 17<br /> L. R. Levin Consulting, L.L.C.<br />Short term barrowing vs. long term borrowing<br />Date: 10/22/09<br />1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr<br />0.02 0.06 0.15 0.38 0.97 1.50 2.39 3.03 3.44 4.22 4.24<br />6 mo vs. 10 yr vs. 30 yr<br /> 0.15% 3.44% 4.24%<br />Fed buy backs<br />© Copyright 2008 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  22. 18<br /> L. R. Levin Consulting, L.L.C.<br />U.S. National Debt Ceiling $12.1 Trillion*<br />Current Debt 11.9 Trillion**<br />Equals about 84% of GDP<br />Other countries:<br /> Canada 68.5%<br /> France 64%<br /> Germany 63.1%<br /> Japan 100% +<br />*As of 8/31/09<br />** As of 10/23/09<br />© Copyright 2008 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  23. L. R. Levin Consulting, L.L.C.<br />19<br />Percent Of World Gross Domestic Product <br />Korea<br />Mexico<br />India<br />Australia<br />Russia<br />Brazil<br />Canada<br />United States<br />Spain<br />France<br />United Kingdom<br />Japan<br />China<br />In Billions of Current U.S. Dollars<br />15 Largest economies<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  24. L. R. Levin Consulting, L.L.C.<br />20<br />Percent Of World Gross Domestic Product <br />Korea<br />Mexico<br />India<br />Australia<br />Russia<br />68.5%<br />84%<br />Brazil<br />Canada<br />United States<br />Spain<br />64%<br />France<br />United Kingdom<br />Japan<br />63.1%<br />China<br />100% +<br />In Billions of Current U.S. Dollars<br />15 Largest economies<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  25. L. R. Levin Consulting, L.L.C.<br />21<br />Export decline year over year<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  26. L. R. Levin Consulting, L.L.C.<br />22<br />Export decline year over year<br /> 2008 2009<br /> Nov Jan Feb March August<br />Japan -19.2% -35% -46% -49%<br />Germany -11.9% -23.1%<br />UK’s -21.2%<br />1982 Last contraction in world trade.<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  27. 23<br /> L. R. Levin Consulting, L.L.C.<br />European Union <br />Industrial Production<br />Institute for Trend Research<br />September Report<br />Economy about 12.4% below the year-ago level, the percent<br />Decline is unprecedented.<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  28. L. R. Levin Consulting, L.L.C.<br />24<br />Southeast Asia<br />Industrial Production<br />Institute for Trend Research<br />September Report<br />On target for a 5.6% decline<br />versus 2008.<br />Projected growth of 6.3% in 2010.<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  29. 25<br /> L. R. Levin Consulting, L.L.C.<br />Retail Sales<br />Institute for Trend Research<br />September Report<br />Milder-than-normal seasonal pick up.<br />Sales are down 4.2% versus 2008<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  30. 26<br /> L. R. Levin Consulting, L.L.C.<br />Housing Starts<br />We should hit bottom by the end of 2009.<br />The 2009 seasonal rise was the best in 10 years. <br />The current month-to month change is better than the preceding three years.<br />Institute for Trend Research<br />September Report<br />Building permits in Sept. fell 1.2%<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  31. 27<br /> L. R. Levin Consulting, L.L.C.<br />Office Building Construction<br /> Permits for new construction are at all time lows having declined 51%yoy. <br />Office vacancies rose to 15.9%, the highest level since 2003.<br /> Office employment decrease by 2.4% and the amount of vacant stock increase 22.0%. Expected to continue through 2010.<br />Institute for Trend Research<br />September Report<br />1st quarter permits declined 63.6%<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  32. 28<br /> L. R. Levin Consulting, L.L.C.<br />Commercial Building Construction <br />Vacancy rates for retail space rose in the second quarter to 10.0%.<br />Vacant space increased by 24.6% yoy.<br />Increasing owner defaults and delinquencies are adding to financing problems.<br />Institute for Trend Research<br />September Report<br />Worst decline on record. Permits declined 50.9% yoy, and will go lower into 2011.<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  33. 29<br /> L. R. Levin Consulting, L.L.C.<br />Educational Building Construction<br /> $12.4 billion in education stimulus money has been paid out and an additional $42.7 billion is currently available. <br />Public Annual Construction is up 4.0%yoy. <br />Private construction is down 2.5%yoy.<br />Institute for Trend Research<br />September Report<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  34. 30<br /> L. R. Levin Consulting, L.L.C.<br />Power Facilities Construction<br /> Annual spending on Power Facilities Construction is up 16.4%yoy. <br /> Private spending on Power Construction exceeded $7.9 billion in August, the highest month of spending on record. In 2010 growth is expected to be approximately 7.8% over 2009. Industry expansion is beginning to slow.<br />Institute for Trend Research<br />September Report<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  35. L. R. Levin Consulting, L.L.C.<br />31<br />Total U.S. Industrial Production<br />Institute for Trend Research<br />September Report<br />The magnitude of the early rebound in US Industrial<br />Production will be dampened in the near term. ITR<br />Steepest year-over-year decline since 1947<br />Courtesy of The Institute For trend Research<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  36. 32<br /> L. R. Levin Consulting, L.L.C.<br />Durable Goods<br />Institute for Trend Research<br />September Report<br /> Expect the decline to last through at least the first half of 2010.<br /> New Orders for Electrical Equipment, Appliances and<br />Components are 20.4% below last year.<br />12 year<br />Low<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  37. 33<br /> L. R. Levin Consulting, L.L.C.<br />Non-Durable Goods<br />Institute for Trend Research<br />September Report<br />New Orders are down 16.8% compared to last year.<br />Strong seasonal increase.<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  38. 34<br /> L. R. Levin Consulting, L.L.C.<br />The ITR thinks “the Purchasing Managers Index trend is compelling evidence that the economy will be in ‘recovery’ in 2010.” The gains started “before this summer tells us that the trend is not purely stimulus driven.”<br />Institute For Trend Research<br />For September 09<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  39. In September, if we include the people who have exhausted their benefits (but “wanted and were available for work”), and people who wanted full time work but could only get part time, the number of unemployed is approximately 26.8 million peopleand growing. This represents a real unemployment rate of -17%. <br />35<br /> L. R. Levin Consulting, L.L.C.<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  40. 36<br /> L. R. Levin Consulting, L.L.C.<br />Fed Chair Bernanke proclaimed that “we are in recovery.”<br />If the economic data indicates we are about to hit bottom, what is next?<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  41. 37<br /> L. R. Levin Consulting, L.L.C.<br />Are There<br />Dark Clouds On<br />the Horizon?<br />Five major negative factors that loom large:<br /> 1. unemployment<br /> 2. the value of the dollar<br /> 3. “cap and trade”<br /> 4. health care “reform” and<br /> 5. value added taxes. <br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  42. L. R. Levin Consulting, L.L.C.<br />38<br />Important Economic Question?<br />If a person falls off a building,<br />What kills him?<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  43. L. R. Levin Consulting, L.L.C.<br />39<br />Important Economic Question?<br />If a person falls off a building,<br />What kills him?<br />When he hits bottom!<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  44. L. R. Levin Consulting, L.L.C.<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />40<br />What does this mean for business? <br />As the ITR put it, “A plan that has its basis in rising with the tide and going with the flow is going to lead to diminished opportunities and poor financial performance. Seek solutions from internal changes and decisions that you can control.” <br />FocusedStrategic Planning<br /> and Action Steps are key. <br />
  45. L. R. Levin Consulting, L.L.C.<br />41<br />The Gretzky Rule <br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  46. L. R. Levin Consulting, L.L.C.<br />© Copyright 2008 L. R. Levin Consulting, L.L.C. All rights reserved.<br />42<br />When asked what made him the greatest hockey player in history, Wayne Gretzky said: <br />“I skate to where the puck is going to be, not to where it is.”<br />
  47. L. R. Levin Consulting, L.L.C.<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />43<br />The Levin Corollary <br />Three business approaches:<br />Reactive When the future arrives – react.<br />Active Gretzky - Anticipate the future - take <br /> advantage of it.<br />Proactive Levin - Determine what you want the future to be and make it happen.<br />
  48. L. R. Levin Consulting, L.L.C.<br />44<br />Do you have a process for monitoring changing company and economic conditions to adjust for where the puck is going to be?<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  49. L. R. Levin Consulting, L.L.C.<br />Goals:<br />Strengthen Cash Flow<br />Reduce Costs in Traditional Markets<br />New Revenue Streams<br />Increase Growth Rate and Sales<br />Increase Market Penetration<br />Improve Customer Retention<br />Lower Good Employee Turn Over and<br />Increase Employee Quality and Commitment<br />45<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  50. L. R. Levin Consulting, L.L.C.<br />46<br />Focused Scenario Strategic Planning<br />Do you have a Strategic Plan?<br />Is it written?<br />Does it identify the phase of the cycle your industry is in?<br />Is it scenario based?<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  51. L. R. Levin Consulting, L.L.C.<br />47<br />Focused Scenario Strategic Planning<br />Is it Customer Centric?<br />Does it cover the internal & external steps to<br /> a) increase growth, &<br /> b) profit?<br />Does it cover the process for planning?<br />Does it cover the implementation process?<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  52. 48<br /> L. R. Levin Consulting, L.L.C.<br />Focused Scenario <br /> Strategic Planning<br />To move forward you need to focus on bringing all the elements of a well thought through strategic plan together.<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  53. 49<br /> L. R. Levin Consulting, L.L.C.<br />Focused Scenario <br /> Strategic Planning<br />Set your goals.<br />Increase <br />Revenues<br /> & Profits<br />Measure your progress<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  54. 50<br /> L. R. Levin Consulting, L.L.C.<br />Focused Scenario <br /> Strategic Planning<br />And assemble your strategy with a focus on meeting the changing scenarios of this economic cycle.<br />360 degree integrated approach<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  55. L. R. Levin Consulting, L.L.C.<br />51<br />Focused Scenario <br /> Strategic Planning<br />Suppliers<br />A<br />dm<br />i<br />n<br />O<br />p<br />e<br />r<br />CEO<br />Management<br />360 degree integrated approach<br />Customers<br />© Copyright 2008 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  56. L. R. Levin Consulting, L.L.C.<br />52<br />Focused Scenario <br /> Strategic Planning<br />CEO<br />Two Key Focuses:<br /> Strategic Marketing<br /> Technology Integration<br />© Copyright 2008 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  57. L. R. Levin Consulting, L.L.C.<br />53<br />Focused Scenario <br /> Strategic Planning<br />CEO<br />Strategic Marketing<br /> Customer-Centric Approach<br /> Core Strengths & Competencies<br /> Go to Market Strategy<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  58. Company Business style<br />Predictable<br />Focused<br />Realistic<br />Present<br />C.G. Jung<br />Customized product<br />Customer intimacy<br />Made to order<br />Top down<br />Operational efficiency<br />Repetitive Activities<br />Personal<br />Responsive<br />High emotion<br />Low structure<br />Impersonal<br />Reserved<br />Low emotion<br />High structure<br />10<br />9<br />8<br />7<br />6<br />5<br />4<br />3<br />2<br />1<br />0<br />0 1 2 3 4 6 7 8 9 10<br />Enrichment of life<br />Reaching human potential<br />Accommodative behavior<br />Meritocracy<br />Superior product<br />Superior service<br />Starbucks Co.<br />Possibility<br />Receptive<br />Low power<br />Slow pace<br />54<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  59. L. R. Levin Consulting, L.L.C.<br />55<br />Traditional Markets<br />Low Margin<br />Mid Margin<br />Core Strengths<br />Segment the Market<br />High<br />Margin<br />Customer-Centric Approach<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  60. L. R. Levin Consulting, L.L.C.<br />56<br />Customer-Centric Approach<br />Analyze the Market<br />Low Margin<br />4 Key elements: <br /> How well are you serving?<br /> What else you can do?<br /> What’s their situation?<br /> What differentiates you?<br />Mid Margin<br />High<br />Margin<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  61. L. R. Levin Consulting, L.L.C.<br />57<br />Low Margin<br />Mid Margin<br />What are your<br /> competitive advantages?<br /> Measure growth rate of markets<br /> and yours relative to the market.<br /> Go to market strategy by market<br />High<br />Margin<br />Customer-Centric Approach<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  62. L. R. Levin Consulting, L.L.C.<br />58<br />Low Margin<br />Mid Margin<br />High<br />Margin<br />What are the customer<br /> groups whose needs<br /> you best serve?<br />Customer-Centric Approach<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  63. L. R. Levin Consulting, L.L.C.<br />59<br />Low Margin<br />Mid Margin<br />High<br />Margin<br />Develop the Strategy<br />Pricing model<br />Value added<br />Customer-Centric Approach<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  64. L. R. Levin Consulting, L.L.C.<br />60<br />Develop the Strategy<br />Pricing model<br />Low Margin<br />Mid Margin<br />High<br />Margin<br /> To merit a higher price, you must <br /> provide your customer added value.<br />Different Services<br />Different Products<br />Technical Quality<br />Guarantees<br />Flexible Terms<br />Training<br />Upgrade Policy<br />Delivery Arrangements<br />Inventory Management<br />Customer-Centric Approach<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  65. L. R. Levin Consulting, L.L.C.<br />61<br />Develop the Strategy<br />Pricing model<br />Low Margin<br />Mid Margin<br />High<br />Margin<br />To merit a lower price, your customer must provide you a value.<br />Testimonials<br />Volume Orders Payment terms<br />Budgeting Information<br />Committed Volume<br />Centralized Purchasing<br />Customer-Centric Approach<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  66. L. R. Levin Consulting, L.L.C.<br />62<br />Low Margin<br />Mid Margin<br />High<br />Margin<br />Develop the Strategy<br />Value added<br />Customer-Centric Approach<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  67. 63<br /> L. R. Levin Consulting, L.L.C.<br />What are the three (3) reasons that could cause a customer to buy from you.<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  68. 64<br /> L. R. Levin Consulting, L.L.C.<br />To minimize the negative effects of problems – <br />Plain.<br />This is the most powerful motivating force for a purchasing decision.<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  69. 65<br /> L. R. Levin Consulting, L.L.C.<br />2. To gain the positive effects of solutions – Benefits.<br />Probing a customer’s perception of value created by solving problems establishes customer-specific Benefits. <br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  70. 66<br /> L. R. Levin Consulting, L.L.C.<br />3. To receive value that outweighs the cost - Investment.<br />Customers buy if the cost of the problem is greater than the cost of the Investment. <br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  71. 67<br /> L. R. Levin Consulting, L.L.C.<br />When you position yourself as the solution provider, whose customer- specific solutions provide a value your competitors don’t, your differentiated approach is a real value.<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  72. 68<br /> L. R. Levin Consulting, L.L.C.<br />Green technology<br />Harvesting rain water<br /> Reusing Gray water<br /> Solar Panels & Windows<br /> Wind Turbines<br /> Wireless Computer Chips<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  73. 69<br /> L. R. Levin Consulting, L.L.C.<br />Green technology<br />AGENTIS ENERGY<br /> It is a web-based, wireless transmitter chip that lets you monitor energy consumption in real time. <br /><ul><li>Manage Energy Consumption on a per device level and lower your costs
  74. Manage peak vs. off-peak usage and costs
  75. Validate utility charges
  76. Negotiate better utility rates
  77. Evaluate potential investments in new equipment
  78. Locate time shifting and savings opportunities
  79. Compare efficiency at the device level
  80. Create and benchmark against energy budgets
  81. Monitor for breakdowns</li></ul>© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  82. 70<br /> L. R. Levin Consulting, L.L.C.<br />Value is the way a customer perceives your benefits.<br />Quality<br />Better Uptime<br /> Fewer Problems<br /> Greater Satisfaction<br /> Higher Quality<br /> Better Performance<br /> Less Exertion<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  83. 71<br /> L. R. Levin Consulting, L.L.C.<br />Value is the way a customer perceives your benefits.<br />Greater Revenues<br />Profit Margin<br /> Less Total Cost<br /> Increased Sales<br /> Lower Cost of Maintenance<br /> Lower Cost of Installation<br /> Lower Cost of Finance<br /> Lower Cost of Labor<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  84. 72<br /> L. R. Levin Consulting, L.L.C.<br />Value is the way a customer perceives your benefits.<br />Less Total Time<br />Greater Prestige<br /> Lower Risk<br /> Fewer Conflicts<br /> Less Downtime<br /> Less Training<br /> Faster Learning Curve<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  85. L. R. Levin Consulting, L.L.C.<br />73<br />Low Margin<br /><ul><li>Which of your </li></ul> competitors’ customers fit <br /> your core advantages?<br />Mid Margin<br />High<br />Margin<br /><ul><li>Which new industry segments should you target?
  86. Modified products?
  87. Which new markets fit your core advantages?
  88. What strengths do you bring that others don’t have.</li></ul>© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  89. L. R. Levin Consulting, L.L.C.<br />High<br />Margin<br />74<br />$100 Mil<br /><ul><li>Which industries will do well in this business cycle? </li></ul>2010<br />2008<br />2020<br />Examples:<br />Energy<br />Medical Related<br />Food Products<br />Public Sector (Infrastructure)<br />Schools<br />Hospitals<br />Farm Machinery<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  90. L. R. Levin Consulting, L.L.C.<br />75<br />$100 Mil<br />Some Industries Benefiting<br />From Consumer Trends<br />2010<br />2008<br />2020<br />1. Vehicle Repair (+7.1%)<br />2. Toys/Games (+3.6%)<br />3. Outdoor Equipment (+4.6%)<br />4. Sporting Goods (+2.2%)<br />5. Sweets (+3.8%)<br />6. Pet Products (+5.9%) and<br />7. Sewing Goods (+2.6%).<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  91. L. R. Levin Consulting, L.L.C.<br />76<br />Some items in the Stimulus Package<br />Areas Billions<br />Health info technology $20<br />Wireless/broadband grants $6<br />Home weatherization $6.2<br />Classroom improvements $21<br />Intercity rail $1.1<br />Transit $9<br />Airport improvements $3<br />Highway infrastructure $30<br />Local schools $41<br />Medicaid for states $87<br />Education alone is slated for $111<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  92. L. R. Levin Consulting, L.L.C.<br />77<br />Focused Scenario <br /> Strategic Planning<br />CEO<br />Technology Integration<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  93. L. R. Levin Consulting, L.L.C.<br />78<br /> Technology Integration<br />CEO<br />Sales<br />Internet<br />Operations<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  94. L. R. Levin Consulting, L.L.C.<br />79<br />Focused Scenario Strategic Planning<br />“Leadership is one of the things you cannot delegate. You either exercise it, or you abdicate it.” Robert Goizueta, Coca Cola<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  95. 80<br /> L. R. Levin Consulting, L.L.C.<br />Suppliers<br />Intended Purpose:<br />A<br />D<br />m<br />i<br />n<br />O<br />p<br />e<br />r<br />Secure differentiation in<br /> highly competitive market<br /><ul><li>Focused Branding</li></ul>Engender a Customer Centric<br /> learning focused team<br />Insure behavioral change<br />CEO<br />Management<br />Customers<br />360 degree integrated approach<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  96. L. R. Levin Consulting, L.L.C.<br />Internal Review<br /> Key financial dashboard<br /> Staffing levels<br /> Staffing quality<br /> Credit terms<br /> Inventory levels and type<br /> Accounts receivable aging<br /> Banking relationship, lines, debt, etc.<br /> Developing Human Capital<br /> Adding value for employees – training<br />81<br />A<br />D<br />m<br />i<br />n<br />O<br />p<br />e<br />r<br />CEO<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  97. Style of<br />the leadership<br />Style of<br /> the business<br />Success<br />To achieve Growth & Stability, the 3 types of behavioral styles must be in sync<br />Style of the<br /> management team<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />82<br />
  98. L. R. Levin Consulting, L.L.C.<br />83<br />Focused Scenario Strategic Planning<br />Process<br />Preparation for Planning<br />Strategic Planning, Strategic Action Workshops<br />Implementation<br />Methodology for implementing, <br /> tracking, adjusting<br />Operations<br />Internal and external<br />Marketing<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />
  99. L. R. Levin Consulting, L.L.C.<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />84<br />Does your strategic plan harness your core competencies against your significant opportunities?<br />A good strategic plan identifies, harnesses, and leverages an organization’s core competencies against its significant opportunities. The plan establishes what should be the logical sequence of steps and stages to successfully realize these significant opportunities.<br />
  100. L. R. Levin Consulting, L.L.C.<br />85<br />In the end<br /> good planning <br /> counts<br />For a copy of this presentation go to:<br />Http://www.LRLevin.com/Workshops/ASPESymposiumSlides.pdf<br />© Copyright 2009 L. R. Levin Consulting, L.L.C. All rights reserved.<br />

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