May 17, 2008<br />Return Driven Strategy:<br />Analysis of the Strategy and Execution of<br />GSB 611  		<br />Return Driv...
Video:   http://www.youtube.com/watch?v=8Vx1BTBhg4c<br />
Omnicom Group (OMC)  Overview<br />“We are a strategic holding company...”<br />	“Our companies provide advertising, marke...
Omnicom Group (OMC)  Overview<br /><ul><li>#1 Media conglomerate in the world
Formed in 1986
5,000 clients in 100 countries
$15.70 billion market cap
$12.6 billion in revenue
80% from Advertising & Customer Relationship Management
8% Domestic Growth (yoy) vs. 16% International Growth (yoy)
Service offerings include:
Media Advertising	❏  CRM
Public Relations	❏  Specialty Communications
Largest of “The Big 4”
Omnicom, WPP, Publicis & IPG	</li></li></ul><li>Omnicom Group (OMC)  Overview<br />
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Gsb 611 Return Driven Strategy Presentation On Omnicom Group

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Gsb 611 Return Driven Strategy Presentation On Omnicom Group

  1. 1. May 17, 2008<br />Return Driven Strategy:<br />Analysis of the Strategy and Execution of<br />GSB 611 <br />Return Driven Strategy<br />Spring 2008 <br />Professor Mark L. Frigo<br />Professor Joel Litman<br />Kellstadt Graduate School of Business<br />DePaul University<br />Rajarshi Das / rajarshid@yahoo.com<br />Andy Deutschmann / am_deutsch@yahoo.com<br />Scott Gottman / scottagottman@yahoo.com<br />John Hering / jphering1@comcast.com<br />Voula Moragiannis / voula.moragiannis@gmail.com<br />Ryan Pearce / rpearce@williamblair.com<br />Kyle Reinert / kyle_reinert@us.schindler.com<br />Kurt Wunderlich / wunder26kj@yahoo.com<br />Do not copy or redistribute without express written consent of Dr. Mark L. Frigo<br />
  2. 2. Video: http://www.youtube.com/watch?v=8Vx1BTBhg4c<br />
  3. 3. Omnicom Group (OMC) Overview<br />“We are a strategic holding company...”<br /> “Our companies provide advertising, marketing and corporate communications services…” <br /> “We provide professional services to clients through multiple agencies operating in all major markets around the world...”<br />
  4. 4. Omnicom Group (OMC) Overview<br /><ul><li>#1 Media conglomerate in the world
  5. 5. Formed in 1986
  6. 6. 5,000 clients in 100 countries
  7. 7. $15.70 billion market cap
  8. 8. $12.6 billion in revenue
  9. 9. 80% from Advertising & Customer Relationship Management
  10. 10. 8% Domestic Growth (yoy) vs. 16% International Growth (yoy)
  11. 11. Service offerings include:
  12. 12. Media Advertising ❏ CRM
  13. 13. Public Relations ❏ Specialty Communications
  14. 14. Largest of “The Big 4”
  15. 15. Omnicom, WPP, Publicis & IPG </li></li></ul><li>Omnicom Group (OMC) Overview<br />
  16. 16. RDS Performance Profile of Omnicom (OMC)<br />
  17. 17. Commitment Tenet<br /><ul><li>Ethically Maximize Wealth
  18. 18. Seek consistent returns through a diversified, complimentary portfolio
  19. 19. Creative-centric business model backed with outstanding service quality
  20. 20. Rich dividends
  21. 21. $0.60 dividend
  22. 22. Continuous Investment
  23. 23. Skills, tools & talents
  24. 24. Employees (Omnicom University)
  25. 25. Communities and environments</li></ul>Off-Balance Sheet Allegations<br />9/11<br />
  26. 26. Goal Tenets<br /><ul><li>Unmet Customer Needs
  27. 27. Maintain creative talent
  28. 28. 70,000 employees / Fierce competition
  29. 29. CRM
  30. 30. 37% of total revenue
  31. 31. 14% growth from 2006
  32. 32. Digital Marketing
  33. 33. Industry’s largest digital holding company (Advertising Age)
  34. 34. Internet, Mobile Marketing, etc
  35. 35. Target Appropriate Groups
  36. 36. Demographics
  37. 37. Hispanics spending $1 trillion by 2010
  38. 38. Target Emerging Markets
  39. 39. China & India</li></li></ul><li>Competency Tenets<br /><ul><li> Deliver Offerings
  40. 40. Client-centric model
  41. 41. Customer touch points
  42. 42. Innovate Offerings</li></ul> “Great ideas are all delivered by the right person at the right time” <br /> - DDB CEO Chuck Brymer<br /><ul><li>Talent development
  43. 43. Invest tools (Catalyst)
  44. 44. “Disruption” (TBWA)
  45. 45. Brand Offerings
  46. 46. One source for all advertising and marketing needs</li></li></ul><li>Supporting Tenets<br /><ul><li>Partner Deliberately</li></ul>“The future is finding the right partners and the right way to work with these partners.”<br /> – CEO John Wren<br /><ul><li>Engage Employees
  47. 47. Attract, Retain, and Develop
  48. 48. Omnicom University
  49. 49. Advanced Management Program
  50. 50. Global commitment to development
  51. 51. Localization
  52. 52. Balance Focus & Options</li></li></ul><li>Top Three Risks<br /><ul><li>Loss of key personnel
  53. 53. Loss of key clients
  54. 54. Consolidation
  55. 55. Reduction in client budgets
  56. 56. Technology
  57. 57. Shifts in viewing habits
  58. 58. Mobile media
  59. 59. Non-advertising revenue
  60. 60. Global economics
  61. 61. Regional market conditions
  62. 62. Government regulations
  63. 63. Exchange rates
  64. 64. Political instability</li></li></ul><li>
  65. 65.
  66. 66. 3 or more pages: Bibliography, sources, research notes<br /> Omnicom Group. 2008. Omnicom Group, Inc. 8 May 2008. &lt;http://www.omnicomgroup.com&gt;<br /> Donald, William H. and James Peters, CFA. “Industry Surveys: Advertising”. Standard & Poor’s, <br /> 9 August 2007. Net Advantage. DePaul University, Chicago, IL 8 May 2008. &lt;http://www.lib.depaul.edu/&gt;<br /> Donald, William H. “Global Industry Surveys: Advertising Asia”. Standard & Poor’s, <br /> May 2007. Net Advantage. DePaul University, Chicago, IL 8 May 2008. &lt;http://www.lib.depaul.edu/&gt;<br /> <br /> Donald, William H. “Global Industry Surveys: Advertising Europe”. Standard & Poor’s, <br /> April 2007. Net Advantage. DePaul University, Chicago, IL 8 May 2008. &lt;http://www.lib.depaul.edu/&gt;<br /> <br /> “HP and Omnicom enter into strategic marketing agreement”. 21 April 2008 Telecomworldwire. 27 April 2008. &lt;http://www.m2.com&gt;<br /> “Omnicom Group Inc. March 2008 Quarterly Report.” 2008. 2 May 2008. Omnicome Group Inc. &lt;http://sec.gov&gt;<br /> <br /> Morrissey, Brian. “What’s Driving OMC’s Digital Strategy?” 15 October 2007. AdWeek. &lt;http://www.adweek.com&gt;<br /> <br /> “OMD Worldwide Ranked Most Creative Media Agency in the World by the Gunn Report for Fourth Consecutive Year; Omnicom Media Group Named Most Awarded Media Holding Company”. 10 April 2008. PR Newswire, &lt;http://www.prnewswire.com&gt;<br /> <br /> Creamer, Matthew. “Wren Gives Omnicom Tools to Reinvent the Ad World”. 8 January 2008. Advertising Age, &lt;http://www.adage.com&gt;<br /> <br /> Cuneo, Alice Z. “Hewlett-Packard, BBDO Form Alliance That Goes Beyond Ads”. 21 April 2008. Advertising Age. &lt;http://www.adage.com&gt; <br />
  67. 67. 3 or more pages: Bibliography, sources, research notes<br /> “Omnicom Expands Omnicom University’s Advanced Management Program to Asia Pacific”. 20 September 2007. PR Newswire. &lt;http://www.prnewswire.com&gt;<br /> <br /> Johnson, Bradley. “Omnicom Group: 2007 Year in Review”. 5 May 2008. Advertising Age. &lt;http://www.adage.com&gt;<br /> Atkinson, Claire. “Agencies in Quest for Respect”. 14 April 2003. Advertising Age. &lt;http://www.adage.com&gt;<br /> “The Industry Battles for Multinationals’ Global Accounts”. 19 March 2005. Economist. DePaul University, Chicago, IL 10 May 2008. &lt;http://www.lib.depaul.edu/&gt;<br /> “Media Perspective: Omnicom Can’t Risk Taking Its Eye Off The Media Playing Field.” 1 June 2007. Campaign. DePaul University, Chicago, IL 8 May 2008. &lt;http://www.lib.depaul.edu/&gt;<br /> Quinton, Brian. “How Bulletproof?” 1 May 2008. PRIMEDIA. DePaul University, Chicago, IL 8 May 2008. &lt;http://www.lib.depaul.edu/&gt;<br />
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