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Similar to Amul Baidya (Team Everest) - Merbatty Strategic Solutions - CIMA Global Business Challenge 2014 (1st Runner-up)
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Amul Baidya (Team Everest) - Merbatty Strategic Solutions - CIMA Global Business Challenge 2014 (1st Runner-up)
- 2. An Overview : Merbatty
- 3. Northern European Luxury Boat 33 years European Stock Exchange
- 4. Market capitalization (2013) : €438m
- 6. 2012 : 8%
- 7. At the End of 5 year Plan (2017) Boats + 78.57% Sales revenue + 99.20% Operating profit + 80.26%
- 8. Strengths Experienced sales agents & network Use of Modern technology Great PR image SWOT
- 13. Late hull delivery JKL Short term Problems New design supplier Sales staff VS Sales agents Racing boat Long Term Proposals Issues
- 14. Late hull delivery 2 months Delay Financial €78,078.4 New supplier €115,604.976 Strategic Unreliability of Topcrest 5-year plan Reputational Late Delivery Customer base reduction
- 15. Accept the compensation €143,464 Gain : €65,385.6 Immediately Amend contract Option I
- 16. Cancel Topcrest Temporary Hull supplier Switching Cost €115,604.976 Option II
- 17. Accept compensation (Topcrest) New supplier in the future Remaining top three Reduced risk (supply chain disruptions) Option III
- 18. Recommendation
- 19. Accept the compensation and continue with Topcrest Lag time – 16 days only Unknown quality & Experience Short term Alternative supplier (Increment of boats) Cost, relative experience and quality Reduce dependency Long Term
- 20. JKL Business Issue Difference between Dominant Shareholder Financial Impact Increasing CSR Spending Obstacle for future Strategic Impact Opportunity cost Government benefits PR image
- 21. (Source: Reputation Institute); available athttp://www.forbes.com/sites/jacquelynsmith/2013/10/02/the-companies-with- the-best-csr-reputations-2/,accessed on 15 May, 2014 2013 Rank Company 2013 CSR Rep Trak Microsoft 72.97 Google 72.83 The Walt Disney Company 72.71
- 22. Recommendation
- 23. Recommendation Cut CSR Spending to 5%
- 24. 2012 (€) 2013 (€) 2014 (€) 2015 (€) 2016 (€) 2017 (€) Planned CS Spending 3.5 4.6 5.7 6.8 7.9 9 CS Spending Limited to 5% 2 2.25 2.55 3 3.45 4 0 1 2 3 4 5 6 7 8 9 10 FINANCING SOCIAL ACTIVITIES Total Amount Saved: €20.25 m
- 25. Recommendation Cut CSR Spending to 5% JKL- Investment company
- 26. Power A B C D Level of Interest Low High Low High Mendelow’s Stakeholder Analysis matrix
- 27. Late hull delivery JKL Short term Problems New design supplier Sales staff VS Sales agents Racing boat Long Term Proposals Issues
- 28. Cooper Designs vs. Arabian Interiors NEW DESIGN SUPPLIER
- 29. Cooper Designs Operational Analysis Pros Economies of Scale Experience Curve Higher Reputation Traditional & Modern Designs Customer Interaction NEW DESIGN SUPPLIER Cons € 100K for Mid- Sized boats
- 30. Arabian Interiors Operational Analysis Pros Cultural Proximity Closer to the boat building facility €90k for all sized boats Bigger Network NEW DESIGN SUPPLIER Cons Dis-economies of scale Less experience
- 31. Recommendation
- 32. Accept Cooper Designs Recommendation Experience curve advantage Consumer interaction Incur the costs because of higher quality
- 33. Industry Tradition -Sales agents Involved in selling process Increasing demand Sales offices 20 locations SALES STAFF VS SALES AGENTS Strategic Analysis Suitability
- 34. SALES STAFF VS SALES AGENTS Strategic Analysis Acceptability Sales Agents - Increasing dividends Sales Staff- decrease the operating costs
- 35. SALES STAFF VS SALES AGENTS Strategic Analysis Feasibility Exclusive sales agents Highly committed staffs
- 36. Sales Agents Operational Analysis Pros Global contacts Customer relationships Target audience Commission based Industry culture Exclusive & Experienced Cons Focuses mostly on medium boats Independent and influences prices Work with rival companies SALES STAFF VS SALES AGENTS
- 37. Sales Staff Operational Analysis Pros Control over sales staff Effective communication Plan Involvement Increasing demands No middle men Cons Less reach Different cultures High Switching Cost Fixed costs SALES STAFF VS SALES AGENTS
- 38. Recommendation
- 39. Combination – Sales Staff and sales agents Recommendation Sales agents Demands are low, spread out Reach is low Researching & Employing the market culture (Australia, Africa) Sales Staff High demands (pull effect) Strategic locations (Europe, USA, and Middle East)
- 40. Stefan has also been working on a proposal to open up 20 sales offices
- 41. Racing Boat Increase sales of P-3000 model Financial Analysis 16 boats (P-3000) 2 years to breakeven Strategic Analysis Suitability Acceptability Economical
- 42. Supporting Factors High rewards Huge buzz Increase demand for P-3000 boats Strategic Analysis Suitability
- 43. Risky Factors Failure Image Accidents, controversy, engine failures Affect the share price Unknown segment Budget costs Strategic Analysis Suitability
- 44. Public Limited Company Five-year plan “a family business” Conflict Strategic Analysis Acceptability
- 46. Organizational Product development Organization structure (distribution channels, human resource, production techniques, etc.) Strategic Analysis Feasibility
- 47. Technological Technical aspects Invested €10m in IT Speedboat production Strategic Analysis Feasibility
- 48. Recommendation
- 50. Market Market Penetration Product Development Market Development Diversification Products Present New Present New Ansoff’s Growth Vector Matrix
- 52. Accident At Work JKL Ethical Issues
- 53. Dilemma Jesper – Paulo Relationship Paulo on Drugs Accident At Work
- 54. Recommendation Report the situation Help Paulo overcome addiction Constitute Health and Safety Policies Safety and Health Legislation at Work
- 55. Health and Safety Legislation at work (Northern Europe) Country Health and safety legislation and Practices United Kingdom Section 2 states 'It is an offense under the misuse of drugs act to supply or use of controlled substances on their premises except in specified circumstances (doctor Prescription)' Sweden Chapter 3 s. 4 of the 1977 Swedish Work Environment Act instructs the employee to be active towards a safe work environment, including taking precautions for the prevention of illness and accidents Case law from the Swedish Labour Court stipulates that certain conditions, suchas security reasons, could justify an employer to obligean employee to undergo a drug test. (Source: europa.eu)
- 56. Dilemma Obligation to act for the benefit of all shareholders “Dad will turn around because family is family” JKL
- 57. Recommendation
- 59. Achievability of 5 Year Plan Dependent on 2 new facilities (Middle East & Asia)
- 60. Achievability of 5 Year Plan Boats + 78.57% High GDP Multiple boats Buying
- 61. GDP of countries World Rank Country GDP per Capita (PPP) (in US dollars) 1 Qatar 102,100 2 Macau (PRC) 88,700 4 Monaco 66,500 5 Singapore 62,400 8 United States 52,800 - Hong kong (PRC) 52,700 12 Australia 43,000 14 Kuwait 42,100 17 Sweden 40,900 19 Taiwan 39,600 23 United Kingdom 37,300 30 South Korea 33,200 32 Saudi Arabia 31,300 35 United Arab Emirates 29,900 36 Oman 29,800 37 Bahrain 29,800 World Average 13,100 (Source: CIA world fact book), as of 2013
- 62. Achievability of 5 Year Plan Cost Forecast Inability to achieve economies of scale
- 63. 2012 2013 2014 2015 2016 2017 Percentage Change in Cost 10.56% 17.20% 14.86% 14.35% 19.03% Percentage Change in Revnue 0 10.56% 16.22% 14.73% 14.19% 18.34% 0 1 Percentage rise in revenue and Percentage rise in cost
- 64. Achievability of 5 Year Plan Planned Dividend Planned growth
- 65. Achievability of 5 Year Plan CapitalExpenditure Analysis AdequateBudget Growing sales Cash inflow and outflow
- 66. Cash Flow Statement Description 2012 2013 2014 2015 2016 2017 Net increase in Cash and Cash equivalents 164 (16) 33 34 (20) (59) Cash and Cash Equivalents : Opening 7 171 155 188 222 202 Cash and Cash Equivalents : Closing 171 155 188 222 202 143
- 67. Financial Ratios Ratios 2011 2012 Current ratio 0.792 3.154 Quick ratio 0.31 1.94 Cash ratio 0.027 1.257 Interest coverage ratio 3.824 5.429
- 68. Achievability of 5 Year Plan New boats Designs 10% increase in IT if the €10m expenditure on new IT systemis accepted
- 69. Issue Nature Recommendations Late hull Delivery Problem Acceptthe compensation Search alternative supplier JKL Problem Cut CSR spending to 5% of Net Profit Summary & Conclusions
- 70. New design supplier Proposal AcceptCooper Designs Sales Agents VS. Sales Staff Proposal Combination of Sales Agents and Sales Staff Racing Boat Proposal Reject Five year plan Focus current market
- 72. Thank You !