Enspiel

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Enspiel

  1. 1. Strategy development forSTRATEGY PARTNERS GROUPFinal report 12 December 2011
  2. 2. Cup Moscow 2011 Final Case Russian Intellectual TraditionTitova ElenaKorkmazov Alexey HIGHER SCHOOL OF ECONOMICSMnatsakan’yan Alexander N AT I O N A L R E S E A R C H U N I V E R S I T YRodnyy Alexander
  3. 3. Team ENDSPIEL Participants: Elena Alexey Alexander Alexander NRU HSE NRU HSE NRU HSE NRU HSE Management Management Management Management 4 year 4 year 4 year 4 yearTeam ENDSPIEL 3
  4. 4. The Long-term goal Leader in Russian market of strategy consulting 2016 Business Value ~100,0 Revenue 100% 100,0 COGS 19% 19,0 Direct costs Consulters 17% 23% 16,7 23,4 Improve position Administrative 5% 4,6 Other 17% 12,0 Ebitda 19% 19,4 Revenue per Profit Revenues Value consultant margin Price Quantity 2011 Business Value ~20,0 * Revenue 100% 19,0 COGS 19% 3,6 Direct costs 22% 4,2 Consulters 26% 4,9 Consultant Level of sales Administrative 6% 1,1 Diversity of Other 8% 1,5 Quality Brand staff business channels increase development EBITDA 19% 3,6Source: Case data, Endspiel analysisTeam ENDSPIEL 4
  5. 5. The Problems SPG strategy will be able to respond to internal and external challenges it faces External Internal > Growing demand and > Lack of integration with stable supply of SBERBANK Group consulting talent > Low revenue per > Increasing importance consultant of brand awareness > Low recurrent clients > Increasing likelihood of rate crisisTeam ENDSPIEL 5
  6. 6. The Scenarios 2-way approach allows to meet changing conditions > Large companies > Medium & small companies > Public sector > PE Fund > IT consulting > International expantion > No Staffing to Ukraine & Kazakhstan problems Increase reccurence rate Large commercial customers Brand awareness development - the targetTeam ENDSPIEL 6
  7. 7. The Optimistic Scenario Business value increase by 2016 We will increase the SPG value to $100m by 2016 +$45m PE Fund +$80m Value +$14m Oil&Gas + Energy +$8m Manufacturing New +$7m +$35m FMCG projects +$4m Insurance +$2m AgricultureTeam ENDSPIEL 7
  8. 8. The Optimistic Scenario Implementation plan 2012 2013 2014 2015 2016 MARKETING ACQUIRING NEW CLIENTS through SBERBANK GROUP KAZAKHSTAN UKRAINE PE FUND HIRE STAFF REGIONAL DEVELOPMENT (SPb)Team ENDSPIEL 8
  9. 9. The Optimistic Scenario Marketing plan Public projects Vestnik Srategy Ads in magazines Conferences & TrainingsTeam ENDSPIEL 9
  10. 10. The Optimistic Scenario New clients acquiring plan Clients Consulting Clients Consulting PRIVATE EQUITY IPO Consulting M&ATeam ENDSPIEL 10
  11. 11. The Optimistic Scenario Industries 45% Manufacturing Metallurgy Oil&Gas 21% Transport Government FMCG TMT Growth Rate Finance institutions -4% Size represents market share Competitors’ Power 28% 14% 0% Selected industriesSource: Case data, ExpertRATeam ENDSPIEL 11
  12. 12. The Optimistic Scenario Practices in industries100% HR Tax & Legal 80% Organization 60% IT integration 36% 40% 50% IT management 30% 40% Operations 15% 18% Strategy 14% 20% 14% 11% 12% Financial 20% 13% 15% 11% 10% consulting 8% 0% Manufacturing Transport Energy Government Finance Oil&Gas institutionsSource: Case data, ExpertRATeam ENDSPIEL 12
  13. 13. The Optimistic Scenario CIS Kazakhstan Ukraine > Government (sustain) > Finance (Troika Dialog) > Oil&Gas > Agriculture > Energy GDP (Ukraine), % Agriculture 7.8 Other Mining Reprocessing 25 6.2 22.4 > Mining Healthcare 3.5 > Agriculture Education > Finance (Troika Dialog) 5.7 Retail Energy & gas 3.6 Transport Development 15.7 10.5 4Team ENDSPIEL 13
  14. 14. The Optimistic Scenario Private Equity Fund will bring in an income of $45m* by 2016 2016 $145m Consulting $90m 5-10 growth $2000 m Firms $100m $1000 m $200 m ~10% share$ 145m will be returned to Sberbank,$ 10m – to the partnersInvestment: 10-20% in small- and medium-sized companies (value $50-100 M) in FMCG, manufacturing, insuranceTeam ENDSPIEL 14
  15. 15. The Optimistic Scenario Staffing. Salary. Structure. Salary + Bonus ($1000 Per month) 2011 7Partner 5Jun. Partner 30 + 11 partner 4Director 11Manager Junior Partner 15 + 8 22Consultant 30Analyst Director 11 + 5,7 25Administrative staff Manager 9 + 3,5 2016 10Partner 12Jun. partner 15Director Senior 6 + 2,5 consultant 33Manager 15Senior consultant +MBA16 Consultant 5 + 1,7 33Consultant 90Analyst Analyst 2,5 75Administrative staffTeam ENDSPIEL 15
  16. 16. The Optimistic Scenario Staffing sources Partners and Junior partners Directors & Managers 20% Industry 42% 30% Industry 60% 20% IG 28% IG Own Own Managers Analysts 29% Industry 27% Industry 53% 18% IG 67% 6% IG Own GraduatesHire 394 employees by 5 yearsTotal Hiring expenses $20,6 m for 5 years ($52400 per 1)Team ENDSPIEL 15
  17. 17. The Optimistic Scenario Saint-Petersburg office > Staff ~100 > Rental price of office is up to 2 times lower Total Consulting Revenue Breakdown in Russia, % Moscow Saint Petersburg Siberia Privolzskyi FD 18% Central OtherSource: Case data, ExpertRATeam ENDSPIEL 17
  18. 18. The Pessimistic Scenario Business value increase by 2016 We will increase the SPG value to $70m by 2016 +$15m M&A +$50m Value +$15m Oil&Gas + Energy New +$10m +$35m Government projects +$10m FinanceTeam ENDSPIEL 18
  19. 19. The Pessimistic Scenario Implementation plan 2012 2013 2014 2015 2016 MARKETING ACQUIRING NEW CLIENTS through SBERBANK GROUP KAZAKHSTAN BUY an IT-CONSULTANT CONCENTRATE on GOVERNMENT, FINANCE and OIL&GASTeam ENDSPIEL 19
  20. 20. The Pessimistic Scenario Industries 40% Finance institutions FMCG Government Transport TMT 3% Manufacturing Growth Rate Oil&Gas Metallurgy -34%27% 15% Competitors’ power 3% Size represents market share Selected industriesSource: Case data, ExpertRATeam ENDSPIEL 20
  21. 21. The Pessimistic Scenario Practices in industries100% HR Tax & Legal 80% 7% 7% 9% Organization 11% 60% IT integration 36% 40% 18% 50% IT management 30% 40% 27% Operations 15% 18% Strategy 14% 20% 14% 11% 12% Financial 20% 13% 15% 11% 10% consulting 8% 0% Manufacturing Transport Energy Government Finance Oil&Gas institutionsSource: Case data, ExpertRATeam ENDSPIEL 21
  22. 22. The Pessimistic Scenario M&A ~$10m Staff 180 IT - management IT - integration 60% revenue 40% staff 40% revenue 60% staff Staff (72) New staff (18) Sell to 0% Own Stay Fire 28% or 50% 50% Accenture 72%Team ENDSPIEL 22
  23. 23. The Pessimistic Scenario Check list Achieve for quadruple growth Optimistic Pessimistic IT-managem. Government Manufacturing Oil&Gas practice UA & KZ Oil&Gas PE Fund Finance M&A FMCG Diversified Growth Artificial GrowthTeam ENDSPIEL 23
  24. 24. That’s it. Questions, please.Team ENDSPIEL 24
  25. 25. AppendixTeam ENDSPIEL 25
  26. 26. The Risks Probability 3 4 high 7 8 1 6 5 medium 2b 2a low 2c low medium high Effects 1) Possible organizational culture barriers 4) Uncertainty with crisis 2012 2) Problems with finding: 5) Absence of forecasted money return a) project 6) Troika’s reluctance of cooperation b) qualified personal 7) Absence of adjusted PEF – system c) money 8) Evaluation of benefits from selling IT - integrator 3) Political situationTeam ENDSPIEL 26

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