This presentation is a growth strategy report of a major kitchen supplier in Australia.
To achieve its growth objectives, the company has engaged a major consulting firm to:
- define and articulate the business strategy that will deliver its growth and profit targets
-identify the business model and capabilities the company will need to realise this strategy, and
- assess what investment in time, effort and money will be called for to execute the strategy (including two alternative roll-out plans)
The deck has 49 slides. Download at gazhoo.com
Business Growth Strategy And Revenue Model Powerpoint Presentation SlidesSlideTeam
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The report FISHER & PAYKEL APPLIANCES HOLDINGS LIMITEDCompany Profile is a detailed document covered company’s Overview, History, SWOT Analysis, Products/Services, Facts, Financials, Key Executives, Competitors, Tech Intelligence, IT Outsourcing, IT Management, Recent Developments and Strategy Evaluation.
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Purpose of Assignment
This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential assignment requires students to use ratios to evaluate and analyze a company’s liquidity, solvency, and profitability.
Two-Rivers Inc. (TRI) manufactures a variety of consumer products. The company's founders have run the company for thirty years and are now interested in retiring. Consequently, they are seeking a purchaser, and a group of investors is looking into the acquisition of TRI. To evaluate its financial stability, TRI was requested to provide its latest financial statements and selected financial ratios. Summary information provided by TRI is presented below.
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Recruitment Process Outsourcing PowerPoint Presentation SlidesSlideTeam
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Pitch Deck To Raise Funding From Series B Investment PowerPoint Presentation ...SlideTeam
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Sales And Operations Planning Powerpoint Presentation SlidesSlideTeam
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For more course tutorials visit
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Purpose of Assignment
This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential assignment requires students to use ratios to evaluate and analyze a company’s liquidity, solvency, and profitability.
Two-Rivers Inc. (TRI) manufactures a variety of consumer products. The company's founders have run the company for thirty years and are now interested in retiring. Consequently, they are seeking a purchaser, and a group of investors is looking into the acquisition of TRI. To evaluate its financial stability, TRI was requested to provide its latest financial statements and selected financial ratios. Summary information provided by TRI is presented below.
Business Expansion Research Design Proposal PowerPoint Presentation SlidesSlideTeam
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The defining asset of every leading technology company is talent. At Balderton, our job is to provide capital to support European technology companies to attract and retain world leading talent and get the best out of them. As a result, we’re fortunate to have learnt a lot about what it takes to identify, attract and retain people from the teams we work with.
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Dispatches From The New Economy: The On-Demand Economy And The Future Of WorkIntuit Inc.
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Dispatches from the New Economy: The On-Demand Workforce provides a detailed analysis of the demographics, motivations and challenges of workers pursuing on-demand jobs. The data comes from a study from Intuit and Emergent Research that examined people working via eleven on-demand economy and online talent marketplace companies. Study participants included: Deliv, Field Nation, HourlyNerd, MBO Partners, OnForce, Uber, Upwork (formerly Elance-oDesk), Visually, Wonolo, and Work Market.
Methodology
A total of 4,622 workers who find work opportunities via the platforms provided by the participating partner companies completed an online survey between September 11 and October 1, 2015. The results were weighted to reflect the proportion of workers in each of the following segments: Drivers/Delivery, Online Talent Marketplaces and Field Service/Onsite Talent. The weights were developed using earlier survey work that sized the on-demand economy. The largest weighted share of on-demand worker respondents from any single company is 16%, with most partner companies providing less than 10% of the respondents.
The slide deck we used to raise half a million dollarsBuffer
This is the pitchdeck we used to raise half a million dollars from Angel investors. More here:
http://onstartups.com/tabid/3339/bid/98034/The-Pitch-Deck-We-Used-To-Raise-500-000-For-Our-Startup.aspx
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Horizon 2013 Driving Global Adoption to Procurement Technology - A Cargill Ap...Zycus
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Derek Batchlor will share Cargill’s approach to implementation of spend analysis tool and how they have been able to drive broad adoption of the tool by over half of the nearly 200 team members in Strategic Sourcing. "
This PPT deck displays thirty three slides with in depth research. Our Economic Forecasting Powerpoint Presentation Slides presentation deck is a helpful tool to plan, prepare, document and analyse the topic with a clear approach. We provide a ready to use deck with all sorts of relevant topics subtopics templates, charts and graphs, overviews, analysis templates. Outline all the important aspects without any hassle. It showcases of all kind of editable templates infographics for an inclusive and comprehensive Economic Forecasting Powerpoint Presentation Slides presentation. Professionals, managers, individual and team involved in any company organization from any field can use them as per requirement.
Tactics To Differentiate Yourself From Your Closest Business Competitors Powe...SlideTeam
Introducing Tactics To Differentiate Yourself From Your Closest Business Competitors slideshow. Our competitor study analysis presentation will provide both an offensive and defensive strategic context to identify opportunities and threats of your rivals. This readily available competitive advantage PPT slide deck helps you to explain the competitive strategies that the company uses such as product/service differentiation, and niche strategies. The competitive analysis PPT slides explain the sources of a competitive advantage which include strategic location, customer loyalty, best customer service, strong R&D, etc. Include your key points in this competitive analysis PowerPoint slides and get your ideas across through the help of an additional PowerPoint template by editing the text boxes shown here. Discuss how customer retention strategies enable you to provide and extract more value from your existing customer base. Showcase the potential barriers that can arise during operations by describing the structural barriers, strategic barriers, and statutory barriers. Also, present the right measures to overcome them. Thus, gain a competitive advantage over your competitors by downloading our visually attention-grabbing core competency PPT slide deck. https://bit.ly/2ORlCC5
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What is Enterprise Excellence?
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What might I learn?
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Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
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Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
2. Our objective was to assist XYZ in defining & articulating its strategy for
dramatic growth in the Australian kitchen renovation market.
Growth Strategy – Objective & Scope
XYZ’s vison is to dramatically increase its share of the Australian kitchen
renovation market to 15%—generating sales of $120m (EBIT $12–18m)—by end2004
To achieve this, we undertook to:
− assist XYZ to define and articulate the business strategy that will deliver its
growth and profit targets
− identify the business model and capabilities XYZ will need to realise this
strategy, and
− assess what investment in time, effort and money will be called for to execute
the strategy (including two alternative roll-out plans)
1
3. The project team has completed the planned scope of work within the
timeframe.
Phase 1 – Project Plan
Stage 1 (Week 1)
Stage 2 (Week 2)
Stage 3 (Week3)
Operating Strategy
Development
Strategic
Direction
Diagnosis
•
Define the business context
•
•
Develop projected market data
to year end 2004
Generate potential strategic
options
•
Identify first-cut business
models and capabilities
•
Define best 11 strategic
opportunities
Plan
•
Define appropriate operating
strategy to execute the best
options
•
Group similar and compatible
profit improvement opportunities
for:
• Identify the performance
gap
•
Stage 4 (Week 3)
• Sales & Marketing
Select the two best options
• Supply Chain
• Operating Costs
• Information Technology
•
•
2
Align business architecture to
execute the strategy
Assess what time, effort and
money will be required to realise
the best options
•
Plan transition from current
state to new state
4. From our analysis we have identified the most promising growth opportunity
for XYZ
We have targeted the 5 major cities as the focus for growth
We have reviewed the multiple sales channel choices available
into three potential go forward options
Further evaluation and costing of these options has brought us to
two strategic alternatives
We have identified the business model and capabilities XYZ will
need to realise the preferred strategies
We have assessed what investment in time, effort and money will
be called for to execute the strategies (including two alternative
roll-out plans)
3
5. Based on market size, Australia’s largest cities initially present the best
opportunities for growth.
Initial Focus
Population–Australia’s Largest
Cities, 1997(6)
Annual Spend on Kitchens – Top
Five vs. The Rest, 1997(5)
Gold Sunshine
Coast (4) Coast (4)
Canberra 2%
1% Cairns
1%
2%
Newcastle
3%
Other VIC
4%
Other SA(2) Other WA(2)
3%
2%
6%
Other
QLD(6)
31%
10%
Adelaide
Sydney
33%
12%
Other NSW (5)
11%
Perth
7%
Brisbane
Melbourne
12%
27%
5
Perth
4
Brisbane
8%
Total = 12.5 million
Notes:
1
Sydney
(1) Excludes ACT, NT and Tasmania.
(2) Assuming 75% of spend is accounted for by capital cities.
(3) Includes Newcastle which could be assessed as a second tier growth opportunity.
(4) Includes Gold Coast and Sunshine Coast which could be assessed as second tier growth opportunities.
4
3
Adelaide
2
Melbourne
17%
8%
Total = $1.9 billion(1)
The 5 largest
cities equate to
73% of annual
Kitchen spend
in Australia
Sources: (5) BIS Shrapnel, Kitchen Renovations, 1997.
(6) ABS, 1997.
6. Melbourne and Sydney are the most attractive markets.
Market Attractiveness – Large Australian Cities(1)
Criteria
Sydney
Melbourne
Brisbane
Adelaide
Perth
Population
Population
Growth
GDP per Capita
Share of Kitchen
Renovation Spend
Growth in Building
Commencements
Growth in
Renovations
Number of
Competitors
Industry
Concentration
Average Price of
Kitchens Installed
Overall
Attractiveness
Attractiveness
Note:
(1) See appendix 1 for rating scale. See appendices 2 & 3 for data, analysis notes, assumptions & sources.
5
Low
High
7. We have assessed XYZ’s ability to compete in the five largest cities. It is
highest in Sydney and Adelaide.
Ability to Compete – Large Australian Cities(1)
Criteria
Sydney
Melbourne
Brisbane
Adelaide
Perth
Relative
Market Share
Market
Knowledge
Distribution
Network
Sales Force
Effectiveness
Distribution
Costs
Marketing
Effectiveness
Brand
Strength
Overall
Attractiveness
Ability to Compete
Low
Note:
(1) See appendix 5 for rating scale. See appendices 6 & 7 for data, analysis notes, assumptions & sources.
6
High
8. We have combined market attractiveness and ability to compete to assess the
overall opportunity for growth in each market. Overall, Sydney presents the
best opportunity for growth.
Market Opportunity Assessment – Large Australian Cities
High
Melbourne
Sydney
1%
3%
Build Capabilities
Target For Growth
Target For Growth
Immediately
Brisbane
<1%
• Size of circle represents
$ value of kitchen market(1)
• % represents XYZ’s
market share by value(1)
Relative Market
Attractiveness
Perth
<1%
Transfer Capabilities
Trial New Channels
Leave For Now
Adelaide
3%
Low
Low
Note:
Sources:
Relative Ability to Compete
(1) Assumes 25:75 rural/urban split for WA and SA.
BIS Shrapnel, 1997; XYZ Management Report, December, 1999.
7
High
9. Based on the pricing point distribution of Nobby sales in Sydney versus BIS
Shrapnel market data, the low cost end of kitchen renovation market has not
been exploited by XYZ.
Adjusted SYD XYZ vs BIS Distribution of Price Points
XYZ Sydney 6 months
Direct Kitchen Volume
BIS Annual Kitchen
Volume %
300
250
200
20
Low end kitchen
sales ($2000$5000) not
currently exploited
by XYZ
18
16
14
12
150
10
8
100
6
4
50
2
0
0
10001999
20002999
30003999
‘Bits and
Pieces’ sales
Note: XYZ Sydney raw data: Deducted 8% appliance costs. Added installation and
appliances at industry cost
Source: BIS Shrapnel 1997, p75, Cost of Renovations by cupboards purchased
XYZ Sydney 6 month order reports 1999
40004999
50005999
60007999
Price Points $
8
80009999
1000014999
>15000
XYZ
BIS
10. Based on the pricing point distribution of XYZ sales in Adelaide versus BIS
Shrapnel market data, the low cost end of kitchen renovation market has not
been exploited by XYZ.
Appendix 6: Adjusted XYZ ADELAIDE vs BIS Distribution of Price Points
Wallspan Kitchen
BIS Annual
Volume
Kitchen Volume %
300
60
Low end kitchen
sales ($1500$3000) not
currently exploited
by XYZ in Adelaide
250
200
50
40
150
30
100
20
50
10
0
0
<1000
‘Bits and
Pieces’ sales
1000-2999
3000-5999
Price Points $
Note: XYZ raw data doesn't include appliances. Installation and appliances added at industry costs.
Source: BIS Shrapnel 1997, p120, Cost of kitchen renovations by item installed; XYZ Wallspan order Reports, 6 months to Dec 1999.
9
6000+
XYZ
BIS
11. We have targeted the 5 major cities as the focus for growth
We have reviewed the multiple sales channel choices available
into three potential go forward options
Further evaluation and costing of these options has now brought
us to two strategic alternatives
We have identified the business model and capabilities XYZ will
need to realise the preferred strategies
We have assessed what investment in time, effort and money will
be called for to execute the strategies (including two alternative
roll-out plans)
10
12. We have filtered and consolidated our initial set of 11 concepts into three
strategic options for consideration.
Three Strategic Options
1. The One-Stop-Shop
2. Retail Showroom Focus
1
Kitchen Renovators Superstore
2
Multi-channel, Multi-Brand Retailer
6
Supply direct to trade (ex-factory)
with orders made through trade
outlets (e.g. Tradelink), phone, fax
or Internet
3
Kitchens on-line
6
Wholesale supplier to trade &
commercial
3. Hardware Multiple Focus
7
Hardware multiples focus (e.g.
Bunnings, BBC)
8
Selected expansion of branded
showrooms
- Direct to trade (ex-factory) with
orders made through trade outlets,
phone, fax or Internet
- No commercial channel
development
- Supply commercial property
developers (e.g. Mirvac, Multiplex)
4
Supplier of choice to kitchen
industry
10 Backward integration
11 Forward integration
5
Ref: Final Report Appendix for detailed
descriptions of concepts 1-11
Utilise across options as
core enablers in the value
chain
Expanded modular furniture range
Non Core
Distributor Model Retail Outlets
Considered as approach
to implementation across
all options
9
11
13. Strategic Option 1 – “The One-Stop-Shop”– is a kitchen superstore concept
with a separate trade-direct channel.
Option 1 – One-Stop-Shop
Channel
Market Segment
Price Point(1)
Product
Home Owner Builder/
Renovator
Budget Home
Renovator
• Low to Medium
Price Range
($3K-$6K)
• Supports Standard
Kitchens
• Value Added Services
• Showroom service
• Measure
• CAD Design
• Installation
DIY enthusiast
World-Class
Manufacturing
Capability
• Medium to High Price • Supports Custom Kitchens
Range ($5K-$9K)
• Value Added Services
• Showroom service
• Measure and consult
• CAD Design
• Finance
• Project Coordination
• Installation
• Appliance/
Accessories
dealerships
• Low Price Range
($1.5K-$4K)
• No Fuss Standard Flat
Pack Range
• Best Value
(Price/Quality)
• Standard “Easy to
Use’ Range
• Off-Shelf Availability
Every Time
• Loyalty incentives
Kitchen
Superstore
in key locations
ILE
AG
FR
ILE
AG
FR
ILE
AG
FR
Trade
Channel
(ex-factory/warehouse
direct to trade
outlet or site)
Note: (1) Includes cabinetry price only.
ILE
AG
FR
Tradesman/Installer
Small Builder
12
14. Strategic Option 2 – “Retail Showroom Focus” – is a multi-channel, multibrand retail strategy.
Option 2 – Retail Showroom Focus
Channel
Market Segment
Home Owner Builder/
Renovator
Brand
Stores
(Nobby’s &
Wallspan)
Kitchen
Barns
(Cash & Carry)
Budget Home
Renovator
DIY Enthusiast
ILE
AG
FR
ILE
AG
FR
eKitchens
Direct
(24hr
Delivery)
World-Class
Manufacturing
Capability
ILE
AG
FR
ILE
AG
FR
Tradesman/Installer
Price Point(1)
• Medium to High
• Supports Custom Kitchens
Price Range ($4K- • Value Added Services
$10K)
• Showroom service
• Measure and consult
• CAD Design
• Finance
• Project Coordination
• Installation
• Appliance/ Accessories
dealerships
• Low to Medium
Price Range
($3K-$6K)
• Supports Standard
Kitchens
• Value Added Services
• Showroom service
• Measure
• CAD Design
• Installation
• Low Price Range
($1.5K-$5K)
• Standard Flat Pack & UniBlock Range + Wardrobes
• Best Value(Price/Quality)
• Standard “Easy to Use’
Range
• Off-Shelf Availability
Every Time
• Loyalty incentives
• Trade discounts
Small Builder
Budget Home
Renovator
Furniture
Multiples
ILE
AG
FR
ILE
AG
FR
ILE
AG
FR
ILE
AG
FR
Product
DIY enthusiast
ILE
AG
FR
Factory
Direct
Note: (1) Includes cabinetry price only.
ILE
AG
FR
ILE
AG
FR
ILE
AG
FR
• Contract based
Kitchen Companies
& Commercial Developers
13
• Contract based
15. Kitchen Barns are a low-range kitchen warehouse outlet.
Kitchen Barn
Store Concept
• Warehouse design
• 750 - 1000 sq.
metres
• Located in 5 largest
cities
• 1 store/ 500K
population
• Cash & carry
flatpacks/uniblocks
and short leadtimes for assembled
Target Customers
• DIY
• Budget-conscious
renovator (low-mid
socio-economic
segment)
• Tradespeople
14
Product/Service
Offer
• Kitchens in $1,500$7,000 price range
-assembled
- flatpack
• Accessories
• Appliances
• Uniblock
• Benchtops
• CAD stations
• Trade
recommendation
service
16. Strategic Options 3 – “Hardware Multiple Focus” – primarily involves
targeting volume through hardware multiples and, in addition, growing the
number of branded showrooms.
Option 3 – Hardware Multiple Focus
Channel
Market Segment
Price Point(1)
• Low Price Range
($1.5K-$4K)
• No Fuss Standard Flat
Pack & Uni-Block Range
• Best Value
(Price/Quality)
• Standard “Easy to
Use’ Range
• Off-Shelf Availability
Every Time
• Loyalty incentives
• Low to Medium
Price Range
($3K-$6K)
• Supports Standard
Kitchens
• Value Added Services
• Showroom service
• Measure
• CAD Design
• Installation
• Medium to High Price
Range ($5K-$9K)
DIY enthusiast
• Supports Custom Kitchens
• Value Added Services
• Showroom service
• Measure and consult
• CAD Design
• Finance
• Project Coordination
• Installation
• Appliance/
Accessories
dealerships
ILE
AG
FR
ILE
AG
FR
ILE
AG
FR
Hardware
Multiples
(Bunnings &
BBC HardwareHouse)
World-Class
Manufacturing
Capability
ILE
AG
FR
Tradesman/Installer
Small Builder
Budget Home
Renovator
Brand
Stores
(Nobby’s &
Wallspan)
Home Owner Builder/
Renovator
Note: (1) Includes cabinetry price only.
Product
15
17. We have targeted the 5 major cities as the focus for growth
We have reviewed the multiple sales channel choices available
into three potential go forward options
Further evaluation and costing of these options has now brought
us to two strategic alternatives
We have identified the business model and capabilities XYZ will
need to realise the preferred strategies
We have assessed what investment in time, effort and money will
be called for to execute the strategies (including two alternative
roll-out plans)
16
18. We have developed six configurations from the three strategic options for
financial consideration.
Configurations Considered
Channels
Flagship stores, Flagship stores,
Nobbys &
Nobbys &
Hardware multiples Kitchen Barns
Retail
Flagship stores
Nobbys &
Kitchen
Barns
Kitchen Barns
Hardware Multiples
Trade
Nobbys &
Hardware
multiples
Branded stores
Superstores &
Kitchen Barns
Superstores
Superstores
& Hardware
multiples
eKitchens
Factory Direct (including Commercial)
eKitchens and the factory direct channel can be added as a ‘bolt-on’ at
a later date
17
19. The financial projections are based on several key assumptions.
Key Assumptions1
The financial projections do not include costs and revenues associated with XYZ’s
existing Commercial and wardrobe business
Outlets opened during the year are assumed to have 50% of the sales volume of
established outlets (i.e. outlets opened in prior years)
Funding requirements are met by debt and equity in equal proportions
Interest on debt assumed at 10%
No dividends are paid during the period under review
Tax rate assumed at 30% and tax is paid one year in arrears
Efficiency improvements on materials (2% on cost of goods sold), labour (1%) and
variable overheads (2%) are realised on an annual basis
Notes:
(1) See Appendix for detailed assumptions
18
20. We have prepared projections for each of the configurations.
Configurations Evaluated
Flagship stores,
Flagship stores,
Branded Stores
Branded Stores &
& Kitchen
Hardware multiples
Barns
Superstores
& Hardware
multiples
Superstores &
Kitchen Barns
Branded
Stores &
Hardware
multiples
Branded
Stores &
Kitchen
Barns
Number of outlets1
68
47
51
30
82
61
Volume of kitchens (000s)1
21
26
25
31
17
23
Revenue ($million)1
106
145
124
163
89
128
EBITDA ($million)1
12
14
14
16
11
12
EBIT1
9
10
11
12
8
9
86%
78%
104%
94%
82%
74%
4
13
10
19
4
13
Medium
Medium
High
High
Low
Medium
ROCE (%)2
External funding req’d ($million)
Relative Risk
Notes:
(1) Based on projections for FY 2004
(2) Return on capital employed (EBIT divided shareholders funds plus debt) for FY 2004
19
21. The two preferred options are Branded Stores with either Hardware Multiples
or Kitchen Barns, as they generate the best return relative to XYZ’s
capabilities.
Evaluation of Configurations
High
Configurations
1
Flagship, branded stores and hardware
multiples
2
Flagship, branded stores and Kitchen Barns
3
Superstores and hardware multiples
4
Superstores and Kitchen Barns
5
Branded stores and hardware multiples
6
Branded stores and Kitchen Barns
Relative Size of Return1
4
3
2
6
1
Low
5
High
Low
Relative Capability Fit2
Notes:
Source:
(1) EBIT used as a measure of return
(2) Assessment of capabilities available and capabilities required
ABC analysis
20
22. We have targeted the 5 major cities as the focus for growth
We have reviewed the multiple sales channel choices available
into three potential go forward options
Further evaluation and costing of these options has now brought
us to two strategic alternatives
We have identified the business model and capabilities XYZ will
need to realise the preferred strategies
We have assessed what investment in time, effort and money will
be called for to execute the strategies (including two alternative
roll-out plans)
21
23. We have developed a business architecture blueprint which maps the
capabilities required for XYZ to achieve its growth strategy.
Context
XYZ is seeking to dramatically increase its share in the Australian kitchen
renovation market to 15% (EBIT $12–18m) within 4 years (end-2004). XYZ is
considering a short-list of two retail-centric strategies: branded showrooms &
hardware multiples, or, branded showrooms & kitchen barns).
To successfully execute either of these strategies, XYZ must develop its IT,
organisational and process capabilities.
We have assessed XYZ’s capabilities against a generalised business blueprint.
XYZ’s performance metrics, and our interviews and analysis have identified
capability gaps which must be bridged for XYZ to achieve its vision.
We have developed a high-level blueprint of the capabilities required to support
XYZ’s strategic vision. This blueprint will be a key input into XYZ’s
implementation plan.
22
24. XYZ’s growth strategy is built on a vision of becoming a multi-channel kitchen
retailer in a number of large Australian markets.
Operating Vision – Multi-Channel, Multi-Market Retailer
Retail
Channels
AKI
Target
Segments
• Mid to high-income home
owner (builder or
renovator)
32 branded
showrooms
in large cities
World-class supply
chain capability
41 hardware
multiples in
large cities(1)
•
•
•
•
DIY enthusiast
Tradespeople
Small builders
Budget buyers
Product/Service
Offer(2)
• Mid to high-priced ($4–
10K) assembled kitchens
• Customised range
• Appliances & accessories
• Showroom consultation
• CAD services
• Measure & quote
• Finance packages
• Installation coordination
• Low-priced ($1.5–4K)
flatpack kitchens
• Uni-Block range
• Standardised range
• Off-the-shelf availability
• Easy-to-assemble
instructions
Note: (1) A “kitchen barn” concept – low-end, XYZ-owned kitchen warehouses – will be rolled out if hardware multiples do not perform as a growth engine. An eKitchens Direct channel
will be attached to the kitchen barns.
23
(2) Price points include caninetry only.
25. XYZ will require an aggressive, but pragmatic growth strategy to achieve this
vision.
Strategy
Aggressive...
…But Pragmatic
Expand geographic presence through multiple
retail outlets in large Australian cities
Leverage existing relationships with hardware
multiples and expertise in branded showroom
sales
Develop distinct value propositions for
customer segments in each city – e.g. different
product/service packages, branding, location
& merchandising
Improve existing demand & supply chain
planning capabilities
Roll-out sustainable retail offer in ‘bite-size
chunks’ to balance investment risk against
returns
Leverage synergies across the national supply
chain network to drive cost-efficiencies in
procurement, manufacturing & distribution
24
26. To assess XYZ’s capability requirements, we have used a business blueprint
model which maps the components required for XYZ to become a successful
multi-channel, multi-market retailer.
Business Blueprint
Culture
Organisation
Competency
Relationships
Performance
Information
Technology
Facilities
Processes
25
27. XYZ’s performance metrics, and our interviews and analysis have identified
capability gaps which must be bridged for XYZ to achieve its vision.
Business Capability Gap Assessment
Capability
Component
Current
Relationships
• Ad hoc purchasing
agreements with suppliers
• Building relationships with
multiples
• Sales-focussed customer
relationships
Processes
• Ad hoc sales & marketing
processes
• Limited planning & forecasting
• High degree of customisation
• Minimal process performance
management
Information
Technology
Organisation
Future
• Acquisition of, or alliance with,
suppliers
• Value-sharing relationships with
multiples & other distributors
• Data-driven, lifecycle customer
relationship management
• Formal sales & marketing
processes
• IT-enabled performance
management & planning
• Process standardisation
• Non-core processes outsourced
• Extended use of current ERP
• Sound management of
functionality
applications delivery to
• Geographic extension of intranet
support business
• eCommerce-enabled customer &
• ERP functionality meets
current business requirements supplier relationships (Internet)
• Separate regional networks in • Out-sourced management &
supply of technology components
Adelaide & Sydney
• Minimal analytical support
• Two-region structure
• Resources stretched over a
number of functional areas
• Functional roles
Change
Required
Impact on
Performance
• Shift from transactional
relationships to collaborative
partnerships
• Value propositions driven by
IT-enabled understanding of
segment values & behaviours
Very High
• Training in Scala functionality
• Sales & marketing process design
• Development of performance
High
management framework
• Implement supply/demand chain
planning
• Significant investment in:
– training (current & new applications)
– software licences & hardware
High
– network infrastructure &
maintenance
• Formalise security & disaster recovery
• Rationalisation of CAD systems
• Channel & process-specific roles • Recruitment of
• Specialised functional expertise
– specialised expertise in supply
• 5-region sales structure with
chain
centralised supply chain &
– channel managers, regional
shared services
managers & sales force
• Analytical support for supply
– analytical support
chain & S&M(1) planning
– HR & IT management expertise
Source: ABC client experience; interviews with XYZ business representatives; analysis of XYZ key performance indicators.
26
Note: S&M = sales and marketing function.
High
28. XYZ’s performance metrics, and our interviews and analysis have identified
capability gaps which must be bridged for XYZ to achieve its vision.
Business Capability Gap Assessment (Cont’d)
Capability
Component
Competency
Culture
Facilities
Performance
Current
• Operational skills &
knowledge
• Focus on internal, crossfunctional decision-making
• Lack of analytical & strategic
skills
• Location-specific
• Operations-driven
• Based on origins as family
business
• Based on personal
relationships
• Two manufacturing sites
• Showrooms in Sydney,
Melbourne & Adelaide
• Limited distribution through
multiples in large cities
• East & West regional Offices
• Factory-based warehousing
Future
Change
Required
• Analytical & strategic skill-base
• Improved front-line sales
capability
• Third-party management &
negotiation skills
• Point skills in IT, S&M(1) &
supply chain planning
• Customer-centric
• Performance-driven
• Corporatised (one-national
identity)
• Channel-specific
• Competitive & innovative
• Recruitment & training of sales
force
• Recruitment of strategic &
analytical support in marketing
• Training in, and recruitment of,
supply chain planning & Scala
systems expertise
• Pro-active development of
corporate identity & channelspecific sales cultures
• Development of performancedriven culture through
performance tracking & incentives
• Manufacturing in Sydney
• 5 regional DCs
• 5 regional offices (in
showrooms)
• More showrooms (32) &
multiples(40) in capital cities
• Consolidation of manufacturing
capability
• Significant growth in retail outlets
• Expanded administrative
infrastructure
• Expanded distribution network
•
• Few performance measures
defined
• Few performance targets
•
• Ad hoc process performance
measurement
•
• Incentives not aligned to KPIs
Comprehensive set of
process performance
measures & targets in place
KPIs aligned with roles &
incentives
KPIs aligned with business
strategy & vision
• Development of comprehensive
performance management
framework
• Systems/reports configured to
enable performance measurement
• Shift towards performance driven
culture & behaviours
Source: ABC client experience; interviews with XYZ business representatives; analysis of XYZ key performance indicators.
Note: S&M = sales and marketing function.
Impact on
Performance
27
High
Medium
Very High
High
29. We have developed a high-level blueprint of the capabilities required to
support XYZ’s strategic vision.
Capability Blueprint
Developing more collaborative, IT-enabled partnerships with suppliers & customers will be
critical to XYZ achieving world-class manufacturing status and capturing market share.
Integrating supply and demand-side processes and extending processes across business
boundaries will enable effective and efficient operations.
Expanding the network infrastructure will enable supply and demand-chain management to
be coordinated across regions.
Expanding retail & support facilities in large Australian cities will give XYZ access to new
markets.
An expanded, process-driven organisation structure will enable XYZ to effectively manage
operational performance.
Enhanced competencies in sales & marketing, supply chain management and enterprise
management will be crucial to planning & executing a successful growth strategy.
To achieve the future operating vision, XYZ will require a customer-centric, ‘can do’and
performance-driven culture.
To meet its growth targets, XYZ needs to implement a rigorous, organisation-wide
performance management framework.
28
30. Developing more collaborative, IT-enabled partnerships with suppliers &
customers will be critical to XYZ achieving world-class manufacturing status
and capturing market share.
Business Relationships
Suppliers
ILE
AG
FR
ILE
AG
FR
ILE
AG
FR
ILE
AG
FR
Customers
Strategic
Ownership
Value-Sharing
Partnership
End
Consumers
Hardware
Multiples
ILE
AG
FR
ILE
AG
FR
ILE
AG
FR
ILE
AG
FR
Transactional
Agreement
Manufacturing
Retail
Indirect
Sales & Marketing
XYZ
Direct Customer Relationship
Management
ILE
AG
FR
ILE
AG
FR
ILE
AG
FR
ILE
AG
FR
End
Consumers
Strategic
Alliance
Product Flows
IT-enabled information flows
Source: ABC client experience; interviews with XYZ business representatives.
29
31. Integrating supply and demand-side processes and extending processes
across business boundaries will be critical to achieving XYZ’s operating
vision.
Business Process Alignment
Manage Performance
Core
Processes
Procure
Process
Attributes
• Collaborative – based
on long-term supplier
relationships
• Joint forecasting with
suppliers
• Backward integration
(acquisition of key
suppliers)
• Vendor-managed
inventories where
possible
• Fact-based,
performance-driven
supply agreements
• Formal noncompliance & return
policies
Manufacture
• Tight controls on
Kanban process
• Orders routed by
MTO & MTS
• Demand planning
done collaboratively
with trade & XYZ
• Product versions
controlled
• Product
standardisation &
design for
postponement
• Increased ITenablement of
inventory, materials
requirements &
production planning
Distribute
• Transport network
optimised
• Warehousing &
transportation
outsourced
• 3rd-party
kitting/installation
considered
• Performance-driven,
3rd-party SLAs
• Regional DCs in
place
• IT-enabled factoryDC-store
replenishment
process
• Formal allocation
process developed
Note: DC = distribution centre, MTO = made-to-order, MTS = made-to-stock.
Source: ABC client experience; interviews with XYZ business representatives.
30
Market
• Marketing processes
driven by customer
insight/research
• Centralised, channel
specific marketing
function
• Analysis &
performance-driven
marketing planning
• Segment specific
value propositions &
brand strategies
• Marketing strategies
developed by crossfunctional teams
(including trade
partners)
Sell
• Formal channelspecific sales
processes
• Channel-specific
sales training
programs rolled out
• EDI and Internetenabled sales/order
processes
developed
• Rigorous channelspecific performance
measures in place
Serve
• Regional or
centralised customer
service (based on
cost/benefit analysis)
• Formal, segmentspecific customer
service processes
• Customer service
KPIs tracked and used
to improve process
• Development of inhouse installation
service considered
(based on cost/benefit
analysis)
32. Expanding the network infrastructure will enable supply and demand-chain
management to be coordinated across regions.
IT Functionality & Architecture
Future IT Architecture(1)
Required Functionality
Sydney LAN
(Head Office, Manufacturing, Warehouse)
E-Mail
SCALA CITRIX EDI
File
Gateway
Server Server Server Servers
Technology
Component
Scala
CAD
Office
Applications
Email
Internet/
EDI
CAD
Interface
• •
•
• •
• •
• •
•
• • •
• •
• • • • • • •
•
• •
• • • • • • •
• • • •
• •
• • •
• •
PCs / Printers
Network
ISP /
Management Radius (security
authentication)
Website
Servers
Router/
Firewall
PC / Scanners
Router
Internet
Frame Relay WAN
E-Mail
Gateway
Router
Adelaide, Brisbane, Melbourne, Perth
(Regional Offices/Showrooms)
File Servers
E-Mail
Gateway
Telstra Dial
Connect
Modem
Source: ABC client experience; interviews with XYZ business representatives.
Note: (1) See appendices for comparison of current and future IT architecture.
PCs (CITRIX) / Printers
31
PCs (CITRIX) / Scanners
Modem
• Customers
• Suppliers
• XYZ Remote staff /
home access
• Suppliers (large)
• Retail Outlets
33. Expanding retail & support facilities in large Australian cities will give XYZ
access to new markets.
Facilities
Sydney
Melbourne
Brisbane
Adelaide
Perth
Other
Manufacturing
1
0
0
0
0
0
Warehouses/DCs
1
(factory-based)
1
1
1
1
0
4,16
8,6
6,11
5,2
5,4
4,2
1
(head-office)
1
1
1
1
1
Retail Outlets
(showrooms,
multiples)
Regional Offices
(attached to
showroom)
Source: ABC client experience; interviews with XYZ business representatives.
32
34. An expanded, process-driven organisation structure will enable XYZ to
effectively manage operational performance.
INDICATIVE
High-Level Organisation Structure(1)
Chief
Executive
Officer
Supply Chain
Director
Manufacturing
Manager
Quality
Production
Production
Assurance
Engineer
Supervisor
Engineer
Shared Services
Director
Logistics
Manager
Recruitment &
Training
Manager
Planning &
Materials &
Procurement
Scheduling
Inventory
Manager
Manager
Manager
IT
Manager
IT
Supportx4
Note: (1) Analytical & administrative support will be required across all functions.
Source: ABC client experience; interviews with XYZ business representatives.
33
Sales & Marketing
Director
Management Financial
Accountant Accountant
Payroll
x2
Accounts
Payable
x4
Product
Development
Manager
Accounts
Receivable
x3
Channel
Manager
(showrooms)
Channel
Manager
(multiples)
Regional
Managers
x5
Regional
Managers
x5
35. Enhanced competencies in sales & marketing, supply chain management and
enterprise management will be crucial to planning & executing a successful
growth strategy.
Competency Model
Sales & Marketing
Skills
Knowledge
Aptitude
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Behaviours
•
•
•
•
•
Management of third parties
Research interpretation & analysis
Financial analysis
Third-party negotiation
Effective communications
Customer empathy
Research methods & techniques
Strategic marketing frameworks
‘Best-practice’ sales & marketing
processes
Customer value & behaviour-drivers
Product/service attributes
Co-ordinate resources & budgets
Plan & manage projects/campaigns
Drive marketing initiatives from
analysis & insight
Build relationships with consumers &
the trade
Performance-driven
Customer insight-seeking
Coaching & team building
Developing solutions & ideas
intuitively & analytically
Meeting customer needs
Supply Chain
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Strategic relationship building
Numerical analysis & modelling
Third-party negotiation
Supply & demand chain planning
Network management &
optimisation
Procurement, manufacturing &
distribution processes
Service-level agreements
Quality & safety standards
Supply chain performance indicators
Supply chain systems functionality
Customer needs & value-drivers
Co-ordinate resources & budgets
Plan & manage projects
Rapid, fact-based decision-making
Build relationships with key suppliers
Coordinate micro and macrocomplexity across supply chain
Performance-driven
Facilitating collaborative decisionmaking with other business functions
Informed & balanced decision-making
Responsive to customer needs
Building effective teams
Source: ABC client experience; interviews with XYZ business representatives.
34
Enterprise Management
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Strategic relationship management
Strategic planning
Financial/performance analysis
Decision making
Effective communications
Leadership
Business strategy & vision
Key business performance indicators
Business processes
Employee & customer satisfaction
Organisation structure
Customer & competitor value drivers
Analysing business performance &
identifying opportunities
Coordinating resources & budgets
Motivating & leading organisation
with clear vision & strategy
Building strategic relationships
Results/value-driven
Prioritising business initiatives
Resolving business problems
Building ownership & commitment
Building business capability
Communicating clear vision & direction
37. To meet its growth targets, XYZ needs to implement a rigorous, organisationwide performance management framework.
Performance Management Framework
ILLUSTRATIVE
What is our
Vision?
What are our
strategic
objectives?
What are the
critical success
factors?
What are the
critical
measurements?
Organisation Vision & Strategy
To My Shareholders
Financial Perspective
To My Customers
Customer
Perspective
With My Internal
Management Processes
With My Ability to
Innovate & Grow
Internal Business
Perspective
Growth & Learning
Perspective
Examples
• Profitability
• Cash management
• Sales revenues
Examples
• Customer satisfaction
• Trade satisfaction
Examples
• Forecast/plan accuracy
• Marketing effectiveness
Examples
•Employee productivity
•Supply chain efficiency
Examples
• EBIT
• EVA
Examples
• Referrals
• Satisfaction scores
Examples
• Marketing spend/sales
• Deviation from forecast
Examples
• Units per head
• Delivery accuracy
Performance Reporting
Source: ABC client experience; interviews with XYZ business representatives.
36
38. We have targeted the 5 major cities as the focus for growth
We have reviewed the multiple sales channel choices available
into three potential go forward options
Further evaluation and costing of these options has now brought
us to two strategic alternatives
We have identified the business model and capabilities XYZ will
need to realise this strategies
We have assessed what investment in time, effort and money will
be called for to execute the strategies (including two alternative
roll-out plans)
37
39. The Branded Stores and Hardware Multiple option (Option 5) is an expansion
of the existing core business, with clear potential for further upside
improvement.
Branded Stores and Hardware Multiple Option
Upside Potential
Key Assumptions
30 Nobbys / Wallspan outlets and 14 hardware
multiple stores opened in the five largest cities,
plus Canberra and Newcastle
Increase Nobbys / Wallspan selling prices
Nobbys / Wallspan outlets sell 4 kitchens per
week
Import appliances and include wholesale margin
in projections
Hardware multiple stores sell 3 kitchens per week
in 2000-01, and 4 kitchens per week from 2001
Sell appliances through hardware multiples
Additional kitchen sales per outlet
Offer installation service
Nobbys / Wallspan outlets sell appliances with
50% of kitchens sold (no appliances sold through
hardware multiples)
Expand the trade channel through hardware
multiples and / or through a separate channel
Installation revenue / margin excluded from
projections
Brand strategy and repositioning
Project Homes / property developments
Funding profile assumes $4 million is required in
year 1 (FY2001)
38
40. Our sensitivity analysis around the base case indicates that the upside
potential is significant.
Branded Stores and Hardware Multiple Option
Base Case1
Additional Volume
Branded Stores2
Key Figures
Number of outlets
Sensitivities
Additional Volume
Hardware Multiple2
Price
Increase3
Additional Volume
Branded Stores2 and
Price Increase3
82
82
82
82
82
Volume of kitchens
17,056
19,240
19,136
19,240
19,240
Revenue ($000)
89,024
105,040
95,264
91,208
107,770
EBITDA ($000)
10,596
16,256
12,071
12,421
18,538
EBIT($000)
8,348
14,007
9,822
10,172
16,289
Return on sales (%)
9.4%
13.3%
10.3%
11.2%
15.1%
Return on capital employed (%)4
82%
140%
96%
101%
166%
4,194
2,251
3,180
2,213
1,218
Funding requirement ($000)
Notes:
(1) See Appendix for details of business case and assumptions
(2) Volume increased by 1 kitchen to 5 kitchens per week for branded stores, and to 4 kitchens per week for hardware multiples in FY2001 (5 kitchens per week from FY 2002)
(3) Increase in average selling price of $250 (approximately 2.5%) for cabinetry only for the same cabinetry configuration - relates to branded stores only
(4) Return on capital employed (EBIT divided shareholders funds plus debt) for FY 2004
39
41. The Branded Stores and Hardware Multiple option breaks-even in FY2001,
with 54 outlets and a revenue of $42 million.
Branded Stores and Hardware Multiple Option
Key Volume / Revenue / Profit Figures1
BASE CASE
FY2001
FY2002
FY2003
FY2004
54
69
82
82
8,216
12,792
15,704
17,056
Revenue ($000)
41,491
64,927
81,484
89,024
EBITDA ($000)
1,460
5,158
8,236
10,596
(59)
2,889
5,553
8,347
(0.1)%
4.4%
6.8%
9.4%
(1)%
22%
45%
82%
Number of outlets
Volume of kitchens
EBIT($000)
Return on sales (%)
Return on capital employed (%)2
Notes:
(1) See Appendix for details of business case and assumptions
(2) Return on capital employed (EBIT divided shareholders funds plus debt) for FY 2004
40
42. The Branded Stores and Hardware Multiple option has a peak funding
requirement of $4.2 million in FY2001, and is cash positive in FY2003.
Branded Stores and Hardware Multiple Option
Cash Flow ($000)1
BASE CASE
FY2001
FY2002
FY2003
FY2004
(59)
2,889
5,553
8,347
Add back depreciation
1,519
2,269
2,682
2,249
EBITDA
1,460
5,158
8,236
10,596
(3,570)
(4,480)
(2,085)
(250)
Interest (paid) / received
(706)
(706)
(98)
818
Tax (paid) / recovered
(848)
229
(655)
(1,637)
Working capital
(531)
23
(17)
81
(4,194)
225
5,381
9,608
EBIT
Capital expenditure
Funds (required) / generated
Notes:
(1) See Appendix for details of business case and assumptions
41
43. The Branded Stores and Kitchen Barn option (Option 6) assumes that XYZ
can capture the low to medium price segment of the kitchen renovation
market.
Branded Stores and Kitchen Barn Option
Upside Potential
Key Assumptions
Additional 30 Nobbys / Wallspan outlets and 19
Kitchen Barns are opened in the five largest cities,
plus Canberra and Newcastle
Increase Nobbys / Wallspan selling prices
Nobbys / Wallspan outlets sell 4 kitchens per
week
Import appliances and include wholesale margin
in projections
Kitchen Barns sell 14 kitchens per week
Offer installation service
Both Nobbys / Wallspan outlets and Kitchen
Barns sell appliances with 50% of kitchens sold
Up-selling opportunities from Kitchen Barns to
Nobbys / Wallspan outlets
Installation revenue / margin excluded from
projections
Include the Trade channel as a ‘bolt-on’ (through
Kitchen Barns or factory direct)
Funding profile assumes $8 million in FY2001 and
$4 million in FY2002
Internet channel through Kitchen Barn format
Additional kitchen sales per outlet
Brand strategy and repositioning
Retail wardrobes through Kitchen Barns
42
44. Our sensitivity analysis around the base case indicates that this option also
has significant upside potential.
Branded Stores and Kitchen Barn Option
Base Case1
Additional Volume
Branded Stores2
Key Figures
Number of outlets
Sensitivities
Additional Volume
Kitchen Barn2
Additional Volume
Price Branded Stores2 and
Increase3
Price Increase3
61
61
61
61
61
22,568
24,752
23,556
22,568
24,752
Revenue ($000)
128,037
144,053
132,607
130,221
146,783
EBITDA ($000)
12,520
18,180
13,881
14,345
20,462
EBIT($000)
9,215
14,876
10,577
11,041
17,158
Return on sales (%)
7.2%
10.3%
8.0%
8.5%
11.7%
Return on capital employed (%)4
74%
122%
85%
90%
143%
12,676
7,695
12,308
10,668
5,295
Volume of kitchens
Funding requirement ($000)
Notes:
(1) See Appendix for details of business case and assumptions
(2) Volume increased by 1 kitchen to 5 kitchens per week for branded stores, and 15 kitchens per week for Kitchen Barns
(3) Increase in average selling price of $250 (approximately 1.7%) for cabinetry only for the same cabinetry configuration - relates to branded stores only
(4) Return on capital employed (EBIT divided shareholders funds plus debt) for FY 2004
43
45. The Branded Stores and Kitchen Barn option achieves profitability in FY2003.
Branded Stores and Kitchen Barn Option
Key Volume / Revenue / Profit Figures1
BASE CASE
FY2001
FY2002
FY2003
FY2004
29
46
61
61
5,564
12,220
19,188
22,568
Revenue ($000)
36,492
73,267
110,273
128,037
EBITDA ($000)
(1,353)
1,711
7,018
12,520
EBIT($000)
(3,126)
(1,173)
3,280
9,215
Return on sales (%)
(8.6)%
(1.6)%
3.0%
7.2%
Return on capital employed (%)2
(27)%
(8)%
21%
74%
Number of outlets
Volume of kitchens
Notes:
(1) See Appendix for details of business case and assumptions
(2) Return on capital employed (EBIT divided shareholders funds plus debt) for FY 2004
44
46. The Branded Stores and Kitchen Barn option has a peak funding requirement
of $12.7 million in FY2002, and is cash positive in FY2004.
Branded Stores and Kitchen Barn Option
Cash Flow ($000)1
BASE CASE
FY2001
FY2002
FY2003
FY2004
(3,126)
(1,173)
3,280
9,215
1,773
2,884
3,738
3,305
EBITDA
(1,353)
1,711
7,018
12,520
Capital expenditure
(4,843)
(6,283)
(4,488)
(250)
Interest (paid) / received
(913)
(1,131)
(1,032)
180
Tax (paid) / recovered
(848)
1,211
691
(674)
Working capital
(223)
(6)
(15)
97
(8,180)
(4,496)
2,175
11,872
EBIT
Add back depreciation
Funds (required) / generated
Notes:
(1) See Appendix for details of business case and assumptions
45
47. If the Branded Stores and Hardware Multiple option fails to deliver the
expected returns, then Option 6 — Branded Stores and Kitchen Barns — can
be progressively rolled out.
Roll-Out of Options
Yes
Continue existing
business model
(Option 5- branded
stores and hardware
multiples)
Is the
hardware
multiple
option
achieving
the required
returns?
No
46
Continue existing
business model
(Option 5 - branded
stores and hardware
multiples)
Roll-out Kitchen Barn
(Option 6) concept and
gradually exit from the
hardware multiples
48. The way forward into implementation will impact all areas of the business and
will require strong program management and a structured implementation
approach to integrate all components of the plan.
Phase 1
Definition
Phase 2
Detailed Design
Phase 3
Implementation
Program, Organisational Change and Business Case Management
Generate
Demand
Process
Development
Capability
Development
Develop Operations
(Showroom) Strategy
Develop Marketing Strategy
Develop Branding Strategy
Option 5
Go / No Go
Decision
Develop Communications Strategy
Develop Integrated Planning Capability (including processes and IT)
Fulfil
Demand
Process
Development
Identify Strategic Suppliers
Develop Partnership with Strategic Suppliers
Determine optimum manufacturing processes
Implement and Refine
Determine optimum distribution processes
Execute and Evaluate Process
Recruit HR Manager
Resource
Development
Develop HR Processes (forecasting, recruiting, inducting, rewarding, appraising, training, career development, outplacement
Recruit New Personnel
Determine CAD Software / EDI Requirements
Capacity &
Scalability
Development
IT
Development
Acquire Hardware & Build Interfaces
Execute IT Training Modules
Develop IT Training Modules
Determine Internet & Network Requirements
Develop Operational & Service Level Agreements
Identify and Select Location for Outlets, Refit Existing Outlets
Physical
Infrastructure
Configuration
Develop Manufacturing Strategy
Confirm Supply Chain Configuration
Develop Relocation Plan and Resourcing Requirements
Ascertain Optimal Network
Select 3PL Partner
Business Intelligence & Performance Management Capability
47
Roll-Out
49. Our recommended Program Management structure will perform the critical
integration role to align all projects and change to the objectives of the
program.
Program Management
Structure
Program Sponsor
Executive Steering
Committee
Program
Quality Assurance
Supply Chain
Subject Experts
Program
Management
Change Management
& Communication
Financial
Control
Program
Control
Issue / Scope
Management
Business Case
Management
Performance
Management
Generate Demand
Process Development
Fulfil Demand Process
Development
Resource
Development
IT
Configuration
48
Infrastructure
Configuration
50. Our detailed assessments and working documents have been compiled as an
appendix
Appendices
1. Opportunity Assessment
6. Implementation Plan
2. Initiative Generation
7. Case Studies
3. Initiative Prioritisation
8. Board Paper
4. Business Case Analysis
9. KPI Analysis
5. Business Architecture Blueprint
49