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Bloomberg
- 1. Harinder Samra Andrew Springer Douglas Haggard
- 2. Bloomberg's Core Values Socially Responsible Investing: 1. Social 2. Environmental 3. Ethical Mission Vision Statement: Statement1: Progress with To deliver the Sustainability best information possible Environmental Social Governance: Measurement of Corporate Responsibility Analysis Recommendation Implementation Financials Conclusion
- 3. Competitive Advantage •Leader in analytic research • All in one computerized terminals • Globally used software • Multiplatform media delivery • Fortune 100 best company to work for2 • Top 50 green company2 Analysis Recommendation Implementation Financials Conclusion
- 4. Current Weaknesses • ESGrelated terminal sales low • ESG Research is labor Intensive • Gaps in “non-financial” data ? Analysis Recommendation Implementation Financials Conclusion
- 5. Continuing Opportunities • Deriving data • Creating analytical tools to measure ESG metrics • SRI screened funds increasing • SRI index returned 9.5% yearly versus S & P 500 8.6%3 • Potential growth in carbon credit trading Analysis Recommendation Implementation Financials Conclusion
- 6. Biggest Threats • Competitors offering ESG data to SRI fund managers • No international standards on collecting data • Competitors gaining ground is rapidly expanding SRI market Analysis Recommendation Implementation Financials Conclusion
- 7. Decision Outsource In House Analysis Recommendation Implementation Financials Conclusion
- 8. Recommendations Develop Promote New Derive ESG Data Industry Specific ESG Tools Benchmarks Issues Issues Issues Assumptions based on Developing a fair and Unknown benefits of incomplete data unbiased system new tools Risks Risks Risks Compromised Negative impact of Lack of adoption integrity imprecise ratings Analysis Recommendation Implementation Financials Conclusion
- 9. Recommendations Develop Promote New Derive ESG Data Industry Specific ESG Tools Benchmarks Issues Issues Issues Assumptions based on Developing a fair and Unknown benefits of incomplete data unbiased system new tools Risks Risks Risks Compromised Negative impact of Lack of adoption integrity imprecise ratings Analysis Recommendation Implementation Financials Conclusion
- 10. Recommendations Develop Promote New Derive ESG Data Industry Specific ESG Tools Benchmarks Issues Issues Issues Assumptions based on Developing a fair and Unknown benefits of incomplete data unbiased system new tools Risks Risks Risks Compromised Negative impact of Lack of adoption integrity imprecise ratings Analysis Recommendation Implementation Financials Conclusion
- 11. Recommendation Effects Provides the best information available to evaluate SRI metrics Positions Bloomberg to capture emerging market share Position Bloomberg as a leader in information on Carbon Trading Analysis Recommendation Implementation Financials Conclusion
- 12. Implementation Hire employees to derive ESG data Make rating system relative to industry Roll out marketing and promotion plan to push ESG analytical tools Analysis Recommendation Implementation Financials Conclusion
- 13. Timeline of Implementation March2011 June September December 2012 2013 Recruitment and Hiring of New Employees “Data Scraping” and Quantitative Analysis of Data Develop Industry Specific Rating System Rollout of new ESG Products Promotion of New ESG Analytical Tools Evaluation of Implementation 1 Short Term 2 Long Term Analysis Recommendation Implementation Financials Conclusion
- 14. Assumptions US and EU SRI assets under Traders to asset ratio 1 management $9.941 trillion4,5 trader/$750m assets SRI portfolios increasing 3.6% Cost of Living Increase 3% yearly4 Euro to Dollar exchange rate Inflation rate 2%7 $1.37536 Analysis Recommendation Implementation Financials Conclusion
- 15. Cost of DerivingData 1. Hiring Employees Average Salary for research analysts in New York City with 1-4yr experience including, Health Benefits & Compensation Trucost employees 11 analysts8 Bloomberg at the start of the roll out in 2008 had 5 analysts According to our calculations: 117k X 6 New analysts9 250k X 1 Ph.D. statistician9 952k a year 2. Marketing Plan $ 5 million per year for employee training and sales material Analysis Recommendation Implementation Financials Conclusion
- 16. Projected Profit forUS and EU Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 $ (000) (2011) (2012) (2013) (2014) (2015) (2016) New Cost 5,952 6,010 6,191 6,376 6,568 6,765 Projected 119 12,843 13,306 13,785 14,280 14,795 Growth Recurring 119 1,296 13,161 24,454 38,188 51,382 Units Sold Net Profit (3714) 5,284 13,180 21,360 29,836 38,618 After Tax Projected 5 year Profit $104,563,937 Analysis Recommendation Implementation Financials Conclusion
- 17. Cost Vs. NetProfit 45,000 40,000 35,000 30,000 25,000 20,000 $ (000's) 15,000 10,000 5,000 0 -5,000 -10,000 2011 2012 2013 2014 2015 2016 Analysis Recommendation Implementation Financials Conclusion
- 18. Projected Market Share Present Market Share Bloomberg .56% Growth Opportunity Market Share 2016 Results of Bloomberg 23.79% recommendations Growth Opportunity Analysis Recommendation Implementation Financials Conclusion
- 19. Conclusion By implementing ourrecommendations, Bloomberg will •Maintain its core values •Encourage Corporate Responsibility •Gain market share in SRI investment segment Analysis Recommendation Implementation Financials Conclusion
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- 21. INDEX Slide Slide 1 Intro 11 Recommendation Effects 2 Bloomberg’s Core Values 12 Assumptions 3 Competitive Advantage 13 Cost of Deriving Data 4 Current Weaknesses 14 Projected Profit for US and EU 5 Continuing Opportunities 15 Cost vs. Net Profit 6 Biggest Threats 16 Projected Market Share 7 Decision 17 Implementation 8 Recommendations Stage 1 18 Timeline of Implementation 9 Recommendations Stage 2 19 Conclusion 10 Recommendations Stage 3 20 End
- 22. References 1. http://georgedearing.com/bloombergs-mission-statement-via-slmader 2. http://www.hoovers.com/bloomberg-l.p./--ID__40671--/freeuk-co- factsheet.xhtml 3. http://www.fool.com/investing/general/2010/06/02/reinforce-your-returns- with-social-responsibility.aspx?source=isesitlnk0000001&mrr=1.00 4. http://www.socialinvest.org/resources/sriguide/srifacts.cfm 5. http://www.eurosif.org/sri-resources/sri-faq 6. http://www.x-rates.com/ 7. http://www.usinflationcalculator.com/interest-rates/long-term-inflation-target- of-17-to-2-set-by-fed/1000388/ 8. http://www.trucost.com/our-team 9. http://www.salary.com/salary/index.asp
- 23. Appendix Companies with standalone and integrated responsibility reports, by country 2005-2008