You are on page 1of 26

Strategy Development

Discussion Deck Template

This is a discussion deck template for a corporate strategy development session.


In this discussion, we go through a 2-prong approach to growth and evaluate the
merits of various growth drivers. From the 2-prong approach, various scenarios
can be generated in the discussions and dashboards are used to evaluate each
scenario.
Flevy (www.flevy.com) is a marketplace for
business documents—specifically, documents
used by folks who work in a business function
(e.g.Marketing, Corporate Finance, IT, etc.).
These documents can range from Excel
Financial Models to customizable PowerPoint
Templates to "How-To" Business Frameworks.

Flevy was founded under the principle that Contact Us


companies waste a lot of time and money Please contact us with any questions you may have
about our company.
recreating the same foundational business
• General Inquiries
documents. Our vision is for Flevy to become a support@flevy.com
comprehensive knowledge base of business • Media/PR
press@flevy.com
documents. All organizations, from startups to
• Billing
large enterprises, can use Flevy— whether it's billing@flevy.com
to jumpstart projects, to find reference or
comparison materials, or just to learn. Write to Us
Flevy.com
315 W. 33rd St., Ste. 35C
New York, NY 10001

Page 2
Contents

• Introduction to Prong 1 and Prong 2 Concept

• Prong 1 Overview

• Prong 1 Scenarios

• Prong 2 Overview

• Prong 2 Scenario

Page 3
Introduction to Prong 1 and Prong 2 (1 of 3)
High
urgency

TODAY TOMORROW DAY AFTER

OPTION A

Boost performance of • COMPANY can either work on


boosting the performance of its core
existing business model business and let the business
(STAY WITH THE CORE) continue as is
• This is LOW RISK

OPTION B
• COMPANY can further the
First, boost performance of Next, transform the business into a first option by transforming
the business into a
existing business model Technology Manufacturing Company Technology Manufacturing
(STAY WITH THE CORE) (GO FOR MORE) Company
for sustainable growth
• This is MEDIUM RISK
OPTION C
• The final option is for COMPANY
Immediately transform the business into a to immediately begin its
Technology Manufacturing Company transformation into a Technology
Manufacturing Company
(GO FOR MORE)
• This is HIGH RISK

Page 4
Introduction to Prong 1 and Prong 2 (2 of 3)

Our options essentially boil down into 2 sets of scenarios:


Stay with the Core (AKA Prong 1)
Go for More (AKA Prong 2)

PRONG 1 PRONG 2

Stay with the Core Go for More


• Extend beyond the core business of ible circuits
• Continue to develop COMPANY’s core business of
ible circuits • Any M&A will operate outside the current
organization
• Any potential M&A will be a tuck-in
• The primary objective is to grow COMPANY’s
• The primary objective is to boost the performance of
portfolio of offerings and transform it from a ible
COMPANY’s existing business model, which is an
circuits manufacturer to a Technology Manufacturing
immediate need
Company

Page 5
Introduction to Prong 1 and Prong 2 (3 of 3)

Our business has 3 primary drivers of value—these drivers provide a


framework to evaluating growth and transformation scenarios

Manufacturing Process & Product


Customers
& Operations Engineering

• We are nearing its manufacturing • We currently have process and • We have great customers,
capacity, so there is an impending engineering IP associated with including the 2 largest customers
need to expand capacity—either ible circuit products • However, on of our biggest risks
through building a new plant or • To transform into a competitive is also customer concentration,
acquiring one Technology Manufacturing with 1 contributing 80% of our
Company, we should increase our gross margin
process and product engineering
IP

Page 6
Contents

• Introduction to Prong 1 and Prong 2 Concept

• Prong 1 Overview

• Prong 1 Scenarios

• Prong 2 Overview

• Prong 2 Scenario

Page 7
Prong 1 – Stay with the Core

PRONG 1

Stay with the Core

How
should we
grow?

Grow Grow
organically inorganically

EXAMPLE 1 What do we
Stick to your knitting, acquire?
grow organically
Acquire Acquire
facility like company

Process &
Manufacturing Manufacturing
Product
& Operations & Operations
Engineering

EXAMPLE 2 EXAMPLE 3
Stick to your knitting, Stick to your knitting,
acquire facility acquire like company

Page 8
Scenarios
Example 1: Stick to your knitting, grow organically
PRONG 1 PRONG 2

Stay with the Core Go for More

STAY THE COURSE

EXISTING EXISTING EXISTING

Manufacturing Process & Product


Customers
& Operations Engineering

Organic growth of customers if


incremental (and not proportional to
the increase in capacity)
Reaches capacity limits due to organic
Benefit

growth—build new plantrication facility

Page 9
Scenarios
Example 2: Stick to your knitting, acquire facility
PRONG 1 PRONG 2

Stay with the Core Go for More

XXXX MODEL

EXISTING EXISTING EXISTING

Manufacturing Process & Product


Customers
& Operations Engineering

Acquire new circuit plant to meet


Acquired plant also brings new
Benefit

growing capacity demands for


customers
COMPANY’s existing products

Page 10
Scenarios
Example 3: Stick to your knitting, acquire like company
PRONG 1 PRONG 2

Stay with the Core Go for More

XXXX MODEL

EXISTING EXISTING EXISTING

Manufacturing Process & Product


Customers
& Operations Engineering

New plant brings engineering


capabilities beyond circuits
Acquire a new plant that can produce
Acquired plant also brings new
COMPANY’s current circuit products,
Benefit

customers
as well as new related products

Page 11
Contents

• Introduction to Prong 1 and Prong 2 Concept

• Prong 1 Overview

• Prong 1 Scenarios

• Prong 2 Overview

• Prong 2 Scenario

Page 12
PRONG 1 PRONG 2

Scenarios Stay with the Core Go for More

<SCENARIO X> Dashboard


IMPACT ON CORE DRIVERS OF VALUE
OVERVIEW

• Filler text Manufacturing Process & Product


Customers
• Filler text & Operations Engineering
• Filler text
• Filler text • Filler text • Filler text
• Filler text • Filler text • Filler text
• Filler text • Filler text • Filler text

EVALUATION CRITERIA

CORE OBJECTIVES
Revenue growth 1  3 4 5 (Highest)
FINANCIAL ANALYSIS

• Filler text
Margin growth 1 2 3  5 (Full satisfaction)
• Filler text CORPORATE RISKS
• Filler text
Direct labor unrest 1 2 3 4 5 (Full satisfaction)
Customer concentration 1 2 3 4 5 (Full satisfaction)
Pricing and margin pressures 1 2 3 4 5 (Full satisfaction)
Technology innovation 1  3 4 5 (Full satisfaction)

Talent management, BCP 1 2 3 4 5 (Full satisfaction)


TECH MFG COMPANY 1 2 3 4 5 (Full satisfaction)

Page 13
PRONG 1 PRONG 2

Scenarios Stay with the Core Go for More

<SCENARIO X> Dashboard


IMPACT ON CORE DRIVERS OF VALUE
OVERVIEW

• Filler text Manufacturing Process & Product


Customers
• Filler text & Operations Engineering
• Filler text
• Filler text • Filler text • Filler text
• Filler text • Filler text • Filler text
• Filler text • Filler text • Filler text

EVALUATION CRITERIA

CORE OBJECTIVES
Revenue growth 1  3 4 5 (Highest)
FINANCIAL ANALYSIS

• Filler text
Margin growth 1 2 3  5 (Full satisfaction)
• Filler text CORPORATE RISKS
• Filler text
Direct labor unrest 1 2 3 4 5 (Full satisfaction)
Customer concentration 1 2 3 4 5 (Full satisfaction)
Pricing and margin pressures 1 2 3 4 5 (Full satisfaction)
Technology innovation 1  3 4 5 (Full satisfaction)

Talent management, BCP 1 2 3 4 5 (Full satisfaction)


TECH MFG COMPANY 1 2 3 4 5 (Full satisfaction)

Page 14
PRONG 1 PRONG 2

Scenarios Stay with the Core Go for More

<SCENARIO X> Dashboard


IMPACT ON CORE DRIVERS OF VALUE
OVERVIEW

• Filler text Manufacturing Process & Product


Customers
• Filler text & Operations Engineering
• Filler text
• Filler text • Filler text • Filler text
• Filler text • Filler text • Filler text
• Filler text • Filler text • Filler text

EVALUATION CRITERIA

CORE OBJECTIVES
Revenue growth 1  3 4 5 (Highest)
FINANCIAL ANALYSIS

• Filler text
Margin growth 1 2 3  5 (Full satisfaction)
• Filler text CORPORATE RISKS
• Filler text
Direct labor unrest 1 2 3 4 5 (Full satisfaction)
Customer concentration 1 2 3 4 5 (Full satisfaction)
Pricing and margin pressures 1 2 3 4 5 (Full satisfaction)
Technology innovation 1  3 4 5 (Full satisfaction)

Talent management, BCP 1 2 3 4 5 (Full satisfaction)


TECH MFG COMPANY 1 2 3 4 5 (Full satisfaction)

Page 15
Contents

• Introduction to Prong 1 and Prong 2 Concept

• Prong 1 Overview

• Prong 1 Scenarios

• Prong 2 Overview

• Prong 2 Scenario

Page 16
Prong 2 – Go for More

PRONG 2

Go for More

Grow
inorganically

What is our
strategic
goal?
Extend Manufacturing
Capabilities Financial
Extend Design/
buy
Engineering
Manufacturing Capabilities
& Operations
Process &
?
Product
Engineering

EXAMPLE 4
Transform the business, extending
your value chain

Page 17
Scenarios
Example 4: Transform the business, extending our value chain
PRONG 1 PRONG 2

Stay with the Core Go for More

CISCO MODEL

EXISTING EXISTING EXISTING

Manufacturing Process & Product


Customers
& Operations Engineering

Manufacturing Engineering Customer


synergies & IP synergies base synergies

NEW NEW NEW

Acquire new company with existing


manufacturing facilities and Acquired company brings IP and Acquired company has existing
capabilities; and management team engineering capabilities established customer base
and capabilities

Page 18
Contents

• Introduction to Prong 1 and Prong 2 Concept

• Prong 1 Overview

• Prong 1 Scenarios

• Prong 2 Overview

• Prong 2 Scenario

Page 19
PRONG 1 PRONG 2

Scenarios Stay with the Core Go for More

<SCENARIO X> Dashboard


IMPACT ON CORE DRIVERS OF VALUE
OVERVIEW

• Filler text Manufacturing Process & Product


Customers
• Filler text & Operations Engineering
• Filler text
• Filler text • Filler text • Filler text
• Filler text • Filler text • Filler text
• Filler text • Filler text • Filler text

EVALUATION CRITERIA

CORE OBJECTIVES
Revenue growth 1  3 4 5 (Full satisfaction)
FINANCIAL ANALYSIS

• Filler text
Margin growth 1 2 3  5 (Full satisfaction)
• Filler text CORPORATE RISKS
• Filler text
Direct labor unrest 1 2 3 4 5 (Full satisfaction)
Customer concentration 1 2 3 4 5 (Full satisfaction)
Pricing and margin pressures 1 2 3 4 5 (Full satisfaction)
Technology innovation 1  3 4 5 (Full satisfaction)

Talent management, BCP 1 2 3 4 5 (Full satisfaction)


TECH MFG COMPANY 1 2 3 4 5 (Full satisfaction)

Page 20
PRONG 1 PRONG 2

Scenarios Stay with the Core Go for More

<SCENARIO X> Dashboard


IMPACT ON CORE DRIVERS OF VALUE
OVERVIEW

• Filler text Manufacturing Process & Product


Customers
• Filler text & Operations Engineering
• Filler text
• Filler text • Filler text • Filler text
• Filler text • Filler text • Filler text
• Filler text • Filler text • Filler text

EVALUATION CRITERIA

CORE OBJECTIVES
Revenue growth 1  3 4 5 (Full satisfaction)
FINANCIAL ANALYSIS

• Filler text
Margin growth 1 2 3  5 (Full satisfaction)
• Filler text CORPORATE RISKS
• Filler text
Direct labor unrest 1 2 3 4 5 (Full satisfaction)
Customer concentration 1 2 3 4 5 (Full satisfaction)
Pricing and margin pressures 1 2 3 4 5 (Full satisfaction)
Technology innovation 1  3 4 5 (Full satisfaction)

Talent management, BCP 1 2 3 4 5 (Full satisfaction)


TECH MFG COMPANY 1 2 3 4 5 (Full satisfaction)

Page 21
PRONG 1 PRONG 2

Scenarios Stay with the Core Go for More

<SCENARIO X> Dashboard


IMPACT ON CORE DRIVERS OF VALUE
OVERVIEW

• Filler text Manufacturing Process & Product


Customers
• Filler text & Operations Engineering
• Filler text
• Filler text • Filler text • Filler text
• Filler text • Filler text • Filler text
• Filler text • Filler text • Filler text

EVALUATION CRITERIA

CORE OBJECTIVES
Revenue growth 1  3 4 5 (Full satisfaction)
FINANCIAL ANALYSIS

• Filler text
Margin growth 1 2 3  5 (Full satisfaction)
• Filler text CORPORATE RISKS
• Filler text
Direct labor unrest 1 2 3 4 5 (Full satisfaction)
Customer concentration 1 2 3 4 5 (Full satisfaction)
Pricing and margin pressures 1 2 3 4 5 (Full satisfaction)
Technology innovation 1  3 4 5 (Full satisfaction)

Talent management, BCP 1 2 3 4 5 (Full satisfaction)


TECH MFG COMPANY 1 2 3 4 5 (Full satisfaction)

Page 22
Appendix
Have you downloaded our free primer on Strategy Development &
Strategy Execution?

Download our primer on Strategy Development


Strategy Execution for Free here:

http://flevy.com/strategy-frameworks

DESCRIPTION PARTIAL PREVIEW


• Strategy without execution is merely theory.
Many companies develop robust strategies, but
struggle with operationalizing their strategies
into implementable steps.
• This 54-slide presentation introduces 12
powerful business frameworks spanning both
Strategy Development and Strategy Execution.
• Topics covered include: Porter's Five Forces,
Consolidation-Endgame Curve, Hoshin Kanri,
Product Lifecycle, Consumer Adoption Curve,
Balanced Scorecard, Blue Ocean Strategy,
BCG Matrix, SWOT, PEST, Marketing Mix,
Organizational Hurdles.

Page 24
Why is that only 20% of the sales team generate such a disproportionate
amount of the sales? What if you were to only hire the “best of the best?”

Download the Fiaccabrino Selection Process


Primer for Free here:

http://flevy.com/fiaccabrino-selection-process

DESCRIPTION THE 16 HUMANISTIC ATTRIBUTES + BEHAVIORAL QUADRANT


• In most sales organizations, there are 2
crippling truths—1) 80-90% of sales are
generated by only 20% of the sales team and
2) turnover is abysmal.
• The Fiaccabrino Selection Process (FSP) is a
proven methodology for increasing sales and
reducing turnover. It teaches you how to select
only the "best of the best" for your organization.
• Whereas the methodology was originally
developed for a sales organization, it can easily
be modified and tweaked for other functions.
• The core of the framework is to understand 16
critical Humanistic Attributes.

Page 25
Flevy (www.flevy.com) is a marketplace for
business documents—specifically, documents
used by folks who work in a business function
(e.g.Marketing, Corporate Finance, IT, etc.).
These documents can range from Excel
Financial Models to customizable PowerPoint
Templates to "How-To" Business Frameworks.

Flevy was founded under the principle that Contact Us


companies waste a lot of time and money Please contact us with any questions you may have
about our company.
recreating the same foundational business
• General Inquiries
documents. Our vision is for Flevy to become a support@flevy.com
comprehensive knowledge base of business • Media/PR
press@flevy.com
documents. All organizations, from startups to
• Billing
large enterprises, can use Flevy— whether it's billing@flevy.com
to jumpstart projects, to find reference or
comparison materials, or just to learn. Write to Us
Flevy.com
315 W. 33rd St., Ste. 35C
New York, NY 10001

Page 26

You might also like