Professional Documents
Culture Documents
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Contents
• Prong 1 Overview
• Prong 1 Scenarios
• Prong 2 Overview
• Prong 2 Scenario
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Introduction to Prong 1 and Prong 2 (1 of 3)
High
urgency
OPTION A
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
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Introduction to Prong 1 and Prong 2 (2 of 3)
PRONG 1 PRONG 2
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Introduction to Prong 1 and Prong 2 (3 of 3)
• 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
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Contents
• Prong 1 Overview
• Prong 1 Scenarios
• Prong 2 Overview
• Prong 2 Scenario
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Prong 1 – Stay with the Core
PRONG 1
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
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Scenarios
Example 1: Stick to your knitting, grow organically
PRONG 1 PRONG 2
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Scenarios
Example 2: Stick to your knitting, acquire facility
PRONG 1 PRONG 2
XXXX MODEL
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Scenarios
Example 3: Stick to your knitting, acquire like company
PRONG 1 PRONG 2
XXXX MODEL
customers
as well as new related products
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Contents
• Prong 1 Overview
• Prong 1 Scenarios
• Prong 2 Overview
• Prong 2 Scenario
Page 12
PRONG 1 PRONG 2
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)
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PRONG 1 PRONG 2
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)
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PRONG 1 PRONG 2
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)
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Contents
• Prong 1 Overview
• Prong 1 Scenarios
• Prong 2 Overview
• Prong 2 Scenario
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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
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Scenarios
Example 4: Transform the business, extending our value chain
PRONG 1 PRONG 2
CISCO MODEL
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Contents
• Prong 1 Overview
• Prong 1 Scenarios
• Prong 2 Overview
• Prong 2 Scenario
Page 19
PRONG 1 PRONG 2
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)
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PRONG 1 PRONG 2
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)
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PRONG 1 PRONG 2
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)
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Page 26