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SCQuARE
MODEL ANSWERS
&
TEMPLATES
Copyright © 1993-2008 SCQuARE International Limited
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Hockey Tour
One Chance Pitch
Family Grocers
Dubai
Robin Hood
Ferarra
Solko
Mericana
Causal Chains
Presentation to Bob to persuade him to let his wife join the Hockey Tour
Sale & Marketing Presentation to Jim Albright for non-salary benefits
Distribution plan for Family Grocers Division of Standard Products Ltd
Promotion plan for the Dubai Tourist Board
Plan to get Robin a normal life
Restructuring plan arising from demands of multiple retailers
Recovery plan for Solko Soft Drinks
Recovery plan for Mericana Rio Football Club
Review of Causal Chains
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Surbiton Women’s Hockey Club
Presentation to Bob Scott
Copyright © 1993-2008 SCQuARE International Limited
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Last year hockey – this year
holiday
• Sue has decided after nine years touring with
us that she is taking a break this year for a
family sailing holiday with you, the kids & your
parents in the Isle of Wight
• At the same time, we will be going on our
annual hockey tour to The Hague.
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C
Special anniversary tour with
gold medal award
• This is the 10th anniversary of the 1st women’s
hockey 7’s tournament, returning to the
original venue – the Hague
• The EWHSF want to recognise Sue’s
contribution to the sport
– Only original team member
– Has played in every event
– Gold medal planned for her
• Clearly, both the organisers & Sue herself
would be upset if she could not attend
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PQ
The question we must ask
ourselves is:
How can we reschedule events so that:
 Sue plays a full role in your family holiday
 Whilst getting the recognition she deserves
So that you can enjoy a full family holiday?
Copyright © 1993-2008 SCQuARE International Limited
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A
1.
2.
3.
4.
5.
We have a solution that will ensure that you have a full
holiday with Sue & the kids, at lower cost and in more
luxury, whilst Sue is able to receive the medal. This will
require a minor revision to you planned schedule
Start holiday as planned
On the Friday evening (night of the presentation
dinner), we will fly you & your family (at our
expense) to Holland.
You will then be chauffeured to the Royal
Nederlander Hotel, staying in your own suite.
The family will be able to attend the presentation
dinner & share in Sue’s award
We will then fly you back to the Isle of Wight the
following morning to continue your holiday.
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One Chance Pitch
Sales & Marketing
Presentation to Jim Albright
Aim: To Stay Market Leader
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Fantastic Results Last Year
•
•
•
•
Sales last year totalled $804m
Profits $90m, 9% up on budget
Market Share 53% up 8% on last year
Inflation was at 6%
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Aggressive Budget for This Year
• Sales Budget of $905 – up 15% on last year
• Profits up 20% to $108m
• Market Share static at 53%
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Best Sales Team in Country
• Based on a S&M team of 38 people
• Aggressive, ambitious highly motivated team
• Recruit the best: Graduates, MBA’s, pick of the
best from variety of backgrounds
• Typically rewarded mid-Upper-Quartile plus:
– Annual profit bonus
– Contributory pension,
– 3weeks leave pa; 4 weeks after 10 years
Copyright © 1993-2008 SCQuARE International Limited
Cherry stealing our people &
know how
• CherryPhone acquired HappyPhone late last year with
declared aim to “double their market share”
– As market leaders we are the main target
• They are stealing our key staff offering salaries 20-30%
greater than ours
– 9 staff lost already
– 6 more under offer
• We are losing key information
– Key contacts
– Know-how, pricing and plans
• Impossible to recruit when major competitor is offering
so much more
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First Quarter Results down 10%
• Cherry;s activities have impacted our results:
– 1st Qtr Sales and profits are down 10% on last year
– Year-end Forecast will be down a similar amount
unless we take rapid action
• We must act now to reverse this situation
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Salary increases not an Option
• We will maintain the Main Board’s policy of
not increasing salaries above inflation
• We have examined alternative non-salary
options
• These have been reviewed with HR, MD and
key staff
• We need your sign-off to proceed
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• How can we remunerate our key staff without
increasing salaries above inflation to
– Retain those currently under offer
– Recruit replacements for those already lost
• So that we can get back on budget by the year
end and maintain our position of Market
Leader?
Copyright © 1993-2008 SCQuARE International Limited
We can achieve Sales of $905m and
Profits of $108 by year-end if we
• Introduce short-term, self-financing bonuses
• Commit to longer-term loyalty programmes
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Standard Products Limited
Family Grocers Division(FGD)
Distribution plan
Presentation to the Executive Board
Copyright © 1993-2008 SCQuARE International Limited
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Today’s Agenda
• Market review.
• FGD’s market position & contribution to SPL.
• The changes required in distribution and the
options.
• Strategies and Recommendations for approval.
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Aiming for profitable no.1
SPL’s corporate mission is to be the leading
confectionery supplier in every market in which
it operates, and to increase shareholder value
annually by at least 5% more than Market
Indices.
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Stretching budget
• Annual volume of 6.5m cases, up 5% on
previous year;
• Net Profit of $40m, up $5m vs previous year;
• Market Share 26%, up 1 point vs previous year.
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Large, Fragmented Market
• Family grocers account for 25% of the country’s
confectionery market - $500m by value; 24.8m cases by
volume.
• 31,250 family grocer shops, nationwide:
– 25,500 concentrated in 20 major cities;
– 90% (28,125) independently owned and family run;
– more than 60% are owned by Indians.
• Serviced by approximately 10 different major suppliers
via: direct delivery, wholesalers, merchandising
services and cash & carry warehouses.
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Star performer in SPL Group
• Last year sales of $125m (6.2m cases) - up 8%
vs. the previous year, compared to a flat
performance by the rest of SPL.
• FGD are market leader with 25% SOM vs
SPL’s 18% national average; 10% points
greater than our main competitor.
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Availability Key to Success
• FGD has 25,000 customers:
– 80% of all family grocers in the country;
– 84% of the independent customers.
• FGD delivers direct to 22,000 outlets, 80%
located in the 20 largest cities.
Causal Chain
Copyright © 1993-2008 SCQuARE International Limited
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Board demands distribution
savings for re-investment
• The SPL Main Board has decided to cease all
direct distribution to save $20m over 3 years (to
be re-invested in brand building).
• Estimated savings of $15m in FGD could be
nullified by the potential loss of the family
grocers business which has been built around:
– our availability nationwide;
– servicing 88% of our customers through direct
delivery.
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Walkers to mount negative
PR campaign
• Our main competitor Walkers, with only 15%
of this sector, has confirmed their policy of
direct delivery by renewing their main fleet
contracts.
• They will almost certainly mount a campaign
accusing us of deserting the family grocers.
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We must steal share
• Pressure from multiples is forecast to keep
growth below 2% (ACN Economic Forecast).
• We cannot hit our stretching objectives via
organic growth
Copyright © 1993-2008 SCQuARE International Limited
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Combination solution
required
• There is no single alternative system that offers
the same coverage;
– Patel, the leading wholesalers, reaches only 60% of
family grocers shops;
– Cash & Carry outlets (e.g., Smiths) demand
promotional allowances with no assurances or
guarantees;
– The various merchandising services vary
enormously in coverage and quality. The most
reliable is Rhonda’s.
Copyright © 1993-2008 SCQuARE International Limited
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PQ
The question we must ask
ourselves is:
• How can we combine the strengths of the alternative
distribution options to:
– Maintain nationwide coverage;
– Deliver $15m savings from FGD by the end of the plan;
– Reassure our customers that FGD is not deserting them in the
face of the potential threat from Walkers;
• to ensure we meet budget, secure market share growth
and increase shareholder value annually by at least 5%
more than market indices?
Copyright © 1993-2008 SCQuARE International Limited
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A
FGD can secure a 26% market share and meet
the budget of 6.5m cases and $40m net profit,
provided we retain 80% coverage. This will
require an investment of some of the
distribution savings across three crucial areas:
1. Nationwide distribution deals with,



Patel InterCity Wholesalers;
Smiths Cash & Carry chain;
Rhonda’s Mobile Merchandising Group.
2. A loyalty-building promotion.
3. Investment in new display cabinets.
Copyright © 1993-2008 SCQuARE International Limited
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RE
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STRATEGY 1: Nationwide distribution deals with Patel,
Smiths and Rhonda’s.
Patel – we will sign a three-year rolling contract with two components:
1. A minimum annual volume agreement;
2. Joint funding of in-store promotion activity.
•
•
•
3 years is our plan period and FGD needs Patel to commit to our
plans.
Patel has committed to volume sales, dropping all competitive
brands, as follows:
Cases
Year 0 Year 1 Year 2 Year 3
000’s
250
3,900 4,200 4,800
Joint-funding will ensure that Patel implements our programmes
to increase SOM.
Copyright © 1993-2008 SCQuARE International Limited
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RE
STRATEGY 1: Nationwide distribution deals with
Patel. 1.1 Annual volume agreement
H
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FGD will commit to annual volume incentives for Patel:
• 2.5% over-riding discount on sales over $70m – the cost will be
offset by a lower discount on sales below $70m.
• $500K sales force incentives.
W
H
Y
• Patel will accept a lower margin (7.5% vs 10%) for volume and an
over-riding discount on sales over $70m to increase SOM.
• Patel has a 50 strong telesales team supporting 100 salespeople
nationwide calling on 16,000 businesses monthly. They will hire 25
new salespeople exclusively for family grocers.
Copyright © 1993-2008 SCQuARE International Limited
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STRATEGY 1: Nationwide distribution deals with Patel.
1.2 Joint funding of in-store promotion activity.
RE
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FGD commits to jointly promote retailer loyalty:
• $400K over two years in new display cabinets (see Strategy 3).
• $100K per annum advertising in Patel’s PIW Monthly journal,
promoting the new in-store initiatives.
•
•
Joint ownership of display cabinets will double the total spend to
$800K, encourage placement of displays by Patel and secure
100% coverage in 2 years (see Strategy 3);
PIW Monthly is circulated to all Indian owned family grocers,
and Patel has agreed to a 30% discount on their standard rates.
$100K will secure 52 weeks back-page copy.
Copyright © 1993-2008 SCQuARE International Limited
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RE
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STRATEGY 2 Support distribution deals by investing in a
high profile loyalty promotion backed by PR and
advertising.
Air miles promotion based on individual purchases gaining in value over
frequency of order and value:
1 - 3 orders =
1 mile per $100.
4 - 6 orders =
2 miles per $100.
7 - 12 orders =
4 miles per $100.
Total cost £3.2m over 3 years.
• Walkers will mount a negative campaign, claiming we have
deserted the family grocer.
• Retaining customer loyalty will be the key to success in the first
year of our switch to third party deliveries.
• Air miles are popular with Indian shopkeepers – many of whom
have large families. The promotion will encourage frequency of
purchase.
Copyright © 1993-2008 SCQuARE International Limited
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STRATEGY 2 Support distribution deals by investing in a
high profile loyalty promotion backed by PR and
advertising.
Launch a PR programme costing $300K: hire Madhur Jaffrey the
famous Indian actress and writer on Indian cooking to support the
promotion with personal appearances.
• Retaining customers is five times cheaper than regaining them:
 We must show our commitment to family groups.
 Madhur Jaffrey’s wide appeal will demonstrate that our
programmes are exclusive, not bland and impersonal.
Copyright © 1993-2008 SCQuARE International Limited
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STRATEGY 2 Support distribution deals by investing in a
high profile loyalty promotion backed by PR and
advertising.
Support promotion through advertising in:
• Patel’s own journal, PIW Monthly, included in back-page copy (for
costs see Strategy 1);
• The Grocer and Marketing Week, for launch period (first 3 months)
costing $75K.
• Our PR campaign must be advertised:
 PIW Monthly is published in three Indian languages.
 The Grocer and Marketing Week is UK’s largest circulation trade
magazine.
Copyright © 1993-2008 SCQuARE International Limited
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STRATEGY 3 Retain and improve in-store presence by
investing £800K in new display cabinets for stocking
exclusivity.
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Commission Watsons to manufacture 12,500 new upright, gravity-fed
display units costing $800K in year 1 (net $400K with $400K from
Patel).
•
•
•
•
Most family grocers have room for only one display unit. We
must be first.
Watsons, at $64 vs $87 per unit, is the most competitive supplier.
12,500 units will give 50% coverage in the first year;
Watsons offer a 15% reduction on 12,500
Copyright © 1993-2008 SCQuARE International Limited
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STRATEGY 3 Retain and improve in-store presence by
investing $800K in new display cabinets for stocking
exclusivity.
RE
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• Offer units (through our two distribution agents) free to our customers
in return for
• 200 cases per annum commitment;
• Exclusivity of display for our products.
• Offer custom-built displays for Patel and Smiths.
•
•
•
•
Display units offer a proven +20% uplift in sales - $25.0m
on a full year’s sales; $6.25m in the first year.
200 cases equates to 9 months average sales. This will secure
loyalty.
Display material is key to loyalty:
Customised units will give incentive for Patel and Smiths to place
and display.
Copyright © 1993-2008 SCQuARE International Limited
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Marketing activity Year 1
Cost & Responsibility
Summary Marketing activity
($000)
Sales incentives
Patel advertising
Air Miles programme
PR
Display units
Advertising
Contingency
Total
Copyright © 1993-2008 SCQuARE International Limited
500
100
3,200
300
800
75
150
£5,125
Sales
Trade Marketing
Trade Marketing
Consumer Marketing
Sales & TM
TM
GM
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Plan Summary - Volume build benefit
000 Cases
Direct
Patel
Smiths
Rhonda’s
Totals
Year 0
5,800
250
100
50
6,200
Year 1
3,900
1,600
1,000
6,500
Copyright © 1993-2008 SCQuARE International Limited
Year 2
4,200
1,750
1,050
7,000
Year 3
4,800
2,000
1,200
8,000
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Plan Summary - 3 year forecast results
$000’ s
Sales
Direct Costs
A&P
Distribution
Overheads
Net Profits
Year 0
Year 1
Year 2
Year 3
125,000 127,000 140,600 161,700
(45,000) (50,000) (56,000) (64,000)
(2,500) (5,125) (5,000) (5,500)
(30,000)
(12,500) (31,875) (34,500) (37,000)
35,000
40,000
45,100
55,200
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DUBAI
FUN IN THE SUN!
Presentation to the Dubai Tourist Board
Copyright © 1993-2008 SCQuARE International Limited
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AGENDA
• Dubai today
• Challenges of Tourism
• Proposals and Recommendations for approval
Copyright © 1993-2008 SCQuARE International Limited
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BUILDING A TOURIST INDUSTRY
• The Dubai tourist board has the aim of establishing
Dubai as a major European tourist winter destination.
• They are budgeting for 150,000 winter visitors per
annum from Europe, generating $500m revenue in
invisible earnings
Easily accessible
• Dubai is less than six hours flight from most of Europe's
major capital cities
• Emirates – the flagship airline – serves all the major
capitals of Europe with regular daily flights
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SUPERB INFRASTRUCTURE
• $50bn in the last 10 years has been invested on
infrastructure – roads, airport, harbours and
state of the art telecommunications
• In 1999, the world’s tallest and most luxurious
hotel - seventy-six stories – was completed
• The new airport terminal, opened in March 2000
is state of the art, hassle-free and superbly
equipped
Copyright © 1993-2008 SCQuARE International Limited
NATURAL BEAUTY & GRACIOUS
HOSPITALITY
• Dubai has 12 hours per day of Winter sunshine,
& beautiful, unspoiled beaches and gracious
Arab hosts
• Superb snorkeling, Deep-sea fishing &
magnificent desert scapes
• Gracious Arab hospitality
o Bazaars
o Medieval Arab towns
• Desert Oases
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LIBERAL SAFE, AND SOPHISTICATED
ENVIRONMENT
• The alcohol laws have long been liberalised so
that they are now comparable with most Western
countries
• Western dress is accepted and crime is minimal –
visitors can wander unmolested and unhindered
in most areas
• Dubai has staged some elite major international
events such as golf competitions & horse racing
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EVERY TASTE ACCOMMODATED
• Government co-operation with international
leisure corporations has resulted in the
development of every kind of leisure and
entertainment facility:
• Excellent English, Italian, French, German,
Chinese and Indian restaurants abound
• Hotels, Nightclubs and shows to suit all pockets
• Fabulous shopping malls with duty free bargains
• Marinas, racecourses, and magnificent green
golf courses
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COMPETITION STEALING VISITORS
• Last year, the total number of winter tourists
from Europe was 90,000, up 5% on the prior
year but 40% below the target of 150,000.
• This compares unfavorably with Tunisia &
Morocco who both reported hotel occupancy up
17%, with European winter visitors at a record
high of over 500,000 between them
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BACKERS NERVOUS
• 2 major International hotel groups with
substantial investments in Dubai are questioning
the long term viability of Dubai’s tourist industry.
• There is a concern that they may decide to scale
down their investments, or worse still, may
withdraw from Dubai completely.
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ELITIST AND NARROW FOCUS
• International events: the Dubai Desert Classic
golf tournament, and the Dubai Cup horse race,
although very successful, are seen as narrow,
male dominated & pursuits of the rich elite.
• Moreover, they do nothing to illustrate the liberal
laws, or help to showcase the other major
attractions.
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MESSAGE NOT RECEIVED
• Recent surveys* reveal that most Europeans:
Are unaware of Dubai's liberal alcohol laws
Do not know about the relaxed dress code
See it as a luxury resort for wealthy Arabs only
Continue to identify Dubai with the fundamentalism
of Saudi Arabia or Iran, & fear Middle Eastern
terrorism.
*EuroSurveys: Dubai Holiday Survey
Causal Chain
Copyright © 1993-2008 SCQuARE International Limited
GROWING INTERNATIONAL
EVENTS CALENDAR
• Fashion houses such as Zara, Versace, Gap,
Gucci and Yves St Laurent are all interested in
exotic venues to show & display their new
fashions
• Wine growers in Australia, S America and S
Africa have expressed interest in a winter wine
festival
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How can the Dubai Tourist Board develop the
appropriate marketing programs and associated
awareness campaign to:
Overcome
• Competition from Tunisia & Morocco
• Nervousness of backers
• The perception that existing events are only for the “rich
and famous”
• Low awareness of the alcohol and dress laws, and safe
environment
Exploiting
• The growing International events calendar
And achieve our budgeted visitors & revenues thus building
a viable Winter tourist industry?
Copyright © 1993-2008 SCQuARE International Limited
Dubai can become a major winter holiday
destination for Europeans, achieving 150,000
visitors & $500m revenue annually
by staging events that differentiate Dubai (from its
neighbours) as a liberal and hospitable country:
1. Setting up a Desert Safari & Bedouin Nights theme
attraction
2. Sponsoring a (pre-Christmas) Southern Hemisphere
wine festival
3. Hosting a January Summer Fashion week
4. Pan-European Advertising & Promotions
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Strategy 1
Setting up a Desert Safari & Bedouin Nights theme attraction
How
• Setting up a Desert Safari & Bedouin Nights theme
attraction
(Cost $22.5m - $5m annual cost).
WHY
– We will be able to showcase all the different coastal, mountain
and desert landscapes
Day & night time attraction
Wide appeal (not elitist)
Demonstrates liberal laws & fun
Estimated additional 40k visitors each winter
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Strategy 1
Setting up a Desert Safari & Bedouin Nights theme attraction
How
• Appoint P-Y Gerbeau as GM to Manage design and
construction & recruit management team (cost $1.5m)
• Establish Desert Safari operation using both Camel &
4 wheel drive caravans (cost $1m, lead time 2 months)
Why
– He has experience in 2 major European attractions (Disney
Europe & the Dome), is well respected & immediately available
– Showcases culture & heritage. Offers authentic travel or comfort
options. Minimal set up costs & lead time.
Copyright © 1993-2008 SCQuARE International Limited
Strategy 1
Setting up a Desert Safari & Bedouin Nights theme attraction
How
• Bedouin Night attraction to include
– Valentino Zone (Oasis site with 5-star tented accommodation)
– Belly dancing zone (offering traditional Arab & western
cabaret options)
– Hotels, Restaurant & bars to cater for 800 guests.
• Cost $20m, timescale 12 months. (see full project plan
in Appendix 1)
Why
– Valentino zone targeted at honeymooners, valentines day & other
romantic occasions, not just male pursuits.
– 80% of western females have had fantasies about Valentino & see him
as the ultimate romantic male.
– Belly dancing zone has wide entertainment appeal & emphasizes fun,
demonstrating the relaxed laws.
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Strategy 2
Sponsoring an annual December (pre-Christmas) Southern
Hemisphere wine festival. Total cost: $1.36m
How
• Sponsoring an annual December (pre-Christmas) Southern
Hemisphere wine festival. Total cost: $1.36m
Why
– Australian, Chilean, Argentinean and South African Wine
growers will have their latest summer offerings available. All
produce top-quality wines
– The Southern Hemisphere countries will want to sell to
Europeans for the Christmas season
– There is currently no venue for these growers
– Wine will attract an up-market European interest (incremental
20k visitors) and demonstrate Dubai’s liberal alcohol laws
– It will get free coverage in the leading TV food and drink
programs and Sunday Specials (estimated TV viewing 14m;
circulation 24m, readership 12m)
Copyright © 1993-2008 SCQuARE International Limited
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Strategy 2 (cont.)
Sponsoring an annual December (pre-Christmas) Southern
Hemisphere wine festival. Total cost: $1.36m
How
• Appoint a Wine Week Director (cost $150K)
• Invite the top three leading wine critics from each of
France, Germany, Italy and UK to form a panel of judges
(cost $210k)
• Invite top six growers from each country to present their
best wines
Why
• To ensure that the event is well-managed.
• To ensure that the wine festival has credibility. They will
have a ready forum for writing about the festival
• You want a variety of quality wines represented
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Strategy 2 (cont.)
Sponsoring an annual December (pre-Christmas) Southern
Hemisphere wine festival. Total cost: $1.36m
How
• Offer a Gold, Silver and Bronze medals for wines in each
class: Red, White, Rose, Sparkling, Fortified, Dessert,
Best Value (cost $500K)
• Stage rounds in different Dubai Hotels (cost $400K)
• Stage the final in the best hotel (cost $100K)
Why
• To ensure that as many growers as possible leave with a
prize. TV coverage 14m. Sunday Specials coverage 26m
• To secure wide coverage of the attractions offered in
Dubai
• To showcase the best hotel in the country
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Strategy 3
Hosting an annual January Summer Fashion week.
Total Cost $1.1m
How
• Hosting an annual January Summer Fashion week. Total Cost
$1.1m
Why
• Targets female visitors with attractions predominantly for them
(incremental 25k visitors)
• Fashion houses such as Zara, Versace, Gap, Gucci and Yves St
Laurent would all welcome a new venue (currently limited to Paris,
Milan, London and New York) to display their new male and female
fashions
• The event will give Dubai an opportunity to show-case the wonderful
hotels and demonstrate their relaxed dress codes
• It will secure massive photo-coverage of in-door and out-door
locations
Copyright © 1993-2008 SCQuARE International Limited
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Strategy 3(cont.)
Hosting an annual January Summer Fashion week.
Total Cost $1.1m
How
• Recruit a fashion week director & team (cost $500K)
• Appoint a panel of leading fashion writers from the main
fashion magazines: Vogue, Harpers & Queen,
Cosmopolitan, Elle, Woman (cost $250K)
• Secure a famous model to host the event (cost $100K)
Why
• To ensure the event is well-managed
• To ensure that their magazines give full coverage of the
event. To agree rules of decorum
• To ensure a glamorous event, attracting TV and
magazine coverage
Copyright © 1993-2008 SCQuARE International Limited
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Strategy 3 (cont.)
Hosting an annual January Summer Fashion week.
Total Cost $1.1m
How
• Offer prizes for the top three fashions in the categories, each for
women and men:
–
–
–
–
–
Evening wear
Day wear
Swim wear
Casual wear
Sports wear
• Cost $250K
Why
• To encourage photo-opportunities in appropriate settings in Dubai
(Famous hotels, Shopping, Beaches, Marinas and Golf courses)
• Magazine circulation estimated at 26m (18m readership)
• TV coverage – news bulletins, fashion programs. Estimated reach
113m
Copyright © 1993-2008 SCQuARE International Limited
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Strategy 4
Pan-European Advertising & Promotions(Cost $200K)
How
• Promotional packages will be offered to leading tour
companies to coincide with the events (Cost $200K)
• Leading commentators and opinion leaders will be
offered special rates
• Generic Quarterly Pan-European advertising in all
colour supplements (cost $800k)
Why
• To generate interest and excitement about the
forthcoming events
• To encourage them to promote the events
• Our events must be advertised. Quarterly communication
will maintain awareness
Copyright © 1993-2008 SCQuARE International Limited
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INVESTMENT FOR THE FUTURE
$m
Set up costs
• Desert Safari & Bedouin Nights
Annual Running costs:
• Desert Safari & Bedouin Nights
• Wine Festival
• Fashion week
• Pan-European promotion
Total annual costs
Copyright © 1993-2008 SCQuARE International Limited
22.5
5.0
1.3
1.1
1.0
8.4
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PR COVERAGE MEANS VISITORS
Safari &
Bedouin nights
Wine festival
Fashion week
Totals
Extra Visitors
(‘000)
40
PR Coverage
(m)
22
20
25
85
16
31
69
Copyright © 1993-2008 SCQuARE International Limited
Fun in the Sun
• With all the key concerns of potential European visitors
addressed, namely
•
•
•
•
Safety
Relaxed alcohol laws
Relaxed dress codes
We predict the target of 150,000
visitors will be easily exceeded
Copyright © 1993-2008 SCQuARE International Limited
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Copyright © 1993-2008 SCQuARE International Limited
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Ferrara Footwear
Distribution Review
Copyright © 1993-2008 SCQuARE International Limited
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Agenda
•
•
•
•
•
Market position
Business configuration
New distribution imperative
Options available
Strategies
To grow profits and sales by
10% annually
Copyright © 1993-2008 SCQuARE International Limited
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Fastest growing shoe company
• Ferrara’s business is concentrated in North and
Central Italy, which accounts for 72% of the
total Italian domestic shoe market
• It has grown its share of the market from 9%
to 15% over three years
• Last year the company achieved $52m profit
before tax on $326m Sales
• The plan is to increase this by at least 10%
annually over the next 3 years
Copyright © 1993-2008 SCQuARE International Limited
Quality products from a loyal,
productive workforce
• The company enjoys higher than average
productivity due to less time lost per annum in
industrial action (2% v 11% national ave)
• The workforce is highly skilled due to low staff
turnover with average tenure of 12 years
• The company has always prided itself on its
excellent workforce producing our quality
range of male and female fashion, leisure and
sports footwear
Copyright © 1993-2008 SCQuARE International Limited
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Organised for direct distribution
Lorries/Trucks & Drivers
100
Sales
50
Marketing
15
Manufacturing, Admin, Accounts &
Distribution
2,000
TOTAL Headcount
2,165
The total annual payroll is $33m
Copyright © 1993-2008 SCQuARE International Limited
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Multiples provide 55% of profit
• A highly profitable export business relying on
distributors contributes 5% to Sales generating
10% of Profits
• 5,000 Independent retailers account for 25% of
Sales and 35% of Profits
• Four main retail chains with 2,500 outlets
account for 70% of Sales and 55% of Profits
Copyright © 1993-2008 SCQuARE International Limited
Distribution change threatens current
success
• Due to economies of scale, the four chain
retailers wish to move to centralised
warehousing and distribution, within 3 months
– they are requesting a 15% reduction in cost price
• They will only source from suppliers
conforming to the new system
• Contributing 55% of our profits, we cannot
afford to refuse them
Causal Chain
Copyright © 1993-2008 SCQuARE International Limited
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Change will cause surplus resources
DISTRIBUTION
Current System
Proposed System
Multiple
2,500
4
Independents
5,000
5,000
Total Outlets
7,500
5,004
• Under this system, 70% of Ferrara’s turnover will
go to 4 distribution points, rather than 2,500.
• We will have 350 excess people, 25 trucks &
drivers and 4000sqm warehouse space.
Copyright © 1993-2008 SCQuARE International Limited
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Redundancy a last resort
• With a heavily unionised workforce and long
tenure (12 years), redundancy costs will be
huge (estimated at $5m).
• Redundancies also open the company up to the
threat of industrial action amongst employees,
impacting productivity and distribution . . .
Copyright © 1993-2008 SCQuARE International Limited
Independent distributors must be
protected
• 5,000 independent retailers will be concerned
about increased competitiveness of Multiples
• They are more vulnerable to industrial action
than the 4 Multiples
• It is essential that we retain their goodwill &
current service levels.
Copyright © 1993-2008 SCQuARE International Limited
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Market areas for growth can be
explored
• We have only 15% of our main market (North
and Central Italy)
• We have a 1% SOM in South Italy with a
market valued at $1Bn.
• Exports to EU and USA via distributors are
highly profitable. We should consider a more
proactive policy
• 70% of our main customers have expressed
positive interest in our experimental “Ferarra
for Kids” range
Copyright © 1993-2008 SCQuARE International Limited
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Ferarra’s Pivotal Question
• How can we re-deploy our surplus distribution
resources to
• satisfy the demands of the multiples,
• maintain service levels to the independents
• develop opportunities for new products and
new markets without impacting employee
relations and maintaining sales and market
share growth?
Copyright © 1993-2008 SCQuARE International Limited
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We can grow profits to at least $62m next year
and satisfy the four multiples by
• Developing South Italy
• Building on our export success
• Growing our main market with new product
lines
• Underpinning product and market
diversification by retraining and relocating
surplus staff
Copyright © 1993-2008 SCQuARE International Limited
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Copyright © 1993-2008 SCQuARE International Limited
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S
Mericana Football Club
The team of the third millennium
Copyright © 1993-2008 SCQuARE International Limited
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S
•
•
•
•
•
Today’s Agenda
Club aims
Review of club history
Challenges faced
Options for progress
Strategic recommendations for your approval
Copyright © 1993-2008 SCQuARE International Limited
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S
Aiming for the top
• Our mission is to be Brazils most profitable &
successful club both on and off the field
Copyright © 1993-2008 SCQuARE International Limited
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S
•
•
•
•
Prestigious History
3 League Championships
Won FA cup twice
S. American Cup winners in 1990
Best supported club in Brazil
– 45k per game V's 38k league average
Copyright © 1993-2008 SCQuARE International Limited
S
Community focus gives us
pool of new talent
• Support RDA ‘Sport in Community’
programme
• Good source of youth talent
• Respected as focal point in high unemployment
area
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S
Value pricing fills 51k capacity
stadium
• 10k seats @ $15 (Vs $20 at other clubs)
• 41K standing @ $10 (Vs $15)
• 20 Home games per season
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S
Balanced cash flow
• $10m per season from ticket sales
• $20m from sale of youth talent to European
leagues
• Paid off loans & funded minor ground
improvements
• No overdraft or external investment
Causal Chain
Copyright © 1993-2008 SCQuARE International Limited
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C
Poor team performance
• Bottom half of league with no trophies for 8
years
• Players too old due to policy of selling youth to
fund cash flow
• Buoyant transfer market fuelled by European
salary explosion
Copyright © 1993-2008 SCQuARE International Limited
C
Declining Supporters =
Declining Revenue
• Last years crowd of 45k was down from 50k in
previous years
• Next years season ticket sales down 25%
• Projecting 30% loss of revenue ($3m) if we do
not improve on field performance.
Copyright © 1993-2008 SCQuARE International Limited
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C
Fans demand $30m
investment in new talent
• We need a minimum of 6 top quality players
• Average cost per player = $5m
• This equates to 3 years ticket sales revenue
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C
We must have all seating
stadium within 2 years
• Law change after stadia disasters
• 80% of our ground is terracing
• Conversion of standing to seats will cost $18.5m
Copyright © 1993-2008 SCQuARE International Limited
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C
RDA insist on 51k capacity
= $25m investment
• Fears of vote loosing if capacity reduced
• Want MRFC to remain focal point
• We will need more land & brand new facility estimate $25m cost
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C
Raising ticket prices is not
an option
• Area of high unemployment
• We have a long history of supporting our
community, not ripping them off
• Alternate sources of finance are required
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C
Other clubs have taken a
commercial route
• Sponsorships are readily available at both local
& international levels
• Merchandising of kit and other items can be
very lucrative
• Satellite & cable TV companies are buying up
rights (Av. Deals = $15m p.a.)
• Food concessions are low risk/high yield
• Many European clubs have gone public
Copyright © 1993-2008 SCQuARE International Limited
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C
There is talent available in
the market
• Rivaldo is a local boy who would return to
Brazil for love not money
• Most of the Man. UTD squad prefer the sun
to an English winter
• Many German players are shell shocked
following England’s stunning 5-1 victory &
are seeking somewhere to recuperate
Copyright © 1993-2008 SCQuARE International Limited
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PQ
The question we must ask
ourselves is:
• How can we generate an additional $55m
without increasing ticket prices in order to:
– Improve team performance
– Comply with the law change
– Satisfy the RDA requirements for 51k capacity
• Exploiting the commercial opportunities
available & our strong heritage
• so that we achieve our aim of being Brazils
most successful club both on & off the field?
Copyright © 1993-2008 SCQuARE International Limited
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A
MRFC can be top of the league within 2
years in a brand new 51k capacity stadium if
we implement the following strategies:
1. Raise funds via: Sponsorship, TV rights,
merchandising, Concessions & floatation
2. Commission Botchit & Scarper to build new
stadium
3. Buy 6 top players from available pool of talent
4. Set up youth development programme
Copyright © 1993-2008 SCQuARE International Limited
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Solko Soft Drinks
Putting the fizz in to Poland
Presentation to Rodski Holdings Board
Copyright © 1993-2008 SCQuARE International Limited
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Today’s Agenda
S
•
•
•
•
•
Solko aims
Review of company strengths
Challenges faced
Options for progress
Strategic recommendations for your approval
Copyright © 1993-2008 SCQuARE International Limited
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S
Corporate Aims
Our mission is to rejuvenate Solko to become a
major player in the Polish Soft Drinks Market
Copyright © 1993-2008 SCQuARE International Limited
S
Great tasting drinks with high
awareness
• 3 core brands = 98% of volume (Cola, Orange
& Lemonade) + 14 natural flavours, all in
regular variants
• Most preferred taste (52% v 38% JoltCo)
• Highest prompted awareness (57%)
Copyright © 1993-2008 SCQuARE International Limited
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S
Consistent growth in volume,
turnover & profits
• Average growth 15% per annum
• Last year 34m cases, $95.8m sales, $17.2m
profit, 6.7% Share of market.
Copyright © 1993-2008 SCQuARE International Limited
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S
Strong in most profitable
channels
• Specialise in 1Ltr glass returnable bottles as
result of $3m production investment in 1996
• Complimented by 33cl cans
• 65% of volume & 75% of profits from bars &
kiosks
Causal Chain
Copyright © 1993-2008 SCQuARE International Limited
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C
Market shift nullified glass
strategy
• We opted for glass at the same time JoltCo
launched plastic in 1, 1.5 & 2Ltr sizes.
• Market changed overnight (plastic now outsells
glass 3:1)
• RHP board lost all confidence in Solko
Copyright © 1993-2008 SCQuARE International Limited
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C
No confidence = no investment
in growth areas
• Diet is 34% of market (from 8% in ’95) – we
are only in regular
• Vending grown 15 fold & is double margin ($6
per case) but we are only testing
• Supermarket sales have doubled whilst bars &
kiosks (our traditional strengths) are virtually
static
Copyright © 1993-2008 SCQuARE International Limited
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C
We are losing market share
& internal credibility
• 70% growth in last 4 years – we’ve not kept
pace
• Share down from 9.5% in ‘96 to 6.7%
• 4 GM’s in 3 years, best sales staff have left,
remainder de-motivated
Copyright © 1993-2008 SCQuARE International Limited
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C
Growth opportunities
abound
Menu
• Soft drink market to grow at 25% pa for next 5
years
• Poland’s consumption less than half US & below
W. European levels
• JoltCo alienated the trade by refusing packaging
demands for large sizes (3 & 4ltr)
Copyright © 1993-2008 SCQuARE International Limited
C
Major capital expenditure
not an option
Menu
• We must find low cost options to enter the
growth areas
• Plasbotski contract bottlers could package large
plastic varieties under licence
• Vendco operate a managed service for their 300k
machines nationwide
Copyright © 1993-2008 SCQuARE International Limited
PQ
The question we must ask
ourselves is:
How can we develop a low risk entry in to the
growth areas of the soft drink market in order
to:
– Restore board confidence
– Improve staff morale
– Reverse market share decline
And achieve our mission of rejuvenating Solko to
become a major player in the Polish Soft Drinks
Market?
Copyright © 1993-2008 SCQuARE International Limited
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A
Solko can become market leader in Poland
within 5 years, with annual profits of $100m, if
we implement the following:
• Develop diet variants of our top 3 flavours
• Produce plastic packaging via licence agreement with
Plasbotski
• Use Vendco to distribute to Vending sector
• Restructure & re-motivate the sales-force
Copyright © 1993-2008 SCQuARE International Limited
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Copyright © 1993-2008 SCQuARE International Limited
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Presentation to
Robin Hood
Charter Consultants
MCIIVC
Copyright © 1993-2008 SCQuARE International Limited
S
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Agenda
We will be covering the following matters:
• A review of political situation and your progress to
date;
• The main problems that you now face;
• Our recommendation;
• A detailed action plan for your aproval;
All dedicated to achieving your main aim of a normal
life in a just society for you and your Merrie Men.
Copyright © 1993-2008 SCQuARE International Limited
S
Menu
Unjustly outlawed in Richards absence
• Good King Richard captured one year ago, and
there is no early prospect for his release.
• Consequently, Prince John, cruel insecure, greedy,
and untrustworthy, is the Regent.
• The Sheriff of Nottingham, oppressive, corrupt and
unjust is Prince John’s representative, and it was
your defiance of the Sheriff ’s injustice that caused
him to declare you outlaw, three years ago.
Copyright © 1993-2008 SCQuARE International Limited
S
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3 YEARS CONTINUOUS GROWTH
• Your protest has won you many loyal followers and
renown as a daring, strong leader.
• Your policy “rob rich to give to poor” ensures the
loyalty the poor.
• As a result, you have best intelligence network in the
country with 130 spies giving reliable information
about all travellers and especially the Sheriff and his
men.
• Your food stocks for the winter are secure.
Copyright © 1993-2008 SCQuARE International Limited
S
LARGEST OUTLAW EMPLOYER IN
ENGLAND
• Your reputation has enabled you to develop the
band from nothing to over 1,000 followers.
• You have four excellent lieutenants, and have
developed a good functional organisation, with 250
active fighters, backed by 750 supporters.
• Your able support services produce excellent
weapons, mead and beer, with a potential income of
16,800 Marks a year.
Causal Chain
Copyright © 1993-2008 SCQuARE International Limited
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C
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Victim of your own success
• Too rapid recruitment has lead to lack of control:
– Discipline problems;
– Unreliable types, spies and thieves;
• Not only do these discipline problems distract you and your
key lieutenants, but they endanger the lives of all, and are
detracting from your main activities of foiling the Sheriff and
aiding the poor.
Copyright © 1993-2008 SCQuARE International Limited
C
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VULNERABLE TO ATTACK
• Concentrated in one area, your camp is too easy to find and
defend.
• The large numbers make your band cumbersome.
Together, these factors make you very vulnerable to surprise attack.
• The Sheriff grows stronger than you, day-by-day. Moreover,
your intelligence reliably informs you that the Sheriff is
known to be planning a Spring attack. Killing him is not a
serious option as this would cause Prince John to simply
replace him and or to launch massive reprisals.
There is no prospect of a pardon from either the Sheriff or Prince John
without totally compromising your principles - something we are sure you
will never do - and in any case, neither can be trusted to honour any
agreement.
Copyright © 1993-2008 SCQuARE International Limited
C
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Summer food shortages
• Your large band is has over-hunted the local forest
and as a result your men have to travel further for
food.
• Your numbers require large supplies of provisions,
and these require scarce wagons for transport.
• The only people that have such resources are the
prince regent, the high sheriffs & some mighty
barons.
Copyright © 1993-2008 SCQuARE International Limited
C
Menu
Facing negative cash flow in 1 year
• Rich people (your main source of income) avoiding
forest causing declining revenues - a deficit of 2000
Marks is forecast for 1194
Copyright © 1993-2008 SCQuARE International Limited
C
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Richard holds the key to your pardon
The Barons, recognising your loyalty to King Richard
have, made an approach:
• They used Maid Marion, whom they trust, as a gobetween;
• They are asking for your help in raising 30,000
Marks towards the ransom for the release of Big
Dick in Austria.
• This will take 2 years to raise;
• Secrecy is essential, as they risk their entire families
if Prince John discovers them.
Copyright © 1993-2008 SCQuARE International Limited
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C
TIME IS THE MAIN ENEMY
1192
Copyright © 1993-2008 SCQuARE International Limited
1194
Winter
Big Dick out of Nick
1195
Autumn
Ransom Collected
Summer
Spring
Winter
Autumn
Run out of cash
Supplies exhausted
Sheriff’s attack
Spring
1193
Summer
This presentation
Winter
Autumn
Summer
Spring
Winter
Autumn
Summer
Spring
Big Dick in Nick
• The prospect of cash, food and logistic problems, with the band large
and unwieldy, beset by discipline problems, means that unless you do
something radical before spring you are almost certain to be attacked
and possibly defeated.
• But there are some hopeful signs and opportunities that we think you
can build upon:
C
THERE ARE OPPORTUNITIES FOR
TRADE
• Your Band produces some excellent products which,
if you had the capability to distribute them, would
greatly alleviate your cash flow problems:
• Forest Beer and Honey Mead with ready markets in
Sheffield, York and Leeds;
• Quality weapons that Baron Fortmain is desirous of
buying;
Copyright © 1993-2008 SCQuARE International Limited
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PQ
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PIVOTAL QUESTION
The question you must ask yourself, Robin, is,
How can you restructure your band of Merrie Men so as to
• Remove the band’s vulnerability/disorder
• Avoid attack by the Sheriff;
• Restore your incomes to provide for the poor and contribute
to the ransom;
• Ensure food and other supplies for the band
at the same time as you,
• develop markets for your products;
• Secretly exploit the opportunity of the Barons’ recognition
of your loyalty to King Richard;
so that you can achieve a normal life in a fair society?
Copyright © 1993-2008 SCQuARE International Limited
A
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ANSWER
You can achieve your ambitions of a normal life with
Maid Marion in a castle, with horses, serfs, ten kids,
and the occasional crusade against the French by
pursuing the following strategies:
• Reorganising the band into five groups.
• Increasing your revenues.
• Making a deal with the Barons.
Copyright © 1993-2008 SCQuARE International Limited
RE
Menu
Reorganise the band into five groups
HOW
• Assign 50 men to yourself and each of your key lieutenants.
WHY
• You have four trusted lieutenants who have all-around
abilities.
• The groups will be more mobile, thereby easily escaping the
Sheriff. The entire band cannot be trapped.
• To survive you must avoid an outright confrontation with the
Sheriff.
Copyright © 1993-2008 SCQuARE International Limited
RE
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Reorganise the band into five groups
HOW
• Send four groups to the four corners of the forest.
WHY
• You will stop over-hunting parts of the forest.
• Each group will be able to seek out travellers avoiding the
direct routes through the forest. Income will increase 70% to
eliminate your operating deficit.
• You will be able to maintain your help for the poor ensuring
their support.
Copyright © 1993-2008 SCQuARE International Limited
RE
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Reorganise the band into five groups
HOW
• Retain 50 of the most trusted people under your direct
command.
WHY
• You must be protected.
• You need to maintain confidential communications with your
lieutenants.
HOW
• Use Much Miller’s network as couriers between the bands.
WHY
• Communications are the key to control.
Copyright © 1993-2008 SCQuARE International Limited
RE
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Increase your revenues
HOW
• Acquire the six wagons requested by Friar Tuck via trade with barons.
WHY
• You need to get your products to market.
HOW
• Do a deal to supply Baron Fortemain with weapons at a discount..
WHY
• He has expressed strong interest in arming his men with your weapons.
• When the other Barons see Fortemain getting too strong they will want
to arm their men to the same standard.
• Each sale will bring in revenues. We estimated an annual profit of 12 ,000
Marks.
Copyright © 1993-2008 SCQuARE International Limited
RE
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Increase your revenues
HOW
• Barter the first two shipments of arms to the Barons in
exchange for wagons.
WHY
• The Barons are the only available source for wagons and will
want your weapons.
• Research shows that one load of arms exchanges for three
wagons.
Copyright © 1993-2008 SCQuARE International Limited
RE
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Increase your revenues
HOW
• Reposition the forest beer as “Outlaw Micro-Brew Ale” and
sell it and the Honey Mead in the towns.
WHY
• Micro-Brew is a real 12 Century buzz word.
• We forecast a demand for real ale.
• “Outlaw” gives it a wide appeal to the rebellious youth.
• Honey mead is the ideal accompaniment to venison.
Copyright © 1993-2008 SCQuARE International Limited
RE
Menu
Increase your revenues
HOW
• Deliver the Outlaw Micro-Brew and Honey Mead to the
main towns around Sherwood Forest using the wagons.
WHY
• You have a ready market and the products will raise 18,000
Marks a year.
• In two years you can deliver 30,000 Marks to the Barons.
Copyright © 1993-2008 SCQuARE International Limited
RE
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Making a deal with the Barons
HOW
• Use Maid Marion as a go-between.
WHY
• The Barons obviously trust her, as do you, and secrecy is
imperative.
• Marion will think you are wonderful.
HOW
• Use the funds raised from selling weapons and booze as your
contribution to the fund.
WHY
• You must make a positive contribution to show
commitment.
Copyright © 1993-2008 SCQuARE International Limited
RE
Menu
Making a deal with the Barons
HOW
• Demand a written covenant, declaring the loyalty and
innocence of you and your band your contribution of 30,000
Marks to the Free Richard fund.
WHY
• You must have guarantees that will ensure you get a pardon
when Richard returns: enforcing it on Richard’s release will
restore you and your followers to a normal life.
Copyright © 1993-2008 SCQuARE International Limited
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RE
HOW IT ALL WORKS
•
•
•
•
The Merrie Men are secure and well-supplied for two years.
The poor will continue to think you are wonderful.
The Barons will think you are wonderful.
The King will think you are wonderful and will have to
pardon you.
• Marion will know you are wonderful.
• You will be able to:
– Buy a fancy castle or two;
– Own shares in a couple of viable businesses with a well-trained
workforce;
– Afford to marry Marion;
– Have lots of kids,
and have time to slip away for the occasional foray abroad.
Copyright © 1993-2008 SCQuARE International Limited
What does
this problem
cause?
Menu
What if we do
nothing?
What are the
consequences?
So, what
options do
we have?
Causal Chains
What causes
this problem?
Can we fix
these?
Copyright © 1993-2008 SCQuARE International Limited
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Insight
into
Issues
Copyright © 1993-2008 SCQuARE International Limited
Causal Chains
Why do them?
• To understand all the issues and the consequences
of each one;
• to see how they relate (if at all) to one another;
• to identify any common issues;
• to explore options; to derive the main action for
the Pivotal Question.
In the last resort, you are seeking to solve the current
problems.
Copyright © 1993-2008 SCQuARE International Limited
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Causal Chains
Take a current (pressing) problem or crisis point that
needs fixing - any problem will do! Do the same with
any other current problems.
There is little to be gained by fixing the current
problems if they are just the symptoms of a deeper,
root problem; conversely, there is no point trying to
fix an underlying issue if the current problems are
likely to be fatal (because of, say, time constraints, or
other factors, e.g., money) before underlying issues
can be dealt with.
Copyright © 1993-2008 SCQuARE International Limited
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Business Realities
If you cannot

explain the consequences
 you do not understand the issue
If you cannot

live with the consequences of an issue
 you must identify and fix the cause
If you cannot

fix the cause
 you must find an alternative way to avoid the
consequences
If you cannot

fully expose the consequences
 your answer will be incomplete and thereby flawed
Copyright © 1993-2008 SCQuARE International Limited
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Avoid jumping to conclusions. Go step by step.
Avoid emotive or judgemental words:
Instead of
•Use
Band too big
Size of band
Redundant staff
Surplus staff
Prices too high
Product pricing
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Copyright © 1993-2008 SCQuARE International Limited
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AIM: Maintain FGD’s Market Leadership
Budget at risk
Brand Building
No re-investment
in brands
Savings not realised
Lower costs
Lose 80% Availability
Negative PR threat
Stop Direct
Distribution
Board decision
Rising costs
Wage Inflation
Copyright © 1993-2008 SCQuARE International Limited
Fuel
Costs
Spiral
Back
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AIM: to establish Dubai as a
major European tourist winter
destination
No Growth
Investors deterred
Do nothing
Visitors (90K)
down 40% vs.
target (150K)
Visitors prefer Tunis &
Morocco
Dubai associated with
“Muslim fundamentalism” &
“ME terrorism”
Europeans
unaware of
liberal laws &
dress codes
Events seen as
narrow elitist
Copyright © 1993-2008 SCQuARE International Limited
Events do not
illustrate
liberalism
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Mission: to be Brazils most profitable & successful football club both on and off the field
Cost circa
$30m
RDA veto: want 51k
Closed down
Revamp to
36K seats
(cost $18m)
Build new
51,000 seater
stadium
Do nothing
All-seater stadium
in 2 years
Change in
Law
Copyright © 1993-2008 SCQuARE International Limited
Fans demand
(5) new
players Cost
$30m
Lower revenues
and profits
Lower season
ticket sales
Not winning –
sinking in the
leagues
Lower turnout
of supporters
50K – 45K
Lower season
ticket sales
Poor team
performance
Sale of
young
players
Back
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Robin Hood
Causal Chains
Copyright © 1993-2008 SCQuARE International Limited
AIM: Normal Life in a Just Society for RH
and his MM
food
shortage
Start with a current
problem
Copyright © 1993-2008 SCQuARE International Limited
You are looking
for any [common]
issues that you can
deal with; trying
to understand the
consequences of
each problem; and
exploring possible
options (including,
e.g., “do nothing”
so that you can
close off nonstarters) or
solutions.
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
food
shortage
What directly causes
the food shortage?
Copyright © 1993-2008 SCQuARE International Limited
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AIM: Normal Life in a Just Society for RH
and his MM
food
shortage
overhunting
What directly causes
Over-hunting?
Copyright © 1993-2008 SCQuARE International Limited
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AIM: Normal Life in a Just Society for RH
and his MM
food
shortage
overhunting
lack of
mobility
What directly causes
The lack of mobility?
Copyright © 1993-2008 SCQuARE International Limited
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AIM: Normal Life in a Just Society for RH
and his MM
What does the food
shortage directly cause?
food
shortage
overhunting
lack of
mobility
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
do
nothing
What does the food
shortage cause if you
do nothing?
food
shortage
overhunting
lack of
mobility
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
collapse
do
nothing
What options
are there?
food
shortage
overhunting
lack of
mobility
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
collapse
do
nothing
?
What other options
are there?
food
shortage
overhunting
lack of
mobility
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
collapse
do
nothing
disband
What other options
are there?
food
shortage
overhunting
lack of
mobility
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
collapse
disband
do
nothing
subdivide
?
food
shortage
overhunting
lack of
mobility
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
Menu
AIM: Normal Life in a Just Society for RH
and his MM
collapse
disband
do
nothing
subdivide
food
shortage
money
shortage
overhunting
?
What directly causes
the money shortage?
lack of
mobility
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
Menu
AIM: Normal Life in a Just Society for RH
and his MM
collapse
disband
do
nothing
subdivide
food
shortage
money
shortage
overhunting
rich
detouring
?
lack of
mobility
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
Menu
AIM: Normal Life in a Just Society for RH
and his MM
collapse
disband
do
nothing
subdivide
food
shortage
money
shortage
overhunting
rich
detouring
lack of
mobility
?
giving
to poor
increased
expense
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
collapse
disband
do
nothing
subdivide
food
shortage
money
shortage
overhunting
rich
detouring
?
giving
to poor
lack of
mobility
increased
expense
size of
camp
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
collapse
disband
do
nothing
subdivide
food
shortage
money
shortage
overhunting
rich
detouring
?
lack of
discipline
giving
to poor
lack of
mobility
increased
expense
size of
camp
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
?
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
collapse
disband
do
nothing
subdivide
food
shortage
money
shortage
overhunting
rich
detouring
?
lack of
discipline
giving
to poor
indiscriminate
recruitment
lack of
mobility
increased
expense
rapid
growth
size of
camp
size of
camp
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
Menu
Menu
AIM: Normal Life in a Just Society for RH
and his MM
collapse
disband
do
nothing
subdivide
food
shortage
money
shortage
overhunting
rich
detouring
?
lack of
discipline
giving
to poor
indiscriminate
recruitment
lack of
mobility
increased
expense
rapid
growth
size of
camp
size of
camp
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
sheriff's
attack
?
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
collapse
disband
do
nothing
subdivide
food
shortage
money
shortage
overhunting
rich
detouring
?
lack of
discipline
giving
to poor
indiscriminate
recruitment
getting
stronger
?
lack of
mobility
increased
expense
rapid
growth
size of
camp
size of
camp
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
sheriff's
attack
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
collapse
disband
do
nothing
subdivide
food
shortage
money
shortage
overhunting
rich
detouring
?
lack of
discipline
giving
to poor
sheriff's
attack
indiscriminate
recruitment
getting
stronger
can
launch
surprise
attack
lack of
mobility
increased
expense
rapid
growth
size of
camp
size of
camp
size of
camp
?
Copyright © 1993-2008 SCQuARE International Limited
Menu
AIM: Normal Life in a Just Society for RH
and his MM
collapse
disband
do
nothing
subdivide
food
shortage
money
shortage
overhunting
rich
detouring
?
lack of
discipline
giving
to poor
sheriff's
attack
indiscriminate
recruitment
getting
stronger
can
launch
surprise
attack
lack of
mobility
increased
expense
rapid
growth
size of
camp
size of
camp
size of
camp
?
Copyright © 1993-2008 SCQuARE International Limited
camp
easy to
find
Menu
AIM: Normal Life in a Just Society for RH
and his MM
collapse
disband
do
nothing
subdivide
food
shortage
money
shortage
overhunting
rich
detouring
?
lack of
discipline
giving
to poor
indiscriminate
recruitment
getting
stronger
can
launch
surprise
attack
lack of
mobility
increased
expense
rapid
growth
size of
camp
size of
camp
size of
camp
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
sheriff's
attack
lack of
mobility
camp
easy to
find
Menu
AIM: Normal Life in a Just Society for RH
and his MM
collapse
disband
do
nothing
subdivide
food
shortage
money
shortage
overhunting
rich
detouring
?
giving
to poor
?
?
lack of
discipline
sheriff's
attack
indiscriminate
recruitment
getting
stronger
can
launch
surprise
attack
lack of
mobility
increased
expense
rapid
growth
size of
camp
size of
camp
size of
camp
size of
camp
Copyright © 1993-2008 SCQuARE International Limited
lack of
mobility
camp
easy to
find
Menu
You can start further back,
but the logic can lead you
down long unproductive
dead-ends, or cause you to
overlook current problems
and the chain can get very
unwieldy. Nevertheless, it
does work: here is the
Robin Hood Causal Chain
starting with the underlying
issue of being made an
outlaw
Back
Copyright © 1993-2008 SCQuARE International Limited
AIM: Normal Life in a Just Society for RH
and his MM
?
made
outlaw
?
Copyright © 1993-2008 SCQuARE International Limited
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
?
made
outlaw
corrupt
sheriff
?
Copyright © 1993-2008 SCQuARE International Limited
Menu
AIM: Normal Life in a Just Society for RH
and his MM
Menu
?
made
outlaw
corrupt
sheriff
greedy
PJ
Copyright © 1993-2008 SCQuARE International Limited
You can start with any of
these, but the action
“made outlaw” is the one
that affects Robin
AIM: Normal Life in a Just Society for RH
and his MM
?
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
?
Menu
AIM: Normal Life in a Just Society for RH
and his MM
?
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
Menu
AIM: Normal Life in a Just Society for RH
and his MM
?
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
Menu
AIM: Normal Life in a Just Society for RH
and his MM
?
rapid
growth
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
Menu
AIM: Normal Life in a Just Society for RH
and his MM
?
large
camp
You now have to
start digging to
find the problems
that the large
camp causes –
not as easy as
working back
from the current
problems
rapid
growth
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
Menu
AIM: Normal Life in a Just Society for RH
and his MM
indiscriminate
recruitment
?
large
camp
rapid
growth
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
Menu
AIM: Normal Life in a Just Society for RH
and his MM
indiscriminate
recruitment
thieves & spies
large
camp
?
rapid
growth
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
indiscriminate
recruitment
thieves & spies
?
large
camp
lack of
mobility
rapid
growth
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
indiscriminate
recruitment
thieves & spies
rich
detour
large
camp
lack of
mobility
rapid
growth
?
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
Menu
AIM: Normal Life in a Just Society for RH
and his MM
indiscriminate
recruitment
thieves & spies
rich
detour
large
camp
?
lack of
mobility
rapid
growth
money
shortage
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
Menu
AIM: Normal Life in a Just Society for RH
and his MM
indiscriminate
recruitment
thieves & spies
rich
detour
large
camp
lack of
mobility
lack of
mobility
rapid
growth
money
shortage
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
Menu
AIM: Normal Life in a Just Society for RH
and his MM
indiscriminate
recruitment
thieves & spies
rich
detour
large
camp
lack of
mobility
lack of
mobility
rapid
growth
money
shortage
?
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
Menu
AIM: Normal Life in a Just Society for RH
and his MM
indiscriminate
recruitment
thieves & spies
rich
detour
large
camp
lack of
mobility
lack of
mobility
rapid
growth
overhunting
money
shortage
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
Menu
Menu
AIM: Normal Life in a Just Society for RH
and his MM
indiscriminate
recruitment
thieves & spies
rich
detour
large
camp
lack of
mobility
lack of
mobility
rapid
growth
overhunting
money
shortage
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
?
AIM: Normal Life in a Just Society for RH
and his MM
Menu
indiscriminate
recruitment
thieves & spies
rich
detour
large
camp
lack of
mobility
lack of
mobility
rapid
growth
overhunting
money
shortage
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
Food
shortage
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
indiscriminate
recruitment
thieves & spies
rich
detour
?
large
camp
lack of
mobility
lack of
mobility
rapid
growth
overhunting
money
shortage
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
Food
shortage
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
indiscriminate
recruitment
thieves & spies
rich
detour
easy to
find
large
camp
lack of
mobility
lack of
mobility
?
rapid
growth
overhunting
money
shortage
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
KR in prison
Food
shortage
Menu
A normal
in in
a fair
& just
society
AIM:
Normallife
Life
a Just
Society
for RH
and his MM
indiscriminate
recruitment
thieves & spies
rich
detour
easy to
find
large
camp
lack of
mobility
lack of
mobility
Sheriff's
attack
rapid
growth
overhunting
money
shortage
Food
shortage
needed
support
made
outlaw
corrupt
sheriff
greedy PJ
Copyright © 1993-2008 SCQuARE International Limited
Back
KR in prison
Menu
ferrara footwear
The starting point here is
the demand by the 4
multiples for the
distribution to be
consolidated
Copyright © 1993-2008 SCQuARE International Limited
Menu
ferrara footwear
The starting point here is
the demand by the 4
multiples for the
distribution to be
consolidated
Copyright © 1993-2008 SCQuARE International Limited
Menu
Pre-set objectives: Increase Ferrara profits by 10% year on year
Service to independents suffers
Revenue &
profits
down
Domestic
market
Strike
Costs up
Do nothing
Redundancy circa
300, cost $1.5m
Southern
Italy
Re-deploy?
Export
Redundancy?
New products
Lose multiples
Do nothing
Surplus staff
& resources
Central distribution
2,500 down to 4
Economies
of scale
Copyright © 1993-2008 SCQuARE International Limited
Rabbit: this cannot zoom
in out of nowhere – you
would have to set it up in
opportunities
Back
Our mission is to rejuvenate Solko to become a major
player in the Polish Soft Drinks Market
Niche player in
declining market
sector
Low Morale
Do nothing
High staff turnover
Not in growth areas
(diet, Plastic,
Supermarkets)
No Investment
Low confidence from board
Misread market trends
Competition opened
plastic market
Copyright © 1993-2008 SCQuARE International Limited
Menu
Declining
Market share
Missing profit
opportunities
Solko’s big problem is that
they have lost the
confidence of their parent
company & therefore have
not had the investment to
compete in the growth
areas of the Polish soft
drink Market. This case is
a good example of a
complication not being a
change, i.e. their problems
stem from a bad decision
several years ago, which
has resulted in underinvestment. They therefore
must seek to regain board
confidence to obtain
investment in the growth
sectors via low risk
strategies.
Back
PROGRESS
Plans are devised in order to make progress. Progress can only be
achieved by doing something – taking action, making changes. In any
organisation all actions must relate to (or be constrained by) one, or a
combination, of the following:
People:
Customers, markets, employees, competition, government, opinionmakers
Assets (tangible or intangible):
Plant, machinery, hardware, products, raw materials, software, knowhow, patents, copyrights, goodwill
Cash
Cash, money bank balances, borrowings, loans, equity
Time
The time available or the time needed to undertake any action
Copyright © 1993-2008 SCQuARE International Limited
Menu
MAIN ACTION
The main action will be a word from one (or more) of the the four
categories that reflects any common issues that underlie the current
problems or crisis points
•People
– hiring, firing, retiring,
reorganising (variants: reengineering, redeploying,
managing, de-layering)
•Assets
– buying, selling, increasing,
reducing (variants: replacing,
modernising, revamping, debottlenecking)
Copyright © 1993-2008 SCQuARE International Limited
Money
– Raising, investing, increasing,
reducing (variants: equity, loans,
capitalising, focusing, refocusing)
•Time
– Opportunities and threats always
have a time element (variants:
now, timely, urgently)
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Model Answers