Growth Strategies
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Transcript of Growth Strategies
Event:
21st Management Accounting Students’ Conference 2009
15th August 2009
Marriott Hotel, Karachi
Goggle for Growth
By:
Aamir AliReg # 20061233
Stage IV
OUTLINEBusiness World …
Why Growth
Goggle for Growth
Turbulent Economy
Strategic Alliances
Corporate Marriages
Managing Marriages
Next …
BUSINESS WORLD…..
People
Material
Machine
Information
How to grow?
Identify the CORE
What to become in the future?
Understanding your CORE is the first block of your growth strategy.
Role
Communicate information for Decision Making
Assurance of effective utilization of resources
The Dumbest Moment !!
First quarterly loss in 38 years !
CEO resigned !
When you hire a specialist ..
Backs your business on track
&Moves it in a forward motion
WHY GROWTH?
The path of success
Pressure from interest holders
Managers get benefits
Survival option
Top Most Challenge
Growth Agents
Create strategies
improve the leads
find prospects : turn them in quality leads
GOGGLE FOR GROWTH
Internal Growth
External Growth
Internal Growth
Market Share Growth
Internal Growth
Market Leverage Growth
Market Share Growth
Customer Leverage Growth
External Growth
Strategic alliance
Merger and acquisition
Advisors
Research new markets
TURBULENT ECONOMY
Economic downturn forces businesses to:
Cut back in all areas
Making people redundant
Lowering prices
Freezing wages
Cost Cutting Options…
Lots of businesses are joining hands
Not to grow but just to
Survive !!!
STRATEGIC ALLIANCE
When competitors become partners..
NIFT National Institutional Facilitation Technologies (Pvt.) Limited
NIFTeTRUST
Management Consultants
Cross-fertilization of Best PracticesStrategic Development
Analysts
Assess True image and potential risks and rewards of the alliance
Corporate Marriages
Mergers & Acquisitions
Merger
Merger ?Combine forces
Does a merger create :
new wealthnew factoriesnew technologiesnew products
Rearranging the deck chairs on the Titanic
Acquisition
Take over of Control
Marriages in Pakistan
Competition (Merger Control) Regulations 2007
Regulated under :
Regulated by : Competition Commission of Pakistan
Some Recent Marriages
Arif Habib Securities Limited
Aisha Steel Mills Limited 30 June 2009
KP Chemical Corporation
Pakistan PTA Limited 23 June 2009
Merck & Co. Inc. &
Schering Plough Corp
Marriages in Financial Institution
Massive restructuring
Huge infusion of capital
Cutting edge technology up-gradation
KASB Bank Limited with
Atlas Bank Limited
Factors Forcing Marriages
Privatization Policy
State Bank of Pakistan (SBP)
Economic Downturn
Dalda Acquired Tullo
Benefits of Marriages
Revenue enhancement
Cost reduction
Diversification of business activities
Wider market access
Transfer of talent and resources
Tax benefits
Set off business losses
unabsorbed depreciation an allowable expense
option to be taxed as one unit
Under the Income Tax Ordinance, 2001
Answer to the downturn !
No extra helpCash Injection
Cost Cutting Options
If you fail to plan, you plan to fail
Lipton merged with Brooke Bond
MCA approved merger on the condition
“the company will develop tea cultivation at 600 hectares by the year 2004”
The company failed and MCA can not revise its order !!!
Its
More than laying off people
. . . . .
Changing Top Management
Changing Product Quality
Changing Manufacturing Process
Really make a fundamental change in the efficiency of the companies.
Mergers that succeed
Strategy Consultants
Improve performance
Analysis of problems
Development of future plans
Why a marriage fail after honeymoon ends
Two single parents
Each with their own
Pets &Habits
Difficulty of creating ideal marriage
Decide to marry
Mom & Dad so busy in love ..
Fail to see kids don’t get along
Choice ?
How to face challenges as unified family?
Identify the differences
Recognize what’s the best?
Select ways that fits the challenges
Live happily ever after !
Managing Marriages
Ongoing process
Develop a clear, logical and replicable approach
Two way communication
GSK a history of managing marriages all the way!!
System Managers
Design such system
Implement system
a
NEXT - - - -
Capital
Knowledge
The chief strategic resource of the future
But the ability to form
powerful partnership
NOX
But Remember !
If not lead by effective leadership efficiently
then a complete disaster
M&A felt as nutritious
a
Leaders
Goggle for new strategies for growth
Lead organization efficiently and effectively
a
Growth Specialists
Achieve success in a variety of ways
Help in ways you may never have thought of
A specialist’s job is to
maximize
your potential.
To achieve new levels with your
business, may be its time to find a
specialist.
If you are ready …
Q & A