Gallup Final
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Gallup Final as PDF for free.
More details
- Words: 1,512
- Pages: 38
Presented by: Tarin Punda Pantharee Panthira
Today’s Agenda Company Background Situation Analysis Issues and objectives Recommendation Financial Forecast Key Success Factors Conclusion
Company Background •Started off as a polling and market research company •Financially healthy - 15% revenue growth per year - $200 million worldwide (2000)
•Revenue breakdown -
55% market research 15% employee selection and development research 22% management/leadership development 7% consulting 1% Gallup Poll
•Focus on serving large clients •Core Competencies - research-based services - management program tailor down to individual level
Situation Analysis •Recently entered two new markets - HR management consulting - training/development •Competes in 4 markets
Growth: 5%
Measuring all internal and external factors • Research-based
Growth: 14%
Market Research
HR Consulting
Building engaging cultures
Pure MGT Consulting
Training/ Development
Tailor to individuals To find strengths
Growth: 14%
Growth: 107%
Trend: Replacement of Research with HR Consulting and Trainin
Situation Analysis At Present
$200 million in revenues
Where We want to be
Situation Analysis At Present
Where We want to be
Achieve $1 Billion Revenues Within 5 years
Situation Analysis At Present
Where We want to be
•Achieve 20% sales growth annually •Build a sustainable business around Gallup’ core competencies
Issues Identification Where We want to be
At Present Issues At Hand
•Current core competencies fit with existing business model •Foundation supporting sustainable profitability •New Opportunities for revenue enhancement
Segment Analysis Closer Look at Each Segment
Research
HR Consulting
Customer Looking for one-stop service And value added service HR Consulting& Training/Development grew out of research modules
Training/ Development
Leverage on existing product
Core Competency ‘fit’ Complementary Portfolio
Segment Analysis Segments
Closer Look at Each Segment HR Consulting
Training/ Development
Market Research
20.49%
NA
10.21%
13.67%
107%
Revenue Growth
Industry Growth
Firm Growth
5.19%
HR Consulting-High Industry Growth & moderate firm growth Training/Development-High firm growth
Promising Segments
Strategic Unit Analysis Mckinsey/GE Matrix
High
High
Medium
Low
Training/ Development
HR Consulting
Market Research
Medium Low
Competitive Strength
Market Attractiveness
Pure Mgt Consulting
Strategy Overview
Short-term
Intermedia te-term
I. Lean Organization
II. Revenue Enhancement
Strategy I: Lean Organization Objective: Build strong foundation in order to achieve sustainable growth
•Identify best and worst performers (by net income % change)
•Liquidate worst performers and shift funding to best performe
America Best Performer Los Angeles Worst Performers Lincoln Associate (Martin)
Strategy I: Lean Organization Objective: Build strong foundation in order to achieve sustainable growth
•Identify best and worst performers (by net income % change)
•Liquidate worst performers and shift funding to best performe
Latin America Best Performer Venezuella Brazil Worst Performers Chille Argentina
Strategy I: Lean Organization Objective: Build strong foundation in order to achieve sustainable growth
•Identify best and worst performers (by net income % change)
•Liquidate worst performers and shift funding to best performe
Europe Best Performer Hungary Worst Performers Lithunia Poland Czech
Strategy I: Lean Organization Objective: Build strong foundation in order to achieve sustainable growth
•Identify best and worst performers (by net income % change)
•Liquidate worst performers and shift funding to best performe
Asia
Total 8 best performers identified 9 worst performers identified
Best Performer Japan China Singapore Thailand Worst Performers India Israel
Result More efficient allocation of fund and better focused on maximizing grow
Strategy II: Revenue Enhancement
bjective: maximize revenue by taking advantage of the opportunities of interne
nd leveraging existing products
Increase Revenue /customer
Increase Customer Base
Capitalize Internet Growth: Training Segment Rationale
Target Customers
• High Growth Potential (50-100%) • Minimal Costs • Scaleable program larger customer base
Marketing Communication
Strategy II: Revenue Enhancement
bjective: maximize revenue by taking advantage of the opportunities of interne
nd leveraging existing products
Increase Revenue /customer
Increase Customer Base
Capitalize Internet Growth Rationale
Target Customers
Marketing Communication
• Product Specification: basic, initial development modules • Suitable for preliminary development or if classroom training not affordable Primary Target: Small-to-Medium Businesses
Strategy II: Revenue Enhancement
bjective: maximize revenue by taking advantage of the opportunities of interne
nd leveraging existing products
Increase Revenue /customer
Increase Customer Base
Capitalize Internet Growth Rationale
Target Customers
•Mass Marketing Strategies: - reach Small-to-Medium businesses • New Product Communications: - Trade/Business Publications (along with existing marketing communication.)
Marketing Communication
Strategy II: Revenue Enhancement
bjective: maximize revenue by taking advantage of the opportunities of interne nd leveraging existing products Increase Customer Base
Increase Revenue /customer
Enter Market Consulting Segment •Research done relates to understanding of customers •Ability to consult based on research findings •Leveraging existing product and core competency •“Consumer Insights consulting”
Time Line Activities
2000
2001
2002
2003
2004
2005
I. Short-Term Lean Organization A. Liquidate Worst Performers B. Invest in Best Performers
I. Intermediate-Term A. Capitalize Internet Growth
B. Enter Market Consulting
Identify Target Group and Develop Marketing Strat
Marketing Communication
Financial Justification
ESTIMATED COST
Figures in 1000$
Recommendation1 Capital Expenditure in high potential area 15,000 Lean Strategy Recommedation 2 Marketing Expense Revenue enhancement Trade Publication (specific publishing for each industries) 7,500 Business Magazines 7,500 Internet Advertising 5,000
Total
35,000
How to finance our expenditure? • Debt financing for CAPEX – in total amount of $15 million
• Finance marketing expenditure by internally generated funds
CAGR (Compounded Annual Growth Rate) Sales
19.79%
Net Income
9%
Net Sales Income ($ooo's) ($000's)
Sales Income 500,000 20,000 400,000 15,000 300,000 10,000 200,000
Sales Income
5,000 100,000 0 0 1998 1999 19992000F 2000F2001F 2001F2002F 2002F2003F 2003F2004F 2004F 1998 Year Year
CAGR (Compounded Annual Growth Rate)
NPV = $156,212,000
Sales
19.79%
Net Income
9%
Net Sales Income ($ooo's) ($000's)
Income Sales 20,000 500,000 400,000 15,000 300,000 10,000 200,000
Lean organization Lean organization Sales Income
5,000 100,000 00
RevenueEnhancement Enhancement Revenue Spending 1998 1999 1999 2000F 2000FMarketing 2001F 2002F 2002F 2003F 2004F 2004F 1998 2001F 2003F Year Year
Key Success Factors Core Competency Fit
Sustainable Business
Capitalize Opportunities
Operational Efficiency
Issues Are Solved Issues At Hand •Core competencies fit with business model •Foundation supporting sustainable profitability •New Opportunities for revenue enhancement
Preliminary Analysis Strategic Direction -HR Consulting, Training/Development, Market Research
Proposed Strategies Lean Organization
-Liquidate worst performers & invest in best performers
A. Capitalize Internet Growth -Increase customer base
B. Enter Market Consulting -Increase sales per customer -completes Gallup path
Objective
• Achieve 20% sales growth annually •Build a sustainable business around Gallup’s core competencies
Q & A Session
Back-up SWOT Analysis Strengths: •Research-based •Integrated Services •Services Tailor to individual •Gallup Poll brand reputation Weaknesses: Limited Area of Expertise Threats: Competition from pure management Consulting Opportunities: •Internet Growth •Enter New Markets •Small Client
Why Enter Market Consulting?
Market Related Current Service - Research
Internal to Organization Current Services - Research Modules - Consulting & Training
Market Consulting Will “Completes the Gallup Path” Results:
Increase Revenue Per Customer Become more competitive on overall strategy consulting
Segment Analysis Segment
Differentiation Point
Competitors
Disadvantages
Measuring and making sense of both internal and external market variables
•One measure at a time •Less integrated
None
Research-based approach
Rely on secondary, theory, conventional thinking, and anecdotal evidence
• No Operations consulting • Narrow Strategy (people & market based)
HR Consulting
• Financial Incentives not longterm drivers • Focus on creating engaging cultures
Mostly focused on pay and benefits consulting
None
Training
Focus on individual Strengths development
Training can provide any reasonably talented person to become productive
Limited to framework of finding strengths
Market Research
Pure MGT Consulting
Lean Organization: Regional Analysis Region Analysis
Region USA
Latin America
Europe
Asia
E1998 E1999 % change Worst performer E1998 E1999 % Change Highest performer E1998 E1999 % Change 13577 16933 24.72% Lincoln 2209 812 -63.24% Los Angeles 549 2790 408.20% Associate (Martin) 3913 70 -98.21% Citibank (Emond) 570 1308 129.47% Education 345 978 183.48% -161
147 191.30% Argentina Chile
-2491 -1975
12
20.71% Lithunia Poland Czech
727 5958.33% India Israel
-10 -30 -200.00% Venezuela -156 -290 -85.90% Brazil 8 -2 -2
-10 -225.00% Hungary -45 -2150.00% -25 -1150.00%
-7 -19 -171.43% Japan 0 -327 #DIV/0! China Singapore Thailand
-339 -149
4 101.18% 58 138.93%
-163
260 259.51%
181 347 91.71% 66 123 86.36% 71 284 300.00% -186 -101 45.70%
Cost of Capital
Cost of Capital Cost of debt (average) Cost of Equity Debt ratio Tax WACC
7.98% 15.00% 0.6824 35.99% 8.25%
Revenue Proportion
Training Mgt consulting Marketing research Gallup Poll
2000 22% 22% 55% 1%
2004F 64.95% 14.03% 20.51% 0.51%
Industry Growth Assumption Industry
Competitors
1-Yr. Sales Growth
Market Research total sales
Taylor Nelson AC Nielsen 4957.5 Market Facts 10.21% Maritz JD Power NPD Opinion Research Corporation Harris
HRM Consulting
Towers Perrin 1699.6 Hewitt 20.49% Watson-Wyatt
n/a 25.30% 12.20%
1125 1075 624.6
n/a 16.00% 4.48%
Pure Management Consulting
McKinsey 73589.3 Booz Allen Hamilton 12.73% Ranaissance Boston Consulting Group Arthur D. Little Bain Anderson Consulting Price Waterhouse Coopers KPMG Ernst & Young Deloitte Touche Tohmatsu
13.60% 14.30% -4.30% 11.50% 3.20% 3.90% 17.30% 2.00% 15.10% 14.80% 17.80%
2500 1600 742.6 730 608 498.7 16300 15300 12200 12510 10600
0.46% 0.31% -0.04% 0.11% 0.03% 0.03% 3.83% 0.42% 2.50% 2.52% 2.56%
Training and Development
n/a
8.50% 7.00% 36.40% 1.40% 2.40% 127.30% 43.10% 76.90%
Sales weighed 615.7 1.06% 1525.4 2.15% 136.5 1.00% 2200 0.62% 175 0.08% 135 3.47% 118.6 1.03% 51.3 0.80%
n/a
Result of debt financing
Debt Ratio
Before After
68.14% 83.19%
Today’s Agenda Company Background Situation Analysis Issues and objectives Recommendation Financial Forecast Key Success Factors Conclusion
Company Background •Started off as a polling and market research company •Financially healthy - 15% revenue growth per year - $200 million worldwide (2000)
•Revenue breakdown -
55% market research 15% employee selection and development research 22% management/leadership development 7% consulting 1% Gallup Poll
•Focus on serving large clients •Core Competencies - research-based services - management program tailor down to individual level
Situation Analysis •Recently entered two new markets - HR management consulting - training/development •Competes in 4 markets
Growth: 5%
Measuring all internal and external factors • Research-based
Growth: 14%
Market Research
HR Consulting
Building engaging cultures
Pure MGT Consulting
Training/ Development
Tailor to individuals To find strengths
Growth: 14%
Growth: 107%
Trend: Replacement of Research with HR Consulting and Trainin
Situation Analysis At Present
$200 million in revenues
Where We want to be
Situation Analysis At Present
Where We want to be
Achieve $1 Billion Revenues Within 5 years
Situation Analysis At Present
Where We want to be
•Achieve 20% sales growth annually •Build a sustainable business around Gallup’ core competencies
Issues Identification Where We want to be
At Present Issues At Hand
•Current core competencies fit with existing business model •Foundation supporting sustainable profitability •New Opportunities for revenue enhancement
Segment Analysis Closer Look at Each Segment
Research
HR Consulting
Customer Looking for one-stop service And value added service HR Consulting& Training/Development grew out of research modules
Training/ Development
Leverage on existing product
Core Competency ‘fit’ Complementary Portfolio
Segment Analysis Segments
Closer Look at Each Segment HR Consulting
Training/ Development
Market Research
20.49%
NA
10.21%
13.67%
107%
Revenue Growth
Industry Growth
Firm Growth
5.19%
HR Consulting-High Industry Growth & moderate firm growth Training/Development-High firm growth
Promising Segments
Strategic Unit Analysis Mckinsey/GE Matrix
High
High
Medium
Low
Training/ Development
HR Consulting
Market Research
Medium Low
Competitive Strength
Market Attractiveness
Pure Mgt Consulting
Strategy Overview
Short-term
Intermedia te-term
I. Lean Organization
II. Revenue Enhancement
Strategy I: Lean Organization Objective: Build strong foundation in order to achieve sustainable growth
•Identify best and worst performers (by net income % change)
•Liquidate worst performers and shift funding to best performe
America Best Performer Los Angeles Worst Performers Lincoln Associate (Martin)
Strategy I: Lean Organization Objective: Build strong foundation in order to achieve sustainable growth
•Identify best and worst performers (by net income % change)
•Liquidate worst performers and shift funding to best performe
Latin America Best Performer Venezuella Brazil Worst Performers Chille Argentina
Strategy I: Lean Organization Objective: Build strong foundation in order to achieve sustainable growth
•Identify best and worst performers (by net income % change)
•Liquidate worst performers and shift funding to best performe
Europe Best Performer Hungary Worst Performers Lithunia Poland Czech
Strategy I: Lean Organization Objective: Build strong foundation in order to achieve sustainable growth
•Identify best and worst performers (by net income % change)
•Liquidate worst performers and shift funding to best performe
Asia
Total 8 best performers identified 9 worst performers identified
Best Performer Japan China Singapore Thailand Worst Performers India Israel
Result More efficient allocation of fund and better focused on maximizing grow
Strategy II: Revenue Enhancement
bjective: maximize revenue by taking advantage of the opportunities of interne
nd leveraging existing products
Increase Revenue /customer
Increase Customer Base
Capitalize Internet Growth: Training Segment Rationale
Target Customers
• High Growth Potential (50-100%) • Minimal Costs • Scaleable program larger customer base
Marketing Communication
Strategy II: Revenue Enhancement
bjective: maximize revenue by taking advantage of the opportunities of interne
nd leveraging existing products
Increase Revenue /customer
Increase Customer Base
Capitalize Internet Growth Rationale
Target Customers
Marketing Communication
• Product Specification: basic, initial development modules • Suitable for preliminary development or if classroom training not affordable Primary Target: Small-to-Medium Businesses
Strategy II: Revenue Enhancement
bjective: maximize revenue by taking advantage of the opportunities of interne
nd leveraging existing products
Increase Revenue /customer
Increase Customer Base
Capitalize Internet Growth Rationale
Target Customers
•Mass Marketing Strategies: - reach Small-to-Medium businesses • New Product Communications: - Trade/Business Publications (along with existing marketing communication.)
Marketing Communication
Strategy II: Revenue Enhancement
bjective: maximize revenue by taking advantage of the opportunities of interne nd leveraging existing products Increase Customer Base
Increase Revenue /customer
Enter Market Consulting Segment •Research done relates to understanding of customers •Ability to consult based on research findings •Leveraging existing product and core competency •“Consumer Insights consulting”
Time Line Activities
2000
2001
2002
2003
2004
2005
I. Short-Term Lean Organization A. Liquidate Worst Performers B. Invest in Best Performers
I. Intermediate-Term A. Capitalize Internet Growth
B. Enter Market Consulting
Identify Target Group and Develop Marketing Strat
Marketing Communication
Financial Justification
ESTIMATED COST
Figures in 1000$
Recommendation1 Capital Expenditure in high potential area 15,000 Lean Strategy Recommedation 2 Marketing Expense Revenue enhancement Trade Publication (specific publishing for each industries) 7,500 Business Magazines 7,500 Internet Advertising 5,000
Total
35,000
How to finance our expenditure? • Debt financing for CAPEX – in total amount of $15 million
• Finance marketing expenditure by internally generated funds
CAGR (Compounded Annual Growth Rate) Sales
19.79%
Net Income
9%
Net Sales Income ($ooo's) ($000's)
Sales Income 500,000 20,000 400,000 15,000 300,000 10,000 200,000
Sales Income
5,000 100,000 0 0 1998 1999 19992000F 2000F2001F 2001F2002F 2002F2003F 2003F2004F 2004F 1998 Year Year
CAGR (Compounded Annual Growth Rate)
NPV = $156,212,000
Sales
19.79%
Net Income
9%
Net Sales Income ($ooo's) ($000's)
Income Sales 20,000 500,000 400,000 15,000 300,000 10,000 200,000
Lean organization Lean organization Sales Income
5,000 100,000 00
RevenueEnhancement Enhancement Revenue Spending 1998 1999 1999 2000F 2000FMarketing 2001F 2002F 2002F 2003F 2004F 2004F 1998 2001F 2003F Year Year
Key Success Factors Core Competency Fit
Sustainable Business
Capitalize Opportunities
Operational Efficiency
Issues Are Solved Issues At Hand •Core competencies fit with business model •Foundation supporting sustainable profitability •New Opportunities for revenue enhancement
Preliminary Analysis Strategic Direction -HR Consulting, Training/Development, Market Research
Proposed Strategies Lean Organization
-Liquidate worst performers & invest in best performers
A. Capitalize Internet Growth -Increase customer base
B. Enter Market Consulting -Increase sales per customer -completes Gallup path
Objective
• Achieve 20% sales growth annually •Build a sustainable business around Gallup’s core competencies
Q & A Session
Back-up SWOT Analysis Strengths: •Research-based •Integrated Services •Services Tailor to individual •Gallup Poll brand reputation Weaknesses: Limited Area of Expertise Threats: Competition from pure management Consulting Opportunities: •Internet Growth •Enter New Markets •Small Client
Why Enter Market Consulting?
Market Related Current Service - Research
Internal to Organization Current Services - Research Modules - Consulting & Training
Market Consulting Will “Completes the Gallup Path” Results:
Increase Revenue Per Customer Become more competitive on overall strategy consulting
Segment Analysis Segment
Differentiation Point
Competitors
Disadvantages
Measuring and making sense of both internal and external market variables
•One measure at a time •Less integrated
None
Research-based approach
Rely on secondary, theory, conventional thinking, and anecdotal evidence
• No Operations consulting • Narrow Strategy (people & market based)
HR Consulting
• Financial Incentives not longterm drivers • Focus on creating engaging cultures
Mostly focused on pay and benefits consulting
None
Training
Focus on individual Strengths development
Training can provide any reasonably talented person to become productive
Limited to framework of finding strengths
Market Research
Pure MGT Consulting
Lean Organization: Regional Analysis Region Analysis
Region USA
Latin America
Europe
Asia
E1998 E1999 % change Worst performer E1998 E1999 % Change Highest performer E1998 E1999 % Change 13577 16933 24.72% Lincoln 2209 812 -63.24% Los Angeles 549 2790 408.20% Associate (Martin) 3913 70 -98.21% Citibank (Emond) 570 1308 129.47% Education 345 978 183.48% -161
147 191.30% Argentina Chile
-2491 -1975
12
20.71% Lithunia Poland Czech
727 5958.33% India Israel
-10 -30 -200.00% Venezuela -156 -290 -85.90% Brazil 8 -2 -2
-10 -225.00% Hungary -45 -2150.00% -25 -1150.00%
-7 -19 -171.43% Japan 0 -327 #DIV/0! China Singapore Thailand
-339 -149
4 101.18% 58 138.93%
-163
260 259.51%
181 347 91.71% 66 123 86.36% 71 284 300.00% -186 -101 45.70%
Cost of Capital
Cost of Capital Cost of debt (average) Cost of Equity Debt ratio Tax WACC
7.98% 15.00% 0.6824 35.99% 8.25%
Revenue Proportion
Training Mgt consulting Marketing research Gallup Poll
2000 22% 22% 55% 1%
2004F 64.95% 14.03% 20.51% 0.51%
Industry Growth Assumption Industry
Competitors
1-Yr. Sales Growth
Market Research total sales
Taylor Nelson AC Nielsen 4957.5 Market Facts 10.21% Maritz JD Power NPD Opinion Research Corporation Harris
HRM Consulting
Towers Perrin 1699.6 Hewitt 20.49% Watson-Wyatt
n/a 25.30% 12.20%
1125 1075 624.6
n/a 16.00% 4.48%
Pure Management Consulting
McKinsey 73589.3 Booz Allen Hamilton 12.73% Ranaissance Boston Consulting Group Arthur D. Little Bain Anderson Consulting Price Waterhouse Coopers KPMG Ernst & Young Deloitte Touche Tohmatsu
13.60% 14.30% -4.30% 11.50% 3.20% 3.90% 17.30% 2.00% 15.10% 14.80% 17.80%
2500 1600 742.6 730 608 498.7 16300 15300 12200 12510 10600
0.46% 0.31% -0.04% 0.11% 0.03% 0.03% 3.83% 0.42% 2.50% 2.52% 2.56%
Training and Development
n/a
8.50% 7.00% 36.40% 1.40% 2.40% 127.30% 43.10% 76.90%
Sales weighed 615.7 1.06% 1525.4 2.15% 136.5 1.00% 2200 0.62% 175 0.08% 135 3.47% 118.6 1.03% 51.3 0.80%
n/a
Result of debt financing
Debt Ratio
Before After
68.14% 83.19%
Related Documents
Gallup Final
November 2019 12
00213-final-gallup-ad
October 2019 16
Kevin R Gallup
December 2019 11
Kevin R Gallup
December 2019 14
Gallup Hs Program Manual
November 2019 10