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8/10/2019 Scaling Up for Growth1.1
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1
Scaling up for
Growth
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Change is certainty One thing is clear
We have to Grow
Grow
Grow
&
2
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What is less clear
3
How will our
business grow???
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Sustained abnormal growth with a clear vision &
focus is a necessity
4
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Before you realize the market re-organizes
itself
5
Need gap /Idea getsidentified
Few playersbuild sizeand teams
Othersparticipate inconsolidationby selling outor JVs /Alliances
Large
organizedplayersentering tomarket
Entry ofglobal majors
If market is growingand we dont then our
Relative Market Share
will come down
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Why should we grow our Business?
6
1. Capitalize on Economies of scale, volume discounts
2. Beat inflation and industry growth averages
3. Utilize available spare capacity
4. Attract and retain Top Professional Talent
5. Increase Profit Volumes and Cash Chest for future Innovation
6. Build Competitive Advantages and Entry Barriers
7. Grab and Retain Market Share
8. Increase Market Cap and Enterprise Value to reward Investors
9. Build Fund raising capability and grow further
To be able to:
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Where will growth come from???
7
Growth StrategyMatrix
Products
Existing New
Market
ExistingCurrent products to existing
customers
Product innovation
Market the new product toexisting customers
New
Find more customers for
existing product
Geographical expansion,
exports
Market new product to new
customers
Diversification into related or
unrelated business
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Chicken & Egg Dilemma
8
Funding is required for
Executing the Business
Plan
& Hiring better people for
building a big organization
However investor like to
fund to after generating
revenues
Large organization can
attract better Talent
In order to hire better people , motivate
them and give equity in the company
and its success
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Action is the foundational key to all success
9
Planning
o Roadmap
o Milestones
o Realistic targets
Understand
o
Marketo Customer needs
o Competitors
o Issues and Challenges
Team
o Hire the best and pay professionals
o Import expertise and domain experts
Monitor performances
Pablo Picasso
Build a culture of
execution capabilities
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Important to get
10
Right People on the Right Seats
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Transformation: Professionalism to Corporatization
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Ownership
Independent Legal Entity
Perpetual Succession
Limited Liability
Easy Transferability of Shares
Separation of Ownership and Management
Operational
Accountability and Responsibility
Attract better people
Allow Business to grow beyond Capacities
Enabling the organization to smoothen the
operations
Separation of Board responsibilities from
individual responsibilities
Corporate Governance
Helps in building internal transparency
and communication
Democratic way of doing business
Security of Share-holders money
Valuation
Better Valuation
Greater Multiplier as company grows
Easy access to Capital and Equity Market
Easy to raise the fund
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Three Rings of Transformation
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Vision Architecture
Leadership
Change
Mission
Fundamental Purpose
Core Values and Belief
Distinctive Capabilities
Expectation about the
future
Management Processes
Management Information
Systems
Performance Matrices
Performance Tracking Systems
Continuous Improvement
Responsibilities and
Accountabilities
Organization Structure
Vision Creation
Coherence/ Consistency
Change in Attitude
Motivation and Inspiration
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What is keeping us from growing our business to the next level?
13
Vision & Focus
Strong Core Values
Market Knowledge & Customer
Insights
Differentiated Products
Effective Growth Planning
Customer Acquisition
Brand Management
Robust Processes
Ability to Execute- Team
Access to Funds
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Another Hindrance to Growth
Some Entrepreneurs are satisfied with their
lifestyle and there is little motivation for
growth.
TheLifestyle
Businesses
Expensive
regularvacations
Fine Dining
ClubMemberships
MagnanimousWeddings
ExpensiveCars
2nd Home
Good QualityEducation
http://www.flickr.com/photos/mosaikfrog/2451017872/8/10/2019 Scaling Up for Growth1.1
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Speak to Growth Strategy Consultants
We have extensive experience in building successful businesses in the areas of:
15
Consumption Story Vendor + 1 Building India
Retail
ECommerce and Internet
Hospitality
Travel & Tourism
Quick Service Restaurants
Food & Food Processing
Media & Entertainment
Manufacturing
Construction Equipment
Capital Goods
Power
Machine Tool
Automobile, auto
components
Pharma, Wellness, Life
sciences
Textile
Infrastructure Construction
Education
Agriculture
Healthcare
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DEssence Consulting Services
Services
Market Entry & Growth Strategy
Business Plans & Financial Projections
Start-up Acceleration Services
Feasibility Studies
Enterprise & Business Valuation
B2B Market/Consumer Insights Transformation-Corporatization
Senior Level Talent (Executive Search)
DEssence Consulting is a Management Consulting, Business Strategy and M&A Advisory firm
Build GrowRemain
Competitive
M&A
Advisory
303 Aar Pee Center 11th Road MIDC Andheri (E) Mumbai 400093
www.dessenceconsulting.com
+91 22 28347425
http://www.dessenceconsulting.com/mailto:[email protected]:[email protected]://www.dessenceconsulting.com/