Scaling Up for Growth1.1

Embed Size (px)

Citation preview

  • 8/10/2019 Scaling Up for Growth1.1

    1/16

    1

    Scaling up for

    Growth

  • 8/10/2019 Scaling Up for Growth1.1

    2/16

    Change is certainty One thing is clear

    We have to Grow

    Grow

    Grow

    &

    2

  • 8/10/2019 Scaling Up for Growth1.1

    3/16

    What is less clear

    3

    How will our

    business grow???

  • 8/10/2019 Scaling Up for Growth1.1

    4/16

    Sustained abnormal growth with a clear vision &

    focus is a necessity

    4

  • 8/10/2019 Scaling Up for Growth1.1

    5/16

    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

  • 8/10/2019 Scaling Up for Growth1.1

    6/16

    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:

  • 8/10/2019 Scaling Up for Growth1.1

    7/16

    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

  • 8/10/2019 Scaling Up for Growth1.1

    8/16

    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

  • 8/10/2019 Scaling Up for Growth1.1

    9/16

    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

  • 8/10/2019 Scaling Up for Growth1.1

    10/16

    Important to get

    10

    Right People on the Right Seats

  • 8/10/2019 Scaling Up for Growth1.1

    11/16

    Transformation: Professionalism to Corporatization

    11

    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

  • 8/10/2019 Scaling Up for Growth1.1

    12/16

    Three Rings of Transformation

    12

    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

  • 8/10/2019 Scaling Up for Growth1.1

    13/16

    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

  • 8/10/2019 Scaling Up for Growth1.1

    14/1614

    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

    15/16

    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

  • 8/10/2019 Scaling Up for Growth1.1

    16/16

    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

    [email protected]

    http://www.dessenceconsulting.com/mailto:[email protected]:[email protected]://www.dessenceconsulting.com/