World Services GroupWorld Services GroupNorth American Regional Meeting – MiamiNorth American Regional Meeting – Miami

Panel DiscussionPanel Discussion

Strategic Changes Needed to Thrive in the Strategic Changes Needed to Thrive in the Current Economic EnvironmentCurrent Economic Environment

Thursday, February 25, 2010Thursday, February 25, 2010

Ed Dawson, PresidentEd Dawson, PresidentCapital Alliance CorporationCapital Alliance Corporation

Strategic Changes NeededStrategic Changes NeededCut CostsCut Costs

1.1. reduce/eliminate wasteful spending – look at reduce/eliminate wasteful spending – look at travel, conventions, advertising, promotions, travel, conventions, advertising, promotions, etc.etc.

2.2. review expense line items to cut major review expense line items to cut major expensesexpenses

3.3. eliminate excess staff/facilities/equipmenteliminate excess staff/facilities/equipment4.4. examine planned expenditures/budgetsexamine planned expenditures/budgets

Strategic Changes NeededStrategic Changes NeededImproving the Business ModelImproving the Business Model

1.1. decide what businesses will be pursueddecide what businesses will be pursued2.2. decide what businesses will decide what businesses will notnot be pursued be pursued3.3. look for low cost solutions – money is not always the look for low cost solutions – money is not always the

answeranswer4.4. look for unserved customer demandlook for unserved customer demand5.5. establish more flexible engagement programs for establish more flexible engagement programs for

customerscustomers6.6. stay with what worksstay with what works7.7. upgrade literature content, web site, office upgrade literature content, web site, office

appearanceappearance8.8. protect the current customer baseprotect the current customer base9.9. find new customersfind new customers10.10. better training on how to get new businessbetter training on how to get new business11.11. attack competitive weaknessattack competitive weakness12.12. focus on value enhancementfocus on value enhancement

Improving the Business ModelImproving the Business ModelFinding ClientsFinding Clients

Pick target industries/geographiesPick target industries/geographies

Define the ideal prospect characteristicsDefine the ideal prospect characteristics

Research databasesResearch databases

Contact prospectsContact prospects

Improving the Business ModelImproving the Business ModelEngaging ClientsEngaging Clients

Outstanding front line producersOutstanding front line producers Appropriate presentation materialAppropriate presentation material Flexible engagement approachesFlexible engagement approaches Meet with prospectsMeet with prospects Emphasis on total confidentialityEmphasis on total confidentiality Worldwide industry expertiseWorldwide industry expertise Turnkey program managementTurnkey program management Value EnhancementValue Enhancement

Value EnhancementValue Enhancement

Enhancing the Price Over the Initial Enhancing the Price Over the Initial OfferOffer

For 5 Selling CompaniesFor 5 Selling Companies($Million)($Million)

D140%

A45%

B54%

C100%

E300%

0%

50%

100%

150%

200%

250%

300%

350%

A B C D E

Pric

e Im

prov

emen

t

$250Service

Contractor

$40Product

Manufacturer

$60Renewable

Energy

$36SemiconductorManufacturer

$20Consumer Svc.

Provider

+$77+$14

+$30

+$21

+$15