SampleSlidesintheNewFormat September2007 Addingyourslidetothiscollection Sendyourslideviae mailtooneofthefollowingaddressespropper barbara kossmann ines laubach friedemann Thankyou Fivetypesofslides TextandcolumnsGraphsTablesDiagramsMapsandtimelines Textandcolumns WerecommendenteringthismarketsegmentHighgrowthandsynergywithexistingbusinessmakethisanattractiveopportunity Attractive highgrowthmarket Moderatelysizedmarket butgrowingfast 5Binrevenuein200625 growthprojectedthrough2010FragmentedmarketthatisripeforconsolidationTop 15playersonlyaccountfor20 ofthemarketMarketingexperienceandowningthechannelwillbekeytosuccessinfutureExistingplayershavelimitedmarketingcapabilitiesCurrently noclearmarketleader Needtodetermineentrystrategy PrioritizeportfolioofgrowthopportunitiesCompareoptionstoothergrowthareasEvaluateimpactofentryintothismarketonfinancialflexibilityDeterminemarketentrystrategy organicversusacquisitionCanleverageexistingcapabilitiesWellpricedacquisitionwouldbefasterBegintoidentifyacquisitiontargetsandconductstrategicduediligenceEvaluateinvestmentrequirementsandoptimalstructuringExploresynergieswithcurrentbusiness Speediscriticalinthisfastmovingmarketsegment Companyconsistedofmultiplebusinessunitsinsuchdiversefieldsasautomotivesupply engineeringandspecialtychemicalsCapitalmarketshadplacedaconglomeratediscountonthecompanythathadalsoaccumulatedasignificantamountofdebtthroughacquisitionsEnormouspressurefromanalysts investorsandsupervisoryboardmemberstooverhaultheoverallstrategyandstructureAim reductionofvalue reducingfactorsandsignificantimprovementofcapitalstructure Basedonouranalysis thecompanydecidedtodivestthehighlyprofitablespecialtychemicalsdivisionHighexpectedexitvaluegivenstrongcash flowsfrombusinessesLimitedorganicgrowthopportunitiesLimitedinherentportfoliologicofdifferentbusinessesNewcoreallowsforreleaseofsignificantvaluepotential sharepriceimprovementoverthecourseoftheprojectof50 AbolishmentofcurrentholdingstructureReductionofnetdebttoalmostzeroSignificantgrowthpotential organicandbyM A Portfolioreviewat 5Bindustrialconglomerateresultinginsplitofcompany Contextandchallenges Resultsandimpact WhytheclientchooseBCG BCGhadperformedanotherportfolioanalysisfortheclienttwoyearsearlierthatwashighlyacclaimedbythethenCEOforitsrigorosity clarity andindependenceInthiscrucialmomentofchange thenewCEOreliedonOurprovenmethodologyOurabilitytointegratedifferentindustryexpertsinourteamOurknowledgeofthecompany andOurabilitytoseamlesslycooperatewithaninvestmentbankhiredtosupporttheupcomingexitofoneofthemaindivisions BCGapproach whatwedid Rigorous fact basedportfolioanalysisbasedonBCG sproventraffic lightportfolioapproachAnalysisofstrategicqualityofportfolio marketattractivenessandcompetitivepositionofBUsAnalysisofgrowthandvalue creationopportunitiesbyBUDevelopmentofpotentialfutureportfoliosofthecompanybasedondifferentoptionsforthecore includingequitystoriesandM AbuyinglistsforeachoptionEvaluationofportfoliooptionsbasedonwidesetofcriteria includingstrategic financialandcapital marketrelatedaspects Projectexamplesincorporatestrategy Source BCGcasedatabase2005 Date 20052005200520052004200420042004 Region count EuropeAsiaAmericasEuropeEuropeAmericasAsiaAmeric Topic StrategyPortfolioPortfolio GrowthGrowthGrowthTransformationTransformationPortfolio Projectdescription DefinedaglobalstrategyfortheicecreambusinessofamajorglobalconsumergoodscompanyConductedanportfoliodiversificationprojectforamajorinternationalairlineDevelopedaportfolioandgrowthstrategyforaconglomerateinbeverageandsnack foodmanufacturingDevelopedgrowthstrategyforsubsidiaryofamajorEuropeanairlineGlobalgrowthstrategyforthewirelessinternetservicesofamajormobiletelecommunicationcompanyDevelopedtransformationgrowthandfinancialstrategyTransformationstrategyforanautomotiveplayerinIndiaPortfolioshareholdervaluestrategyforaglobaloilcorporation IncreaseddemandhasstressedArtemisininsupplychain Expandedcultivationbutissuespersist IncreaseddemandledtoexpansionAcreagemorethandoubledoverpastyearsExpandingfromChinaandVietnamtoothercontinents includingAfricaDespiteexpansion stillsupply demandmismatchDifficulttoobtainreliabledemandforecastsManufacturingcapacityneedstobecommittedearlyduetolongproductioncycleSupply demandmismatchhashadnegativeconsequencesPricehikesforArtemisininanditsderivatives limitingaccesstoACTsPricesofACTs co blisterorfixeddosecombination wellabovemonotherapies Highpricesprovideincentiveforcounterfeiting Studyfoundaverageof38 ofartesunateboughtinSEAsiashopsdidnotcontainactivedrugCounterfeitersgettingincreasinglysophisticated e g holograms Source WHOfactsheetoncounterfeitmedicines May2005 FakeartesunateinsoutheastAsia TheLancet June16 2001 Differentorganizationalmodelsmaybeappropriatefordifferentretailers Merchantasmuscle Merchantactsassupplychain quarterback HighdecisionauthorityacrosschainHighP LaccountabilityMerchantandinventorymanagerdomostsupplychainactivities MerchantasGM MerchantaccountablefordeliveringnumbersandcoordinatingacrosssupplychainSeenas mini