Corporate Strategy Services

Corporate Strategy Services support our clients deciding which industries and markets to compete in, how to allocate resources across different business units or product lines, and how to diversify the company´s portfolio.

a. Industry Analysis: (Attractiveness, Profitability, etc):
- Market Size, Growth, Profitability and Attractiveness:
- Industry Structure & Life Cycle Analysis
- Competitive landscape: Strategic Groups, Types and Peers
- Key Success Factors and Industry Matrix
- Trends and changes: Economic, Technological, Regulatory & Political and Social Forces
- National and International Assessment
- Opportunities and threats:
- External Factors Analysis (EFA Matrix)
b. Corporate Performance Review:
- i. Corporate Performance Scanning:
  - Vertical and Horizontal Financial Analysis
  - Activity Ratios
  - Liquidity Ratios
  - Solvency Ratios
  - Profitability Ratios
  - DuPont Analysis
- ii. Internal Resources and Capabilities Scanning:
  - Financial
  - Marketing
  - Operation & Logistics
  - Human Resources Information System
  - R&D
  - Value Chain-Analysis
  - Internal Strengths & Weakness
  - Internal Factors Analysis (IFA Matrix)
- iii. Core Competencies & Sustainable Competitive Advantages
c. Corporate Strategy Formulation Definition (Performing shareholders value tests: Attractiveness test; cost-of-entry test. and better-off test);
- i. Strategic Factors Analysis (SFA Matrix)
- ii. Strategic Alternatives & trade-offs (TOWS Matrix):
  - Growth
  - Retrenchment
  - Stability
  - Internationalization, Reshoring & Nearshoring
  - Combination
- iii. Planning & Execution of Growth Strategy:
  - Concentration:
    - Vertical Integration
    - Horizontal Integration
  - Diversification:
    - Concentric Diversification (industry related)
    - Conglomerate Diversification (industry unrelated)
- iv. Planning & Execution of Retrenchment Strategy:
  - Turnaround
  - Divestment
  - Liquidation
- v. Planning & Execution of Combination Strategy:
  - Simultaneous
  - Sequential
  - Mixed
- vi. Planning & Execution Internationalization Strategy:
  - Accessing new resources
  - Increasing global brand recognition
  - Lowering labor costs
  - Creating economies of scale
  - Diversifying risks
  - Increasing operational flexibility
- vii. Planning & Execution of Reshoring Strategy:
  - Reduced lead times
  - Quality control
  - Regulatory compliance
  - Consumer appeal:
  - Operational synergy
- viii. Planning & Execution of Nearshoring Strategy:
  - Reduced shipping costs and times
  - Specialised labour
  - Supply chain resilience
  - Lower compliance risks
d. Portfolio Optimization: Divisions, Business Units and Capital Projects
- i. Strategic Fit Review
  - Competitive Positioning (Industry Attractiveness, Market Share, Core Competence)
  - Create Synergies
  - Best Owner Test (Aligned with Core Competences)
- ii. Risk & Return Review:
  - Risk Adjusted Returns > Cost of Capital / Hurdle Rate
  - Maximize Intrinsic Value
- iii. Stress Resilience Fit
  - Survive Stress Scenario
  - Outperform in Positive Scenario
  - Build Optionality
- iv. Selection of Divisions, Business units and Capital Projects.
- v. Definition of Industries, Sectors, Sub-sectors and Markets
- vi. Relative Market Share of each unit
- vii. Industry/Sector/Market Growth Rate
- viii. Step 5: Draw the circles on a matrix.
- ix. Capital Projects Portfolio Review:
  - Marginal Cost of Capital and Hurdle Rates
  - Investment Decision Criteria
  - Investment Program: Analysis and Evaluation:
e. Mutually Exclusive Projects
f. Capital Constraining
g. Risk Analysis of Capital Investment
h. Optimal Investment Frontier & Optimal Capital Budget

Strategy & Corporate Finance Advisory Services:+