Due to the activities of industry players, some new segments are constantly emerging and some segments may merge or cease to exist. Strategic Planning is about making conscious choices about the market segments you choose to participate in, considering your own unique strengths and circumstances in the market, in order that you continue to grow. The bottom-line growth and investment levels are important too because these determine returns to shareholders which should be above your cost of equity. Sustained competitive advantage is necessary to sustain your profit margin, which is in turn necessary for return on investment to be above the cost of equity. The challenge of Strategic Planning is to grow above-market growth rate, while at the same time ensuring that there is a source of sustainable competitive advantage, so as to offer continued shareholder returns in excess of the cost of equity.
a) Market Strategy: Whether you are an SME or a Corporate, your Business Growth Strategies may revolve around New Products for existing markets OR New Markets for Existing Products. In both cases, you need to study the product-market fit thoroughly before you evolve your Product Market Strategy. Our customized Market Strategy services are based on in-depth market intelligence so that our clients can make the right decisions about market entry, value proposition, product offerings, price points, alternate channels, and develop implementable, goal-orientated strategies. We work with our clients to cover all aspects of designing a market entry roadmap, from initial market overview to implementation, with every step backed up by concrete market intelligence. We enable them to navigate complex and previously uncharted territories and execute business strategies that are aligned with their overall corporate goals and strategies.
b) Industry Research: If you are a Financial Institution, or an Investor, or a Corporate Strategy professional, you may want to get a quick overview of a particular industry in order to evaluate the industry prospects before investing further in that industry. Our Industry Research offerings are aimed at getting an overview of the Industry and/or getting feedback on specific aspects of the industry. Industry Research reports usually deal with macro factors influencing the industry such as key players, demand and supply situation, cost structure and profitability, regulatory and technological changes, etc. to analyze the external environment that influences the growth and business strategies of players in the industry or in the upstream or downstream industry. Our reports are customized to your requirement and equip you with intelligence and insights to make better business decisions.
c)Turnaround Strategy:Our customized Turnaround Strategy offerings are aimed at companies in distress, and that require investment and have a major restructuring of the debt or equity lined up, or a potential management/ownership change. Turnaround studies aim to independently question, examine, and re-establish the product-market fit, the cost structure, fixed costs, relevance of the technology, levels of automation, wage levels, competition, trends in the industry, capital structure, and various other factors that led to the distress situation. Our vast knowledge across many industries allows us to quickly determine the key issues and identify levers to come out of the prevailing distress situation and make the unit viable. At the same time, our independence and professional approach assures you that the real issues are identified and addressed.
d) Diversification Strategy: Diversification studies are usually aimed at SMEs and Corporates which want to diversify into a new product/service line and want to evaluate the various options available for them. In a Diversification Strategy study, we would evaluate several diversification opportunities in terms of various broad financial and non-financial parameters such as Capital Outlay, Profitability, Turnover, Return on Investment, Synergies with existing operations and existing customers, possible Market Share, alignment to overall Corporate Strategy etc. Based on a few shortlisted opportunities, for each opportunity, a more detailed evaluation could include evaluation of the current and future market size, identifying demand-supply gaps, studying customer behaviour, etc. For the zeroed in option, we can also provide necessary direction regarding the recommended Route of Entry, Marketing Strategy, Product Selection, and Target Customer groups and a Financial Plan with applicable Scenario Analysis. By hiring us, you benefit from an external professional view, and benefit from our vast experience in such studies, and ensure that the right analytical frameworks are used in such decision making.
e)Corporate Strategy:Whether you are a startup, or an SME, or a Corporate, or a Not-for-Profit Institution, or even a Regulatory Institution, you need to continuously look at yourself and examine your relevance to your stakeholders, and plan your path for the future. Our Corporate Strategy services help you take a holistic look at yourself against the backdrop of the changing external environment, your stakeholders and help you stay relevant and grow. What appears today on the horizon as a blip and an aberration could become a trend tomorrow and disrupt your industry and business model.
Corporate Strategic Planning exercise usually begins with a long term visioning exercise which clarifies your vision, mission, and core values. We help you envision the cherished future state of the company and define it with adequate clarity. The Path from the current state to the future state is the Strategic Plan or your Corporate Strategy. The Strategic Plan lays down details of the Initiatives, Investments, Programmes that need to be undertaken to reach the future state. In a multi-business entity, the Strategic Planning exercise would identify which businesses are providing returns above the cost of capital and those which are merely sucking cash from other businesses with low returns. The Strategic Plan also involves preparing a Financial Plan which assesses the quantum of investment necessary, sources of cash flow, and external investment to be targeted. For a profit-motive organization, the Strategic Plan will clarify the path to increased shareholder value through an increase in turnover and profitability. Similar relevant metrics could be worked out in the context of non-profit organizations or regulatory organizations. With our rigorous approach and methodology, you could rest assured that all your relevant stakeholders are consulted and their context is understood in detail so that the Strategic Plan is robust and implementable.
f)Project Report/ Project Feasibility/Financial Feasibility::A Project Feasibility Study is undertaken when significant investment is to be made, and there is a need to understand all relevant details of the investment before the investment decision is made. A project feasibility study first establishes, through a rigorous market study, that there is the adequate market potential for a particular product or service. Once the market feasibility is proven, the project is financially assessed through a financial model. Initial capital outlay, incremental revenues, and incremental costs are analyzed in the financial model to understand whether the project offers adequate returns to the equity and debt holders. A detailed analysis of the financial model is done to arrive at the optimal debt/equity structure and the optimal CAPEX configuration. Also, if the investment is phased over a period of time, the sensitivity of the investment schedule on the project IRR/NPV etc. is analyzed. We have significant capabilities in assessing the market/sectors as well as in financial analysis and are well placed to answer queries of all your stakeholders who may need a Project Report from an Independent Consultant.
g)Business Plan:A Business Plan is usually made by a Promoter in the context of equity investment, OR by the CEO in the context of getting buy-in from a Board of Directors, OR the parent company or by an SBU head to present to his/her management. In a Business Plan, the market opportunities are assessed and the financial projections are prepared just like in a Project Report. However the emphasis in a Business Plan would be on the entity as a whole and not on a specific investment project as in a Project Report.
Also, though the terms Business Plans and Project Reports are sometimes loosely used interchangeably and the overall approach is the same, there are nuanced differences. While Business Plan focuses on returns to equity shareholders, Project Reports are prepared to assess whether a specific project has adequate cashflows that can repay the principal and interest of the debt capital in a timely manner. In a startup context, Business Plans are usually insisted by equity investors who want to know the various aspects of your business model, what is the problem being solved, whether the problem being solved is large enough, your differentiators, your competitive advantage and sustainability of the same, scalability, uniqueness, the future roadmap, the promoter pedigree, etc. Debt is usually out of consideration as no debt is generally available for such entities. Further, for such investors, cashflow returns from the business are not usually possible; the investors look at what potential capital gain could be made when they sell the stake to another investor.
We understand the informational needs of various types of investors who seek a Business Plan from you, and you could rest assured that our professional independence and rigor in making such Business Plans would meet the requirements of the most demanding investors.