2. Our team is the best candidate for the final tour
Polina Ruska
Yriy Naniev
Natalia Markevichus Grigoriy Grachev
2 MARK@
3. Decomposition map of the project describes the way to achieve our
main goals
Analysis of Strategy
Analysis of current Construction of Construction of
How to achieve goal Partners and Realization
Main goal and tasks situation Strategic map Financial model
competitors
•The main •Analyze current •The main goal of •The main goal •The main goal •The main goal •Determine how
strategic goal is situation on the analysis of of analysis of of construction of construction the whole
to build a Russian current situation Strategy of Strategic map of Financial strategy will be
national consulting is to determine Partners and is to determine model is to realized in order
strategist with a market. opportunities of competitors is to the main reason maximize profit to achieve the
global presence •Analyze our future growth determine key why the current •Construction of main goal.
in key markets of position and key and threats that characteristic of model is efficient •Determine term
the Russian competitor’s could prevent Strategy inefficient and financial model structure and
business. characteristics. achieving of the Partners and the methods how to based on the when operating
•External: •Build business main strategic main make the main best chosen goals will be
Leadership in model with goal. competitors to goal achievable. alternative achieved.
the Russian different •Main decide whether •Construction of •Providing
market of alternatives. characteristics of we are able to complex sufficient
strategic Russian achieve our business model arguments
•Choose the best
consulting on consulting strategic goal. with at least 3 proving that the
alternative.
the key markets market •Key development model is optimal
•Build efficient
of Russian •Segmentation of characteristic variation. and is the best
financial model.
business. the Russian matrix for all •Valuation of variant for
•Realization of market
•Internal: consulting alternatives. current
the project. participants
*The growth of market •Choosing of the situation, as well
the office 3 •Identification of •SWOT analysis best alternative. is suitable for
times in 4 years. “profit zones” •4 P achieving
*Increase •Porter’s 5 forces •BCG matrix strategic goal.
business value
•Product /Market •Brand analysis
from $80 to
expansion matrix •Internal
$120 million by
2016. structure of the
*Build a new company
business model •What should be
- a combination changed and
of strategic how to achieve
consulting it?
services and
corporate
finance.
3 MARK@
4. Russian consulting market is perspective and has great potential
1. The consulting market
in Russia still has the
reputation as immature
and evolving.
2. The lack of
understanding of
consulting services
purpose.
3. As consulting market
Consulting market tendency, annual rate growth
depends on the whole
macroeconomic 60%
situation. 50% 50%
40% 40%
35%
30%
20% 20%
10%
0% 0% 0%
2004 2005 2008 2009 2010 2011
Analysis of
4 current situation MARK@
5. Right choice of segment allows Strategy Partners to build an effective
strategy
Corporate finance and strategy
Segment 1
Segment
service
7
Strategy consulting Segment 2
Organization consulting Segment 3
Segment 4
Practises
Human resources consulting
Segment 5
Operating consulting
Marketing consulting
Segment 6
Finance
Global market CIS Russia Other Trade Metallurgy Manufacturing Transport Telecom Energy Oil&Gas Institutions Government
Geography Client industries
Segments
1,2,5
Segments of the first priority are corporate finance Segments3,7
and strategy service, strategy consulting, operating
consulting in different industries. Segments of the
second priority are organization consulting in Segments4,6
different industries and government sector.
Strategy Partners will mainly concentrate on
segments from the 1st and 2nd priority because it
will give them maximum profitability
Analysis of
5 current situation MARK@
6. Strategy partners should Focus on the most profitable spheres such as machine building, power
engineering; most perspective sphere – telecommunications; our strong side - non-profit sector
Manufacturing
Government
2007 2008 2009
Energy&Mining
FMCG 15%
16% 11%
Finance 22% 23% 20%
9%
TMT
19% 19%
10%
18% 20%
12%
14% 38%
15% 10% 9%
2011 2010
10%
11%
26% 25%
10%
10%
11%
11%
24%
19% 13% 30%
Analysis of
6 current situation MARK@
7. Well-positioning is a key factor of success
Market niche for Strategy Partners, based on size of the business
We suggest medium-size business as SP’s key focus. Another key focus is Public sector organizations, government and non-
profit organizations:
Strategic expansion opportunities for Strategy Partners are in conquering CIS-countries markets , these markets are
characterized as markets with low competition level and substantial growth potential.
Analysis of
7 current situation MARK@
8. We suggest entering the CIS countries expansion strategy, therefore, we will
divide them in 3 macroregions: Eastern Europe, Caucasus and Middle Asia
According to World Bank and IFC research the overwhelming majority of post-soviet countries have better business climate
and better 'doing business' potential than Russia. Developing rapidly - they´ll need consulting services. Most them have
small competition level.
Analysis of
8 current situation MARK@
9. SWOT analysis of Strategy Partners Group shows us that the company
has good potential and has its own competitive advantages
Strengths Weaknesses
1. Leading Russian strategic 1. Not so famous brand
consultant. 2. Tender competition
2. Unique business model. 3. Works in specific sector.
3. Successful in different practices.
4. High quality of work.
5. Work with the public sector and
non-profit organizations.
6. Career growth
Opportunities Threats
1. New clients. 1. Not all companies are willing to pay
2. Free spheres. money at the level of market rates.
3. Great growth opportunities 2. Public sector is specific.
Analysis of
9 Strategy Partners
and competitors
MARK@
10. Analysis of key characteristics of the company and its competitors
CPI
Product Price
Brand •Strategy development and •Lower than of our key
implementation competitors
awareness Accenture
10 •Operational efficiency
9 ATK •Building efficient
8 organization and
7
6 Bain leadership
5 •Corporate finances
Number of 4 Number of BCG
employees 3 clients
2
1 Booz&Company
0
McKinsey
Promotion Place
Monitor •Low quantity of •Concentrates mainly on
promoting measures Russian market in
Oliver Wyman concrete areas (machine
•Strategy Partner’s journal
Geographical online and for building, non-profit
Revenue Roland Berger
coverage subscription sector, power
Strategy Partners engineering)
Strategy Partners has its own key characteristics and unique model that gives
company a good basis for future competition
Analysis of
10 Strategy Partners
and competitors
MARK@
11. Strategy Partners operates in competitive market but has its own
competitive adventures
Number of Revenue in Cost of project in
Companies professionals Number of partners Number of associate partners Russia, mln USD Russia, ths USD / month
A.T. Kearney
Bain
BCG
Booz&Co
McKinsey
Monitor Group
Roland Berger
Strategy Partners
Analysis of
11 Strategy Partners
and competitors
MARK@
13. Building up our strategy we should take into account our competitors
SP main Competitors by
sectors, large capitalization
clients
12
10
8
International Consultants Strategy Partners have the
quality
6 International Auditors best price/quality ratio.
4 Strategy Partners
Russian Consultants
2
0
0 2 4 6 8 10 12
price
Analysis of
13 Strategy Partners
and competitors
MARK@
14. Branding
Strategy Partners brand is based on
Results of completed projects
and customer’s feedback Adrertising + PR
Articles, comments, interviews Own periodical Vestnik
are on the web site of the Strategy.ru
company
Professional exhibitions Cooperation with business
Publications in magazines schools
Client’s informational support Conferences
Authority specialist’s opinion
Analysis of
14 Strategy Partners
and competitors
MARK@
15. Decision making process and marketing
1. Client does not realize the problem
2. Client faces some difficulties
3. Tries to manage it all alone
4. Looks for information about problem
5. Gets an idea to invite experts
6. Makes a choise
1. Demonstrate competence, market monitoring
2. Advertising and PR in publications
3. Persuade that consulting is essential, seminars
4. Books, official site, conferences, exhibitions
5. Recommendations, experience, reputation
6. Trust
Analysis of
15 Strategy Partners
and competitors
MARK@
16. HR strategy should comply with competitive strategy
Innovation Improving the Reduction of
strategy quality costs
• High qualification of stuff • Relatively repetitive and predictable • Relatively repetitive and predictable
• Creative behavior • Long-term or medium-term orientation • Short-term orientation
• Long-term orientation • Moderate level of cooperative behavior • Standalone or individual actions
• The high level of cooperative behavior • Great attention to quality • A moderate attention to the quality of
• Equal degree of attention to processes • Moderate amounts of attention to • Much attention to the amount
and outcomes • Much attention to the processes The focus of the results
• Readiness to take risks • Weak risk appetite • Weak risk appetite
• High tolerance for ambiguity • Commitment to the organizatio
For consulting company HR is the main resource. So efficiency
of the company is based on efficiency of HR management and
it why company should focus on that. HR strategy should
comply with competitive strategy. When we build working-
Innovation team for SP we are basing on such criteria as high
strategy qualification of stuff, creative behavior, long-
term orientation, the relatively high level of cooperative
behavior, equal degree of attention to processes and
outcomes, willingness to take risks, high tolerance
for ambiguity. Because Strategy Partners choose innovation
strategy.
Analysis of
16 Strategy Partners
and competitors
MARK@
17. To provide the growth of the office 3 times in 4 years we should answer on
two questions: how to recruit stuff and how to keep it
Answer on question how to recruit
stuff:
To answer We should decide witch way we will prefer for
question each block of stuff. Strategy Partners can use
recruitment agencies to find a good
how to specialist, but the problem is that there is
deficit of professionals on consulting labor
recruit stuff market. As solution Strategy Partners can take
specialist from manufacturing and others
segments and train for consulting firm.
The growth of the office (the number of
analysts, consultants, managers, directors
and partners) 3 times in 4 years. To answer question how to keep stuff :
Status
Relation Supervisi
ships on
To answer
question employee
how to Pay and motivation Job
benefits security
keep stuff
Working Compan
conditio y
ns policies
Analysis of
17 Strategy Partners
and competitors
MARK@
18. Our staff is our core resource, therefore, HRM-efficiency determines
company’s market performance
To provide effective system of
Recruiting Temporary human resources management:
professionals
strategy We have:
1) Good (unique) system of
Temporary employment career growth
doesn't not provide high 2) Permanent training
programs
quality of our service. It
3) Bonus system
has bad influent on 4) Competitors salary
goodwill . We should make monitoring
a effective system of
Permanent human resources We need :
management to provide 1) System of moral
employment encouragement
high quality of our service
2) System of feed back
Analysis of
18 Strategy Partners
and competitors
MARK@
19. Efficiency HR management depends on combination of image of the
organization, corporate structure, quality of services
Y
quality of services - Х
image of the organization– Y
corporate structure - Z
X
The main rule: reduction in one parameter
(x / y / z) will lead to less effective structure.
Z
If our company wants to get maximum profit it should use this cube for
making internal structure work well. The main idea of this model is to
maintain and save balance between quality of services, image of the
organization and corporate structure.
If the company reduces one of the parameters it won’t get maximum
efficiency and in that case won’t get maximum profit.
Analysis of
19 Strategy Partners
and competitors
MARK@
20. Strategy partners is going to increase the quantity of staff 3 times by
2016
Professional staff Organizational structure
A.T.Kearney
9% 10% Partners and junior partners
Strategy
20%
Partners Bain
13% 7% Directors and managers
Roland
Berger
11% 30%
Monitor Group Consultants
BCG
5% 21%
Analysts
McKinsey 40%
27%
Booz&Co
7%
People in team (total)
800
700
600
500
400
300
200
100
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Analysis of
20 Strategy Partners
and competitors
MARK@
21. Strategic map
Go abroad and broaden our strategy to the CIS market
Focus on the most profitable spheres such as machine building, power engineering; most
perspective sphere – telecommunications; our strong side - non-profit sector
Maintain balance between public sector and medium-sized business with growth potential
Growth Modify current intercompany system in order to build effective HR management
Strengthening of the brand
New business model
Focus only on the Russian market without any attempt to broaden our borders
National strategist with
Focus only on the main spheres that will for sure give us profit (machine building, power
a global presence in key
Stabilization engineering, non-profit sector)
markets of the Russian
business in 5 years
Focus only on the government sector
Leave everything inside the company as it is
Do not create new model and concentrate only on the consulting
Do the same as it was in the branding system
Leave Russian market and find a new one
Decrease spheres in which company works
Reduction
Try to leave market with the least costs as possible
Do not spend money on any branding measures
Decrease interaction with government
Construction of Reduce quantity of the staff
21 Strategic map MARK@
22. Strategy Partners Group’s Business Model
Key partners Key activities and market segmentation Value propositions and customer Channels
relationships
Sberbank Sectors: Helping clients in developing their 1.Awareness – through
Troika Dialog Machine building, strategies, leading to effective using of branding (active
Clients Non-profit sector intellectual, material and financial participation in all
Financing Power engineering resources in order to maintain scientific events, mass-
Informational providers Telecommunications leadership. media)
Public sector Strategy Partners Group uses its 2.Evaluation –
Key Resources
Medium-sized business with growth potential unique combination of reputation, the increasing quality and
Key resources in consulting are Services: best international practice and speed of contracts
people -> all other resources Corporate finance and strategy service standards of doing business with deep 3.After sales –
depend on them (intellectual, Strategy consulting knowledge of Russian practice. constant consultations
physical, financial) -> the more Operating consulting with owners of the
people you have the more you will Organization consulting business (how they are
get and the more you will have to dealing now)
spend.
Cost Structure Revenue Streams
People in team Direct costs (22%) Benchmarking
partners (3%) Direct labour 21% Optimization of key processes and systems
principals (2%) Business trips 1% Risk-management
managers and directors (25%) Other 1% Management by objectives
consultants (30%) Gross margin 59% Innovative strategy
analysts (40%) Expenses 20% Increasing productivity
Revenue per consultant (ths USD/ person) COM&BEN for consulting staff 18% Business plans for innovative companies
Total Revenue (ths USD) Business trips 1% Finance strategies
COGS (19%) Other 1% Mergers and acquisitions
Experts 35% G&A 20% Strategy planning
Additional personnel (35%) Other COM&BEN for consulting staff 7% Global markets analysis
Work with famous companies (30%) COM&BEN for administrative staff 6%
Rev net (81%) Maintainceandutilities 5% For all these customers are paying approximately 250 thousand $
Other 2% per month.
EBITDA 19%
Construction of
22 Strategic map MARK@
23. Financial model
People in team (total)
800 750
600
469 500
625
Average price of the
400 375
200 217 257 250 contract per person = 337
167 183
0 ths USD (by 2016)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total Revenue (ths USD)
80000
75737.79346
70000
60000 58985.82045
50000
44101.548
40000 38640.375
30000 28890
20000 18018 18000
10000 12025 11000 12980
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Construction of
23 Financial model MARK@
24. Financial model (continue)
Total Revenue (ths USD) COGS (19%) Direct costs (22%)
Expenses (20%) G&A (20%) EBITDA (19%)
EBITDA
Our value will grow to 120
35000
mln USD -> market value
30000
28710.68274 of the company
25000
22360.34482 increased by 50%.
20000
16718.01482 At the same time we can
15000 14647.79336
10951.6212
see that EBITDA
10000
6830.26344 6823.44 increased 4 times.
5000 4558.437 4169.88 4920.4584
So, Value / EBITDA in
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
2016 will less than in
2011.
Construction of
24 Financial model MARK@
25. Realization
First of all we should make our services work well and with high quality. We will begin 1st and 2nd priority services in 1 month difference in
time.
Secondly, our key segments should be standardized and information should be delivered to all staff.
According to our key services and segments we will recruit staff. It will be done according to our plans eventually. Recruiting should begin
from the January of every year.
Fourthly, we will enter all CIS markets before busy seasons in specific countries.
The last one, is that we will be printed once a month in printed versions and every week will publish our own online-edition; take part in
conferences in every season; give seminars every month
Realization
25 MARK@
26. Conclusion
We will choose growth strategy based on these elements:
1. ENTER CIS MARKET
2. FOCUS ON MACHINE BUILDING, NON-PROFIT SECTOR, POWER
ENGINEERING, TELECOMMUNICATIONS
3. MAINTAIN BALANCE BETWEEN PUBLIC SECTOR AND MEDIUM-SIZED BUSINESSES
WITH GROWTH POTENTIAL
4. EFFECTIVE HR MANAGEMENT
5. BRAND STRENGTHENING
6. NEW BUSINESS MODEL
Leader on the Russian consulting market
The growth of the office 3 times in 4 years
Increase business value from $80 to $120 million by 2016
Effective business model
26 MARK@
27. Thank you for your attention!
Best regards, MARK@
27 MARK@