Event:

21st Management Accounting Students’ Conference 2009

15th August 2009

Marriott Hotel, Karachi

Goggle for Growth

By:

Aamir AliReg # 20061233

Stage IV

OUTLINEBusiness World …

Why Growth

Goggle for Growth

Turbulent Economy

Strategic Alliances

Corporate Marriages

Managing Marriages

Next …

BUSINESS WORLD…..

People

Material

Machine

Information

How to grow?

Identify the CORE

What to become in the future?

Understanding your CORE is the first block of your growth strategy.

Role

Communicate information for Decision Making

Assurance of effective utilization of resources

The Dumbest Moment !!

First quarterly loss in 38 years !

CEO resigned !

When you hire a specialist ..

Backs your business on track

&Moves it in a forward motion

WHY GROWTH?

The path of success

Pressure from interest holders

Managers get benefits

Survival option

Top Most Challenge

Growth Agents

Create strategies

improve the leads

find prospects : turn them in quality leads

GOGGLE FOR GROWTH

Internal Growth

External Growth

Internal Growth

Market Share Growth

Internal Growth

Market Leverage Growth

Market Share Growth

Customer Leverage Growth

External Growth

Strategic alliance

Merger and acquisition

Advisors

Research new markets

TURBULENT ECONOMY

Economic downturn forces businesses to:

Cut back in all areas

Making people redundant

Lowering prices

Freezing wages

Cost Cutting Options…

Lots of businesses are joining hands

Not to grow but just to

Survive !!!

STRATEGIC ALLIANCE

When competitors become partners..

NIFT National Institutional Facilitation Technologies (Pvt.) Limited

NIFTeTRUST

Management Consultants

Cross-fertilization of Best PracticesStrategic Development

Analysts

Assess True image and potential risks and rewards of the alliance

Corporate Marriages

Mergers & Acquisitions

Merger

Merger ?Combine forces

Does a merger create :

new wealthnew factoriesnew technologiesnew products

Rearranging the deck chairs on the Titanic

Acquisition

Take over of Control

Marriages in Pakistan

Competition (Merger Control) Regulations 2007

Regulated under :

Regulated by : Competition Commission of Pakistan

Some Recent Marriages

Arif Habib Securities Limited

Aisha Steel Mills Limited 30 June 2009

KP Chemical Corporation

Pakistan PTA Limited 23 June 2009

Merck & Co. Inc. &

Schering Plough Corp

Marriages in Financial Institution

Massive restructuring

Huge infusion of capital

Cutting edge technology up-gradation

KASB Bank Limited with

Atlas Bank Limited

Factors Forcing Marriages

Privatization Policy

State Bank of Pakistan (SBP)

Economic Downturn

Dalda Acquired Tullo

Benefits of Marriages

Revenue enhancement

Cost reduction

Diversification of business activities

Wider market access

Transfer of talent and resources

Tax benefits

Set off business losses

unabsorbed depreciation an allowable expense

option to be taxed as one unit

Under the Income Tax Ordinance, 2001

Answer to the downturn !

No extra helpCash Injection

Cost Cutting Options

If you fail to plan, you plan to fail

Lipton merged with Brooke Bond

MCA approved merger on the condition

“the company will develop tea cultivation at 600 hectares by the year 2004”

The company failed and MCA can not revise its order !!!

Its

More than laying off people

. . . . .

Changing Top Management

Changing Product Quality

Changing Manufacturing Process

Really make a fundamental change in the efficiency of the companies.

Mergers that succeed

Strategy Consultants

Improve performance

Analysis of problems

Development of future plans

Why a marriage fail after honeymoon ends

Two single parents

Each with their own

Pets &Habits

Difficulty of creating ideal marriage

Decide to marry

Mom & Dad so busy in love ..

Fail to see kids don’t get along

Choice ?

How to face challenges as unified family?

Identify the differences

Recognize what’s the best?

Select ways that fits the challenges

Live happily ever after !

 

Managing Marriages

Ongoing process

Develop a clear, logical and replicable approach

Two way communication

GSK a history of managing marriages all the way!!

System Managers

Design such system

Implement system

a

NEXT - - - -

Capital

Knowledge

The chief strategic resource of the future

But the ability to form

powerful partnership

NOX

But Remember !

If not lead by effective leadership efficiently

then a complete disaster

M&A felt as nutritious

a

Leaders

Goggle for new strategies for growth

Lead organization efficiently and effectively

a

Growth Specialists

Achieve success in a variety of ways

Help in ways you may never have thought of

A specialist’s job is to

maximize

your potential.

To achieve new levels with your

business, may be its time to find a

specialist.

If you are ready …

Q & A