David Ball Group Final Europe Practicum
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Transcript of David Ball Group Final Europe Practicum
David Ball Group plc.
WE MAKE CONCRETE MATTERLeading the world in concrete solutions
By:Brad WyllieJoAnn SwankMehul PatelOwen FayerYamini Bammi
The Dubai Fountain
Company Overview
Opportunity Statement
Succession Planning/Wealth Creation
Brand Awareness4
2
1
Conclusions
3
5
Agenda
Founder David Ball
•UK-based•Concrete industry
PUDLO
•InstaRange•SpecialistSand•New products
•Contractors•Architects•Engineering and Construction firms
•£3M~ revenue•£500K profit•26 employees•New facility•Customers: Morrisrow,Galldris,Expanded Ltd.
Company Overview
19702011
Products Target market
www.davidballgroup.co.uk
Financials
SWOT Analysis
Strengths Weaknesses
• Innovation
• David Ball’s vision
• Family-run work culture
• Lack of PUDLO product awareness
• Lack of succession plan
Opportunities Threats
• Company tech knowledge base
• Concrete community
• Carbon footprint reduction
• Markets expansion (UK, Europe, Asia, North America)
• Limited product range
• Concrete viewed as a “commodity”
• Competitive landscape (Everdure Caltite vs. PUDLO)
Organizational StructureDavid Ball ChairmanDavid Ball Chairman
Jackie BallStrategic PlanningJackie BallStrategic Planning
Chris HowardMDChris HowardMD
Hugh PurserNon Exec DirectorHugh PurserNon Exec Director
Rowan SwanserOn-site QA ManagerRowan SwanserOn-site QA Manager
Prof. Peter HewlettR&D DirectorProf. Peter HewlettR&D Director
Oliver MinettProduction DirectorOliver MinettProduction Director
Martin LiskaR&D ManagerMartin LiskaR&D Manager
Overseas office and distributorsOverseas office and distributors
Alan SleighCommercial Mgr.Alan SleighCommercial Mgr.
Deirdra McNeilMktg. Mgr. Deirdra McNeilMktg. Mgr.
Gillian WellsFinancial Mgr.Gillian WellsFinancial Mgr.
Martyn SmithPUDLO Mgr-Groundworks
Martyn SmithPUDLO Mgr-Groundworks
Total employees: 26
Future
Business
Strategies
Succession
Planning
Brand
Awareness
*
Wealth
Creation
Opportunity Statement
Road to Succession = ESOP
• Employee Stock Ownership Plan (ESOP)• Practice of companies giving employees
shares in the company • Allows employees to become owners of
stock in the company
•Profit-sharing•Tax benefits(Share Incentive Plan)
•Responsible to “internal” shareholders•Effective decision-making
•Commitment•Productivity•Employee control•Work culture•Career development
•Continuity•Sustainability•Long-term customer relationships•Low staff turnover
Employee
ownership
Business
continuity
Management
accountability
Financial
benefits
Why ESOP?
Why not ESOP?•Trust and management structure issues - conflict of interest•Family conflicts
•Largest ESOP retailer in UK•Trust manages partnernship•Governance –council and board•Share Incentive plan•Satisfying long-term careers
•Share Incentive Plan •Council - safety valve for employees’
•Special ownership structure•Charitable foundation•Industrial trust•7% family owned•Entrepreneurial freedom
•Employee benefit trust holds 100% shares•Dividend •Employees main “capital”
John
Lewis
SavantTullis
Russell
Bosch
ESOP Successes
Securing a strong mutual future
Ownership and governance
Legal and technical considerations
ESOP
Stage 6
Stage 5
Stage 4
Journey to ESOP
Planning leadership and engagement
Building a viable business
Stage 1
Stage 3
Stage 2
Options appraisal
• Time 6 ~ months • Legal fees
Employee Benefit Trust
• Goal: Maximize shareholder value• Stock distribution 51% Ball family, 49%
employees– “Golden shares” repurchased by trust
• Structure: Chairman + 4 directors that represent family, employees, legal, and finance areas
• Charter: – Veto power on company sale, relocation, acquisitions,
mergers– Profit sharing schemes with board approval– Support employee loans for stock purchase
David Ball’s LegacyConcrete Society
Concrete
Education
R&D
Technology
Pioneer
Ethics-
based
Culture
Legacy
Customer Relationship
• Scholarships• Internships• Fellowships• Partnership with
Engineering schools
• Grants• Social service• Environmental responsibility
• Mitigation of family disputes
• Establish corporate governance
• Develop family talent
Institute
Institute for
Family
Business
Foundation
Legacy Preservation
Brand Awareness
• Increase domestic market footprint• New Markets: Singapore, Indonesia,
Central /Eastern Europe, Germany and N. America
• Maintain and expand footprint in current markets
• Innovation in Green technology• Social media: Facebook, Twitter• Updated website (customer focus,
testimonials)• Industry related-conferences/trade shows
Future
Business
Strategies
Succession
Planning
Brand
AwarenessWealth
Creation
Opportunity Statement
Conclusions
• Create and share wealth via ESOP• Suggested path to business succession• Create structure for innovation,
continuity, and sustainability • Maintain legacy• Expand brand awareness
References
Internet Linkshttp://www.bosch.com
http://www.cipfa.uk/pt/download/governance_standard.pdf
http://www.employeeownership.co/uk
http://www.kohler.com
http://www.institututeforfamiybusiness.com
http://www.sesadvisors.com/ESOP_casestudies/
Interview SessionsChris Howard, Interview at the company, September 26, 2011
Chris Howard, Telephone Interview, September 27, 2011