IE Admissions Question D.Cite at least one example of when your leadership had an impact on or changed a certain situation, and justify how an IE Master’s Degree program would help you to strengthen or improve this competence.

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“It is not the strongest of the species that

survives, nor the most intelligent that

survives. IT IS THE ONE THAT IS THE

MOST ADAPTABLE TO CHANGE

Charles Darwin

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This presentation introduces my work in the

DIALYSIS Business, when we adapted

successfully to market changes

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1. Background

2. Planning

3. Challenge

4. Results

5. Towards the Future

Agenda

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Background

Dialysis Market Analysis• Price decreasing policy makes it difficult to survive without wide product range

Company

Customer(Market)

Competitor

• 30 years partnership with Company A (20% Shareholder)• Only focusing on a certain Dialysis Product (Dialyzers)• Best quality dialyzers in the market

• Dialysis treatments make up 7-8% of Healthcare care costs• Government`s policy of decreasing Healthcare reimbursements• “Price focus” by the hospitals and doctors

• Direct sales• Wide product range for dialysis treatments• Various ways to fulfill customer`s “price focus”

(e.g., acquiring hospitals, machine free lending)

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Decreasing

Market share

Lack of the next generation CEO in Company A

Difficult to change the distribution

structurePoor Product

Portfolio

Background

Overview of the market problems• Three problems clearly required resolution

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Background

Lack of the next generation CEO of Company A• Founder of our distributor was 65 years old and he did not have any plan

for the next generation

Foster his sonas a successor ?

Vertical Integrationwith the manufacturer ?

Horizontal integrationwith the competitors ?

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Background

Difficult to change distribution structure• Holding 20% share of Company A

Investing 20% in the past

Makes it difficult to change the

relationship with Company A

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Background

Difficult to change distribution structure• Unable to sell the low-profit holding stocks of Company A

COSTS BENEFITS

ROI 2%PRIVATE INVESTMENT

(2M USD)

RETURN(40,000 USD)

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Background

Difficult to change distribution structure• A dramatic change of the distribution structure would lead to Company A`s bankruptcy

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The dramatic change of the distribution

structure….

Would lead to Company A`s bankruptcy….

…And make our shares worthless.

Background

Poor Product Portfolio• Price strategy was difficult due to the lack of revenue sources

Company A

Dialyzers

Our Competitor

Dialyzers Needles Tubings Medicines Machines

Isolated Offer

Package Offer (spreading the profit source)

Sales

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Planning

Scenario Options• I led internally to brainstorm the strategic options by using 2 × 3 matrix

Distribution Structure

Pro

du

ct p

ort

folio

of

ou

r co

mp

any

No

Ch

ange

Wid

er

No Change Focus Others Direct Sales

-Increase Product range by ourselves and sell to Company A

-Increase Product portfolio by ourselves and emphasize other distributors

-Increase Product portfolio and sell by ourselves

-Start direct sales with the current Products

-Acquire company A

-Start business with other distributors who have wider product portfolios

-Try to fight with the current structure

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- Increase Product portfoliosand sell by ourselves

- Acquire company A

- Increase Product portfolio and emphasize other distributors

- Increase Product portfolio to company A

- Try to fight with the current structure

- Start direct sales with the current product

Imp

acto

fth

eScen

ario

Reality of the Scenario

High

Low High

Scenario Options• I reviewed the options and identified three possible options

Planning

Impact of the Scenario = The risk when we did not cover the scenario

- Start business with other distributors who have wider product portfolios

✔

✔ ✔

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Scenario Decision• I facilitated the discussion to decide “Option A” would be the best way to fight in a

mature and price decreasing market

Planning

Scenario Options Advantages Disadvantages Key issues

A. Start business with other distributors who have wider product portfolios

• Increase sales options to customers

• No successor problems

• Risk to lose customers

• Possibility to sell out the shares of Company A

B. Increase Product portfolio and sell by ourselves

• More flexible access to the market

• Non established sales forces

• Calculate the profitability to start direct sales from Zero basis.

C. Acquire company A • Customers and organizations

• Limited product portfolio

• Only 5% share in the market

• Negotiation for additional investments

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Detailed plan• Try to sell the 20% stock by concluding a 5-year exclusive distribution contract with a new

distributor (which is also a shareholder of Company A)

Planning

MyCompany

New Distributor

Company A

New DistributorCustomers

Company ACustomers

+

+

1. Sell 20% share of Company A

Already holding 14% share

+20% Share

Distribution flow☓

2. 5-years exclusive distribution contract

&Package

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Change

Project Management• I led the project, including on the key issues

Project Leader (Me) Project Milestone Negotiation

Legal AspectsFinancing

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Change

• Figuring out the conditions so that parties can achieve a win-win opportunity

• Negotiating with the distributor together with the Taiwan subsidiary CEO

• Identifying the reasonable price to sell Company A shares

• Confirming with the finance team and obtain internal approval

• Drafting the contract with the new distributor

• Checking legal aspects to sell the shares

• Finalizing the contracts with the legal team

Negotiation Financing Legal Aspects

March-June July 1st

Cleary state the requirements and set up a deadline

Project Milestones• I created a clear schedule and Milestones and shared it with the related depts

• Also gathered and led various departments to meet the tight schedule

Push Push Push

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Change

Negotiation• The negotiation was concluded in a win-win situation by resulting to conclude

a long term “Exclusive contract” with private branded products, in exchange for selling out our holding share of Company A

Pri

ori

tyP

riority

Our Company New Distributor

Increase the market share with more stable distribution structure

Conclude a “Long term exclusive” contract with our company

Sell out the holding shares of the Company A

Obtain private label brand products

Flexibility to change the distribution channels

Diversification of the product from various companies

Sell products with our own brand Purchasing the shares of Company

A

High

Low

High

Low

Win Win

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Change

Financing• I collaborated with the financial team to identify the reasonable price to sell the

Company A shares

Assets

Liability

Dividing the Equity Amount by the Total No. of outstanding shares

Calculating the Present Value of the accumulated profit for next ten years

＞Higher Price

PV=

D1

(1+K1)+

D2

(1+K2)2・・・

D10

(1+K10)10+

L

(1+K10)10

D1… D10= Annual profits estimationK1… K10= Discount rateL = Remaining Value of the distributor

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Change

Legal aspects• I drafted several contracts and led the internal communication with various

departments, in addition to the negotiation with the new distributor

Drafting

Legal Affairs

Taiwan CEO

Director of the distributor

Communication

Feedback

Feedback

Communication

Basic Knowledge of international contracts

Basic Knowledge of international trading

Considering how to manage the counter offers

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Results

Adapting to Change

• Increased the sales quantity from 1.2M pcs → 1.3M pcs• Created more stable environment to expand in the future

• Managed the project within the deadline

• Sold the 20% share of company A with profits of 200,000 USD

• Ousted competitor`s product by providing private label Dialyzers to new distributor !!

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Towards the Future

Summary of my competencies in this experience

Strategic thinking skills Basics of finance Basics of international contracts

Team-building experience Strategic negotiation Internal communication

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Towards the Future

What I need to become …

Global Strategistin Medtech industry

Strengthen my strategic thinking skills to create business plans in healthcare industry

Strengthen my financial skills in order to effectively calculate the impact of the investments

Improve my team-building and communication skills to manage people in different locations

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How IE`s Executive MBA+ can help

What IE and other TOP Schools have

Case study Fundamental study

Why IE is Excellent

Strengthen Multi-Cultural Communication & Healthcare Focus

Outstanding Faculty

Enhance Knowledge & Strategic Thinking

Diverse nationalities improve my cross cultural communication skills

Blended Format is the best way to experience building up teamwork at distances

Healthcare+ module matches my will to focus on the HEALTHCARE industry

• IE Executive MBA is the best program for my career progression, especially because of its unique blended format and high international component

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By entering the IE`s master program,

I WILL BE THE ONE THAT IS THE MOST

ADAPTABLE TO CHANGE

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