3PL Strategies for Moving to
New Markets
Brussels, 24-25 November 2010
Slawomir Blotny
Vice-President of the Board / Key Account Executive Raben Group
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The dilemma
98 600 m2 EBITA
ROI 98,2%
7 424 893€
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Agenda
• Introduction of Raben Group
• How we entered the countries we now operate in
• The advantages and challenges of starting operations in new
markets vs. acquisitions
• Lessons learned
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1931 1991 1994 1997 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010
Raben Group – Employment
Data at the end of each year * status as at 31.10.2010
*
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Raben Group’s operations in Europe
Raben Group depots
countries in which branches of Raben Group are located
countries covered by Raben Group services
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Raben Group
• Family-owned & family-managed
• Group of companies with serious intention of
growth
• Focus on Customer Service
• Corporate rules of management
• Employment - ca. 5200
• Total warehouse capacity - ca. 485.000 m2
• Transport means at disposal - ca. 4000
How we entered the countries
we now operate in
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• Our vision is
• Growth scenarios are:
• organic growth or
• acquisitions
To Become a Leader
Everywhere We Are
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• Organic growth:
• Field sales
• Key Account sales
• High sales retention through the best customer service
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Analyze...
&
Rabenize.
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• Acquisitions:
• Product fit
• Company culture
• Position in the market
• Management capabilities
• Profitability
The advantages and
challenges of starting
operations in new markets
vs. acquisitions
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Culture
Yes No
Organic
growth Acquisition
Stable
company
Unstable
company
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• Culture
• Local
• Business
Culture
Yes No
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Culture
Yes No
Organic
growth
Advantages Challenges
implementation of own processes Customers, business partner need a long time
to give trust to the new organisation
perfect match with the company vision,
mission, strategy, products
long way to achieve satisfying market
share/critical mass to be cost effective
create own organization culture, people act in
the same direction difficulties to hire excellent staff
investment can be spread over longer period overpay salaries
Organic growth
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Stable company Culture
Yes No
Organic
growth Acquisition
Stable
company
Unstable
company
• Acquisitions of a stable company
• Financial performance
• Management capabilities
• Customers
• Market shares
• Operations
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Stable company Culture
Yes No
Organic
growth Acquisition
Stable
company
Unstable
company
Advantages Challenges
integration plan - 100 and 360 days CEO? If owner, what is his/her future like?
providing managers with new opportunities for
career growth
own funds needed in today’s financial market
situation
you can share the best practices
buy „healthy” market share, Customers,
Employees, know how
synergy effects
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Unstable company Culture
Yes No
Organic
growth Acquisition
Unstable
company
• Acquisition of an unstable company
• Financial performance - low
• Management capabilities - poor
• Customers - not satisfied
• Market shares - low
• Operations - low/poor level
or
or
or
or
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Unstable company Culture
Yes No
Organic
growth Acquisition
Unstable
company
Advantages Challenges
synergy effect possible difficulties to explain this path to shareholders
and stakeholders
providing managers with new opportunities for
career growth
integration plan with support of full team (HQ,
other BUs’ of the Raben Group and local)
skeletons in the closet
own funds needed in today’s financial market
situation
CEO? If owner, what is his/her future like?
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Rabenizing starts from...
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Professionalism
Values at the Raben Group
Entrepreneurship
Customer Orientation
We Act With Passion
Reliability
Lessons learned
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• The culture of the company, especially its management is crucial
• It seems that our business units do much better if their HQs
are located outside the countries' capitals
• Due diligence may show good financial and legal result but this
does not mean that operations and customer relations are at
expected level
• International company versus local entrepreneur
• We do not have to be present everywhere
Lessons learned
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Rabenizing in progress
Baltic States
3,000m2
Ukraine
50,000m2
Poland
250,000m2
The
Netherlands
4,000m2
Germany
70,000m2
Hungary
22,000m2
The Czech Rep. / Slovakia
85,000m2
Total: 485,000m2
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No matter which solutions you choose…
Just remember…
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You have plenty of nails in each decision,
the key is to choose the proper one
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Thank you for your attention!
If you have any questions,
please, do not hesitate to ask
now or contact us later:
Slawomir Blotny
Vice-President of the Board / Key Account Executive
Raben Group
phone: + 48 61 89 88 219
e-mail: [email protected]
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