how to be the breakaway company in the upturn (presentation one)

8/9/2019 How to Be the Breakaway Company in the Upturn (Presentation One)

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How to be the breakaway

company in the upturn

Chamber of Commerce

29 April 2010


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Speaker

John Dunne

Partner

Private Company Services

[email protected]


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PricewaterhouseCoopers

Agenda

Some facts about recessions

Lessons from previous recessions

Where do we go from here ?

Navigating the upturn - 10 fundamental priorities

Navigating the upturn Structure of an upturn plan

Slide 329 April 2010How to be the breakaway company in the upturn


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Everybodys got a plan


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until they get hit - Mike Tyson


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What

Happened?



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Top

Quartile

Bottom

Quartile

20% 25%

Company performance

in the 2001 recession




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70% of those who made

gains in the last recession

held onto those gains(Bain & Company)





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Gains made during recessions tend to endure

The number of opportunities to make deals or take advantage of weaker

players increases during a recession

Companies that hunker down or become defensive create openings forothers (Bain & Company)

Good times mask the hard truths of company performance - tough times

reveal true strengths and weaknesses



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PricewaterhouseCoopers Slide 1029 April 2010How to be the breakaway company in the upturn

Only when the tide

goes out do you

discover who's beenswimming nakedWarren Buffett,

Berkshire Hathaway

PricewaterhouseCoopers29 April 2010

Slide 10How to be the breakaway company in the upturn


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Lessons from previous recessions

Successful companies prepared themselves strategically during the goodtimes

Cost cutting and market-share expansion can occur simultaneously

Profitable internal growth favoured over acquisitions

Bargain assets can be acquired and should be pursued

Costs should be selectively reduced and expenditure delayed or eliminated

Explore innovative perspectives on existing customer relationships

Successful companies took actions not taken by others



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Where do we go from here ?

Economic cycle is moving as expected

Recession will end and growth will return

Latest economic forecasts for Irish GDP growth in 2011:

PwC Irish Economic Outlook March 2010 1.8%

ESRI Spring 2010 Quarterly Commentary 2.5%

Central Bank April 2010 Bulletin 2.8%

IMF World Economic Outlook April 2010 1.9%

So.

Time to start planning for the upturn.



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Challenge your business model

Shift the leadership focus towards growth

Challenge your high-performing talent

Categorise revenue opportunities

Reshape supplier relationships



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Invest in the product/service portfolio

Target growth industries and markets

Refresh your acquisition list

Use market intelligence to identify

opportunities early

Create your upturn plan and team



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Navigating the upturn Structure of an upturn plan

Key Areas:Top Talent

Access tocapital Leadership Strategy

Products,

resources andcapability

Objectives

to consider:Retain, attract,

incentivise

Working

capital,

acquisitions,

expansion

Strategy,

engagement,

capacity

Competitive

intelligence,

existing

customers,

acquisitions

Equipment,

people, supply

chain, information

systems

Prompts: Have you assessedyour short-term andlong-term resourceneeds ?

Are you positionedto attract top talentfrom your

competitors ?

How will youcommunicate yourupturn plan to yourpeople ?

What are yourforecasted capitalneeds for theshort, mid andlong term ?

Are you wellpositioned to

access additional

capital ?

Have youassessed andoptimised internalsources ofcapital?

How much timedo you plan tospend on growth vcost containment?

How would youdesign thecompetitor you

would always

fear?

How will youencourage yourstaff to bringforwardsuggestions ?

What are youdoing to earlyidentify upturnopportunities ?

Do you havecriteria for anyacquisition

considerations ?

Have youidentified andclosed all cross-selling gapsamong yourexistingcustomers?

Do you have the rightresources to takeadvantage of theupturn ?

Have you imaginedthe product/servicethat a competitor

could launch this year

that would severelydisrupt your business?

Have you asked yourcustomers andsuppliers how do youthink we could run ourbusiness better ?


how to be the breakaway company in the upturn (presentation one)

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