Corporate and Business Unit Strategy

  • Business Unit Turnaround: A major services company had a division that was “bleeding red ink.” Their customers were in the midst of a downturn and had cut back on our client’s services. The alternatives the client had considered were problematic. They either involved large losses for the foreseeable future or making deep cuts that could leave them poorly positioned to grow when the industry turned around. We were able to find some key areas where spending by the unit’s customers was countercyclical. Moreover, we were able to identify an implementation plan that built capability in those areas by leveraging existing resources, and in a way that would not cannibalize the client’s ability to take advantage of an eventual industry upswing. Within 15 months, the business unit’s bottom line was in the black.

  • Corporate Strategy: A mid-sized software and hardware company’s stock price was selling near its 12-month low and they asked us for help in understanding which of their businesses they should keep and which, if any, should be sold. We identified improved strategies for each business and, based on the improved strategies, recommended which to keep and which to sell. The revamped company sold within the year for 30% above its 12-month high.

  • Business Unit Strategy: A business unit of an oil and gas client was concerned that several key pieces of infrastructure were in danger of being marginalized. We employed Strategic Gaming and embedded real options analysis to understand how the client’s position in this infrastructure would be influenced by the actions of other players in the near future, and how the client could take actions to preempt, mitigate, or reverse any negative effects. The dynamic road maps provided to the clients clear strategic and tactical guidance for stakeholder engagement and for understanding what options should be pursued depending on key signposts. As a result, the client was able to be proactive, avoid certain marginalization, and significantly enhance value.

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