Corporate Strategy

Where we want to be?

(2015)
• ~500 crore T.O

Where are we now?

(2010) Huge & Sustained Growth
Required over the next 5 year
• ~100 crore T.O
period

It’s critical at this juncture for Faber Castell to have clearly defined Corporate
Strategies to growth at the expected rates & also pre-empt internal, industry &
environmental challenges with proactive strategic action
Through the following slides the purview of reach of corporate strategy & it’s
benefits to our organization is highlighted.
Corporate Strategy

• Those strategies concerned with the broad and long-

term questions of what business(es) the organization is

in and what it wants to do with those businesses

Defining the Corporate Strategy

Responsiveness (Reliability; Quickness; Flexibility;

e.g., Dell, Overnight Delivery Services)

Competitive Advantage through which

the company market share is attracted

Cost Leadership (Price;

e.g., Wal-Mart, Southwest
Airlines, Generic Drugs)

Differentiation (Quality; Uniqueness;

e.g., Luxury cars, Fashion Industry,
Brand Name Drugs)
Factors affecting Corporate Strategy
• External
– Emerging strengths and weaknesses of competitors => new
threats and opportunities, respectively
– New industry entrants
– Development of substitute products
– Development of new technologies
– Legal developments (e.g., environmental concerns and
regulations)
– Economic and political developments (e.g., new international
agreements, political crises)

• Internal
– Company politics and restructuring
– Modified relationships with customers and suppliers
– Product Life Cycle
 Strategy and Issues during a Product’s
Life
Introduction Growth Maturity Decline
• Best period to •Practical to •Poor time to change •Cost control
increase market change price or image, price or critical
share quality
quality image
•R&D engineering •Strengthen •Competitive costs
critical niche become critical
•Defend market Sales
position

Time
• Frequent product •Forecasting •Standardization - •Little product
and process critical minor product differentiation
changes •Products and changes •Overcapacity in
•Short production process reliability •Optimum capacity the industry
runs •Increase capacity •Process stability •Reduce capacity
•High production •Shift towards •Long production and eventually
costs product focus runs prune line to
•Limited models •Enhance eliminate items not
•Attention to distribution returning good
quality margin
Porter’s Value Chain
 Corporate (and International) Strategies

• Three directions for corporate strategy

– Growth
• M&A , JV, and SA (external growth)
• International (internal growth)
– Stability (internal growth)
– Renewal (internal growth)
• Retrenchment
• Turnaround
• Increase the four capabilities via core competencies
 Types of Growth Strategies

International Concentration

Organizational
Growth

Diversification Vertical Integration

•Related Businesses Horizontal •Related Businesses
•Unrelated Businesses Integration: •Unrelated Businesses
Along Value Chain
 How does it fit together?
Vision Direction and Strategies:
Vision External and Internal
1st Direction Strategies
(Corporate & Business)
Business Imperatives:

2nd Year
Year 2009
2009 Globalization
Globalization
Success
SuccessFactors
Factors (External
(External Growth)
Growth)

Capabilities: Strategic
Improvement in
3rd the four Capabilities via Core Alliances
Competencies along (External and/or
Value Chain Internal Growth)

Future
Future Work
Work Trends
Trends
Barry A. Macy, Successful Strategic Change, Berrett-Koehler Publishers, San Francisco, CA. (forthcoming)
 21st Century Organization Strategies for Growth and Profitability
Multi-International: One Consumer Products Company (Corporate Level)
Demand Side Strategies: Supply Chain Strategies:
Global Scope Streamline and obtain
A Seamless Supply Chain/
Consumer Promotion Driving Funding Demand Side (Value Chain)
Integration
3600 Marketing
Growth (8) Growth (5)
Use of Technologies
Superior Knowledge of to create Cost Savings
Customers/Consumers
Creating the
IS/SAP/
Best Place Consolidated
Coverage of Trade
To Work (10) Partnership
Strong Alliances/ HPWS Move to “Global”
Partnerships Vision Direction: Guiding And “Local” Regional
with Customers Core Values, Philosophies, Principles, Business
Mission, & Others
Focus on
Acquisitions/JV’s Product
Shared Leadership, Coaching & Feedback
Quality
Lean & Flat
Structures Horizontal, Structures, Systems, & Processes:
Innovative New Integration/communication/coordination
Community
Products/Services
Involvement
Empower Stimulating
Regionalization Recognition & People Careers
With Local Control Financial Rewards
Source: Barry A. Macy, Successful Strategic Change, Berrett-Koehler Publishers, San Francisco, CA (forthcoming)
Overview of Strategic Action Points for
Faber-Castell
• Developing & Implementing cross vertical Growth Strategies
• Developing processes based on best practices across various regions &
also other countries (Faber Castell doing exceptionally well in many
countries, and learnings could be gathered & implemented)
• Developing & Capturing KPIs – lead & lag indicators
• Developing Automation Systems
• JVs / Acquisition
• Industry analysis
• Balanced Score Card
• Rewards & Recognition
JD of Corporate Strategy Leadership
Profiles in other firms
Position Purpose:
The Director, Corporate Strategy will help define, develop, articulate, implement and communicate the long term CME
Group corporate strategy, will lead the development of specific strategic initiatives. In collaboration with other members of
the Corporate Strategy team, this individual will interact heavily with the Management Team, the Strategic Steering
Committee of the Board of the Directors, and the full Board of Directors on issues related to refining and implementing the
corporate strategy, long term business plans and vision, and corporate growth and value creation plans.
Responsibilities:
• Proactively identify strategic alternatives that can create growth/value for the company with particular emphasis on our
international, OTC and new lines of business. Drive and own these alternatives through the approval of Office of the CEO
(“OCEO”), Management Team, Strategic Steering and Board of Directors.
• Engagement in driving the development and refinement of both the overall corporate strategy and key aspects of the
strategy. Ability to develop measures for assessing progress against that strategy and for help evolve our thinking around
both the elements of the strategy and measures of success.
• Provide strategic and critical thinking in identifying and addressing issues that will have a major impact on the company's
performance. Stay abreast of strategic issues impacting the Company and Industry and proactively offer analysis and insight
to executives
• Depending upon the individual, oversee the detailed plan for the annual Management Team Planning session and Board of
Directors Strategic Planning Offsite session. Oversee development of meeting design, pre-reading materials, presentations
for the agenda, identify and engage one or more keynote speakers, oversee coordination of all logistics for the event.
• Identify research and provide context and analysis about strategic issues and changes in the strategic business
environment of CME Group. • Recruit and manage other corporate strategy professionals.
• Work collaboratively with the functional heads, regional heads, and business development groups on building long term
plans for their respective businesses, and work collaboratively with the research and product development and product and
services groups on various growth initiatives
• Collaborate with the Finance and Business Development organization to link corporate and financial strategies, and to
assess CME’s performance against competitive, capital market and other external benchmarks.
Job Description
The Director, Strategy, will be a key individual of the strategy team with a high level of visibility to senior management. He or she
will work closely with Head of Strategy, Corporate & Institutional Services to develop and implement the division’s strategic plans
and initiatives, collaborating with region and segment heads globally.
Knowledge/Skills-Strategic thinker with strong analytical problem solving abilities
-Outstanding written and oral communication skills
-Strong interpersonal and influencing capabilities, including coaching others
-Deep sense of personal integrity
-Executive presence with the ability to develop a rapport with colleagues and clients
-Comfortable with ambiguity around assessing new business opportunities
-Business analytics experience identifying opportunities and developing business cases
Major Duties-Help develop and implement the division’s strategic plan, collaborating with region and segment heads throughout
the business.
-Evaluate strategic partnerships and acquisition opportunities, including financial modeling, with members of cross-functional
global teams
-Conduct market research, business analytics, and competitive intelligence, including detailed analysis around pricing strategy
and client servicing
-Support and coordinate a broad range of functions, including Marketing, Sales, Client Service, Consulting, Product Management,
Finance, and Risk Management to execute strategies and maintain alignment with corporate and division strategy

Across all of these activities, the Director, Strategy & Marketing will be expected to:
-Take a lead role in problem solving, structuring and executing analyses to support actionable deliverables
-Manage cross-functional projects, including regular communication with key stakeholders
-Leverage internal and external resources for research and analytical support as needed
-Develop professional expertise while learning the key aspects of the job
-Provide leadership and guidance to staff, fostering an environment which encourages employee participation, teamwork, and
communication.
-Determine staffing needs, makes hiring and firing decisions, handles salary administration, and ensures resources are available
to accomplish priorities.
-Develop budgets and manage expenses
Responsibilities:
Lead process improvement initiatives to ensure activities are being communicated, understood and supported within the
organization. Provide leadership and coaching to ensure participation and buy in from departmental leadership in order to sustain
improved processes;
Develop short-term and long-term strategic business goals through industry research, trends analysis, and competitor
accomplishments;
Participate with senior leadership in the strategic development of initiatives to identify product and system enhancements which
may improve client appeal, process flow, and overall Company business function, industry reputation and financial performance;
Create and present to executive management, business plans and high level reporting to support leadership decisions.

Job Requirements:
BA/BS degree or equivalent experience, Masters degree preferred;
Data analysis background coupled with 8+ years of strategic product development and/or operational responsibilities required;
Proven ability to quickly grasp new concepts, plan work and execute projects in a fast pace environment;
Ability to communicate at the executive level and present to senior and executive management;
Proven ability to work consultatively to identify and implement process and/or technology improvements and drive those to
successful conclusion;
Strong business analytical skills (high level process mapping, complex modeling, etc.); and
Advanced knowledge of Microsoft Office Suite including Excel, Visio, Project, Word and PowerPoint.