The choices for growth or survival within a specific industry are varied.   There are many forces facing industries - globalisation, technology, regulation and deregulation are just some examples.  In the face of these challenges we have seen diverse responses from a variety of industries - such as an increasing number of marketing alliances in the airline industry and a wave of mergers within financial services.  These actions are the strategic responses of companies that realise that they have to do something in order to ensure their future business success.   Information on how Foton Consulting Group can help you respond to industry challenges click here.

These constant challenges mean that organisations have to make strategic decisions to ensure continuous corporate performance.  The changes to the market brought about by these forces mean that failing to react or responding inappropriately can be catastrophic.  Foton Consulting believes that it is possible for CEOs to drive these changes rather than be driven by them.  This can be achieved by understanding which elements of industry structure most influence corporate performance, crafting an agenda to focus management attention on the most effective levers within this structure and by developing the organisational capability to follow this through.

Importantly, deal strategies should not be built reactively - undertaken 'because my competitors are doing it' or opportunistically - 'it seemed like a good idea and someone else would have snapped it up'.  Without a clear understanding of how their corporate performance is influenced, organisations run the risk of pursuing the wrong strategy.

Is the deal right for you?

A simplistic way to look at how a deal might fit your organisation is to consider:

• Are cost or revenue synergies sought?

• Is the function a core competence of the organisation? 

It is important to ensure that the type of deal is understood fully before attempting to undertake it. Each has its benefits when used appropriately, but equally there are pitfalls to be avoided, for example:

• Acquisitions do provide potential higher reward opportunities, but they are more risky than organic growth

• The time to take a new product to market can be decreased if the parent organisation has an established brand name

• Divestments can be an excellent route for generating funds for alternative investments and can free up significant management time

• On the other hand, poorly handled divestments can make customers feel deserted, staff feel betrayed and affect supplier relationships.  

Implementation is key

Successful implementation of the chosen deal is the most vital step to ensuring future success.  To ensure this is successful there are certain key steps to be followed at each stage of the process.  At the pre-deal stage a significant amount of research is required to validate the strategy and identify targets.  The 'doing the deal' stage covers all aspects of negotiations, from due diligence to setting up post-deal program management and communications.  Implementation itself should take place over the short and the longer term.  Over the short term, 'quick wins' and 'must haves' are implemented to ensure a single organisational model.  Long term, the vision is fully realised and the organisation has the ability to develop capability to ensure long term growth and to enable future deals to be handled more quickly.

  Management consulting
          Strategy
          Corporate development
          Globalisation
          Risk assessment and management
          Government and regulation
          Public affairs

Contact Us

To learn more about how our practice can help your organisation, please contact:

Jeff Portelli on 041 8800 999 or Int'l +61 41 8800 999, or
 by e-mail at info@foton.com.au