Analysing Strategic Alternative
Every business enterprise can be expected to trace a business path in which, at some point (usually not a predictable one), essential elements of what appeared a well-functioning business plan cease to produce the desired results. At this point managers of the business are called upon to re-examine fundamentally all aspects of their business in order to re-orient the business along a new path.
These instances of breakdown in a business model often stress so many aspects of a business’s operating model that it can be difficult or impossible for existing management to adequately assess what the actual problems are, and to formulate corrective measures. Even management teams which are fully qualified for this type of challenge have nevertheless found the perspective of an external, disinterested professional advisor essential to the formulation of plans for change.
The firm has continuing experience over its history with just such assignments, typically referred to as strategic alternatives analysis. In this type of engagement, the firm is retained by the Board of Directors or owner to engage in a rapid assessment of a company’s competitive position, financial performance, management skill and depth, and business segment viability, in order to formulate a range of strategic alternatives designed to permit the comprehensive change that such stress points require.
We have handled strategic alternatives analysis assignments such as the following:
- Assessment of a new business initiative by a distribution company to become an independent designer/ manufacturer of the products in whose distribution it specialized, with resulting spiraling expenses, personnel crises, and alienation of its customer base.
- A highly successful packaging manufacturer, forced to allocate production of its industry-leading products among fractious competing customers, and in danger of losing major accounts as a result, was unable to find financing for additional production capacity in its home market, and needed a solution in place before a new buying cycle in its industry began.
- A successful and respected technology services firm, second in its domestic market, found its growth stalled when its partnership, divided by internal disagreements, could not agree as to the path to pursue to raise needed additional capital to continue the firm’s expansion.
- A dynamically growing, technologically innovative business services firm offering a unique suite of solutions to expand the reach of vital government services to the general public found its business stalled when its lack of marketing sophistication smothered initiatives to enhance the growth required to fund growth expansion.