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AUTOMOTIVE PARTS SUPPLIER INDUSTRY :
Growth Strategy Development
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Client: |
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An
automotive parts supplier in search of a private equity partner. |
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Problem: |
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In
preparation for the pursuit of a private equity partner, the executives
of the business needed to align their management team to a strategy
for achieving revenue and profitability growth over the next five
years. Not having any formal approach or much experience in creating
business strategy, the leaders of the organization knew they needed
help to do it right. Pinpointing the most valuable and promising opportunities
for growth in the face of uncertainty and risk was critical to creating
confidence among managers and a prospective PE partner. Would their
new strategy be feasible to execute and worthy of their personal commitments
and investments? |
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Approach: |
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Working with the management team, Tunnell identified five distinct
growth strategies and evaluated each for potential revenue and profit
contribution, while also taking into account the uncertainty and risk
in each choice. By understanding the value and risk story for each
approach, a hybrid strategy emerged that maximized revenue and profit
while mitigating significant risks. |
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Results: |
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Established
a clear understanding of the best path forward to grow revenue and
profit over the next five years, and motivated the management team
to pursue that path. Documented this strategy with content, language,
and a format that quickly attracted the attention of prospective PE
partners, leading to a successful deal. |
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