We support clients in making their major decisions, by integrating strategy, economics and advanced quantitative analytics, including:
- Strategic and economic business valuation (based on value-drivers, strategic scenarios, uncertainties/risks, reducing biases in forecasting models, highlighting key management actions, and enhancing communications)
- Forecasting, target setting and gap analysis (esp. using uncertainty/risk modelling to highlight true realistic ranges of outcomes and the biases in base forecasts, understand the likelihood of attaining objectives; enhance communications with investors/stakeholders)
- Development and evaluation of strategic alternatives (facilitate internal processes and workshops, support with market/economic/internal research, analysis/modelling etc.)
- Business planning and portfolio optimisation (analytic approaches to achieving KPI objectives by deploying resources/capital in the most effective way, highlighting trade-offs, constraints, and required management decisions)
Depending on the specific situation, our analysis includes consideration of a number of factors such as:
- The long-term macro-context. This could include how key long-term issues (e.g. demographics, globalisation, climate change, sustainability, the energy transition, supply chain and manufacturing innovations) may affect a business
- The industry context: Each industry is different in terms of its underlying economic forces, its customer needs and behaviours, the competitive environment, product-market trends, the pace of innovation, and the threat of substitutes
- The business context: Each business has its own stakeholders, objectives, capabilities and culture, and these influence the nature of its competitive advantage
- The value-drivers: Whilst the high level value drivers always relate to items such as return-on-investment, growth opportunities, and the cost-of-capital, in practice businesses need to act at a more detailed level in order to influence these.
- Product profitability analysis. The creation of an understanding of the true economic profitability of each product can be an important component of value-driver analysis and optimisation. Product profitability must be understood within the context of how product mix actions would change corporate profitability, so techniques such as activity-based costing, constraint cost analysis, and joint costing are often indispensable.
- The identification of the specific action plans which are most relevant is a key point. Such actions could include the use of transactions to enhance the strategic position and value-creation potential. We can provide transaction opinions based on rigorous evaluation and analysis.
Our projects typically involve the building of bespoke business models that use advanced quantitative methods, such as risk/uncertainty- and optimisation-modelling, and modern techniques for data analytics, statistics and valuation.
The analysis aims to generate actionable insights to support key decisions relating to the optimisation and prioritisation of projects and resource deployment, executive action planning and so on.
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