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Delaware Valley Industrial Resource Center

Strategic Planning Service Overview

DVIRC2905 Southampton RoadPhiladelphia, PA 19154

The Navy Yard Building 100 Innovation Center

4801 S Broad St, Suite 100 Philadelphia, PA 19112

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About Our Process:

DVIRC’s Strategic Action Plan Has Been Constructed To help Grow Our Client’s Business Value.

As such, our plan is designed to help Businesses Experience: Growth in Sales, Growth in Profitability and Success in Execution.

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We Define Business Value As:

The most important business metric - the value someone is willing to pay for a business, even if you’re not currently selling your business.

A metric ALL owners should focus their limited resources/ investment dollars on toward value building activities.

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We Define the Components of Business Value as…

Management, Management, Management

Quality & Sustainability of Revenues &Earnings

Market Position and Environment

Capital Requirements Relative to Cash Flow

Quality of Systems and Controls

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Mapping Our Strategic Planning Process:

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Strategy Research

Voice ofCustomerMarket Validation

Market Opportunity User Needs

Market Planning& Rebranding

Situational Analysis

Goals & Objectives

Market Strategy & Tactics

Implementation Plan

Execution

Evaluation & Control

Sales Support

Market Positioning

Opportunity Scouting

Database Creation

Prospect Validation

Campaign Design & Outreach

Inside Sales

Market Feedback

100 Profiled Targets

200 Decision Makers

Market Diversification

Web Marketing

Pay-Per–Click Ads

Search Engine Optimization

Viral Networking

Social Media

Architecture

Design

Development

Maintenance

Tactical Support

Graphic Design

Newsletters

Email Management

Campaign Design &

Management

Market Launch

Database Screening /

Creation

Prospect Validation

Inside Sales Support

Sales Training

Project Management

Business Growth Solutions

LeadershipDevelopmen

t

OperationalExcellence

New Product Planning Export

Planning

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The Roll of Market Research In Strategy

In strategic planning it is highly recommended that components of Primary & Secondary Research be included as tools to:

Validate Perceived Organizational Strengths

Scout Out – Feasible Market Opportunities

Call out and/or Confirm Weaknesses & Threats

Define Competitive Landscape & Intensity

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Primary & Secondary Research can also help answer common Strategic questions like:

Where are we?

What do we have to work with?

Where do we want to be?

How do we get there?

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Research In Strategy

Using the right tools at the right time makes our projects more impactful. We keep the following in our Strategic Planning Tool Kit:

Primary Research / VOC- Current, Former & Prospective Secondary Research/ Data Analysis Category Analysis/ Boston Matrix Competitive Interviews, Competitive Analysis/ Five Forces International Perspectives on Growth Manufacturing and Technological Resources

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Are there any areas in which our company falls short when compared to other suppliers?

What, if anything, we can do to win more of your business?“They tend to be pretty arrogant, it's their way or the highway, so they are not very customer-oriented. It is not any one individual. It is just their company philosophy.” Rockwell Collins, John Smith, Head Engineer

Primary Research In Strategy

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When We Get Started, We Define What We have to Work With …

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BCG Matrix

RISING STARS

•Test equipment•Cable and harness assemblies (modular)•Small-profile, limited-part, repeatable assemblies (Rajant)•Engineering projects (finished goods)

CASH COWS

•Contract manufacturing of fully designed/documented products

DOGS

•Printed Circuit boards (through-hole boards in particular)

QUESTION MARKS

•Labview programming•PLC programming•Equipment maintenance and upgrades•SMT•UX-2400 (Rajant job)•Eng. service finished product builds•Service contracts (particularly small companies with high-tech needs)

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5 Forces/ Competitive Analysis

Supplier Power – Neutral

-Not insignificant number of suppliers

-Suppliers generally same size/somewhat larger

-Service(s) somewhat unique

-Relatively low cost of changing

Barriers to Entry – High-Entry requires capital equipment expenditures/significant financial backing

-Workforce is a blend of skilled, trained engineers/designers and semi-skilled workers

-Time-consuming (though not that difficult) to establish relationships with customers

-Technological requirements will barentry for most 

Threat of Substitutes – High-Cross-product substitution

-Buyer Rotation

-Online Bidding

-Technology Shifts

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We Deliver Key Market Insights

The innovative, niche players and those who are heavily financed take market share over those who live day-to-day

The Alpha Position is a result of giving the market what it wants faster and better than a rival supplier

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Client SWOT Analysis:

Threats•Considering the established, high level of customer service/support, new market expansions may leave current customers feeling left behind

•Key personnel represent much of the company’s strength; the loss of one/more could be catastrophic

•Growth could place strain on resources/capacity already spread thin

•Economic uncertainty threatens demand picture across multiple market areas

Strengths•Depth of experience and expertise enable EFE to engage across a wide range of project types

•Industry experience across a number of areas; enables EFE to offer meaningful support and understand opportunities

•Lean enterprise; manufacturing background offers real problem-solving capabilities

•Program management skills add further value

•Able to communicate with upstarts and Fortune 500 players

•Noteworthy quality/manufacturing standard compliance

Weaknesses•Existed for several years as an “arms-length” supplier; not able to properly exercise partnership capabilities

•Lack of on-site cleanroom limits manufacturing options with certain industries (semiconductor, etc.)

•Rapid growth in recent years has limited time to pursue new markets

•Lack of a focused marketing plan/staff

•Facility has limited room for growth, some dated equipment

Opportunities•Partner with regional startup ventures that combine promising growth and complimentary/aligned strengths with EFE’s senior management team

•Identify industries experiencing onshoring/reshoring; use primary research to select those opportunities that are most promising

•Leverage design-for-manufacturability skills

•Medical device, aerospace, and energy storage industries present areas of particular interest (favorable growth outlooks, require high level of engineering ability, key players are located in the region, etc.)

•Develop/acquire a new product line

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Typical Private Company Issues

COMPLETE FOCUS ON THE DAY TO DAY WILL KEEP YOU ALIVE BUT WILL NOT GET YOU ANYWHERE!

THE MORE THE BUSINESS DEPENDS ON THE OWNER, THE LESS VALUABLE IT IS.

PLANNING IS ONE THING, EXECUTION IS ANOTHER.

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What is Strategic Action Planning?

Strategic Action Planning is a disciplined approachto answer the following key questions:

Where are you going?

Where are you now?

What needs to be accomplished?

How do we get there?

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Day to Day Objectives

Do Better Use normal work systems Processes already exist Some improvements

needed Customer Driven

Breakthrough Objectives

Do DifferentNormal work systems won’t do the jobAdequate processes don’t existNew ways need to be discoveredExceed customer needsBetter than competitorsLeader not follower

Creating Breakthrough Transformation

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Benefits of the Strategic Planning Process

Creates a vision of the future that inspires

Develops buy-in and accountability from key leaders.

Provides professional, written plans to all team members that are easy to modify when the situation changes.

Yields an implementation plan that helps communicate the plan to others and serves as a guide to monitor progress.

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Process Overview: What to Expect The Future State (1/2 day)

Develop the Vision Themes and Vision

Identify the Major Changes Desired between now and 2014

Discuss The Responsibility of Leaders

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VISION QUESTION

IT IS DECEMBER 2014, AND WE ARE VERY PLEASED WITH THE SUCCESS OF THIS BUSINESS. WHAT DOES IT LOOK LIKE AND HOW DID WE GET THERE?

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Vision Specifics

Cash Flow

Sales

Productivity

Assets

Today 2014

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Process Overview: What to Expect

Current State and Gap Analysis (1 day)

Do an analysis of Strengths, Weaknesses, Opportunities, Threats

Identify Core Competencies

What you do today and for who

Identify and prioritize gaps between current and future state

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2 1 Gaps

2 2 Launch China – Jim/Chris

6 6 6 Management Direction & Planning (business focus)

1 2 Generate Cash Reviewing Overhead and Setting Short Term Goals – Nina/Chris

3 1 1 Cash Infusion –Tony/NinaBroaden SRS Markets – Jim/Tony

4 3 3 Sales and Marketing Plan – Jim/Tony

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Find new customers

Develop new products and color services

4 Determine Open Capacity (machine utilization)

5 6 Improve RM SourcingDevelop a Lean Culture

3 Develop a Strategy for Building ExpansionGet Away from Batching Ecofast

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Process Overview: What to Expect Build Policy Deployment Matrices for Year One. (Three days)

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Process Overview: What to Expect

Several Hours Every Six Weeks for One Year:

Follow-up that the plans developed are being implemented

Make Adjustments as Necessary!

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Scalable.

Trainable.

Easily Outsourced.

Rapidly Expanding.

Value Priced By Design.

Scopes Out Opportunities.

One of the best ways we have found to quickly engage clients at senior levels and remain engaged with them throughout their growth planning.

In Closing; Our Strategic Services Are...

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Thank You!!!