The following list represents the Key Service Objectives (KSO) for the Appleton Greene Transitional Growth service.
In order to grow we must change, change in a moment of big ferment, like in this particular historical and economical time is a must. For many years a Darwin thought has been a big part of my philosophy of life and business: it is not the strongest species to survive, but the one that is the most adaptable. Too rigid structures, sales model unfit for new markets, slow response, excessive procurement and distribution costs that do not permit to survive in a complex, ever changing and constantly in transition context. A structural, distributing or organizational change has to bring the Company to a more flexible and elastic in front of the demands of the market that are always different and modified by the quickest impulses of this liquid society. For this reason I take the Company by the hand through a revision that can have a perimeter as large as the need of this change. An offer that does not match the markets fuels a challenge made of innovation, inventions and rejuvenation. The excessive slowness in responding will determine the need of questioning and restructure the whole chain of procurement, production and distribution. It will touch eventually also marketing and sales, will face global themes and will give substantial answers based on innovation, the replicas of winning models and the adoption of new instruments. The need to cover always bigger areas without going bankrupt because of unbearable costs will determine other changes: distribution model, local partnership, roles empowerment and people‘s growth in the fields. These are only examples of possible changes, born out of the spur towards modern formulas, evolve the Company vision and live thanks to the realization of structured strategic plans well defined in time; they involve people, recognizing them a determinant role for the success of the plan, conquer step by step relevant target, spread motivation and enthusiasm. Change to grow means to add up, never to take away. There are six sequential passages with which I take Companies out of their dysfunctional comfort zone towards a new zone of profitable and safe action: Change definition, Scenario planning, Organizational structure, Employee involvement, Change deployment & review.
To grow in constantly changing and complex environments cannot just be considered pure destiny. The factors to keep in mind are various and difficult to understand and separate. Only an international experience and an operational exposure in multinational Companies allows you to have a strategy that can became a winning tactics in the field. Starting from a matrix analysis of the present situation, I develop a tight cooperation with the Company aiming at to analyse all the possible scenarios. The strategic approach varies according to whether we need to develop a business in a geographic area where we are already present or we have to start afresh. If already present, the analysis weigh the penetration level, the quality of the territory coverage, the type of present model and correlated aspects whether successful or not. If we have to face the development of unknown geographies, the market will be the first source of information, then the analysis of competition and demand, the definition of Value proposition and the drafting of the business plan. The type of channel to use (direct or indirect) will be one of the difficult questions to be answered, pros and cons for each one, depending on each case; we need to take into consideration also a third channel, the Key Account one. One of the fundamental discriminant factor to take into consideration is to see whether we refer to new products and / or existing ones.
Mergers & Acquisition
Sometimes growth goes through strategic mergers and / or acquisitions that can send the Company shares to the moon or directly to hell. So to handle with care, we have learned to be extremely conscious with these kinds of operations because giants like HP and Compaq can make a major mistake and create a disaster. The creation of an Acquisition/Merge Team is one of the most delicate choices and is at the beginning of the whole process. It is a group of people chosen on the bases of how much they are able to support me by giving me precious internal information that I need to lead the Due Diligence Team. At first I need representative of every function so that together we will be able to analyse the general picture and the details that follow. Then having made all the due considerations on the bases of the Due Diligence, we will write a programme regarding either the merger or the acquisition process and we start the first internal communication campaign, aiming at realigning and programs. The first actions will have as a focus the internal climate of the Company, in particular the acquired company where the change process must be supported by actions, the objective of which is to consolidate the cooperation between the companies, pick up the contact points and facilitate the creation of a network that will function also from an interpersonal relations point of view. Supported by a favourite climate, the program towards the outside and the markets can start, following a roll out based on the capacity of a precise internal reply, the accessibility of resources and the return on the investment. In any operation of merger and acquisition my objective has been that of generating positive environments where the subject “us” is pivoting in the creation of a new reality.
Many are the reasons for which a Company may have the need of start a process of re-engineering, whether it comes from a request liked to the financial or fiscal asset or whether it is a case of merger and acquisition, or there is an ongoing process of structural change or the starting of new procedures. In any of these cases the approach that we have to follow is strongly objective, extremely practical and destined to re-start to inject vital energies in the Company. Very often the complexity of contex and the uncertainty of the scenarios impose to the Company structure to transform and to adapt. The perimeter of impact of a re-engineering process varies accordingly to the need that we have to satisfy: it could touch only a part or extend to the whole. Firstly I decide to coordinate a detailed analysis of any department and/or function, inter-functionality, efficient barriers and points of discontinuity, pointing out repeated processes, expandable roles and reduce able ones. The answers we obtain from this analysis must be harmonized, verified critically in a way that enables us to see the bud of the rebirth, in the respect of the potentiality of the resources, giving importance to the centers of excellence and the talents of the individuals. The conclusions that we draw must have an absolute pertinence with the values and mission of the Company, nevertheless ensuring the reaching of the separate targets of growth. The re-engineering proposition will be analysed in partnership with the Management and the Trade Unions or the BOD. The planning of the roll out and the training will be carried out with the support of the HR Department, and joints will be constantly monitored and revised till a complete re-start towards a maximum production capacity.
The start-up of a new business cannot be left to Fate, we cannot hope that having a good product or a great motivation success will be assured. The new companies have to face every decision being aware of the real opportunities and the present risks. In fact any start up represents a certain margin of risk, thus it is wise to evaluate attentively the dander factors and the real success probabilities. The risk analysis and the relation between cost and benefits, require serious technical and operative instruments. Planning and programming are the first two indispensable factors, while the tool is that of the Business Plan. A business Plan embeds a fundamental role in the life of the Company. This document summarizes, describes and justifies the strategies set up for the growth of the Company and defines its modality of realization. The document of economic programming aims at: informing in a transparent and clear way, orientating the Management choices, foreseeing the future development of the entrepreneurial project, evaluating carefully the risk factors. A Company is successful only if its founders have studied carefully the market, evaluated the competition, conducted a detailed analysis and planned with care the different phases of the launch and put in place of the project, calculating the necessary resources and possible profits. A Business Plan must also emphasize Key Resources and Value Propositions, indispensable for information and for the project well-being. It is fundamental to recognize the key resources so that we can protect them, evaluate them well and reduce the risk of losing them. To clarify the Value Proposition is also important to face the market at any time. Together with this, the magical ingredients for a successful star up are the presence of a strong leadership recognized by the team, a concentration of competences in that particular sector, high elasticity e lateral thinking, and last but not least, the ability of solving problems, mediate conflicts and renegotiate objectives.
The industry is more than 100 years old. It started in Germany and France, and came of age in the U.S. in the era of mass production. Vehicle volumes, efficiency, safety, features and choice have grown steadily throughout the industry’s history. It is so synonymous with 20th century industrial development, and so intertwined with its twin marvels, mass production and mass consumption, that it has been called the “industry of industries.” The automotive industry is a major industrial and economic force worldwide. It makes 60 million cars and trucks a year, and they are responsible for almost half the world’s consumption of oil. The industry employs 4 million people directly, and many more indirectly. Despite the fact that many large companies have problems with overcapacity and low profitability, the automotive industry retains very strong influence and importance. The industry also provides well-paying jobs with good benefits, has heavy linkages with supplier industries (which gives it an oversized role in economic development), and has a strong political influence.
All is not well in the automotive world. Worldwide, average margins have fallen from 20% in the 1920s to 5% now, with many companies losing money. This poor profitability performance is reflected in the industry’s market capitalization: despite its huge revenues and employment, the automotive industry accounts for only 1.6% of the stock market in Europe, and 0.6% in the U.S. There is a big contrast between the industry’s lackluster financial success and its oversized social role, share of employment and political influence. The overall performance of the industry can be traced to overcapacity and mature markets in developed countries. In the U.S., Europe and Japan, which account for 80% of world sales, growth has been stalling for many years. The natural response to slowing growth and increasing productivity is to reduce capacity. However, existing plants are very painful to scrap: mass production confers a strong cost advantage, which has traditionally encouraged very large and expensive plants. The result is excess capacity worldwide. Even continuing consolidation in the industry is not resulting in capacity reduction.
The world economy has experienced an enormous growth in telecommunication sector during the past 50 years. Yet the gap between the richest and the poorest countries has increased. There have been several attempts to explain the increased differences. Proponents of the endogenous growth theory claim that a technological revolution has created a new growth paradigm. Following the information technology revolution seen in the industrialised world in the 90s, information and communication technology has often been launched as a possible remedy for the slow or decelerating growth developing countries have faced. We need to explore the relationship between telecommunications development and economic growth by performing an econometrical analysis. By estimating a simultaneous equation model where telecommunication infrastructure investments are indigenised into the aggregated economy and country specific fixed effects are included, simultaneous causality and spurious correlation are recognised.
Analysis indicate that there is a significant correlation between telecommunication and GDP growth. Overall, there seems to be larger growth effects from telecommunication development in developing countries than in developed countries, a result that contradicts earlier findings and the notion of network externalities. The report suggests that the indirect effects, i.e. the gain in productivity that other sectors experience as a result of development in the telecommunication sector, are more significant in developing countries, and this might explain the large growth effects found in these countries. The demand, supply and production equations in the simultaneous equation estimation have the same tendencies throughout the analysis, with only small variations. That is comforting. I also ran the system for the early nineties and late nineties separately, and the trends were the same independent of time. Even though there are differences between the single and simultaneous equation estimations, the tendencies are the same: There are some growth effects from telecommunications, and these effects are highest in developing countries.
Manufacturing remains a critical force in both advanced and developing economies. But the sector has changed, bringing new opportunities and challenges to business leaders and policy makers. The global manufacturing sector has undergone a tumultuous decade: large developing economies leaped into the first tier of manufacturing nations, a severe recession choked off demand, and manufacturing employment fell at an accelerated rate in advanced economies. Still, manufacturing remains critically important to both the developing and the advanced world. In the former, it continues to provide a pathway from subsistence agriculture to rising incomes and living standards. In the latter, it remains a vital source of innovation and competitiveness, making outsized contributions to research and development, exports, and productivity growth. But the manufacturing sector has changed—bringing both opportunities and challenges—and neither business leaders nor policy makers can rely on old responses in the new manufacturing environment. Manufacturing’s role is changing. The way it contributes to the economy shifts as nations mature: in today’s advanced economies, manufacturing promotes innovation, productivity, and trade more than growth and employment. In these countries, manufacturing also has begun to consume more services and to rely more heavily on them to operate. Globally, manufacturing continues to grow. It now accounts for approximately 16 percent of global GDP and 14 percent of employment. But the manufacturing sector’s relative size in an economy varies with its stage of development. We find that when economies industrialize, manufacturing employment and output both rise rapidly, but once manufacturing’s share of GDP peaks—at 20 to 35 percent of GDP—it falls in an inverted U pattern, along with its share of employment. The reason is that as wages rise, consumers have more money to spend on services, and that sector’s growth accelerates, making it more important than manufacturing as a source of growth and employment. Manufacturing is not monolithic. It is a diverse sector with five distinct groups of industries, each with specific drivers of success. No two manufacturing industries are exactly alike; some are more labor- or more knowledge-intensive. Some rely heavily on transportation, while for others, proximity to customers is the critical issue. We have identified five broad manufacturing segments and analyzed how different production factors influence where they build factories, carry out R&D, and go to market.
The largest segment by output (gross value added) includes industries such as autos, chemicals, and pharmaceuticals. These industries depend heavily on global innovation for local markets—they are highly R&D intensive—and also require close proximity to markets. The second-largest segment is regional processing, which includes industries such as printing and food and beverages. The smallest segment, with just 7 percent of global manufacturing value-added, produces labor-intensive tradables. By 2025, a new global consuming class will have emerged, and the majority of consumption will take place in developing economies. This will create rich new market opportunities. Meanwhile, in established markets, demand is fragmenting as customers ask for greater variation and more types of after-sales service. A rich pipeline of innovations in materials and processes—from nanomaterials to 3-D printing to advanced robotics—also promises to create fresh demand and drive further productivity gains across manufacturing industries and geographies. These opportunities arise in an extremely challenging environment. In some low-cost labor markets, wage rates are rising rapidly. Volatile resource prices, a looming shortage of highly skilled talent, and heightened supply-chain and regulatory risks create an environment that is far more uncertain than it was before the Great Recession. A critical challenge for manufacturers will be to approach footprint decisions in a more nuanced way. Labor-intensive industries will almost always follow the path of low wages, but others, with more complex needs, must weigh factors such as access to low-cost transportation, to consumer insights, or to skilled employees. The result could very well be a new kind of global manufacturing company—a networked enterprise that uses “big data” and analytics to respond quickly and decisively to changing conditions and can also pursue long-term opportunities. Two key priorities for both governments and businesses are education and the development of skills. Companies have to build their R&D capabilities, as well as expertise in data analytics and product design. They will need qualified, computer-savvy factory workers and agile managers for complex global supply chains. In addition to supporting ongoing efforts to improve public education—particularly the teaching of math and analytical skills—policy makers must work with industry and educational institutions to ensure that skills learned in school fit the needs of employers.
Retail involves the process of selling consumer goods or services to customers through multiple channels of distribution to earn a profit. Demand is identified and then satisfied through a supply chain. Attempts are made to increase demand through advertising. In the 2000s, an increasing amount of retailing began occurring online using electronic payment and delivery via a courier or via postal mail. Retailing as a sector includes subordinated services, such as delivery. The term “retailer” is also applied where a service provider services the small orders of a large number of individuals, rather than large orders of a small number of wholesale, corporate or government clientele. Shops may be on residential streets, streets with few or no houses, or in a shopping mall. Shopping streets may restrict traffic to pedestrians only. Sometimes a shopping street has a partial or full roof to create a more comfortable shopping environment – protecting customers from various types of weather conditions such as extreme temperatures, winds or precipitation. Forms of non-shop retailing include online retailing (a type of electronic commerce used for business-to-consumer (B2C) transactions) and mail order. Shopping generally refers to the act of buying products. Sometimes this is done to obtain final goods, including necessities such as food and clothing; sometimes it takes place as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing: it does not always result in a purchase. The retailing strategy is a marketing plan abstractly designed to offer its products and services in a way that will optimize customer satisfaction. Service quality and marketing mix strategy have significant and positive association on customer loyalty. The marketing strategy effectively outlines all key aspects of firms targeted audience; demographic and preference. Throughout a highly competitive market, the retail strategy sets up long-term sustainability. It focuses on customer relationships, stressing the importance of added value and customer satisfaction. The retail mix is designed to complement the retail strategy through theoretical tools such as the product, its quality and value, the promotions, place, and price.
The design of a retail store is critical when appealing to its intended market, as this is where first impressions are made. It can influence a consumer’s perception of the quality of the store, visually communicating value. Certain techniques are used to create a consumer brand experience, which in the long run drives brand loyalty. The front of the store is paid close attention too, known as the “decompression zone” This is usually an open space in the entrance of the store to allow customers to adjust to their new environment. An open planned floor design is effective in retail as it allows customers to see everything. Depending on what side of the road cars drive on in the country, determines what way the store will direct its customers. New Zealand retailer stores for instances would direct customers to the left. Brands are now recognizing that human nature has a conceptual profile and a sensory profile. Through the notions of sensory stimulation retailers can engage maximum emotional impact between a brand and its consumers by relating to both profiles; the goal and experience. By achieving so it can influence purchasing behavior maximizing outcomes. This is done through the relation of touch, smell, sight, taste and noise. It is common for a retailer store to play music that relates to their targeted market. Jewellery stores like Michel Hill have dim lighting to creating a sense of intimacy. Super markets offer taste testers. Clothing garments are at arm’s reach, allowing customers to feel the different textures of clothing. Wooden floors also contrast with the carpeted fitting rooms, which is designed to create a sense of homeliness when trying on garments. ‘Peter Alexandra’ is renowned for their scented candles. These aspects outlined add to the sensory experience put in place to strategically achieve customer satisfaction and retention. This will create future opportunity and help a brand stand out in amongst the competitive market.
Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, over-the-counter drugs, processed foods and many other consumables. In contrast, durable goods or major appliances such as kitchen appliances are generally replaced over a period of several years. FMCG have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs, such as meat, fruits and vegetables, dairy products, and baked goods, are highly perishable. Other goods, such as alcohol, toiletries, pre-packaged foods, soft drinks, chocolate, candies, and cleaning products, have high turnover rates. The sales are sometimes influenced by some holidays and season. Though the profit margin made on FMCG products is relatively small (more so for retailers than the producers/suppliers), they are generally sold in large quantities; thus, the cumulative profit on such products can be substantial. FMCG is probably the most classic case of low margin and high volume business.
Monthly cost: USD $1,500.00
Time limit: 5 hours per month
Contract period: 12 months
Bronze service includes:
01. Email support
02. Telephone support
03. Questions & answers
04. Professional advice
05. Communication management
The Bronze Client Service (BCS) for Transitional Growth provides clients with an entry level option and enables client contacts to become personally acquainted with Mr. Chinaglia over a sustainable period of time. We suggest that clients allocate up to a maximum of 5 Key Employees for this service. Your Key Employees can then contact the consultant via email, whenever they feel that they need specific advice or support in relation to the consultant’s specialist subject. The consultant will also be proactive about opening and maintaining communications with your Key Employees. Your Key Employees can list and number any questions that they would like to ask and they will then receive specific answers to each and every query that they may have. Your Key Employees can then retain these communications on file for future reference. General support inquiries will usually receive replies within 48 hours, but please allow a period of up to 10 business days during busy periods. The Bronze Client Service (BCS) enables your Key Employees to get to know their designated Appleton Greene consultant and to benefit from the consultant’s specialist skills, knowledge and experience.
Monthly cost: USD $3,000.00
Time limit: 10 hours per month
Contract period: 12 months
Bronze service plus
01. Research analysis
02. Management analysis
03. Performance analysis
04. Business process analysis
05. Training analysis
The Silver Client Service (SCS) for Transitional Growth provides more time for research and development. If you require Mr. Chinaglia to undertake research on your behalf, or on behalf of your Key Employees, then this would understandably require more time and the Silver Client Service (SCS) accommodates this. For example, you may want your consultant to undertake some research into your management, performance, business, or training processes, with a view towards providing an independent analysis and recommendations for improvement. If any research and development, or business analysis is required, then the Silver Client Service (SCS) is for you.