Acknowledgement

I take this opportunity to thank our respected professor, Mr. Oscar DSouza for identifying this topic of my work, providing me the guidance throughout the project and finally, providing me an opportunity to present my work to him. His guidance helped me in designing the methodology and correcting my decisions about the work.

I would also like to thank Dr. Indu Niranjan for her continued guidance and help to complete the project in time.

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Contents

0. Reminder of the strategic planning process

a. Top-down & bottom-up topic identification b. Market & competition analysis c. Performance analysis d. Document preparation

1. Strategic Dialogue preparation

We want to define, implement and follow-up strategy

2. Strategic Dialogue meeting

3. Strategic Initiatives preparation

4. Strategic Initiatives meeting

5. Strategic plan preparation & initiatives finalization & integration

6. Strategic Plan submission

7. Financial Plan submission

8. Strategic Initiatives follow-up (KPI dashboard)

Appendices: Strategic Plan summary template and market evaluation documents

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Approach and objectives of the evolved strategy process (1/2)

General approach

1. ITS A DIALOGUE, A CONTINUOUS PROCESS THROUGHOUT THE YEAR

The Strategic Dialogue Meeting is a meeting about issues & insights on the local market

2. ITS ABOUT STRATEGY

In order to foster a strategic, longer-term perspective and to get enough time to consider strategic alternatives and proper definition of initiatives for integration into 3y plans, meeting is separate from Finance Plan Review.

3. ITS ISSUE DRIVEN

Pre-work done to identify strategic risks & opportunities

4. LEADS TO INITIATIVES, WHEN APPROPRIATE

The objective is to make decisions on strategic actions and identify topics/activities that need to be initiated to capture a strategic opportunity or counter a strategic risk

Initiatives, objectives, and ambitions are estimated, and initiatives are scoped and resourced appropriately for success

5. ITS FACT-BASED AND DOCUMENTED

The dialogue sessions are supported by information (fact-pack) that includes competitive and market environment information to ensure an in-depth discussion on a limited number of strategic issues

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Approach and objectives of the evolved strategy process (2/2)

Main objectives

Enable the business leaders to have a substantial dialogue on most critical strategic opportunities and risks and understand issues the B.U./ segments are facing Surface key entities strategic topics, and allow for exchange

Prioritize research and project work and launch initiatives that will be incorporated into 3 year plans Properly link activities into longer-term financial plans

Objectives of the strategic dialogue meetings in December:

Spend quality time with senior management to advance strategic thinking Focus senior management on the top 4-5 strategic business unit opportunities and risks May include existing issues Proactively contemplate longer-term (3 10 year) strategic opportunities and risks focus on new learning Agree on facts and select a course of action for each topic

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Contents

0. Reminder of the strategic planning process

a. Top-down & bottom-up topic identification b. Market & competition analysis c. Performance analysis d. Document preparation

1. Strategic Dialogue preparation

How can we prepare for the Strategic Dialogue ?

First well have to identify the key strategic topics for our business unit

2. Strategic Dialogue meeting

3. Strategic Initiatives preparation

4. Strategic Initiatives meeting

5. Strategic plan preparation & initiatives finalization & integration

6. Strategic Plan submission

7. Financial Plan submission

8. Strategic Initiatives follow-up (KPI dashboard)

Appendices: Strategic Plan summary template and market evaluation documents

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Step 1 Strategic Dialogue Preparation

1-5

Prepare and update strategic plans of entities*

2 3 4 Strategic 5 Strategic Plan

Step

Strategic Dialogue Preparation Initiative s Meeting

Strategic Dialogue Meeting(s) & Initiatives finalization

Strategic Initiatives Preparation

Strategic Plan Submission

Financial Plan Submissi on

Fact Based Issue Identification

Objective

Previous year performance analysis Prepare the strategic and financial information needed to uncover and evaluate strategy options for each topic

Key opportunities/risks Identification

and Prioritization

Preparation of strategic dialogue meeting: explore strategic options of 4-5 selected topics
4 Key

Participants

4 Key

Execs from EXCOM

4 Key

Execs from EXCOM

Execs from EXCOM

Output

List of 10-20 potential strategic opportunities/risks

Selection of 4-5 strategic opportunities/risks Ideally covering the full business perspective Focus on new issues

Supporting document for Strategic Dialogue Meeting 1. Summary of market, competitors situation 2. Framing of strategic issues/opportunities 3. Assessment of possible strategic actions

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A preliminary top-down & bottom-up topic identification is key to list opportunities & threats

Top-down approach :

Interview top-executives (operational and functional) of your business unit to identify key topics for the Strategic Planning Process (i.e. interviews/brainstorming can be done through a Strategy Offsite meeting)

Long-list of identified opportunities and threats

Bottom-up approach :

Interview selected operators of your business unit to identify key topics they feel impact or will impact their activities the most

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Contents

0. Reminder of the strategic planning process

a. Top-down & bottom-up topic identification b. Market & competition analysis c. Performance analysis d. Document preparation

1. Strategic Dialogue preparation

How can we prepare for the Strategic Dialogue ?

Now well have to evaluate and analyze the Food & FM markets

2. Strategic Dialogue meeting

3. Strategic Initiatives preparation

4. Strategic Initiatives meeting

5. Strategic plan preparation & initiatives finalization & integration

6. Strategic Plan submission

7. Financial Plan submission

8. Strategic Initiatives follow-up (KPI dashboard)

Appendices: Strategic Plan summary template and market evaluation documents

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Market and Competitor Analysis

Comments :
FY07
E EXAM PL
Self-operating
2 416 68 %
1 115 32 %

Main country/zone facts and figures

Food market (FY08 vs FY07)

X% Y%

X% growth of the outsourced market and Y% growth of the total market (vs FY08)

FY08
Subcontracted market
RSM (33 %)
B&I 3 531 B&I 3,531 33% -

EXAM PL
Self-operating
2 416 68 %
1 115 32 %

E
2,1% 2,416 68% Ed. 447 Education 4%
447 (4 %) Healthcare 3 411 (32 %) 843 25 % 201 45 %

Country data : Eldorado

Subcontracted market
RSM (33 %)
-

Size (km): Population: Population growth:

843 25 % 201 45 %

9,984,670 sq km (17x France) 32.6 million +0.83% 60% of the population is concentrated in urban areas
Acute 3,411 32%
Senio rs 2 895 (27 %) 14 % 413 14% 413

B&I 3 531 B&I 3,531 33%

1.7% 1,115 32%

2,416 68% Ed. 447 Education 447 (4 %) 4% Healthcare 3 411 (32 %) 843 25% 2,568 75%

1,115 32%
246 55 % 2 568 75 %

246 55 % 2 568 75 %

2,1%

1.7%

Population density: Age structure

Seniors 2,895 27%

Acute 3,411 32%

2 482 86 %

843 25%
Senio rs 2 895 (27 %) 413

2,568 75%
2 482 86 %

2,1%

1.7%

1. Market evaluations should be an ongoing process (submissions to Group in March and September)
0-14 years: 16.3% 15-64 years: 68.8% 65 years and over: 14.9% 17.95 million 6% Consumer prices: 2.1% Food: xx% $1.266 trillion $38,400 2005: 2.9% 2006: 2.7% 2007 (F): 2.5% 2008 (F): 3.0% C$1 = 0.68 C$1 = USD0.93
Total marketTOTAL size 10 697 10,697
-

2,482 86%

Seniors 2,895 27%

14 % 413 14%

2,482 86%

2,1%

1.7%

Labor force: Unemployment rate: Inflation rate: GDP PPP: GDP PPP per capita: GDP growth
Others 413 4%Defense 261
(2 %) -

2,1%
100 %

1.7%
(2 %) 100 %
3 873 36 %

Others 413 4%Defense 261 6,824 64%

6 824 64 %

3,873 36%

Total marketTOTAL size 10 697 10,697

3,873 36%

3 873 36 %

6,824 64%

6 824 64 %

2,1%

1.7%

Comments on FY07 evaluation: Sound understanding and knowledge of the food market in all segments, except in education, due to .

Exchange rate

Comments on FY08 changes vs FY07: Food market size comparable to France or UK Outsourcing rate still below Group average However, outsourcing rate increasing rapidly at a pace of Change in scope of Seniors market evaluation in FY08 to include xxx sub-segment .

Source : CIA World Fact Book

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2. These evaluations should help you identify opportunities and threats in order to prepare the Strategic Dialogue 3. Ideally, you should use the templates from the Markets and Competitors Evaluation Process, that will also be part of the Strategic Plan 1. List main country facts and figures to describe the current economic and social environment of your market
Competition Food (2/2)
Noticeable developments, trends, strategic moves, etc.
Markets

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2. For Food and FM, size the market in order to show which segments are the most important and how subcontracted they are
Average number of students in city X private universities are about 3,000 students
EXAM PL E

Competition Food (1/2)

Competitors

Summary

Market shares 2008 (%)

Top 4

M Organic Revenues development of top 3-5 players 700 (2006-2008)

Private Universities sizes in Regions A, B, C & D (06)

600

SDX

Top 2

Top 3

B A 5% 7%

Z 10%

SDX 33%

Comments:

500

400

Corporate Services

Competitor xyz is pursuing an aggressive acquisition strategy and has consolidated its market share over the past 3 years from X% to Y%

Average Number of Pupils per School in Eldorado, thousands people (previous FY) Total Public Private Region A City A City B 0.44 0.19 0.47 0.19 0.11 0.10

Average Number of Students per University in Eldorado, thousands people (previous FY) Total Public Private

300

200

100

Healthcare
2007 2008

Y 16%

Competitor xyz is pursuing the HC segment aggressively over the past year with an IFM offer centered around Outsourcing rate is expected to increase by X% over the next x years, due to opening of the sector

5.40 5.10 City C City D 0.18 0.35 0.18 0.37 Region B City E City F 0.47 0.31 0.51 0.31 Region C 0.07 0.12 4.94 6.13 0.10 0.09 7.08 4.71

8.26 13.40 8.20 9.41

3.04 0.95 2.60 1.59

2006

X 29%

ubleMarket shares development of top 3-5 players Do (%)

Top 4

SDX Growth Top 2 rates es 3 Top s fil (%) en xl Top 4 to op click

% % % %

% % % %

Education

The education market will be opening up due to the government initiative to introduce all day schools in the western part of the country, total market potential estimated at X bn. by 20XX

First bottom-up approach leads to 20 private universities: City A Institute of Law University of Modern Art City A National University City A University of Business Accounting and Audit

70

Operating profit development of top 3-5 players (2006-2008)

7.98 7.80

1.22 2.80

60

50%

100%

SDX

Top 2

Top 3

Seniors

Seniors at home market developing with an estimated market potential of Y bn.

50

40%

80%

40

30%

60%

30

Defense

City G City H

0.37 0.30

0.37 0.31 Region D

0.15 0.07

5.34 7.10

10.85 10.47

2.20 1.77

20%

40%

20

10%

20%

10

0 2007 2008

% % % % % % % %

0%

0%

2006

Prision business opening up due to PPP introduction by the government, total market estimated xyz bn

City I City J City K

0.37 0.18 0.24

0.38 0.18 0.24

0.14 0.11 0.09

6.12 6.71 10.69

8.45 7.59 10.24

2.82 5.08 14.25

2004

2005

2006

2007

SDX

#2

#3

Top 3 concentration

OP margins (%)

SDX Top 2 Top 3 Top 4

% % % %

Crosssegments

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93

Not targeted by Sodexo Eldorado in the next three years

3 YEARS TARGET: 5 private universities in 3 years Average private university contract in City A of 3,000*220*0.3*6=1.2 M per contract Revenues of 6.0 M in 3Y Gross Profit of 15% Additional 1 Salesperson
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3. For Food and FM: Describe your current competitive environment with market shares today and their evolution, to show who your competitors are and how they have evolved

4. For Food & FM: Explain the main developments and trends on your local market, by segment; also describe the main developments in your competitive environment. This will help understand the data presented in the previous 2 slides.
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5. For Food & FM: explore, describe and detail new potential markets/segments or sub-segments that have been newly identified or reevaluated (e.g. focus areas from September Markets & Competitor submission to Group)
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