deloitte case challenge presentation
DESCRIPTION
My teams 2nd place presentation slide from the 2011 UMD undergraduate challenge.TRANSCRIPT
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KPSL GROUP BENEFITS STRATEGICFOCUS SOLUTION.
Alexander McCord
Brian Devlin
Evander Duck
John MacDonald
Manas Kulkarni
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Objectives•Improve the ROE of the Shareholders
•Stabilize Net Income at the Enterprise Level
•Build a Sustainable Competitive Advantage for
KPSL Group Benefits
Corporate Philosophy“Committed to Being the Best in Understanding
and Underwriting the Risks You Face in Your
Business and in Your Life”
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Focus on Both the Small and Mid-size
Market, but Outsource the Account
Servicing Component of the Value Chain.
Strategy 3:
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ROE Issues: Pre Tax Margin
Leading GB Firms Strong Pre Tax MarginKPSL GB Unit:
4.5% Below Average
19.8% Below Industry Leader
Regular Cost Over-Runs
High Cost Structure
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ROE Issues: Pre Tax Margin
Continued
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ROE Solutions:
•Outsourcing•Servicing Component
– Reduce Focus on Less Profitable Components of the Value Chain
•Redefining Focus•Distributing
– Highest Value Capturing Component
•Underwriting– More Focus on Strong Field Underwriting Process
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Negative Feedback Loop
Stabilize Net Income at the
Enterprise Level
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Stabilize Net Income at the
Enterprise Level
•Consistency in Costs and Revenues Income Stabilization
•Reduce Costs: Outsourcing
•Increase Revenues: Investment in IT, Entering Small Case Market
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Build a Sustainable Competitive
Advantage for KPSL Group Benefits
IT has high impact company performance•Currently an area of low competency
•Inflexible Systems
Entrance into small-case segment requires improved IT Systems•Lower Cost, More Efficient Way to Reach Customers
Continued
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Build a Sustainable Competitive
Advantage for KPSL Group Benefits
Partnership with Reputable Financial Institution•Well Capitalized
•Stress Enhanced Financial Performance (Weakness)
•Have Built in Customer Database for Enhanced Distribution to Reach Smaller Niche Markets
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Further Investigation
•Overall NewCon Strategy for Small-Case Market– Greatest Strength: Proprietary Service Technology Platform– Qualitative analysis of other expenditures
•Specific Functional Area ROI by Competitor– Particularly KPSL’s Weaknesses:
– Marketing– Information Systems– Product Development– Employee Development
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Final Reasoning
• Option 3 is Logical and Economical
Strengthens ROE
Stabilizes Net Income
Establishes Competitive Advantage
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THANK YOU FORYOUR TIME.
QUESTIONS?