An example of an MNC pursuing growth across Asia through three dominant strategies:
Revenue goals
- Gain 3% market share through new store opening (Target €20m)
- New IT system expected to reduce costs by 10% and enable delivery of better customer service
Margin goals
- Increase gross margin by 20% (Target €12m)
- Increase proportion of premium customers
People goals
- Reduce staff turnover by 2% (Target €8m)
- Match market (4% expected) (Target < €10m)
- Reduce overtime (Target €10)
SG&A and Sourcing goals
- Not significant
Results delivered
| Strategy | |||||
| Revenue | Margin | People |
Total |
||
| Relative contribution of components | |||||
| Goal clarification |
5% |
10% |
15% |
||
| Reality confirmation |
35% |
15% |
5% |
||
| Option definition |
15% |
20% |
15% |
||
| Will commitments |
25% |
35% |
45% |
||
| Support structures |
20% |
20% |
20% |
||
| Total |
100% |
100% |
100% |
||
| Result delivered to PNB in Asia by each strategy |
€18m |
€13m |
€8m |
||
| (Compared to target) | €20m | €12m | €8m | ||
| Contribution of coaching to result |
1% |
4% |
15% |
||
| Tangible value of Executive Coaching |
€0.18m |
€0.52m |
€1.2m |
€1.9m |
|
| Cost of Executive Coaching | |||||
| Six executives @€60k for 12 months |
€360k |
||||