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- Strategic Review & Capital Budgeting-

.:Harmonising the objectives of industrial groups
and their subsidiaries around credible strategic plans is a considerable economic growth lever but is still difficult to achieve. Mid-term forecasts determine whether groups can reduce the cost of capital and assess their development capacity. However, the communication of information from subsidiaries is often distorted by short-term incentives. Operational constraints are often incorrectly anticipated by executive committees and their reoccurrence may burden the success of strategic plans with debt.
From this point of view, "arms length" management may generate a lack of strategic flexibility and a risk of late discovery of problems, but at the same time it can improve communication. However, audits consume both time and resources. Conventional objective management instruments (budget, ROI) often result in penalising rigidity where uncertainty is high.

Our Strategic Review and Capital budgeting unit assists top managements with their strategic plan development:
  • Coordination of group/subsidiary discussions to define credible strategic plans
  • Preparation of group communications for analysts and investors in terms of expected results
  • Coordination of corporate discussions on the internal arbitration of investment choices.

 

Our speciality: we design and develop "tailor-made" models. In this way, the impact of value levers can be assessed through strategic plans and the group's accounts can be forecast.

  • Consolidation and definition of strategic plans submitted by the subsidiaries
  • Costing of variable cross-functional impacts for the group's subsidiaries on consolidated accounts
  • Comparison of various development options: arbitration on investment projects and their timing and transfer
  • Assessment and comparison of financing scenarios: indebtedness/signature credit.

 

Examples of work

  • Instrumentation of the strategic review for a multi-national group: Bus reports, definition tools for business plans and corporate account consolidation/definition/projection

  • Rationalisation of strategic management and improvement of the budgetary process for a diversified group