Strategy is a System Concept Which Gives Coherence and Direction to Growth of a Complex Organization
The New Corporate Strategy (Igor Ansoff: "The Father of Strategic Management", 1988)
MSE-Listed Company: Dairy Industry (Dairy) - CapEx Budgeting
Mongoljin advised one of Mongolia's largest milk producers on developing its 2020-24 CapEx budget. The strategic consultancy delivered a thesis-caliber report, which included a fact-based, top-down analysis of the dairy industry at the Global, Asia and Mongolia levels that identified critical megatrends; furthermore, it identified cashflow improvement opportunities equating to 13% of total sales for the prior 7 years. The CapEx Plan also analyzed the existing product portfolio, evaluated new product investment opportunities, and force-ranked existing and new product opportunities using Absolute and Relative NPV - in order to construct a fact-based, product-portfolio investment strategy. Mongoljin also led multiple, business strategy training workshops for the senior management team, to facilitate strategic implementation.
Client Benefits: The Client received a critical strategic assessment, CapEx plan & budget designed to deliver 30% Return on Equity (ROE) without extra capital, concrete advice on improving cash flow, and senior management training in strategy.
Case Keywords: Strategic assessment; financial statement analysis; global, regional & national consumer trend analysis; ROE (return-on-equity); cash flow improvement; absolute & relative NPV analysis; product lifecycle; Rule of Three & Four (BCG); BCG Matrix; product portfolio investment & management; CapEx planning & budgeting
MSE-Listed Company: Dairy Industry (Eggs) - Financial Assessment
Mongoljin performed a Financial Assessment for one of Mongolia's largest egg producers (CapEx project sponsor), who sought to raise international project financing for a capacity expansion (CapEx project). Mongoljin inspected the primary operating facilities and performed a critical financial analysis of the company's financial statements, enabling the company to identify substantial financial issues that needed to be addresses before proceeding with international fundraising. Mongoljin also identified critical corporate governance issues that needed to be addressed in order for the company to improve its corporate governance controls and strengthen its appeal to foreign investors for the CapEx fundraising.
Client Benefits: The Client received a critical financial assessment of its financial position, guidance on improving its internal financial controls & financial reporting, and recommendations for improving its corporate governance processes.
Case Keywords: CapEx, international project finance, sponsor financial assessment, financial controls, financial reporting, corporate governance
International NGO: Meat Industry - Beef Supply Chain Economics
Mongoljin advised one of the leading International NGOs in Mongolia on the Economics of the Beef Supply Chain. The study combined large-scale primary data collection, in Mongolia, with extensive international secondary data collection. The fact-based consultancy utilized Applied Economics as the core methodology to analyze the data and provide insights.
Client Benefits: The Client received a thesis-caliber report (in English & Mongolian) that provided extensive insights on the macroeconomic trends and microeconomics of the Beef Supply Chain at the International and local (Mongolian) levels. In addition, the report contained a pro forma budget for beef feedlots that was tailored to the Mongolia marketplace.
Case Keywords: beef, livestock, feedlots, primary & secondary data collection, household survey, statistical analysis, supply chain economics, value chain analysis, applied economics, perfectly competitive markets, hypercompetition, SCP (structure-conduct-performance) Paradigm, Herfindahl Index, Concentration Ratio
Private Company: Meat Industry - Enterprise Assessment & Coaching
Mongoljin initially provided Financial Analysis, then subsequently, analyses of the Strategic Management and Operational Management of one of the leading beef producers in Mongolia. The consultancy identified a range of improvement opportunities in General Management, Marketing, Operations, and Finance to return the company to profitability and re-position the company to achieve a 20% ROE (return on equity).
Client Benefits: The Client received extensive and frequent executive coaching, in writing and in person over the course of a half-year, about how to return the company to profitability. Company-specific, coaching guidance totaled 250+ pages. The consultancy also migrated key business data from spreadsheets into a relational database to improve data management and data quality, as an interim step toward an MDM (master data management) enterprise architecture.
Case Keywords: FMCG, financial statement analysis, grand strategy (Daft, 1997), business strategy, functional strategy (marketing, operations, finance), functional management (marketing, operations, financial), accounting & financial reporting, cost accounting, product costing, data quality, relational database, MDM (master data management)
MSE-Listed Company: Farming - Resources & Capabilities Assessment
Mongoljin performed a resources & capabilities assessment for a commercial farming enterprise seeking project finance.
Client Benefits: The Client, which was under financial duress, received a strategic business assessment (English & Mongolian), based on its enterprise resources & capabilities. In addition, the Client received multiple coaching sessions on how to develop its enterprise resources & capabilities (the building blocks of strategy) and a multi-lingual, advisory report.
Case Keywords: agriculture, strategic assessment, resources & capabilities, financial statement analysis, project finance
Private Company: Retail Sector / Real Estate & Positioning Strategy
Mongoljin performed a global & national retail sector analysis, and developed a R/E centric strategy for a specialty retailer.
Client Benefits: The Client received a top-down, global & national retail sector analysis plus a retail positioning strategy.
Case Keywords: retail, FMCG, business strategy, strategic positioning, focus strategy, marketing strategy, market segmentation, marketing mix, customer survey, customer data analysis, real estate analysis, ROE (return on equity)
Private Company: Textile Industry - Production Scheduling
Mongoljin delivered a customized, production-scheduling solution to a bespoke manufacturer of high-quality textiles.
Client Benefits: The Client receive a customized, dynamic-production-scheduling solution, inclusive of software training, to enable quickly shifting production among different products / resources, while visualizing production capacity, human resources, customer delivery dates and future cash flows. The Client also received strategic business advice.
Case Keywords: textiles, bespoke manufacturing, operations, production planning, CPM (critical path method) scheduling
Global EPC Contractor: Steel Industry - Strategic Economic Assessment
The Consultant performed a Strategic Assessment of the potential for an Integrated Steel Industry in Mongolia. Mongolia has substantial deposits of the key inputs for primary steel. Nevertheless, decades after the fall of communism, Mongolia still lacks an integrated steel industry, including blast furnaces, hot & cold rolling, etc. The assessment demonstrated that while Mongolia possessed the raw materials for an integrated steel industry, it lacked the capabilities (managerial, technical, process, etc.) to develop and maintain its own integrated steel industry. Furthermore, given foreign investor sentiment, it was unlikely Mongolia could attract the US$ billion of CapEx required to finance the proposed megaproject.
Client Benefits: The client received a fact-based, realistic, strategic assessment of the potential for Mongolia to develop its own integrated steel industry, including a Mongolia-specific economic cost model for hot-rolled steel, an estimated Equity Cost of Capital, an estimated Debt Cost of Capital, and an estimated WACC (weighted-average cost of capital) for the megaproject. The assessment also benchmarked steel industry development in Mongolia vis-a-vis other Asian countries.
Case Keywords: applied economics, strategic assessment, economic cost, project finance, WACC, resources & capabilities
Private Company: Financial Sector - Marketing Strategy
Mongoljin developed an innovative marketing strategy for a financial institution's new investment products and services.
Client Benefits: The Client received a customized marketing strategy, which leverages the firm's competitive advantages in investment management. The net economics of the strategy will enable the firm to further outperform its competitors. The firm's Focus Strategy enables it to outperform ALL of its competitors listed on the Mongolian Stock Exchange (MSE).
Case Keywords: financial services, financial institution, investment products, marketing strategy, brand positioning, ROE
Private Company: Healthcare Sector - Market Entry & Operations/RE
Mongoljin performed an IVF market-entry analysis, and delivered operational improvements, for an established OB/GYN.
Client Benefits: The Client received a top-down, global & national market-entry analysis, plus operational improvements.
Case Keywords: medical, OB/GYN specialist healthcare, strategic assessment, market entry, operations, real estate
Corporate Group: Multiple Sectors - Strategic Management Training
Mongoljin delivered customized, in-person business strategy training to the CXO personnel, and potential future CXO personnel, of one the most prominent corporate groups in Mongolia. In addition to presenting multiple strategic frameworks, the training demonstrated how to apply strategic theory to analyze and solve real-world strategy cases.
Client Outcome: Trainees learned to differentiate between Strategic Management and Operational Management, while acquiring practical tools, skills and system perspectives on Strategic Thinking and Strategic Analysis for business.
Case Keywords: strategic thinking, corporate & business strategy, functional strategy (marketing, finance, operations)