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TIC LLC Home > Experience in different Continents / Country Track Record
Continent at Interest / Continental Experience

The Consulting Panel has the experience in the following countries. Wherever the recommendations of the consulting panel were implemented or the response from the client was identified, this has been shown at the end of each consulting assignment in bolds:

Americas:
United States
Canada
Brazil
Argentina
Mexico
Peru
Chile
Colombia
Others
Asia & Australia:
China
Japan
Taiwan
South Korea
Indonesia
Philippines
Thailand
Malaysia
Singapore
Vietnam
Sri Lanka
HongKong
India
Australia
Others
Europe:
United Kingdom
Italy
Spain
Benelux
Ireland
France
Germany
Russia
Ukraine
Former Soviet Union
Hungary
Poland
Others
Africa & Middle East:
Kenya
Uganda
Zimbabwe
Zambia
Malawi
South Africa
Tanzania
U.A.E
Saudi Arabia
Goban
Others

GLOBAL EXPERIENCE(TIARA INTERNAITONAL CONSULTING)
  • Tiara understands business & government culture worldwide
  • The principals of Tiara have completed over 300 international business consulting projects in more than 65 countries
Americas:
Country Track Record
Tiara's Expertise in USUnited States  

1.  MARKET ENTRY STRATEGY FOR A NORTH-AMERICAN COMPANY TO ENTER THE "SUPPLIES TO CLINICAL TRIALS MARKET:

  • This was undertaken by Tiara in late 2014
  • The Market for Supplies to Clinical Trials Market is huge in North America.
  • In US alone, this would be of the order of $4.50 billion per annum
  • The following are some of the results of the Study:
    • With no Capital Investment and with additional Manpower Resources, the Market can be penetrated with the following results:

Results of Four Strategic Options

The following is the Principal Drivers Analysis Diagram (Tornado Diagram) generated for Strategic Option II:

Strategic Option II - Top 7 Drivers of Business - Initial Success Mode

Given below is the Risk Profile (S-Curve) for the Project. This will show that the Probability of destroying shareholder value is nil.

Strategic Option II - Risk Profile of Business- Initial Success Mode

2.  A MAJOR CHEMICALS PROJECT FOR THE SUBSIDIARY IN USA OF A CONGLOMERATE IN INDIA:

  • This Project was planned to produce 300,000 tons of Potassium Sulfate (K2SO4) in the State of Utah
  • It would call for a total Capex of around $800 million of which $400 million would spent by the end of 2016. The balance would be spent by 2020
  • The Market for Potassium Sulfate in the US in 2013 was around 313,000 tons, while the Global Market was of the order of 4.53 million tons
  • The US Market was expected to go up to 437 K tons by 2020 while the Global Market would go up to around 7 millions
  • As of 2013, there was only one producer in the US (Compass Minerals), who produced 298K tons, more than what the US market needed and was exporting their product. This producer was expected to grow to 350K, 450K and 520K tons in the Years 2013, 2014 and 2015 respectively
  • China had the biggest Market Demand with 2.5 million tons p.a., followed by EU with 1 million tons p.a. and Chile with 198K tons. The rest of the world market was fragmented amounting to 767K tons amounting to a total of 4.53 million tons in 2012.
  • On an average, this was expected to grow at a CAGR 6% between 2012 and 2020 growing to a level of around 7.1 million tons
  • Potassium Sulfate had always a "Premium" over Potassium Chloride in the market place
  • However, the Pricing Mechanism collapsed globally with two major players from Russia and Belarus breaking their cartel and the market prices collapsed
  • Not only the Premium for K2SO4 was gone, but even banks who were lending heavily to the manufacturers had forecast that the premium pricing was unlikely to recover before 2020
  • Meanwhile, two more Manufacturers in the US were endeavoring to enter the global market and they were
    • Potash Ridge Blawn Mountain Project in the State of Utah with a manufacturing capacity of 680,000 tons p.a.
    • OCOA IC Potash Project in New Mexico with a slated capacity of 600,000 tons p.a.
  • Even if only one of the above comes up that would create tremendous competition especially in the US Market which is relatively small at 300K tons p.a. Further, the existing Plant of Compass Minerals will produce by 2017 around 1.5 times the market requirements in the US
  • Taking all the above into account, a Quantitative Model was developed together with Scenario Planning and Monte Carlo Simulation. The most likely Scenario had the following results:

Economic Evaluation - Tiara's Most Likely Scenario

The relevant Tornado diagram is as below:

Tiara's Most Likely Scenario - Principal Driers of Business - AFR

The relevant Risk Profile of the Project and S-Curve is as shown below:

Tiara's Most Likely Scenario - Risk Profile of Project - AFR

It appears that the new capital investment for a Potassium Sulfate Plant in North America by this company has been abandoned due to the High Risk Profile of the Project


3.  New Product Development from the Concept Stage for the Multi-Level-Marketing Company:

This company had a new concept in "lighting products". The Consulting Panel investigated in the market place how to position the product, estimating the market demand in such segment and the marketing strategy to promote the product. This called for carrying out some kind of "conjoint analysis" with the potential consumers and come up with a "trade-off matrix". With further assumptions on capital investments needed for manufacturing, the Consulting Panel came up with the projected cash flows of this new product. The probability of enhancing and destroying shareholder value was evaluated and so also the principal drivers of the business. It is understood that the company is progressing further based on the consulting panel's recommendations.

4.  Benchmarking New Product Development Activity with Competitors in the Multi-Level-Marketing Segments and other Segments:

This multi-level-marketing company was very eager to compare themselves with companies with similar marketing systems as well as those in regular distribution systems. Such benchmarking was done with companies in the US as well as a few in Europe, Japan and Korea. Thereafter, a mathematical model was developed which showed the impact, if this company observed selectively some of the "best practices" of their competitors, on their bottom line and cash flows. This gave significant opportunities for the company in improve their performance in specific areas.

5.  Hotel Industry & Tourism Development Plan:

The Consulting Panel had for its focus the northern Thailand with specific emphasis on greater Chiang Mai city. A benchmarking exercise was undertaken in the following locations for different tourism segments:

Las Vegas and Bangkok (for meetings & conventions), Costa Rica and Nepal (for eco-tourism), Bali, Phuket and Malaysia for (leisure and spa) and Scottsdale and Honolulu (for golf and leisure). Some of the "best practices" of each one of the locations were identified. Thereafter, the Consulting Panel focused and selected whatever was feasible and assimilable for the conditions in Chiang Mai. Further, the relative investment costs were evaluated and a business model fully developed. The model bestowed considerable attention on the best practices approach involving additional investments and the impact on the bottom line for tourism in Chiang Mai. A principal drivers analysis was also provided.

6.  A well-known European Pharmaceutical Company uses a Benchmarking Study to develop Strategies for Expiring Brand Patents in the US:

This benchmarking study called for the study of more 12 brands whose patents had expired for the respective companies and what they did at the end of the expiry by reformulation as well as competing with the generics. On the basis of the benchmarking, some of the "best practices" of these companies were identified and segregated. Thereafter the Consulting Panel selected those practices which are practical and assimilable by the client company. They came up with strategies and incorporated these in a business model which assisted in forecasting the impact on the bottom line of the company for each set of strategies. A D&RA was also carried out. It is understood that the company implemented these strategies for the brands whose patents expired. The company was extremely thankful to the Consulting Panel for their output.

7.  A Renal Care Company develops new Strategic Direction in adopting "best practices" selectively of other service-oriented industries:

This company was the best performer in the industry as it related to the some of the economic indicators such as gross revenue per manpower, net earnings per manpower, and earnings to sales revenue ratio and so on. And yet their CEO commissioned the Consulting Panel to explore the possibilities of improvements by benchmarking against other service industries such as airlines, dental clinics, their own competitors and so on and adopting selectively some of their best practices. The Consulting Panel recommended improvements in more than 12 areas, which inter alia, included job enrichment, job enlargement, more centralized training, better employee-manger relationships and improvement in customer care, change to the shift system, sources for improvement in revenue, better utilization of equipment and so on. A business model was developed together with a D&RA, which besides identifying the resources needed demonstrated substantial improvements in net earnings of the more than $20 million per annum. The CEO was very pleased with such implementable recommendations and even gave the Consulting Panel a great testimonial.

8.  A Major Healthcare Company Needs New Approach to Market Demand Estimates & Revised Marketing Strategies:

This project called for the reassessment of market demand on a segmented basis in home infusion therapies and the market for outsourcing of specific services to medical institutions. The Consulting Panel developed and redesigned the marketing strategies for increasing market share, while improving profitability. A business model was developed which highlighted the impact of specific strategies and D&RA was carried out. There was a lot of debate on the new approach to developing the segmented market demand and the client appreciated the role of the consultant.

9.  Valuation & Strategy for a Medical Devices company to get ready for an IPO:

The Consulting Panel carried out the research in the US, Germany and UK. The research included analyzing the existing practices for treatment of prostate cancer and the newer technologies already in use and those in the horizon. It also pointed out additionally available related market segments and pointed out to the client that "it is missing the forests for the trees". The strategy recommendation combining organic growth optimized with some acquisition possibilities involving newer technologies was very much appreciated by the client. Valuations were carried and a D&RA was completed to assess the probability of enhancing or destroying shareholder value which would be of immense help to this company for its IPO.

10.  Global Market Demand Estimate, Product Sourcing & Investment Locations and Possible New Product Opportunities for a large Medical Devices & Pharmaceutical Company:

The Consulting Panel visited quite a few major locations in the world and carried out market surveys and demand analysis both "top-down" and "bottom-up" basis In other major markets, they had already carried out marketing strategy for the designated products. Using this information and carrying out several forms of multivariate analysis such as multiple regression analysis, cluster analysis, regional lead-lag analysis and the like, they derived the market demand estimates for over 120 countries. Thereafter, they recommended sourcing opportunities for the products at various locations depending on the availability of skilled labor, cost of labor, the infrastructure needed for manufacturing and the possible governmental support. The investment levels for such sourcing were identified, business models developed, the impact of these investments on the final outcome forecast and a Decision & Risk Analysis carried out for each investment level. Some ideas on new product development emerged while carrying out the study and a rigorous investment evaluation was carried out for such new products.

11.  A Large Medical Devices Company in the Northeast US Implements recommended Acquisition Strategy:

The company, whose sales revenue is over $3 billion, was eager to extend its product line into treatments associated with venous disorders and diseases. The Consulting Panel carried out the market research in several countries such as the US, Germany and UK and came up estimates of market demand, segmentation of the market and the products currently available and their relative market shares. Thereafter, strategic options were outlined including some acquisitions. One of the recommendations turned out to be a reality and the company was very thankful to the Consulting Panel as the latter provided the valuation for the acquisition and pointed out the probability of enhancing or destroying shareholder value for the acquisition and the principal drivers of the business.

12.  Port Waste Management Services with Benchmarking various Global Ports:

This was a benchmarking project. The benchmarking ports were as under:

  • Long Beach, California, Rotterdam, Netherlands & Singapore - Gold Standard
  • Jeddah, Saudi Arabia & Durban, South Africa- Silver Standard.
  • Bombay & Madras in India, Dar Es Salaam, Djibouti and Maputo in Africa - Bronze Standard

Finally, some of the best practices from these ports were selectively chosen for Mombassa Port to implement. A private business enterprise undertook the project and they have already completed their installation of waste management facilities on the basis of the recommendations. It is understood that many countries in Africa would like to use this facility in Mombassa port as a model for them to copy and follow.

11.  Water Purification & Desalination Projects:

A Company in Los Angeles came up with a new process for water desalination called Modified vapor compression and distillation (MVCD), which would be significantly less expensive than various traditional processes such as vapor compression & distillation (VCD), reverse osmosis, multistage fractional distillation (MSFD), reverse osmosis (double-pass), and MED. Field research was carried out in several countries such as India, Singapore, Dubai, Saudi Arabia, Egypt, Mexico and USA, which compared the existing operations with the potential new operation. This feasibility study showed as to what strategy this new company should adopt for each country. A business model was developed for each country where the strategy and investment levels were embedded and it showed the impact of the strategy on the cash flows for each country. A principal drivers Analysis was also carried out together with the risk profile of the investment for each country.

13.  Market Entry Strategy into the United States for a European Company in Industrial Flooring and Surfacing Products:

Two projects were carried out, the first one primarily for alternative industrial flooring and the second for special surfacing with new products. This company has been very successful in Europe and would like to enter the US Market. The Consulting Panel divided the market into 7 geographic segments and then estimated the market demand, evaluated the competitors in the business as to their market shares and strategies and came up with the Strategic Options to the client. Business models were developed for each of the project and the return on investment for each strategic option was evaluated. A Decision & Risk analysis was also carried out. The client was very pleased with the recommendation and complimented the study group by stating that for the first time he encountered such "high quality and low cost" alternative to the services of well known consulting companies.

14.  Market Expansion Strategy for a US Company in "Events Business":

For the present this company has small operations in the northeast. The company would like to grow and participate actively in offering their products for "Events Business". The events would consist of (1) Fairs & Festivals (2) Trade Shows & Conventions (3) Sports & Competitive Events (4) Parades & Political Events (5) Corporate Sponsoring Events and so on. They wanted the Consulting Panel to compare the problems involved in "Organic Growth" with those of "Acquisitions". The Consulting Panel evaluated 30 acquisition targets and short-listed eventually 12 companies out of these as targets and even ranked them. Business models were developed not only for "Organic Growth" scenario but for each one of the Acquisition targets and their valuations were assessed. A D&RA was also carried out for each one of the cases and the results of all the cases were compared. The company appeared very pleased with such a thorough investigation of various opportunities available together with the evaluation of the risks involved.

15.  Strategic Consumer Brand Acquisitions and Improving Product Portfolio for a Multi-Level-Marketing Company in the US:

The head of Strategic Marketing of this company felt that they needed to acquire new products and brands, which look possible winners in the eyes of their distribution network. It is not always possible to come up with new concepts translated into successful products and brands from within the company. The Consulting Panel was commissioned with the task investigating brands in some 8 consumer segments and come up with the strategic recommendations for their acquisition including their valuations. Once this was done on specific criteria, the Consulting Panel developed a business model and extrapolated the growth of the sales of the products given a set of strategies. A D&RA was then carried out. This was done for selected brands/products in the US, Europe, Japan and Korea. It is understood that the company is in the process of having a dialogue with the owners of these brands for possible acquisitions.

16.  A "Multi Level Marketing" Consumer Products Company has potential savings of over $125 million:

A benchmarking exercise was carried out in Supply Chain Management for a US based consumer Products Company involved in multi-level-marketing in several countries such as Japan, South Korea, China, India and the United States. This showed that by following the "best practices" of some of the competitors even partly would free up their working capital of the order of 30% of the current $430 million, i.e. over $125 million. It is understood that the company has since then implemented the study and has already realized more than $75 million. The client gave an excellent testimonial to the consulting panel in this regard.

17.  Developing Vision Statement, Value Propositioning and Strategy for Market Positioning:

One of the Top Consulting Companies in North America commissioned the Consulting Panel to carry out a study, which called for, inter alia, Strategic Positioning in the Market. This positioning was compared and contrasted with the Competitors and the differentiators were identified. Other Strategic Options were also developed. A mathematical spread sheet model was developed, which highlighted the impact on the final outcome even with some marginal changes to strategies in some of the market segments. This was followed by a Decision & Risk Analysis (D&RA). The study was very much appreciated by the clients, who were themselves a major consulting company.

18.  Work Flow Process Study for a Top Automobile Manufacturer in the US:

This manufacturer's auto assembly operations were managed with the "work flow" software as provided by a well known IT Services provider. The manufacturer wanted an outside consulting panel to suggest some improvements to their existing operating system, which they termed as "Work Improvement Work Facilitation - Cost Reduction" Program. The consulting panel came up with some excellent ideas and codified the same in a specially designed "work-flow" chart. A quantitative business model was developed which highlighted the cost savings for the proposed workflow process. It is understood that the Auto- Manufacturer implemented the recommendation.

19.  Congruence Strategies for an Aerospace Multinational after Acquisition:

The company had acquired the division of another company and they found that there are substantial synergies if they combine their expertise dealing with the "avionics business of two different segments in private business-jet and general aviation business. The consulting panel re-estimated the market demand and the growth in demand for this business over the next 15 years. The cyclical nature of the business in the past was taken note of and accordingly projected in future business envisioning different scenarios. Further, because of the differing needs of the market segments and their impact on product strategies, the need for congruence and the manner to go about it were established. The differing organizational cultures were also taken note of. The strategic options were analyzed and the impact of each of these options on the bottom line of the company was evaluated. A Decision & Risk Analysis was also carried out. The company was very appreciative of the role of the consulting panel and for the first time they felt they could establish a dollar estimate of each of their strategic options.

Americas:
United States
Canada
Brazil
Argentina
Mexico
Peru
Chile
Colombia
Others
Top
Country Track Record
Tiara's Expertise in CanadaCanada  

1.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy on a Country by Country Basis:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

These consulting assignments were carried out in several countries over eight different projects. Some of these countries in the American continent are:
Canada, Mexico, Brazil, Argentina, Uruguay, Chile, Colombia, Venezuela and Peru in the Ameritas.

2.  CIME Endeavor Group:

The consulting panel assessed and evaluated the proposed accession of Poland as part of the EU and its impact on the traffic and movement of nationalities of the neighboring non-EU countries in and out of Poland. Specifically, the study included a benchmarking exercise and analysis of similar borders between countries such as US/Canada, US/Mexico, Finland/Russia, Spain/Morocco and Greece/neighbors. The recommendations included some of the best practices in these border-administrations, the investments involved and the costs of administering it as well as the revenues generated. The President's office of the Government of Poland liked the study as it was the first of its kind to address the trans-border issues between Poland and its Non-EU neighbors.

Americas:
United States
Canada
Brazil
Argentina
Mexico
Peru
Chile
Colombia
Others
Top
Country Track Record
Tiara's Expertise in BrazilBrazil  

1.  Marketing Strategy for Special Products connected with New Laparoscopy Procedures for a Major Medical Devices & Pharmaceutical Company:

This study related to Gastro Esophageal Reflux Disease syndrome (GERD) and some of the medical procedures such as minimally invasive ones like laparoscopy being promoted by this company. They felt that their strategies were not effective in some of the countries in Latin America such as Brazil, Argentina, and Colombia. The Consulting Panel investigated the market with personal interviews with gastro-enterologists, estimated the market demand, triangulated it with meetings with distributors and hospitals and evaluated the market shares of various players in the market and also their marketing strategies. After a thorough study as above, the group came up with a set of strategies, developed a mathematical business model with the investments and other resources together with all the strategies embedded in it. The model showed the impact of the strategies on the bottom line of the company. A decision and risk analysis was also carried out.

2.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy on a Country by Country Basis:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

3.  Major US Based Computer & Server Manufacturer & Services Provider Revamps Its Strategy in Latin America:

This well-known computer and server manufacturer, with an annual sales revenue in the region of $90 billion, commissioned the consulting panel to redesign "channel strategy" for different segments of the market in three different regions of the world, China-Japan, Germany-UK and Mexico-Brazil for their Netfinity servers The study was an eye-opener for this multinational revealing many segments of the market where a slightly different strategy would be immensely beneficial. A business model was developed for each country in each region that quantified the impact on shareholder value and the relative risk for using different channel strategies.

4.  Country Back-Up Strategy for a Global Financial Services Company:

This Global Company, with sales revenue exceeding $25 billion, has outsourcing operations in several countries with India having the pride of place. However, they were very keen to diversify their operations and develop suitable backups for India. Admittedly, the consulting panel had to look into 80 countries studying the availability of skilled labor, English-speaking skills, development of IT infrastructure, labor availability, labor laws, real estate costs and so on for each country. This exercise reduced the number to 20 countries and thereafter a more rigorous evaluation reduced the number to 5 countries, as Russia, China, Brazil and South Africa, besides India. Field visits and market surveys were conducted in these countries and the final choices were ranked and tabulated. A mathematical spread sheet model was developed for each of the countries in the final list and a D&RA was carried out.

5.  Market Entry Strategy for automobile Roof-Racks into Brazil:

This project was carried out in two stages by the Consulting Panel. The first stage involved Latin America with special emphasis on Brazil and Argentina. After verifying the outcome, the company commissioned the study team to carry out the next project in Asia for India, China, Japan & Korea. These projects involved investigating the potential market demand fort the next 10/15 years, the shares and strategies of various players, the acquisition targets in each of the countries and their valuations. The Consulting Panel completed the assignment by building a business mathematical spread sheet model, which showed the impact of the various strategies on the final outcome for the company. There were some prime targets for JV & acquisition in Brazil and Argentina and also in Korea and Japan and the company was very pleased that they had a road map to pursue these objectives. A Decision & Risk Analysis was carried out for each of the countries. It is understood that some of the possible acquisitions as recommended by the Consulting Panel have already materialized. The CEO of the company gave a very good testimonial to the Consulting Panel.

6.  Market Entry Strategy for a Major US based Paint Manufacturer into Mercosur:

This manufacturer is selling primarily through Home Depot in the United States. It is understood that they were exploring the possibility of dovetailing Home Depots' expansion into Mercosur countries with their products. Their products had some of the highest ratings as per Consumer Report in the US. This project called for a thorough investigation of the demand for paints in the domestic segment in these countries, the market shares, segmentation of the market and the strategies of the major players and developing the strategies for successful entry into the market which would include acquisitions as well. A business model was developed with the resources and the strategies embedded in it, which showed the impact of the strategies on the bottom line of the company. When a Decision & Risk Analysis was performed, it showed a high probability of destroying shareholder value even with the most optimal combination of grassroots strategy with selective acquisitions as of the year 2000. The company decided to shelve the market entry strategy for the next few years until the market was ripe for them to enter.

7.  Marketing Strategy & Supply Chain Management for a "Car Cosmetics Company" in Latin American:

The subsidiary of a US company in UK was manufacturing and marketing most of the car cosmetics in their plant in the midlands of the UK. This plant supplied the marketing requirements of their UK operations. In France and Benelux countries, they had acquired two marketing companies which were procuring their supplies from outside manufactures. A study by the consulting panel showed that it would be more strategic and economical in the longer run to supply the requirements of all their European operations from their UK Plant. Potential JV operations or even acquisition for market entry into Germany were explored.

For their Latin American operations, possibility of organic growth in Mexico together with the possible JVs and acquisitions in Brazil and Argentina were explored. Business models were developed and a Decision & Risk Analysis was carried out.

It is understood that the company has already implemented the recommendations of the Consulting Panel for their European operations.

8.  A Multinational Aerospace Company develops a new strategy for Latin America & the Caribbean:

This multinational felt that they were not securing their "wallet share" in some of the Latin American countries, and also in the Caribbean countries. Market Demand estimates were made for each major country in this region and the wallet share for the multinational was worked for the sale of new products. Thereafter strategies were worked out as to how to enable this company to achieve its wallet share. A mathematical spread sheet model was developed for each region such as Mercosur countries (Brazil, Argentina, Chile and Uruguay), Andean countries (Colombia, Venezuela, Peru, Ecuador and Bolivia) and the Caribbean countries. The model showed that given the strategies what results could be anticipated in terms of wallet share and cash flows for each of the regions. A decision and risk analysis was carried out which showed the principal drivers of the business and the probability of enhancing or destroying shareholder value.

9.  Benchmarking Study for a Chicago based Pharmaceutical Company in W. Europe (UK, France, Germany & Italy) & Latin America (Brazil & Mexico):

The Consulting Panel was commissioned to carry out this study by a $5 billion US based pharmaceutical company, as it related to some well known branded blockbuster products belonging to several other companies. These products related to one brand dealing with osteoporosis, one brand as an anti-depressant, two different brands relating to cholesterol reduction (Pravastatin and Simvastatin) and a couple of other brands. The benchmarking study, inter alia, focused on the sales revenues, promotional expenditure, number of sales personnel for each company involved with the brands, detailing criteria per sales representative and so on. This was done for a period of five years prior to the study, the companies and medical practitioners were interviewed in the respective countries, results tabulated, evaluated and some of the "best practices" of these companies identified. Some formulae were developed relating the success factors to various marketing strategies involved, the resources deployed and the efficacy of competitive products. Thereafter, the Consulting Panel came up with a set of strategies choosing selectively some of the best practices which can be adapted to the client company for two of their potential blockbuster products. This client company has since then ended up with a major US pharmaceutical company after a series of corporate takeovers.

Americas:
United States
Canada
Brazil
Argentina
Mexico
Peru
Chile
Colombia
Others
Top
Country Track Record
Tiara's Expertise in ArgintinaArgentina  

1.  Marketing Strategy for Special Products connected with New Laparoscopy Procedures for a Major Medical Devices & Pharmaceutical Company in Argentina:

This study related to Gastro Esophageal Reflux Disease syndrome (GERD) and some of the medical procedures such as minimally invasive ones like laparoscopy being promoted by this company. They felt that their strategies were not effective in some of the countries in Latin America such as Brazil, Argentina, and Colombia. The Consulting Panel investigated the market with personal interviews with gastro-enterologists, estimated the market demand, triangulated it with meetings with distributors and hospitals and evaluated the market shares of various players in the market and also their marketing strategies. After a thorough study as above, the group came up with a set of strategies, developed a mathematical business model with the investments and other resources together with all the strategies embedded in it. The model showed the impact of the strategies on the bottom line of the company. A decision and risk analysis was also carried out.

2.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy on a Country by Country Basis:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

3.  Capital Equity Markets:

Assisted the Ukrainian Prime Minister, Government of Ukraine (GOK) and the Steering Committee in developing an action plan to significantly increase the flows of private capital/equity into the country, including benchmarking of practices and policies of other countries such as Poland, Hungary, Russia, Argentina and Chile.

4.  Market Entry Strategy for automobile Roof-Racks into Argentina:

This project was carried out in two stages by the Consulting Panel. The first stage involved Latin America with special emphasis on Brazil and Argentina. After verifying the outcome, the company commissioned the study team to carry out the next project in Asia for India, China, Japan & Korea. These projects involved investigating the potential market demand fort the next 10/15 years, the shares and strategies of various players, the acquisition targets in each of the countries and their valuations. The Consulting Panel completed the assignment by building a business mathematical spread sheet model, which showed the impact of the various strategies on the final outcome for the company. There were some prime targets for JV & acquisition in Brazil and Argentina and also in Korea and Japan and the company was very pleased that they had a road map to pursue these objectives. A Decision & Risk Analysis was carried out for each of the countries. It is understood that some of the possible acquisitions as recommended by the Consulting Panel have already materialized. The CEO of the company gave a very good testimonial to the Consulting Panel.

5.  Market Entry Strategy for a Major US based Paint Manufacturer into Mercosur:

This manufacturer is selling primarily through Home Depot in the United States. It is understood that they were exploring the possibility of dovetailing Home Depots' expansion into Mercosur countries with their products. Their products had some of the highest ratings as per Consumer Report in the US. This project called for a thorough investigation of the demand for paints in the domestic segment in these countries, the market shares, segmentation of the market and the strategies of the major players and developing the strategies for successful entry into the market which would include acquisitions as well. A business model was developed with the resources and the strategies embedded in it, which showed the impact of the strategies on the bottom line of the company. When a Decision & Risk Analysis was performed, it showed a high probability of destroying shareholder value even with the most optimal combination of grassroots strategy with selective acquisitions as of the year 2000. The company decided to shelve the market entry strategy for the next few years until the market was ripe for them to enter.

6.  Market Entry Strategy for a Large US-based Brewery into Argentina:

This was developed by the Consulting Panel for a large beer manufacturer and marketer in the United States. After carrying out the demand estimates for these countries as well as market segmentations, market shares for various companies and their relevant marketing and manufacturing strategies, the panel focused on the Strategic Options available for market entry such as grassroots entry and expansion, a possible joint venture (JV) and an Acquisition. The investments needed for these were included in a business model which responded to the impact of the strategies on the bottom line of the company. The probability of enhancing or destroying shareholder value was evaluated using the D&RA. In line with the recommendations by the consulting panel, the company decided not to pursue its market entry into Argentina but proceed further with the recommended strategy for Taiwan

7.  Marketing Strategy & Supply Chain Management for a "Car Cosmetics Company" in Argentina:

The subsidiary of a US company in UK was manufacturing and marketing most of the car cosmetics in their plant in the midlands of the UK. This plant supplied the marketing requirements of their UK operations. In France and Benelux countries, they had acquired two marketing companies which were procuring their supplies from outside manufactures. A study by the consulting panel showed that it would be more strategic and economical in the longer run to supply the requirements of all their European operations from their UK Plant. Potential JV operations or even acquisition for market entry into Germany were explored.

For their Latin American operations, possibility of organic growth in Mexico together with the possible JVs and acquisitions in Brazil and Argentina were explored. Business models were developed and a Decision & Risk Analysis was carried out.

It is understood that the company has already implemented the recommendations of the Consulting Panel for their European operations.

8.  A Multinational Aerospace Company develops a new strategy for Latin America & the Caribbean:

This multinational felt that they were not securing their "wallet share" in some of the Latin American countries, and also in the Caribbean countries. Market Demand estimates were made for each major country in this region and the wallet share for the multinational was worked for the sale of new products. Thereafter strategies were worked out as to how to enable this company to achieve its wallet share. A mathematical spread sheet model was developed for each region such as Mercosur countries (Brazil, Argentina, Chile and Uruguay), Andean countries (Colombia, Venezuela, Peru, Ecuador and Bolivia) and the Caribbean countries. The model showed that given the strategies what results could be anticipated in terms of wallet share and cash flows for each of the regions. A decision and risk analysis was carried out which showed the principal drivers of the business and the probability of enhancing or destroying shareholder value.

Americas:
United States
Canada
Brazil
Argentina
Mexico
Peru
Chile
Colombia
Others
Top
Country Track Record
Tiara's Expertise in MexicoMexico  

1.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy on a Country by Country Basis:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

2.  Water Purification & Desalination Projects:

A Company in Los Angeles came up with a new process for water desalination called Modified vapor compression and distillation (MVCD), which would be significantly less expensive than various traditional processes such as vapor compression & distillation (VCD), reverse osmosis, multistage fractional distillation (MSFD), reverse osmosis (double-pass), and MED. Field research was carried out in several countries such as India, Singapore, Dubai, Saudi Arabia, Egypt, Mexico and USA and compared the existing operations with the potential new operation. This feasibility study showed as to what strategy this new company should adopt for each country. A business model was developed for each country where the strategy and investment levels were embedded and it showed the impact of the strategy on the cash flows for each country. A principal drivers Analysis was also carried out together with the risk profile of the investment for each country.

3.  Major US Based Computer & Server Manufacturer & Services Provider Revamps Its Strategy in Latin America:

This well-known computer and server manufacturer, with an annual sales revenue in the region of $90 billion, commissioned the consulting panel to redesign "channel strategy" for different segments of the market in three different regions of the world, China-Japan, Germany-UK and Mexico-Brazil for their Netfinity servers The study was an eye-opener for this multinational revealing many segments of the market where a slightly different strategy would be immensely beneficial. A business model was developed for each country in each region that quantified the impact on shareholder value and the relative risk for using different channel strategies.

4.  Co-branding Strategy for a Major US Multinational in the Beverages Segment:

The company's biggest markets for co-branding with a specified partner outside the United States were Mexico, UK, Ireland, Italy and Australia. They felt that they had to revamp their strategies in these countries. The consulting panel carried out field market research in all these countries and based on the outcome developed the Strategy for each Country. When a mathematical spread sheet model was developed using the findings of some benchmarking work, it not only outlined the strategies in these countries but also provided negotiation strategies for the company with their co-branding partner. It appears that the company implemented the strategies recommended within a short period of time.

5.  Developing Marketing Strategy for a Multinational Faucet Company in Mexico:

The local organization in Mexico underwent such changes in its management and distribution structure, that they started affecting the performance of the company. The company had some excellent products in North America but were not properly positioned or promoted in Mexico. What was needed was a bold and new approach to their strategy options. The company was very pleased when the market demand was re-estimated, performance of various competitors fully analyzed, market properly segmented and the strategic options were unveiled with a mathematical spread sheet model and a Decision & Risk Analysis was carried out. The General Manager of the International Division gave a very good testimonial to the Consulting Panel.

6.  Marketing Strategy & Supply Chain Management for a "Car Cosmetics Company" in Mexico:

The subsidiary of a US company in UK was manufacturing and marketing most of the car cosmetics in their plant in the midlands of the UK. This plant supplied the marketing requirements of their UK operations. In France and Benelux countries, they had acquired two marketing companies which were procuring their supplies from outside manufactures. A study by the consulting panel showed that it would be more strategic and economical in the longer run to supply the requirements of all their European operations from their UK Plant. Potential JV operations or even acquisition for market entry into Germany were explored.

For their Latin American operations, possibility of organic growth in Mexico together with the possible JVs and acquisitions in Brazil and Argentina were explored. Business models were developed and a Decision & Risk Analysis was carried out.

It is understood that the company has already implemented the recommendations of the Consulting Panel for their European operations.

7.  Marketing Strategy for US Multinational in Computers & Servers and IT Services for "Business Computing Utility" (BCU) in China & Mexico:

This major multinational offered this service in Shanghai, China and Mexico City, Mexico. They did not have the expected market penetration in these cities. They asked the Consulting Panel to review their strategies and come up with a plan to revamp it. The Consulting Panel carried out market survey and research and came up with a revised set of strategies to achieve greater market penetration. They developed a business model in which were embedded the revised strategies and the resources to achieve them. The model showed the impact of these strategies on their bottom line and cash flows. The strategies were implemented in Mexico City with considerable amount of success.

8.  Benchmarking Study for a Chicago based Pharmaceutical Company in W. Europe (UK, France, Germany & Italy) & Latin America (Brazil & Mexico):

The Consulting Panel was commissioned to carry out this study by a $5 billion US based pharmaceutical company, as it related to some well known branded blockbuster products belonging to several other companies. These products related to one brand dealing with osteoporosis, one brand as an anti-depressant, two different brands relating to cholesterol reduction (Pravastatin and Simvastatin) and a couple of other brands. The benchmarking study, inter alia, focused on the sales revenues, promotional expenditure, number of sales personnel for each company involved with the brands, detailing criteria per sales representative and so on. This was done for a period of five years prior to the study, the companies and medical practitioners were interviewed in the respective countries, results tabulated, evaluated and some of the "best practices" of these companies identified. Some formulae were developed relating the success factors to various marketing strategies involved, the resources deployed and the efficacy of competitive products. Thereafter, the Consulting Panel came up with a set of strategies choosing selectively some of the best practices which can be adapted to the client company for two of their potential blockbuster products. This client company has since then ended up with a major US pharmaceutical company after a series of corporate takeovers.

Americas:
United States
Canada
Brazil
Argentina
Mexico
Peru
Chile
Colombia
Others
Top
Country Track Record
Tiara's Expertise in PeruPeru  

1.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

2.  Capital Investment Project for putting up a Plant for Tomato Derivatives:

The Consulting Panel was commissioned to carry out the above project in the fall of 1996. The estimated investment was in the region of $10 million. This project was being justified by the Export Promotion Council for exporting diced tomatoes and tomato paste to the USA Market and European Markets. The Consulting Panel carried out the feasibility study in the fall of 1996 and advised the Export Promotion Council that it was not opportune to put up such investment then as the probability of destroying Shareholder value was more than 60% in carrying out the project. A complete feasibility study was submitted.

3.  FINCA Project for the export of mangoes and lime and their derivatives to the US Market and EU Markets:

This study was carried out by the Consulting Panel primarily to assist the farmers in Piura region of northern Peru. FINCA was involved in providing export opportunities for the New Generation Cooperatives for Farmers by promoting direct exports and securing better prices and terms for farmers in the Piura region, Northern Peru. The Consulting Panel not only assessed the capital investments needed for each segment of the project but also developed a whole set of buyers in the US and EU Markets and came up with the Strategic Plan for the entire project. It also came out with the probability of destroying Shareholder value at 3% for Mangoes (Go Project) and more than 60% for Lime (No-Go Project).

4.  A Multinational Aerospace Company develops a new strategy for Latin America:

This multinational felt that they were not securing their "wallet share" in some of the Latin American countries, and also in the Caribbean countries. Market Demand estimates were made for each major country in this region and the wallet share for the multinational was worked for the sale of new products. Thereafter strategies were worked out as to how to enable this company to achieve its wallet share. A mathematical spread sheet model was developed for each region such as Mercosur countries (Brazil, Argentina, Chile and Uruguay), Andean countries (Colombia, Venezuela, Peru, Ecuador and Bolivia) and the Caribbean countries. The model showed that given the strategies what results could be anticipated in terms of wallet share and cash flows for each of the regions. A decision and risk analysis was carried out which showed the principal drivers of the business and the probability of enhancing or destroying shareholder value.

5.  Investment Evaluation for Setting up a Major Used Car Center:

For the purpose of this study benchmarking exercises were carried out in Dubai, Japan, Peru and Singapore and their "used car" operations were fully analyzed. It is understood that most of the supplies were being received from Japan and Korea, while some supplies would arise from auto-centers in Europe. Special recognition of left-hand and right-hand drives has to be taken into consideration and their relative cost constraints. Further moving the cars from Mombassa to other locations in Africa either by road or by sea were evaluated. A business model was developed to portray the projected operations and the return on investment was evaluated. The client was also offered the services of the Consulting Panel to introduce various parties in Japan and Korea for auto supplies.

Americas:
United States
Canada
Brazil
Argentina
Mexico
Peru
Chile
Colombia
Others
Top
Country Track Record
Tiara's Expertise in ChileChile  

1.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

2.  Capital Equity Markets:

Assisted the Ukrainian Prime Minister, Government of Ukraine (GOK) and the Steering Committee in developing an action plan to significantly increase the flows of private capital/equity into the country, including benchmarking of practices and policies of other countries such as Poland, Hungary, Russia, Argentina and Chile.

3.  Market Entry Strategy for a Major US based Paint Manufacturer into Mercosur:

This manufacturer is selling primarily through Home Depot in the United States. It is understood that they were exploring the possibility of dovetailing Home Depots' expansion into Mercosur countries with their products. Their products had some of the highest ratings as per Consumer Report in the US. This project called for a thorough investigation of the demand for paints in the domestic segment in these countries, the market shares, segmentation of the market and the strategies of the major players and developing the strategies for successful entry into the market which would include acquisitions as well. A business model was developed with the resources and the strategies embedded in it, which showed the impact of the strategies on the bottom line of the company. When a Decision & Risk Analysis was performed, it showed a high probability of destroying shareholder value even with the most optimal combination of grassroots strategy with selective acquisitions as of the year 2000. The company decided to shelve the market entry strategy for the next few years until the market was ripe for them to enter.

4.  A Multinational Aerospace Company develops a new strategy for Latin America:

This multinational felt that they were not securing their "wallet share" in some of the Latin American countries, and also in the Caribbean countries. Market Demand estimates were made for each major country in this region and the wallet share for the multinational was worked for the sale of new products. Thereafter strategies were worked out as to how to enable this company to achieve its wallet share. A mathematical spread sheet model was developed for each region such as Mercosur countries (Brazil, Argentina, Chile and Uruguay), Andean countries (Colombia, Venezuela, Peru, Ecuador and Bolivia) and the Caribbean countries. The model showed that given the strategies what results could be anticipated in terms of wallet share and cash flows for each of the regions. A decision and risk analysis was carried out which showed the principal drivers of the business and the probability of enhancing or destroying shareholder value.

Americas:
United States
Canada
Brazil
Argentina
Mexico
Peru
Chile
Colombia
Others
Top
Country Track Record
Tiara's Expertise in ColombiaColombia  

1.  Marketing Strategy for Special Products connected with New Laparoscopy Procedures for a Major Medical Devices & Pharmaceutical Company:

This study related to Gastro Esophageal Reflux Disease syndrome (GERD) and some of the medical procedures such as minimally invasive ones like laparoscopy being promoted by this company. They felt that their strategies were not effective in some of the countries in Latin America such as Brazil, Argentina, and Colombia. The Consulting Panel investigated the market with personal interviews with gastro-enterologists, estimated the market demand, triangulated it with meetings with distributors and hospitals and evaluated the market shares of various players in the market and also their marketing strategies. After a thorough study as above, the group came up with a set of strategies, developed a mathematical business model with the investments and other resources together with all the strategies embedded in it. The model showed the impact of the strategies on the bottom line of the company. A decision and risk analysis was also carried out.

2.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

3.  A Multinational Aerospace Company develops a new strategy for Latin America:

This multinational felt that they were not securing their "wallet share" in some of the Latin American countries, and also in the Caribbean countries. Market Demand estimates were made for each major country in this region and the wallet share for the multinational was worked for the sale of new products. Thereafter strategies were worked out as to how to enable this company to achieve its wallet share. A mathematical spread sheet model was developed for each region such as Mercosur countries (Brazil, Argentina, Chile and Uruguay), Andean countries (Colombia, Venezuela, Peru, Ecuador and Bolivia) and the Caribbean countries. The model showed that given the strategies what results could be anticipated in terms of wallet share and cash flows for each of the regions. A decision and risk analysis was carried out which showed the principal drivers of the business and the probability of enhancing or destroying shareholder value.

Americas:
United States
Canada
Brazil
Argentina
Mexico
Peru
Chile
Colombia
Others
Top
Country Track Record
Tiara's ExpertiseOthers  

1.  Costa Rica: Hotel Industry & Tourism Development Plan:

The Consulting Panel had for its focus the northern Thailand with specific emphasis on greater Chiang Mai city. A benchmarking exercise was undertaken in the following locations for different tourism segments:

Las Vegas and Bangkok (for meetings & conventions), Costa Rica and Nepal (for eco-tourism), Bali, Phuket and Malaysia for (leisure and spa) and Scottsdale and Honolulu (for golf and leisure). Some of the "best practices" of each one of the locations were identified. Thereafter, the Consulting Panel focused and selected whatever was feasible and assimilable for the conditions in Chiang Mai. Further, their investment costs evaluated and a business model fully developed. The model bestowed considerable attention on the best practices approach involving additional investments and the impact on the bottom line for tourism in Chiang Mai. A principal drivers analysis was also provided.

2.  Uruguay & Venezuela: Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy on a Country by Country Basis:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

These consulting assignments were carried out in the following countries over eight different projects:

Canada, Mexico, Brazil, Argentina, Uruguay, Chile, Colombia, Venezuela and Peru.

3.  Caribbean:IIC (Inter-American Investment Corporation - IDB Subsidiary) - Market Penetration Strategy for the English Speaking Caribbean:

This is a subsidiary of Inter-American Development Bank (IDB) with the involvement of 46 nation states in Central & South America and also the Caribbean. The project involved developing Market Penetration Strategy for medium size loans in the English-speaking Caribbean countries. The Consulting Panel benchmarked IIC against financial institutions in the same segment of business (medium sized funds and medium/long term loans). Thereafter identifying and selectively utilizing some of the "best practices" of these institutions in quite an innovative manner, came up with a business model. This model showed the improved impact on IIC's operations with such selective deployment of these best practices. A Decision & Risk Analysis was also carried out. The client liked the study as carried out by the Consulting Panel and is already implementing many of the recommendations.

4.  Caribbean: A Multinational Aerospace Company develops a new strategy for Latin America & the Caribbean:

This multinational felt that they were not securing their "wallet share" in some of the Latin American countries, and also in the Caribbean countries. Market Demand estimates were made for each major country in this region and the wallet share for the multinational was worked for the sale of new products. Thereafter strategies were worked out as to how to enable this company to achieve its wallet share. A mathematical spread sheet model was developed for each region such as Mercosur countries (Brazil, Argentina, Chile and Uruguay), Andean countries (Colombia, Venezuela, Peru, Ecuador and Bolivia) and the Caribbean countries. The model showed that given the strategies what results could be anticipated in terms of wallet share and cash flows for each of the regions. A decision and risk analysis was carried out which showed the principal drivers of the business and the probability of enhancing or destroying shareholder value.

Asia & Australia:
China
Japan
Taiwan
South Korea
Indonesia
Philippines
Thailand
Malaysia
Singapore
Vietnam
Sri Lanka
HongKong
India
Australia
Others
Top
Country Track Record
Tiara's Expertise in ChinaChina  

1.  Market Entry Strategy for "Asthma Inhalers" into India, China and Hong Kong for a Manufacturer of Medical Devices in Arizona State:

This was carried out very successfully by the Consulting Panel. In each of the markets, there were strong local players. Further, it appeared even the technology of this manufacturer would be duplicated very quickly in these countries in spite of all the patent protection. The consulting carried out a market survey and then planned a mix of strategies for each market based on its evolution and the strength of the presence of the local players. A mathematical model was developed and demonstrated the impact of the strategies as well as a Decision and Risk Analysis was carried out. The company decided not to proceed further with this expansion in their marketing efforts.

2.  Major US Based Computer & Server Manufacturer & Services Provider Revamps its Strategy in the Far East:

This well-known computer and server manufacturer, with an annual sales revenue in the region of $90 billion, commissioned the consulting panel to redesign "channel strategy" for different segments of the market in three different regions of the world, China-Japan, Germany-UK and Mexico-Brazil for their Netfinity servers The study was an eye-opener for this multinational revealing many segments of the market where a slightly different strategy would be immensely beneficial. A business model was developed for each country in each region that quantified the impact on shareholder value and the relative risk for using different channel strategies.

3.  Country Back-Up Strategy for a Global Financial Services Company:

This Global Company, with sales revenue exceeding $25 billion, has outsourcing operations in several countries with India having the pride of place. However, they were very keen to diversify their operations and develop suitable backups for India. Admittedly, the Consulting Panel had to look into 80 countries studying the availability of skilled labor, English-speaking skills, development of IT infrastructure, labor availability, labor laws, real estate costs and so on for each country. This exercise reduced the number to 20 countries and thereafter a more rigorous evaluation reduced the number to 5 countries, as Russia, China, Brazil and South Africa, besides India. Field visits and market surveys were conducted in these countries and the final choices were ranked and tabulated. A mathematical spread sheet model was developed for each of the countries in the final list and a D&RA was carried out.

4.  Market Entry Strategy for a Japanese Company in Women's Intimate-ware into China & Korea:

This $600 million multi-level-marketing Japanese company requested the Consulting Panel to develop market entry strategies for China and Korea. They had already switched their manufacturing base to China. The Consulting Panel carried out market survey and research in these countries, developed market demand estimates, segmentation of the market, evaluated the market shares of potential competitors and their strategies and then came up with Strategic Options to enter these markets. Two business models were developed, one for China and the other for Korea. The impact of the strategies on the bottom line of the company was well established and also a Decision & Risk Analysis carried out. The company was very pleased with the outcome and it is understood that they would be implementing these strategies within the next few months.

5.  Market Entry Strategy for automobile Roof-Racks into China, Korea &Japan in Asia:

This project was carried out in two stages by the Consulting Panel. The first stage involved Latin America with special emphasis on Brazil and Argentina. After verifying the outcome, the company commissioned the study team to carry out the next project in Asia for India, China, Japan & Korea. These projects involved investigating the potential market demand fort the next 10/15 years, the shares and strategies of various players, the acquisition targets in each of the countries and their valuations. The Consulting Panel completed the assignment by building a business mathematical spread sheet model, which showed the impact of the various strategies on the final outcome for the company. There were some prime targets for JV & acquisition in Brazil and Argentina and also in Korea and Japan and the company was very pleased that they had a road map to pursue these objectives. A Decision & Risk Analysis was carried out for each of the countries. It is understood that some of the possible acquisitions as recommended by the Consulting Panel have already materialized. The CEO of the company gave a very good testimonial to the Consulting Panel.

6.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy on a Country by Country Basis:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

These consulting assignments were carried out in the following countries over eight different projects:
China, Thailand, Taiwan, Korea, Japan, Indonesia & India in Asia.

7.  Market Entry Strategy for "Blood Pressure Monitoring Equipment" for a Major Medical Devices Company:

This was one of the first projects from this major multinational. Their "Critikon Unit" involving this blood pressure monitoring equipment was not doing well in the US and they were exploring the possibility of going international and testing the market in Asia. Before doing this, they wanted the Consulting Panel to investigate the market relating to its demand, the names of players, their market shares and strategies and develop several strategic options to enter these markets. The Consulting Panel carried out the market research and then developed a business model to show the impact of these strategic options on the final outcome. On the basis of the recommendation by the Consulting Panel, the multinational decided not to proceed with any further international expansion.

8.  Market Entry Strategy and Sourcing Strategy for a US Company into China for automobile starters and alternators:

The Consulting Panel established the market demand and the growth rate for automobiles for the next 15 years. Thereafter, depending on the existing relationship of the company with various auto-manufacturers in the US and also in China, their potential market shares were estimated based on the strategic options selected. The company already had commenced a dialogue for potential JV in China and this was further examined. Further, the sourcing strategy was investigated by comparing the cost of the output from China with that of other production centers on a global basis. A business model was developed which demonstrated the return on capital investment in China given the resources deployed and the strategic option selected. A Decision & Risk Analysis was carried out. The client was very pleased with the outcome as the study showed the extent of risk involved and also the principal drivers of the business.

9.  New Marketing Strategy in China for substantial increase in Market Share due to the withdrawal of one of Competitor's Products:

While the existing group of products for this company with annual sales revenue of $ 6 billion in the pharmaceutical division alone (total sales $32 billion), their brand was not doing very well in China. Suddenly they realized new opportunity due to the government of China banning a particular brand of their competitor as it contained a prohibited ingredient. The Consulting Panel carried out a market survey and research, an audit of the current resources and the deployment of the resources by the management. Thereafter, they came out with a revised strategy which would ensure that the company's brand will be successful in achieving significant incremental market share. A business model was developed which forecast the impact on the bottom-line for each scenario and a Decision & Risk Analysis was carried out. The company was very thankful to the Consulting Panel as it implemented the strategy very successfully.

10.  Market Entry Strategy for Southern China (Guangdong Province):

The Consulting Panel developed a strategic plan in the form of a joint venture with a well-known Hong Kong based private company to establish a retail network alongside the new freeway being developed between Shenzhen and Guangzhou The investment cost was estimated at $20 million.

11.  A Major Aerospace Multinational Company Receives an Objective Study:

The aerospace division ($10 billion in sales revenue) of a major aerospace multinational in the US commissioned the Consulting Panel to estimate the demand forecast for commercial aircrafts and business jets in China and India over the next 15 years. They also wanted a complete analysis and viability of local manufacturing capabilities of aircrafts and their parts in these countries. The client appeared to appreciate the soundness of the study and the Strategic Options for each segment of the business as recommended by the study group. A Decision & Risk Analysis (D&RA) was also performed.

12.  Establishing Lube Oil Blending Plants in Shanghai & Dalian in China:

These two strategic plans were developed and the Shanghai one was implemented. It called for a capital investment of $25 million each and the base oils for blending would be procured for the first time from a national oil company in China.

13.  A "Multi Level Marketing" Consumer Products Company has potential savings of $130 million:

A benchmarking exercise was carried out in Supply Chain Management for a US based consumer products company involved in multi-level-marketing in several countries such as Japan, South Korea, China, India and the United States. This showed that by following the "best practices" of some of the competitors even partly would free up their working capital of the order of 30% of the current $430 million, i.e. $130 million. It is understood that the company has since then implemented the study and has already realized more than $75 million. The client gave an excellent testimonial to the consulting panel in this regard.

14.  Marketing Strategy for US Multinational in Computers & Servers and IT Services for "Business Computing Utility" (BCU) in China & Mexico:

This major multinational offered this service in Shanghai, China and Mexico City, Mexico. They did not have the expected market penetration in these cities. They asked the Consulting Panel to review their strategies and come up a plan to revamp it. The Consulting Panel carried out market survey and research and came up with a revised set of strategies to achieve greater market penetration. They developed a business model in which were embedded the revised strategies and the resources to achieve them. The model showed the impact of these strategies on their bottom line and cash flows. The strategies were implemented in Mexico City with considerable amount of success.

15.  Market Penetration Strategy into China for a Major Diversified Group for Kitchen Cabinets:

This is a well known company in the US with significant market share. They have expended on some overseas expansion in Western Europe. China attracted them as there was a great deal of building activity for housing in Shanghai, Beijing and Guangzhou. They felt that it was the most appropriate time to team up with developers and builders and promote their kitchen cabinets and related products. The Consulting Panel was commissioned with this study. They carried out market research and came up with a list of Strategic Options. They also looked at acquisition targets and carried out valuations for them in Shenzhen and Hong Kong . A business model was developed wherein the strategic options including the acquisitions were embedded. It showed , besides return on investment, the principal drivers of the business and the probability of enhancing or destroying shareholder value. Based on the recommendations, the company deferred their entry into China for a few years in 1998.

16.  Market Entry Strategy into China for "three-wheeler vehicles" for a Japanese Company:

The Consulting Panel was commissioned by a Japanese group to develop a market entry strategy for "three wheeler vehicles" into China. The Consulting Panel discovered that three wheeler vehicles were banned in China in major cities such as Shanghai and Beijing because of their air pollution problems. Already the cities had a lot of smog problems and as such the central governments as well as state governments had issued edicts not to introduce these except for the use of handicapped persons. The study group discovered, however, that the market was huge for three wheeler transport for the movement of agricultural produce from the rural farms into the cities. Developed market demand estimates, their growth rates and the overall business strategy for the type of vehicles needed and the competitive pricing strategy were built into a business model which demonstrated the impact of strategy on the operations of a newly formed company. It was also pointed out that the competitive pricing strategy would increase the risk profile of the project. The principal drivers of the business were also analyzed. The probability of destroying shareholder value, given the investments, was found to be higher than 35%. The client decided not to emabark on this venture as a consequence to the study.

Asia & Australia:
China
Japan
Taiwan
South Korea
Philippines
Thailand
Malaysia
Singapore
Vietnam
Sri Lanka
HongKong
India
Australia
Others
Top
Country Track Record
Tiara's Expertise in JapanJapan  

1.  Major Multinational in Medical Devices & Pharmaceutical Products develops Market Entry Strategy for Japan for New Products:

This company with sales revenue of more $ 30 billion wanted to introduce two new products, i.e. hair growth products and topical analgesics. Regarding the former, they had already a product in the US and wanted to reformulate it for the market in Japan. For the latter, they were exploring the possibility of an acquisition in Japan, which had several successful brands. The study was carried out with market survey and research in the local market estimating the market shares of various companies and evaluating their strategies. After that the Consulting Panel came up with their own recommended strategies including acquisitions with proper valuations and estimated the probability of enhancing or destroying shareholder value in each of the cases and the Principal Drivers Analysis. The company was very thankful as it gave them very good insights into the market. The company was also proposing to commence a dialogue with some of the acquisition targets.

2.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

These consulting assignments were carried out in the following countries over eight different projects:
China, Thailand, Taiwan, Korea, Japan, Indonesia & India in Asia.

3.  Conjoint Analysis for a Major US Based Computer Manufacturer in Japan:

This sophisticated technique was used to develop a sound trade-off matrix for different functionalities of the product and the relative consumer preferences in Japan. This helped them optimize the varying characteristics and functionalities of the product to make sure that the product adds value to the consumer. The strategy implications were then discussed with the client. The client was very pleased with the outcome and was eager to carry out a similar study in other parts of the world. of features and functionalities-as well as a business model to forecast demand growth.

4.  Marketing Strategy for a "Niche" Segment for a Major IT Services Firm in Japan:

The President of a major division of a $20+ billion company commissioned the Consulting Panel to carry out a special study for their division in Japan which was badly affected due to improper deployment of manpower resources and inadequate marketing strategy. An optimal strategy involving a combination of organic growth and acquisition was developed. A business model was also developed, which highlighted the investments needed and the valuations of the acquisitions. The model also showed how the strategy will add shareholder value and what the principal drivers of the business are. The President was very pleased with the final presentation and he complimented the team for their outstanding work.

5.  Major US Based Computer & Server Manufacturer & Services Provider Revamps Its Strategy in the Far East:

This well-known computer and server manufacturer, with an annual sales revenue in the region of $90 billion, commissioned the consulting panel to redesign "channel strategy" for different segments of the market in three different regions of the world, China-Japan, Germany-UK and Mexico-Brazil for their Netfinity servers The study was an eye-opener for this multinational revealing many segments of the market where a slightly different strategy would be immensely beneficial. A business model was developed for each country in each region that quantified the impact on shareholder value and the relative risk for using different channel strategies.

6.  Acquisition Strategy for a US based Semiconductor Company with "Keiretsu" Opportunities in Japan:

A medium-sized semiconductor US based company hoped to expand with acquisition possibilities in Japan. The Consulting Panel was commissioned to explore acquisition opportunities in Japan while at the same time investigating "Keiretsu" relationships among the companies in semiconductor manufacture and marketing in Japan. The Consulting Panel investigated a slew of companies in Japan, many of which were vertically integrated. A valuation was done of the semiconductor division of each of the companies and evaluated the strategies to acquire each one of them and rank them on a set of criteria. A decision and risk analysis was carried out, which highlighted the principal drivers of the business and the probability of enhancing or destroying shareholder value in such acquisitions. The client very much appreciated the thoroughness of the study and also the opportunities that it provided for them in Japan.

7.  Market Entry Strategy for automobile Roof-Racks into Japan:

This project was carried out in two stages by the Consulting Panel. The first stage involved Latin America with special emphasis on Brazil and Argentina. After verifying the outcome, the company commissioned the study team to carry out the next project in Asia for India, China, Japan & Korea. These projects involved investigating the potential market demand fort the next 10/15 years, the shares and strategies of various players, the acquisition targets in each of the countries and their valuations. The Consulting Panel completed the assignment by building a business mathematical spread sheet model, which showed the impact of the various strategies on the final outcome for the company. There were some prime targets for JV & acquisition in Brazil and Argentina and also in Korea and Japan and the company was very pleased that they had a road map to pursue these objectives. A Decision & Risk Analysis was carried out for each of the countries. It is understood that some of the possible acquisitions as recommended by the Consulting Panel have already materialized. The CEO of the company gave a very good testimonial to the Consulting Panel.

8.  Benchmarking New Product Development Activity with Competitors in the Multi-Level-Marketing Segments and other Segments:

This multi-level-marketing company was very eager to compare themselves with companies with similar marketing systems as well as those in regular distribution systems. Such benchmarking was done with companies in the US as well as a few in Europe, Japan and Korea. Thereafter, a mathematical model was developed which showed that if this company observed selectively some of the "best practices" of their competitors, the impact on their bottom line and cash flows. This gave significant opportunities for the company in improve their performance in specific areas.

9.  Strategic Consumer Brand Acquisitions and Improving Product Portfolio for a Multi-Level-Marketing Company in the US:

The head of Strategic Marketing of this company felt that they needed to acquire new products and brands, which look possible winners in the eyes of their distribution network. It is not always possible to come up with new concepts translated into successful products and brands from within the company. The Consulting Panel was commissioned with the task investigating brands in some 8 consumer segments and come up with the strategic recommendations for their acquisition including their valuations. Once this was done on specific criteria, the Consulting Panel developed a business model and extrapolated the growth of the sales of the products given a set of strategies. A D&RA was then carried out. This was done for selected brands/products in the US, Europe, Japan and Korea. It is understood that the company is in the process of having a dialogue with the owners of these brands for possible acquisitions.

10.  A "Multi Level Marketing" Consumer Products Company has potential savings of $130 million:

A benchmarking exercise was carried out in Supply Chain Management for a US based consumer products company involved in multi-level-marketing in several countries such as Japan, South Korea, China, India and the United States. This showed that by following the "best practices" of some of the competitors even partly would free up their working capital capital of the order of 30% of the current $430 million, i.e. $130 million. It is understood that the company has since then implemented the study and has already realized more than $75 million. The client gave an excellent testimonial to the consulting panel in this regard.

11.  Strategy Development for a Major Consulting Company in IT (Annual sales revenue $20 billion ) in Japan:

Although the sales revenue of this company in Japan of all segments was well over $250 million, one of the segments, wherein they were strong in the US, was not doing well at all in Japan. The consulting panel was commissioned to carry out a study to come up with a strategy to improve the sales revenue of this segment from $5 million to $100 million per annum over the next 3 years. It was a tall order! The client was very surprised when the consultant came up with a Strategy, which was a blend of "Organic Growth and Acquisitions". Four acquisition targets were identified, valuations performed and a Decision & Risk Analysis (D&RA) carried out. The client was very pleased and stated that it was a "phenomenal presentation" and that they got the same value as he would have secured from well-known consulting companies at a fraction of the cost.

12.  Investment Evaluation for Setting up a Major Used Car Center:

For the purpose of this study benchmarking exercises were carried out in Dubai, Japan, Peru and Singapore and their "used car" operations were fully analyzed. It is understood that most of the supplies were being received from Japan and Korea, while some supplies would arise from auto-centers in Europe. Special recognition of left-hand and right-hand drives has to be taken into consideration and their relative cost constraints. Further moving the cars from Mombassa to other locations in Africa either by road or by sea were evaluated. A business model was developed to portray the projected operations and the return on investment was evaluated. The client was also offered the services of the Consulting Panel to introduce various parties in Japan and Korea for auto supplies.

13.  Acquisition of a major Japanese Oil Company as a fallout of a Global Acquisition by a major US based Oil Company:

The acquisition cost was developed on the basis of on-site investigation of the facilities and services and their potential improvement with additional investments over the next 15 years. Cash flows were projected and NPV was calculated and the acquisition cost was worked out. This turned out to be a very good strategic acquisition for $350 million.

14.  Acquisition of a Global Trading Oil Company with significant assets:

This company had a majority share in a lube oil refinery in Taiwan and a marketing network in the middle-east, Singapore, Hong Kong, Japan and in Latin America. The Consulting Panel developed a global plan for this strategic acquisition valued well over $500 million and participated in the negotiation with the owners of the company.

15.  Upgradation of Refineries in Japan:

Japan refinery studies involved additional capital investment to manufacture BTX and other products for $200 million. For Korea the incremental capital investment needed for a hydrodesulfurizer was around $250 million. For Singapore, the incremental capital investment needed for establishing a new hydrocracker and also a polymerizer for gasoline would account for about $500 million All these projects were implemented.

Asia & Australia:
China
Japan
Taiwan
South Korea
Philippines
Thailand
Malaysia
Singapore
Vietnam
Sri Lanka
HongKong
India
Australia
Others
Top
Country Track Record
Tiara's Expertise in TaiwanTaiwan  

1.  Market Entry Strategy for Taiwan for a Petroleum Company:

Petroleum industry was totally dominated by a government company. In their efforts to gradually allow the entry of private oil companies to enter the market, the government of Taiwan eased some of the restrictions relating initially to the marketing network. The Consulting Panel developed sectoral plan to enter the Taiwanese market with a retail network of gas stations at an estimated cost of $30 million.

2.  Acquisition of a Global Trading Oil Company with significant assets:

This company had a majority share in a lube oil refinery in Taiwan and a marketing network in the middle-east, Singapore, Hong Kong, Japan and in Latin America. The consulting panel developed a global plan for this strategic acquisition valued well over $500 million and participated in the negotiation with the owners of the company.

3.  Market Entry Strategy for "Blood Pressure Monitoring Equipment" for a Major Medical Devices Company:

This was one of the first projects from this major multinational. Their "Critikon Unit" involving this blood pressure monitoring equipment was not doing well in the US and they were exploring the possibility of going international and testing the market in Asia. Before doing this, they wanted the Consulting Panel to investigate the market relating to its demand, the names of players, their market shares and strategies and develop several strategic options to enter these markets. The Consulting Panel carried out the market research and then developed a business model to show the impact of these strategic options on the final outcome. On the basis of the recommendation by the Consulting Panel, the multinational decided not to proceed with any further international expansion.

4.  Revised Marketing Strategy for improvement in Market Share for Medical Devices connected with Diabetes in Taiwan:

The subsidiary of a well-known global medical devices and pharmaceutical products company (sales revenue over $30 billion) was experiencing significant diminution in market share due to change in the distribution set-up over the previous 12 months. The Consulting Panel was commissioned to develop a strategy to arrest the downward trend. The Consulting Panel re-estimated the market demand, studied the market shares of various players together with their strategies and then came up with their strategic recommendations. A business model was developed to reflect the strategies, resources needed and measure the impact on the company operations. A Decision & Risk Analysis was also performed. The final presentation turned out to be a revelation to the chief executive of the subsidiary, which recognized the need to act immediately in implementing the strategies recommended and arrest the trend. He also sent a testimonial complimenting the Consulting Panel for their work.

5.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

6.  Market Entry Strategy for a Large US-based Brewery into Taiwan:

This was developed by the Consulting Panel for a large beer manufacturer and marketer in the United States. After carrying out the demand estimates for these countries as well as market segmentations, market shares for various companies and their relevant marketing and manufacturing strategies, the panel focused on the Strategic Options available for market entry such as grassroots entry and expansion, a possible joint venture (JV) and an Acquisition. The investments needed for these were included in a business model which responded to the impact of the strategies on the bottom line of the company. The probability of enhancing or destroying shareholder value was evaluated using the D&RA. In line with the recommendations by the consulting panel, the company decided not to pursue its market entry into Argentina but proceed further with the recommended strategy for Taiwan.

Asia & Australia:
China
Japan
Taiwan
South Korea
Philippines
Thailand
Malaysia
Singapore
Vietnam
Sri Lanka
HongKong
India
Australia
Others
Top
Country Track Record
Tiara's Expertise in HongkongHong Kong  

1.  Market Entry Strategy for "Asthma Inhalers" into Hong Kong for a Manufacturer of Medical Devices in Arizona State:

This was carried out very successfully by the Consulting Panel. In each of the markets, there were strong local players. Further, it appeared even the technology of this manufacturer would be duplicated very quickly in these countries in spite of all the patent protection. The consulting carried out a market survey and then planned a mix of strategies for each market based on its evolution and the strength of the presence of the local players. A mathematical model was developed and demonstrated the impact of the strategies as well as a Decision and Risk Analysis was carried out. The company decided not to proceed further with this expansion in their marketing efforts.

2.  Market Entry Strategy for "Blood Pressure Monitoring Equipment" for a Major Medical Devices Company into Hong Kong:

This was one of the first projects from this major multinational. Their "Critikon Unit" involving this blood pressure monitoring equipment was not doing well in the US and they were exploring the possibility of going international and testing the market in Asia. Before doing this, they wanted the Consulting Panel to investigate the market relating to its demand, the names of players, their market shares and strategies and develop several strategic options to enter these markets. The Consulting Panel carried out the market research and then developed a business model to show the impact of these strategic options on the final outcome. On the basis of the recommendation by the Consulting Panel, the multinational decided not to proceed with any further international expansion.

3.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

These consulting assignments were carried out in the following countries over eight different projects:
China, Thailand, Taiwan, Korea, Japan, Indonesia & India in Asia

4.  Acquisition of a Global Trading Oil Company with significant assets:

This company had a majority share in a lube oil refinery in Taiwan and a marketing network in the middle-east, Singapore, Hong Kong, Japan and in Latin America. The Consulting Panel developed a global plan for this strategic acquisition valued well over $500 million and participated in the negotiation with the owners of the company.

Asia & Australia:
China
Japan
Taiwan
South Korea
Philippines
Thailand
Malaysia
Singapore
Vietnam
Sri Lanka
HongKong
India
Australia
Others
Top
Country Track Record
Tiara's Expertise in South KoreaSouth Korea  

1.  Market Entry Strategy for "Blood Pressure Monitoring Equipment" for a Major Medical Devices Company into Korea:

This was one of the first projects from this major multinational. Their "Critikon Unit" involving this blood pressure monitoring equipment was not doing well in the US and they were exploring the possibility of going international and testing the market in Asia. Before doing this, they wanted the Consulting Panel to investigate the market relating to its demand, the names of players, their market shares and strategies and develop several strategic options to enter these markets. The Consulting Panel carried out the market research and then developed a business model to show the impact of these strategic options on the final outcome. On the basis of the recommendation by the Consulting Panel, the multinational decided not to proceed with any further international expansion.

2.  Multi-dimensional Scaling & Composite Product Mapping for a Major Multinational in Medical Devices & Pharmaceutical Products:

The consulting panel carried out market surveys, depth interviews and focus group research to determine and measure company awareness, product awareness and knowledge, product image, company image, share of mind and satisfaction levels of customers in hospitals and the like. Thereafter using the data conducted a company and competitor perceptual mapping study using the sophisticated technique "Composite Product Mapping & Multidimensional Scaling" for selected groups of products in South Korea. This was very well received by the subsidiary of the multinational in Korea, who used the study to revamp their marketing strategies for the products.

3.  Market Entry Strategy for a Major Small Gasoline Engine Manufacturer into the Far East:

The manufacturer with sales revenue nearing $2 billion wanted to set up a manufacturing facility in China and a smaller facility in Thailand and market their products in China, South Korea, Vietnam, Philippines and Thailand. The Consulting Panel carried out market research and retail audit in these countries, developed the overall market entry strategy with variations for each country. Thereafter, an investment evaluation was carried out testing each one of the strategies. A mathematical spread sheet model was developed and a Decision & Risk Analysis (D&RA) was carried out. The manufacturer is in the process of implementing the strategies for market entry into these countries.

4.  Benchmarking New Product Development Activity with Competitors in the Multi-Level-Marketing Segments and other Segments:

This multi-level-marketing company was very eager to compare themselves with companies with similar marketing systems as well as those in regular distribution systems. Such benchmarking was done with companies in the US as well as a few in Europe, Japan and Korea. Thereafter, a mathematical model was developed which showed that if this company observed selectively some of the "best practices" of their competitors, the impact on their bottom line and cash flows. This gave significant opportunities for the company in improve their performance in specific areas.

5.  Strategic Consumer Brand Acquisitions and Improving Product Portfolio for a Multi-Level-Marketing Company in the US:

The head of Strategic Marketing of this company felt that they needed to acquire new products and brands, which look possible winners in the eyes of their distribution network. It is not always possible to come up with new concepts translated into successful products and brands from within the company. The Consulting Panel was commissioned with the task investigating brands in some 8 consumer segments and come up with the strategic recommendations for their acquisition including their valuations. Once this was done on specific criteria, the Consulting Panel developed a business model and extrapolated the growth of the sales of the products given a set of strategies. A D&RA was then carried out. This was done for selected brands/products in the US, Europe, Japan and Korea. It is understood that the company is in the process of having a dialogue with the owners of these brands for possible acquisitions.

6.  Market Entry Strategy for a Japanese Company in Women's Intimate-ware into Korea:

This $600 million multi-level-marketing Japanese company requested the Consulting Panel to develop market entry strategies for China and Korea. They had already switched their manufacturing base to China. The Consulting Panel carried out market survey and research in these countries, developed market demand estimates, segmentation of the market, evaluated the market shares of potential competitors and their strategies and then came up with Strategic Options to enter these markets. Two business models were developed, one for China and the other for Korea. The impact of the strategies on the bottom line of the company was well established and also a Decision & Risk Analysis carried out. The company was very pleased with the outcome and it is understood that they would be implementing these strategies within the next few months.

7.  A "Multi Level Marketing" Consumer Products Company has potential savings of $130million:

A benchmarking exercise was carried out in Supply Chain Management for a US based consumer products company involved in multi-level-marketing in several countries such as Japan, South Korea, China, India and the United States. This showed that by following the "best practices" of some of the competitors even partly would free up capital of the order of 30% of the current $430 million, i.e. $130 million. It is understood that the company has since then implemented the study and has already realized more than $75 million. The client gave an excellent testimonial to the Consulting Panel in this regard.

8.  Acquisition of LPG Company with huge Caverns for Storage in Korea:

Developed a stratplan for the above with an investment of $64 million. The plan called for the acquisition of this company to be assimilated with the subsidiary of the petroleum company. The local company in Korea stored LPG in huge caverns. The project was consummated and the full benefits realized. A post audit showed that the assumptions and the forecast of results were validated.

9.  Upgradation of Refineries in Korea:

Japan refinery studies involved additional capital investment to manufacture BTX and other products for $200 million. For Korea the incremental capital investment needed for a hydrodesulfurizer was around $250 million. For Singapore, the incremental capital investment needed for establishing a new hydrocracker and also a polymerizer for gasoline would account for about $500 million. All these projects were implemented.

Asia & Australia:
China
Japan
Taiwan
South Korea
Philippines
Thailand
Malaysia
Singapore
Vietnam
Sri Lanka
HongKong
India
Australia
Others
Top
Country Track Record
Tiara's Expertise in PhilippinesPhilippines  

1.  Market Entry Strategy for a Major Small Gasoline Engine Manufacturer into the Far East:

The manufacturer with sales revenue nearing $2 billion wanted to set up a manufacturing facility in China and a smaller facility in Thailand and market their products in China, South Korea, Vietnam, Philippines and Thailand. The Consulting Panel carried out market research and retail audit in these countries, developed the overall market entry strategy with variations for each country. Thereafter, an investment evaluation was carried out testing each one of the strategies. A mathematical spread sheet model was developed and a Decision & Risk Analysis (D&RA) was carried out. The manufacturer is in the process of implementing the strategies for market entry into these countries.

2.  Binan / Pasig LPG Project in the Philippines:

This called for a new investment for storage and distribution of LPG in the Philippines. The investment was of the order of $7.5 million. The project was successfully implemented and removed most of the bottlenecks in LPG distribution.

3.  Acquisition of the subsidiary of a major oil company in the Philippines:

It called for an investment of well over $150 million. The refining options were resold to the national oil company and the marketing network was kept in tact. After the acquisition, the concerned petroleum company had the highest market share in retail products in the country with a very viable operation.

Asia & Australia:
China
Japan
Taiwan
South Korea
Philippines
Thailand
Malaysia
Singapore
Vietnam
Sri Lanka
HongKong
India
Australia
Others
Top
Country Track Record
Tiara's Expertise in ThailandThailand  

1.  Hotel Industry & Tourism Development Plan for Northern Thailand

The Consulting Panel had for its focus the northern Thailand with specific emphasis on greater Chiang Mai city. A benchmarking exercise was undertaken in the following locations for different tourism segments:

Las Vegas and Bangkok (for meetings & conventions), Costa Rica and Nepal (for eco-tourism), Bali, Phuket and Malaysia for (leisure and spa) and Scottsdale and Honolulu (for golf and leisure). Some of the "best practices" of each one of the locations were identified. Thereafter, the Consulting Panel focused and selected whatever was feasible and assimilable for the conditions in Chiang Mai. Further, their investment costs evaluated and a business model fully developed. The model bestowed considerable attention on the best practices approach involving additional investments and the impact on the bottom line for tourism in Chiang Mai. A principal drivers analysis was also provided.

2.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

These consulting assignments were carried out in the following countries in Asia:
China, Thailand, Taiwan, Korea, Japan, Indonesia & India in Asia.

3.  Market Entry Strategy for a Major Small Gasoline Engine Manufacturer into the Far East:

The manufacturer with sales revenue nearing $2 billion wanted to set up a manufacturing facility in China and a smaller facility in Thailand and market their products in China, South Korea, Vietnam, Philippines and Thailand. The consulting panel carried out market research and retail audit in these countries, developed the overall market entry strategy with variations for each country. Thereafter, an investment evaluation was carried out testing each one of the strategies. A mathematical spread sheet model was developed and a Decision & Risk Analysis (D&RA) was carried out. The manufacturer is in the process of implementing the strategies for market entry into these countries.

4.  Strategic Plan for the Acquisition & Merger of the Marketing Network of a major Oil Company in Thailand:

The strategic plan was implemented with an investment of over $100 million. It called for a very innovative solution in the acquisition as there were many restrictions in the handling of real estate in Thailand. A mathematical model was developed for arriving at the acquisition pricing alternatives. The payback period and the IRR were estimated at 2.9 years and 29% respectively. A post audit carried out after 4 years showed the actual payback period and IRR at 2.7 years and 31% respectively.

5.  Feasibility Study for a $2 Billion Greenfield Refinery in Thailand:

This study was carried out in the early nineties for a new grassroots refinery in Thailand. This modern refinery would use new technology and had a thruput of 100,000 barrels per calendar day (BPCD). It was to be a merchant refinery as the output of the refinery would neither be entirely absorbed in Thailand nor by the rest of the company's marketing system in Asia and Far East.. A significant portion of the output would be involved in trading such as a merchant refinery would do. A Decision & Risk Analysis (D&RA) that was carried out showed that the probability of destroying shareholder value was as high as 39%. Subsequently after revisiting some of the assumptions and variables and revising these showed a diminished level of destroying shareholder value, i.e. 18%. The company considered that as a reasonable business risk, built the refinery from grassroots and commissioned it in the late nineties.

Asia & Australia:
China
Japan
Taiwan
South Korea
Philippines
Thailand
Malaysia
Singapore
Vietnam
Sri Lanka
HongKong
India
Australia
Others
Top
Country Track Record
Tiara's Expertise in MalaysiaMalaysia  

1.  Hotel Industry & Tourism Development Plan:

The Consulting Panel had for its focus the northern Thailand with specific emphasis on greater Chiang Mai city. A benchmarking exercise was undertaken in the following locations for different tourism segments:

Las Vegas and Bangkok (for meetings & conventions), Costa Rica and Nepal (for eco-tourism), Bali, Phuket and Malaysia for (leisure and spa) and Scottsdale and Honolulu (for golf and leisure). Some of the "best practices" of each one of the locations were identified. Thereafter, the Consulting Panel focused and selected whatever was feasible and assimilable for the conditions in Chiang Mai. Further, their investment costs evaluated and a business model fully developed. The model bestowed considerable attention on the best practices approach involving additional investments and the impact on the bottom line for tourism in Chiang Mai. A principal drivers analysis was also provided.

2.  Lube Oil Blending investments in Malaysia:

This was developed and implemented with a capital investment of $15 million

Asia & Australia:
China
Japan
Taiwan
South Korea
Philippines
Thailand
Malaysia
Singapore
Vietnam
Sri Lanka
HongKong
India
Australia
Others
Top
Country Track Record
Tiara's Expertise in SingaporeSingapore  

1.  Revitalizing the Petroleum Retail Network in Singapore:

With the high value of real estate in Singapore, the petroleum company wanted to establish a series of goals to be achieved for their retail network so that implementing these would enhance their return on land investment, which was substantial. The Consulting Panel established a set of criteria to achieve the above.

2.  Water Purification & Desalination Projects:

A Company in Los Angeles came up with a new process for water desalination called Modified vapor compression and distillation (MVCD), which would be significantly less expensive than various traditional processes such as vapor compression & distillation (VCD), reverse osmosis, multistage fractional distillation (MSFD), reverse osmosis (double-pass), and MED. Field research was carried out in several countries such as India, Singapore, Dubai, Saudi Arabia, Egypt, Mexico and USA and compared the existing operations with the potential new operation. This feasibility study showed as to what strategy this new company should adopt for each country. A business model was developed for each country where the strategy and investment levels were embedded and it showed the impact of the strategy on the cash flows for each country. A principal drivers Analysis was also carried out together with the risk profile of the investment for each country.

3.  Investment Evaluation for Setting up a Major Used Car Center

For the purpose of this study benchmarking exercises were carried out in Dubai, Japan, Peru and Singapore and their "used car" operations were fully analyzed. It is understood that most of the supplies were being received from Japan and Korea, while some supplies would arise from auto-centers in Europe. Special recognition of left-hand and right-hand drives has to be taken into consideration and their relative cost constraints. Further moving the cars from Mombassa to other locations in Africa either by road or by sea were evaluated. A business model was developed to portray the projected operations and the return on investment was evaluated. The client was also offered the services of the Consulting Panel to introduce various parties in Japan and Korea for auto supplies.

4.  Acquisition of a Global Trading Oil Company with significant assets:

This company had a majority share in a lube oil refinery in Taiwan and a marketing network in the middle-east, Singapore, Hong Kong, Japan and in Latin America. The Consulting Panel developed a global plan for this strategic acquisition valued well over $500 million and participated in the negotiation with the owners of the company.

5.  LPG / Automotive LPG Projects in Singapore:

These were developed with investments of $8 million in each of the projects. They have been successfully implemented.

6.  Upgradation of Refineries in Japan, Korea & Singapore:

Japan refinery studies involved additional capital investment to manufacture BTX and other products for $200 million. For Korea the incremental capital investment needed for a hydrodesulfurizer was around $250 million. For Singapore, the incremental capital investment needed for establishing a new hydrocracker and also a polymerizer for gasoline would account for about $500 million. All these projects were implemented.

Asia & Australia:
China
Japan
Taiwan
South Korea
Philippines
Thailand
Malaysia
Singapore
Vietnam
Sri Lanka
HongKong
India
Australia
Others
Top
Country Track Record
Tiara's Expertise in VietnamVietnam  

1.  Market Entry Strategy for a Major Small Gasoline Engine Manufacturer into the Far East:

The manufacturer with sales revenue nearing $2 billion wanted to set up a manufacturing facility in China and a smaller facility in Thailand and market their products in China, South Korea, Vietnam, Philippines and Thailand. The consulting panel carried out market research and retail audit in these countries, developed the overall market entry strategy with variations for each country. Thereafter, an investment evaluation was carried out testing each one of the strategies. A mathematical spread sheet model was developed and a Decision & Risk Analysis (D&RA) was carried out. The manufacturer is in the process of implementing the strategies for market entry into these countries.

Asia & Australia:
China
Japan
Taiwan
South Korea
Philippines
Thailand
Malaysia
Singapore
Vietnam
Sri Lanka
HongKong
India
Australia
Others
Top
Country Track Record
Tiara's Expertise in Sri LankaSri Lanka  

1.  Joint Venture with Sri Lanka Government for Import & Distribution

Developed a blueprint for establishing a JV with Sri Lanka Government Company, The Colombo Gas and Water Company. The project called for the establishment of an ocean terminal for the receipt and storage of LPG and additional investments in the form of tank trucks and LPG cylinders with a total investment of $30 million. The petroleum company won the bid with Sri Lanka Government.

Asia & Australia:
China
Japan
Taiwan
South Korea
Philippines
Thailand
Malaysia
Singapore
Vietnam
Sri Lanka
HongKong
India
Australia
Others
Top
Country Track Record
Tiara's Expertise in IndiaIndia  

1.  BIOGAS PROJECT FOR THE SUBSIDIARY OF A EUROPEAN COMPANY IN INDIA:

  • Biogas Production Thru Anaerobic Digestion
    • India has more than 4.5 million small scale rural cattle-dung Plants
    • The biggest Cattle dung Plant is in Ludhiana owned by PEDA providing 1 MW of power to the grid
    • There are quite a few mini-plants (less than 1MW in power capacity) running on a blend of
      • Vegetable Waste
      • Food Waste
      • Organic Waste
      • Cattle dung

      Not highly Scalable in terms of Input-Output relationship

  • Investigation of various Technologies for Manufacturing Biogas:
    • Solid State Stratified Bed (SSB)
    • Plug-flow Digester/Reactor (PFDR) Process
    • TERI (TEAM) Process
    • KVIC Derived Design
    • BARC Process
    • Continuous Flow Stirred Tank Reactor System (CSTR)
    • Upflow Anaerobic Surge Blanket (UASB) System
    • Pre-Treatment of feedstocks, where necessary - in the case of wheat and rice straw, pre-treatment is necessary - some kind of pulverizing it
    • This is where "Verbio Process" is unique
  • "Verbio" Technology:
    • Currently uses wheat-straw as the feedstocks
    • There is special baling equipment to collect the feedstocks from various farmers quite efficiently
    • There is a good storage system as it may be necessary to store 5 months' requirements in the plant storage
    • 1,000 tons of wheat-straw plant per day will produce around 16 tons of biomethane per day
    • In other words, a 35,000 ton p.a. plant will produce around 5,500 tons of biomethane, equivalent to the rated capacity of a10 MW Plant in power generation
    • The feedstocks are well pulverized and treated with special enzymes in the Anaerobic Digestion Process
    • This is the most efficient technology yet available for treatment of waste of dung in the manufacture of biogas or biomethane of capacity 10 MW of power
      • To produce the same 10 MW of power, 300,000 tons p.a. of cow-dung will be needed
      • 200,000 tons p.a. of "kitchen waste" or "vegetable waste" will be needed
      • A blend of the above two will need a plant with feedstocks requirements of 250,000 tons per annum
    • It should be possible to use rice straw as well in similar capacities to produce same amount of power
    • Verbio technology is being currently used by a Plant in Germany to produce 25 MW of power near the Polish Border
  • Marketing the Biogas (Biomethane) Output:
    • Can be used for Power Generation with a generating set of 10 MW and then feeding the National Power Grid
    • Can be used for producing Biomethane for feeding the National Natural Gas Grid in India
    • Can be used for auxiliary power generation for an Industrial Plant
    • Can be used for producing methanol
    • Can be used in place of Liquefied Petroleum Gas (LPG) in India and feed the Commercial Segment, which is non-subsidized - this seems to be the logical segment to feed for the following reasons:
      • GOI supports this Approach as it conserves the consumption of LPG, 20% of which is imported
      • GOI provides "subsidy" for the Capex of the Plant besides various tax concessions
      • The pricing of LPG in the commercial segment is significantly higher since it is not subsidized by GOI
      • The Project shows excellent "Project Economics"

The Project would need a Capital Investment of around Rs. 60 Crores with the following Results as of the middle of 2014:

Economic Evaluation of the Project

The relevant Tornado Diagram, Principal Drivers of the Business, is shown below:

Biomethane in Bottles - Top 8 Drivers of Business

The relevant Risk Profile of the Project is as shown below:

Biomethane Project - Risk Profile of Business - Top 8 Drivers

The above curve shows that there is no probability of destroying shareholder value in this project

The relevant Risk Profile of the Project is as shown below:

2.  ARRANGEMENT WITH A GERMAN COMPANY, "VERBIO AG" ,TO TRANSFER TECHNOLOGY TO INDIAN COMPANIES INTERESTED IN GENERATING BIOGAS (BIOMETHANE) FROM WHEAT-STRAW (Marketing LPG to the Commercial Segment of LPG comprising of Hotels & Restaurants):

  • Generate biomethane (natural gas) from wheat-straw and rice straw; India has surplus wheat- straw of 12 million tons per annum and rice-straw of another 11 million tons p.a. The plant generating 10 MW equivalent power needs only 35,000 tons per annum of wheat or rice straw. Such a Plant will produce around 6,000 tons of biomethane (natural gas or biomethane, i.e., CH4).
  • This Technology has been developed in Germany and is the most efficient method of manufacturing biomethane (natural gas) from waste products on a global basis.
  • As such the Company undertaking this technology will be ushering in new technology into India
  • The German company has a very unique way of "baling" and "wrapping" the wheat-straw with some special equipment. This assists them in baling, wrapping and storing the feedstocks, say 5 months' stocks in their storage area, which would be less than a hectare.
  • While in Germany, the biomethane so developed is fed into the gas grid, in India, this can be bottled and sold very profitably in the LPG Commercial Segment
  • Provide Biomethane (natural gas) in gas cylinders to the Commercial Segment of LPG. Government of India (GOI) welcomes this and even provides "subsidy" at 10% of Capex as this would reduce their LPG imports, which are in the region of 4 million tons p.a.. Even without including GOI support, this project is exceptionally profitable.
  • Generate incremental supplies of fertilizer (organic manure) as a by-product for rural marketing.
  • Provide outlet for the wasted wheat-straw and rice-straw in rural areas and in turn put some cash into the farmers' pockets

Given below are the details of the Technology:

  • A German Company has come up with a new unique Technology for the manufacture of Biomethane using "wheat straw" and "rice straw" This is the latest German technology and it has been verified that there is only one German company which uses this technology for producing biomethane and supplying to the compressed natural gas (CNG) grid in Germany. They are prepared to offer this technology to selected companies in India.
    • Tiara has already carried out a complete pre-feasibility study on this project and will be happy to present to any Company in India
    • The process that is used is "anaerobic digestion", a chemical process
    • The technology developed by this German Company is extremely efficient in the use of feed stocks. It needs only 35,000 tons p.a. of feedstocks (approximately 100 tons a day) to produce 10 MW of rated power. To produce this level of power, one needs 237,000 tons of biowaste or around 300,000 tons of cattle dung
    • .
    • The project needs only around 55 crores of rupees as capital investment + some investment on cylinder cascades for storage + sum capex at customers' premises
    • This product can easily penetrate the commercial Segment of LPG Market (i.e., restaurants and hotels) where LPG is sold at non-subsidized price.
    • While the cost of production is around Rs. 35 per Kg, the revised market selling price can be Rs. 55 per Kg (price to distributors). A downward revision on this price has been made in the light of a drop in International LPG prices recently (Jan, 2015). The non-subsidized LPG price is around Rs. 59 per Kg in India today (this represents the reduced price of LPG with the drop in global prices)
    • As such everybody in the distribution channel, i.e., the rural wheat-straw & rice-straw supplier, the manufacturer of biomethane and the Commercial Segment User, will be a winner in this deal
    • The cashflows are very robust for such a project and the payback period is in the region 3.5 years and IRR over 37% The Risk Profile shows that there is a very low probability of destroying shareholder value
    • The project also produces fertilizer (organic manure) as a byproduct, which can be sold to the very farmers from whom the biogas manufacturer procures wheat straw and rice straw

    Representatives of Tiara have visited the Verbio Plant in Germany near the Polish Border. The slated capacity of this plant is 25 MW of power and it is already producing 10 MW using feedstocks at the rate of 35,000 tons per annum. Incidentally, the plant in India is envisaged with a power capacity of 10 MW.

    Tiara would be happy to make a Presentation to any Company that would be interested in ushering in this new technology in India Incidentally, even if a company puts up 6 Plants at different locations in India where, say wheat/rice straw is available (India has a surplus of 12 million tons of wheat straw and 11 million tons rice straw p.a.), the total requirement of feedstocks will be in the region 6 x 35,000 = 210,000 tons p.a. Further, this would achieve a market penetration of LPG Commercial Segment in the region of just 1%. In short, it is a great project with hardly any risk in it and can be implemented by any Company with great aplomb. While GOI provides subsidies in the form of Grants for Capex, Tiara has not included that in our Pre-feasibility Study.

3.  PRESENTATION TO US-INDIA BUSINESS COUNCIL (USIBC) IN WASHINGTON, DC:

  • This Presentation was made to the then President of USIBC
  • Highlighted the opportunities for US companies in India, especially with India's Five Year Plan for the Period 2013-18
  • Reviewed the flaws in the System of Bidding for Projects by the Private Sector with Government of India (GOI)
  • Narrated some of the Problems with Power Generating Companies in India
  • Critiqued the Attitudes of some of the Secretaries to GOI
  • Discussed in specifics the Opportunities for the Private Sector in the Power Sector
  • Offered to assist members of the USIBC for any Market Entry Strategy into India
  • Demonstrated Tiara's Quantitative Modeling System
  • Ran a simulation Exercise including Monte Carlo Simulation

4.  PRESENTATION TO ASSOCIATION OF POWER PRODUCERS (APP) IN INDIA:

  • Met with the Director General of APP, who was former Additional Secretary of the Ministry of Power (MoP) in India
  • While he appeared to be in favor Tiara making a Presentation to APP, he observed that MoP and GOI are involved in changing the "bidding process" for Ultra Mega Power Projects (UMPP), involving more than 4,000 MW of Power
  • While he appeared to be in agreement the findings of Tiara in its Presentation, he pointed out that there were too many assumptions with too many variables involved
  • It was then Tiara pointed out that whether the respective companies make their Viability Studies of Projects or Tiara does the same with their modeling, all of these are based on "Assumptions" as the Projects will materialize in a future whose economic and technological environment can at best be captured by "assumptions"
  • Thereafter, he appeared to understand the wisdom of Tiara's Quantitative Modeling (TQM)
  • It was felt by him that if Tiara could evaluate the new bidding process and thereafter make a Presentation with relevant assumptions of a new Model then it would be of use to the members of APP

5.  INTERACTION WITH THE PLANNING COMMISSION, GOVERNMENT OF INDIA:

Met with the Senior Member of the Planning Commission (PC), who was former Cabinet Secretary of GOI with the following discussions:

  • Made a Presentation of the outcome of a couple of Major Capex Projects in India which were originally approved by the Planning Commission (PC)
  • PC has for its focus the following in their Capital Investment Projects:
    • Deliver significant benefits to the communities for whom the project is intended
    • Uses Resources of the Country quite optimally
    • Provides benefits for the "Ahm Aadmee" (the Common Man)
    • Provides benefits to the Investor or sponsoring company in the Private Sector
  • It was pointed out that while many of the projects provide the benefits as per the first three bullets above, they do not usher in the benefits for the Private Investor
  • As a matter of fact, Private Investors have done the bidding of many projects which after completion have turned out to be "Non-Performing Assets" (NPA)
  • Tiara thereafter showed some examples where the Risk Profiles of the Projects showed the Probability of Destroying Shareholder Value as high as 80%
  • It was therefore suggested to the Planning Commission that the "bidding process" should be such that GOI should not entertain projects where it is clear that the bidder will become a non-performing asset
  • This does not mean that Companies may not come forward to bid but the economic environment should be such that the Private Sector is encouraged to bid for Projects
  • This would call for some "new thinking" in developing in the first phase of Major Infrastructure Projects, which are generally sponsored either by the State Governments of GOI.

6.  SYMPOSIUM IN NEW DELHI ON POWER IN AUGUST OF 2012:

  • This was sponsored by the UK Group called "International Trades & Exhibitions", located in London, UK
  • Participants, inter alia, included CERC, the Power Ministry, the Department of Atomic Energy, Coal Ministry, Department of New & Renewable Energy, Planning Commission, Independent Power Producers Association and so on
  • Tiara made a Presentation on the "Strategic Issues of Power Generation"
  • The response was very enthusiastic and there were recommendations from some of the delegates to the Seminar that Tiara should discuss further with MoP and also with CERC on Tiara's suggestions for future bidding on Major Power Projects
  • There was general acceptance that when Power Companies bid for Projects they do not appear to be envisioning all possible scenarios while tendering their bids

7.  Special Sessions with Association of Chambers of Commerce and Industry (ASSOCHAM) in India:

  • Made a Presentation on Tiara's Quantitative Modeling System (TQMS)
  • Demonstrated as to how it provides for "out-of-the-box" thinking and Innovative Solutions
  • Highlighted some of the Issues with Indian Companies as they related to "Intellectual Properties"
  • Relevance of developing Strategic Options for each Project
  • Identifying the Risk versus Reward of any project
  • Illustrated all the above with an example of a Major Power Project in India
  • Also highlighted what should be the role of GOI in this regard
  • The Presentation was attended and participated by the Senior Members of CERC
  • The President of ASSOCHAM was quite eager and wondering how to involve Tiara for many other GOI Projects such as 2G Spectrum when it came up for rebidding and other GOI major Capital Investment Projects

8.  DIALOGUE WITH THE CENTRAL ELECTRICITY REGULATORY COMMISSION (CERC):

Tiara carried on a dialogue with CERC as it related to the "Bidding Process" for Ultra Mega Power Plants (UMPP) involving more than 4,000 MW each.

  • Went over with CERC the Bidding Process in India for Power Projects and highlighted to them as to how it was flawed
  • Went over with CERC the Bidding Process in India for Power Projects and highlighted to them as to how it was flawed
    • Developing Scenario Planning for each variable
    • Assigning Probabilities to each Scenario
    • Assuming the right Weighted Average Cost of Capital (WACC)
    • Developing a Principal Drivers Analysis
    • Carrying out Simulation Exercises including Monte Carlo simulations
    • Identifying the Risk Profile of the Project
    • The Chairman, CERC was quite impressed and they even sent their Representatives to Tiara's Presentation the following day with ASSOCHAM

9.  ADVICE TO GOVERNMENT OF INDIA - MINISTRY OF POWER IN 2011/12:

Given below in the diagram Five Major Private Sector Competitors in Power Generation in India were compared as they related to the Power Tariffs and their relevant expected Rates of Return. Although, these were quoted successfully and projects won by the respective companies, they could not maintain the rates of return as the imported coal prices went up and in many cases there were no provisions in the Power Purchase Agreements (PPAs) to increase the tariffs. Many of these power plants are losing heavily and have gone on appeal to the Central Electricity Regulatory Commission (CERC) and the Ministry of Power (MoP), Government of India (GOI) to arbitrate in this matter.

Comparative chart

  • Highlighted to the Ministry of Power (MOP), Government of India (GOI) that the "bidding process" for their Ultra Mega Power Plants (UMPP) appeared to be untenable
  • Even well-known companies preferred to underbid to win the business and then hoped to change Power Purchase Agreement (PPA) after a few years or even sooner if the cost of their procurement of feedstocks or any other commodity involved goes up significantly
  • This was the problem faced by all companies involved in UMPP Projects such as the ones in Mundra (Gujarat), Krishnapatnam, (Andhra Pradesh) and others in several other states
  • Tiara suggested alternative bidding process
  • While GOI was very eager to let Tiara develop a new "bidding process", the conditions in India at that time were not favorable for Tiara to pursue this assignment

10.  Tiara's Assessment on Ultra Mega Power Plant (UMPP) in Western India for 4,000 MW involving Capital Investment of US$ 4 billion:

  • Tiara pointed out that this project was unviable
  • The power tariff in the region of Rs. 2.26 per KWH appears to be too low in the light of increased cost of procuring Indonesian Coal
  • This is especially so when any tariff escalation can be done only for 40% of the imported coal as per the PPA
  • There was a strong possibility that this project may turn out to be a non-performing Asset (NPA) Unfortunately, all forecasts that Tiara made came true and the companies involved are still to get over these problems
  • While Central Electricity Regulatory Commission (CERC) appears to be willing to increase the power tariffs for the private companies, the State Electricity Boards are contesting this. Some of them have gone to Supreme Court
  • As such the solutions that CERC came up with appear to be in temporary "stalemate"

11.  DEVELOPED THE STRATEGIC OPTIONS FOR ONE OF THE TOP PRIVATE POWER GENERATING COMPANIES:

In India the Power Subsidiary of a Conglomerate had planned to put up a Power Project of 1,600 MW (supercritical coal plant) in Western India at a cost of US$2.50 billion in 2011. Tiara carried out this consulting assignment with great aplomb with the following outcome:

  • This was the first Study carried out in India using the Quantitative Modeling techniques with Simulation Exercises including Monte Carlo Simulation.
  • This showed the "Risk versus Reward" of all the Strategic Options.
  • The initial reaction of the Company was that the power tariff (Rs. 3.80 per KWH) that Tiara recommended to them to quote to win power bids from the State Electricity Boards appeared to be very high and was very different from the tariff for another major power project (Mundra) that the Client was involved and in which they were in the final stages of commissioning the Plant
  • While initially the Company was somewhat surprised with the recommendations, after some deep cogitation, they recognized its sterling importance and implemented the Study in its entirety.

The relevant "Principal Drivers Analysis" Diagram for one of the Strategic Options is shown by the Tornado Diagram as below:

Strategic Option 4

The Risk Profiles of the Four Strategic Options are shown by the respective Curves below. The Probability of Destroying Shareholder Value (PDSHV) is given by the point of intersection of each Curve with the Y-Axis. It will be found that the Values are as below:
1. Strategic Option 1A 52%
2. Strategic Option 1C 44%
3. Strategic Option 2 46%
4. Strategic Option 3 40%
5. Strategic Option 4 43%

Risk profiles of all strategic options

The Risk Profiles of the Four Strategic Options are shown by the respective Curves below. The Probability of Destroying Shareholder Value (PDSHV) is given by the point of intersection of each Curve with the Y-Axis. It will be found that the Values are as below:
1. Strategic Option 1A 52%
2. Strategic Option 1C 44%
3. Strategic Option 2 46%
4. Strategic Option 3 40%
5. Strategic Option 4 43%

12.  FOR THE "INNOVATION CENTER" OF A SUBSIDIARY OF A MAJOR CONGLOMERATE IN INDIA:

Developed Strategic Options to market their newly developed Catalyst for the Manufacture of Biodiesel from waste vegetable oils in the following Markets:

  • Developed Strategic Options to market their newly developed Catalyst for the Manufacture of Biodiesel from waste vegetable oils in the following Markets:
    • USA
    • European Union
    • India
    • Selected Countries in Southeast Asia & Australia
  • Such a Strategy would be very successful in achieving the following Objectives:
    • Wins the Argument conclusively "Food Versus Fuel" in the manufacture of biofuels
    • In the EU if "Used Cooking Oil" is reused as the "feedstocks", companies secure double the "carbon or emission credit"
    • It enables manufacturers to use lower-priced feedstocks and make biodiesel worth their while to manufacture
    • There is plenty of waste vegetable oil or used cooking oil as it is called in the US and EU respectively, most of which is currently sent for dumping
13.  Market Entry Strategy for "Asthma Inhalers" into India for a Manufacturer of Medical Devices in Arizona State:

This was carried out very successfully by the Consulting Panel. In each of the markets, there were strong local players. Further, it appeared even the technology of this manufacturer would be duplicated very quickly in these countries in spite of all the patent protection. The consulting carried out a market survey and then planned a mix of strategies for each market based on its evolution and the strength of the presence of the local players. A mathematical model was developed and demonstrated the impact of the strategies as well as a Decision and Risk Analysis was carried out. The company decided not to proceed further with this expansion in their marketing efforts.

14.  Market Entry Strategy for "Blood Pressure Monitoring Equipment" for a Major Medical Devices Company into India:

This was one of the first projects from this major multinational. Their "Critikon Unit" involving this blood pressure monitoring equipment was not doing well in the US and they were exploring the possibility of going international and testing the market in Asia. Before doing this, they wanted the Consulting Panel to investigate the market relating to its demand, the names of players, their market shares and strategies and develop several strategic options to enter these markets. The Consulting Panel carried out the market research and then developed a business model to show the impact of these strategic options on the final outcome. On the basis of the recommendation by the Consulting Panel, the multinational decided not to proceed with any further international expansion.

15.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

These consulting assignments were carried out in the following countries over eight different projects:
China, Thailand, Taiwan, Korea, Japan, Indonesia & India in Asia.

16.  Port Waste Management Services with Benchmarking various Global Ports:

This was a benchmarking project. The benchmarking ports were as under:

  • Long Beach, California, Rotterdam, Netherlands & Singapore - Gold Standard
  • Jeddah, Saudi Arabia & Durban, South Africa- Silver Standard.
  • Bombay & Madras in India, Dar Es Salaam, Djibouti and Maputo in Africa - Bronze Standard

Finally, some of the best practices from these ports were selectively chosen for Mombassa Port to implement. A private business enterprise undertook the project and they have already completed their installation of waste management facilities on the basis of the recommendations. It is understood that many countries in Africa would like to use this facility in Mombassa port as a model for them to copy and follow.

17.  Water Purification & Desalination Projects:

A Company in Los Angeles came up with a new process for water desalination called Modified vapor compression and distillation (MVCD), which would be significantly less expensive than various traditional processes such as vapor compression & distillation (VCD), reverse osmosis, multistage fractional distillation (MSFD), reverse osmosis (double-pass), and MED. Field research was carried out in several countries such as India, Singapore, Dubai, Saudi Arabia, Egypt, Mexico and USA and compared the existing operations with the potential new operation. This feasibility study showed as to what strategy this new company should adopt for each country. A business model was developed for each country where the strategy and investment levels were embedded and it showed the impact of the strategy on the cash flows for each country. A principal drivers Analysis was also carried out together with the risk profile of the investment for each country.

18.  Market Entry Strategy for automobile Roof-Racks India:

This project was carried out in two stages by the Consulting Panel. The first stage involved Latin America with special emphasis on Brazil and Argentina. After verifying the outcome, the company commissioned the study team to carry out the next project in Asia for India, China, Japan & Korea. These projects involved investigating the potential market demand fort the next 10/15 years, the shares and strategies of various players, the acquisition targets in each of the countries and their valuations. The Consulting Panel completed the assignment by building a business mathematical spread sheet model, which showed the impact of the various strategies on the final outcome for the company. There were some prime targets for JV & acquisition in Brazil and Argentina and also in Korea and Japan and the company was very pleased that they had a road map to pursue these objectives. A Decision & Risk Analysis was carried out for each of the countries. It is understood that some of the possible acquisitions as recommended by the Consulting Panel have already materialized. The CEO of the company gave a very good testimonial to the Consulting Panel.

19.  A "Multi Level Marketing" Consumer Products Company has potential savings of $130million:

A benchmarking exercise was carried out in Supply Chain Management for a US based consumer products company involved in multi-level-marketing in several countries such as Japan, South Korea, China, India and the United States. This showed that by following the "best practices" of some of the competitors even partly would free up capital of the order of 30% of the current $430 million, i.e. $130 million. It is understood that the company has since then implemented the study and has already realized more than $75 million. The client gave an excellent testimonial to the Consulting Panel in this regard.

20.  Market Entry Strategy for a Major Razor Blade Manufacturer and Marketer into India:

India represented potentially the biggest razor blade market as physiologically they tend to be very hirsute. A JV Strategy was developed with a UK based multinational. Since it was expected that the new product would compete with the "smuggled segment" in India, where imported razor blades figured in, the market research had a novel approach to establish the size of the smuggled segment and their pricing strategies. Market survey and research were carried out accordingly, demand was estimated, segmented and the pricing and promotional strategies developed. Only the urban market in 69 cities and towns were selected for the initial marketing.. A capital investment of over $20 million was approved by a consortium of banks on the basis of the recommendation by the Consulting Panel. The new company was formed with the plant in Karnataka state with a totally new marketing organization. It is understood that the strategy was well implemented and the company is currently thriving in India after a "reverse takeover" by a well known razor blade manufacturer in the world.

21.  Market Entry Strategy for Automobile Tires, Batteries & Accessories (TBA) through retail network in India:

Strategic Plan for the above for a major petroleum company in India with extensive retail network was developed and implemented with very innovative conceptual skills. It called for no additional manpower, no additional investments and no additional operating capital. Consignment operation with the inventories of the products branded by the suppliers in the petroleum company's name were maintained at the petroleum company's storage points by the suppliers themselves at their cost These strategies were successfully initiated, developed and implemented. The petroleum company became pioneer in the marketing of these products in the country with high levels of profitability.

22.  A Major Aerospace Multinational Company Receives an Objective Study:

The aerospace division ($10 billion in sales revenue) of a major aerospace multinational in the US commissioned the Consulting Panel to estimate the demand forecast for commercial aircrafts and business jets in China and India over the next 15 years. They also wanted a complete analysis and viability of local manufacturing capabilities of aircrafts and their parts in these countries. The client appeared to appreciate the soundness of the study and the Strategic Options for each segment of the business as recommended by the study group. A Decision & Risk Analysis (D&RA) was also performed.

23.  Entry into LPG Market, India:

India is a huge LPG market. In the early nineties, the waiting list for LPG connections was of the order of 50 million. LPG price to the consumers was highly subsidized by the government. Further, the country was short on LPG supplies and needed to import a lot. The government wanted to withdraw the subsidy gradually and invited private oil companies to invest in the storage of LPG at ocean terminals and import LPG from their own international sources. Developed a strategic plan with an Ocean terminal in Kandla and dedicated LPG tankers for supplies. The project called for a total investment of $50 million.

24.  Marketing Strategy for a well-known Tobacco Company in India:

This company ranked # 2 in the country in the manufacturing and marketing of cigarettes. A benchmarking study was carried out to find out some of the best practices of their competitors. A thorough examination was also made on the company's brand strategies and promotional programs. The benchmarking exercise was very useful. It was pointed out to the company that while they were lagging behind their competition in some of the critical areas such as unit margins, product pricing, product costs and brand perceptions, the company had certain strengths such as inventory management, manpower deployment and promotional programs. Following this, the business model that was developed showed where to focus the attention of the company. The company stated that they were very impressed with the "Principal Drivers of the Business" as per the presentation and pursued these ideas to improve their performance.

25.  Market Penetration Strategy for a "Tea Marketing Company" in India:

The Consulting Panel was commissioned to carry out a study involving (1) vertical integration and its impact on their operations in the Tea Business and (2) How to improve their tea marketing efforts in India. The Consulting Panel visited some of the tea estates, tea factories besides visiting tea-wholesalers and retailers of the tea market. A thorough survey was carried out as to the investment costs of these estates and factories and how such integrated operations would improve the company's margins and provide more resources for marketing and market expansion. The Consulting Panel came up with a special integrated business model, which showed the impact of various strategies on their bottom line. The study group also made some special strategic recommendations for rural marketing. The company was very impressed with the strategic recommendations and it appears, they have successfully implemented the same.

26.  Market Entry Strategy for a Chicago-based Pharmaceutical Company into India:

While India represented a huge market, with the central government controlled product pricing, the margins were so meager that some of the US based pharmaceutical companies found it difficult to make it worthwhile to enter the market. However, with India signing the protocol of WTO and would gradually adhere to the norms of such protocol it was felt that potentially it would be a good market after 2006. The problems of "reverse engineering studies" carried out by some of the Indian pharmaceutical companies who were entering the generic markets of various western countries were also taken up. Taking all the above into account, the Consulting Panel came up with a good set of strategies for implementation in India gradually before 2006. A business model was developed and a decision and risk analysis was carried out. Since then it is understood that the company has been acquired by one of the biggest pharmaceutical companies in the United States.

Asia & Australia:
China
Japan
Taiwan
South Korea
Philippines
Thailand
Malaysia
Singapore
Vietnam
Sri Lanka
HongKong
India
Australia
Others
Top
Country Track Record
Tiara's Expertise in AustraliaAustralia  

1.  Co-branding Strategy for a Major US Multinational in the Beverages Segment:

The company's biggest markets for co-branding with a specified partner outside the United States were Mexico, UK, Ireland, Italy and Australia. They felt that they had to revamp their strategies in these countries. The consulting panel carried out field market research in all these countries and based on the outcome developed the Strategy for each Country. When a mathematical spread sheet model was developed using the findings of some benchmarking work, it not only outlined the strategies in these countries but also provided negotiation strategies for the company with their co-branding partner. It appears that the company implemented the strategies recommended within a short period of time.

2.  LPG / Automotive LPG Projects in Australia:

These were developed with investments of $8 million in each of the projects. They have been successfully implemented.

Asia & Australia:
China
Japan
Taiwan
South Korea
Philippines
Thailand
Malaysia
Singapore
Vietnam
Sri Lanka
HongKong
India
Australia
Others
Top
Country Track Record
Tiara's ExpertiseOthers  

1.  Hotel Industry & Tourism Development Plan - Nepal & Indonesia:

The Consulting Panel had for its focus the northern Thailand with specific emphasis on greater Chiang Mai city. A benchmarking exercise was undertaken in the following locations for different tourism segments:

Las Vegas and Bangkok (for meetings & conventions), Costa Rica and Nepal (for eco-tourism), Bali, Phuket and Malaysia for (leisure and spa) and Scottsdale and Honolulu (for golf and leisure). Some of the "best practices" of each one of the locations were identified. Thereafter, the Consulting Panel focused and selected whatever was feasible and assimilable for the conditions in Chiang Mai. Further, their investment costs evaluated and a business model fully developed. The model bestowed considerable attention on the best practices approach involving additional investments and the impact on the bottom line for tourism in Chiang Mai. A principal drivers analysis was also provided.

2.  CNG Project in Bangladesh:

Bangladesh has copious supplies of natural gas. They invited foreign oil companies to liquefy it and market it through their gas stations alongside motor gasoline with vehicles having dual operation. The master plan was successfully launched with an investment of $10 million.

Europe:
United Kingdom
Italy
Spain
Ukraine
Benelux
Germany
Ireland
France
Former Soviet Union
Russia
Hungary
Poland
Others
Top
Country Track Record
Tiara's Expertise in U KUnited Kingdom  

1.  Benchmarking New Product Development Activity with Competitors in the Multi-Level-Marketing Segments and other Segments:

This multi-level-marketing company was very eager to compare themselves with companies with similar marketing systems as well as those in regular distribution systems. Such benchmarking was done with companies in the US as well as a few in Europe, Japan and Korea. Thereafter, a mathematical model was developed which showed that if this company observed selectively some of the "best practices" of their competitors, the impact on their bottom line and cash flows. This gave significant opportunities for the company in improve their performance in specific areas.

2.  Strategic Consumer Brand Acquisitions and Improving Product Portfolio for a Multi-Level-Marketing Company in the US:

The head of Strategic Marketing of this company felt that they needed to acquire new products and brands, which look possible winners in the eyes of their distribution network. It is not always possible to come up with new concepts translated into successful products and brands from within the company. The Consulting Panel was commissioned with the task investigating brands in some 8 consumer segments and come up with the strategic recommendations for their acquisition including their valuations. Once this was done on specific criteria, the Consulting Panel developed a business model and extrapolated the growth of the sales of the products given a set of strategies. A D&RA was then carried out. This was done for selected brands/products in the US, Europe, Japan and Korea. It is understood that the company is in the process of having a dialogue with the owners of these brands for possible acquisitions.

3.  Valuation & Strategy for a Medical Devices company to get ready for an IPO:

The Consulting Panel carried out the research in the US, Germany and UK. The research included analyzing the existing practices for treatment of prostate cancer and the newer technologies already in use and those in the horizon. It also pointed out additionally available related market segments and pointed out to the client that "it is missing the forests for the trees". The strategy recommendation combining organic growth optimized with some acquisition possibilities involving newer technologies was very much appreciated by the client. Valuations were carried and a D&RA was completed to assess the probability of enhancing or destroying shareholder value which would be of immense help to this company for its IPO.

4.  A Large Medical Devices Company in the Northeast US Implements recommended Acquisition Strategy:

The company, whose sales revenue is over $3 billion, was eager to extend its product line into treatments associated with venous disorders and diseases. The consulting panel carried out the market research in several countries such as the US, Germany and UK and came up estimates of market demand, segmentation of the market and the products currently available and their relative market shares. Thereafter, strategic options were outlined including some acquisitions. One of the recommendations turned out to be a reality and the company was very thankful to the Consulting Panel as the latter provided the valuation for the acquisition and pointed out the probability of enhancing or destroying shareholder value for the acquisition and the principal drivers of the business.

5.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

These consulting assignments were carried out in the following countries over eight different projects:
UK. France, Germany, Italy, Russia, Romania and Turkey in Europe.

6.  Major US Based Computer & Server Manufacturer & Services Provider Revamps Its Strategy in Europe:

This well-known computer and server manufacturer, with an annual sales revenue in the region of $90 billion, commissioned the consulting panel to redesign "channel strategy" for different segments of the market in three different regions of the world, China-Japan, Germany-UK and Mexico-Brazil for their Netfinity servers The study was an eye-opener for this multinational revealing many segments of the market where a slightly different strategy would be immensely beneficial. A business model was developed for each country in each region that quantified the impact on shareholder value and the relative risk for using different channel strategies.

7.  A Major Multinational Redesigns Some of Its Offerings in Europe:

This huge multinational with sales revenue of over $100 billion was endeavoring to develop redesigned offerings for some of their products. The consulting panel carried out a benchmarking study with existing and new companies that were formed especially for this type of market. The multinational bank was surprised when the benchmarking showed that they ranked 7 out of 8 participants in the markets of Germany, UK, France, and Spain. Strategies were developed after adapting some of the best practices of these institutions to the multinational bank. A mathematical spread sheet model was developed and a D&RA was carried out.

8.  Co-branding Strategy for a Major US Multinational in the Beverages Segment:

The company's biggest markets for co-branding with a specified partner outside the United States were Mexico, UK, Ireland, Italy and Australia. They felt that they had to revamp their strategies in these countries. The consulting panel carried out field market research in all these countries and based on the outcome developed the Strategy for each Country. When a mathematical spread sheet model was developed using the findings of some benchmarking work, it not only outlined the strategies in these countries but also provided negotiation strategies for the company with their co-branding partner. It appears that the company implemented the strategies recommended within a short period of time.

9.  Marketing Strategy & Supply Chain Management for a "Car Cosmetics Company" in UK:

The subsidiary of a US company in UK was manufacturing and marketing most of the car cosmetics in their plant in the midlands of the UK. This plant supplied the marketing requirements of their UK operations. In France and Benelux countries, they had acquired two marketing companies which were procuring their supplies from outside manufactures. A study by the consulting panel showed that it would be more strategic and economical in the longer run to supply the requirements of all their European operations from their UK Plant. Potential JV operations or even acquisition for market entry into Germany were explored.

For their Latin American operations, possibility of organic growth in Mexico together with the possible JVs and acquisitions in Brazil and Argentina were explored. Business models were developed and a Decision & Risk Analysis was carried out.

It is understood that the company has already implemented the recommendations of the Consulting Panel for their European operations.

10.  A Major Automotive Service Organization Develops a New Strategy for Western Europe:

The company did not have an idea as to the extent of warranty services performed for various automobile manufacturers in Europe and what their subsidiaries could do to track the same and effect significant savings for these manufacturers. The consulting panel determined the market size for warranty expenses for well established automobile manufacturers, the extent of market penetration that can be achieved, the investment and other resources needed on their part and evaluated the return on investment for different sets of scenarios. There was a special presentation made to the CEO and SVPs of this client in Detroit. The CEO remarked that even in Chrysler where he worked as Vice Chairman, he had not seen such a high quality of quantitative analysis and strategic recommendations. It is understood that they implemented the recommendations of the consulting panel.

11.  Y2K Study for a Pharmaceutical Company in Chicago for anticipated Problems with Y2K Implementation for Distribution Channel in Europe (UK, France, Germany, Italy & Spain):

Admittedly, this study was carried out in the spring of 1999 for a pharmaceutical company whose sales revenue was in the region of $5 billion. The study involved contacting major distributors in the various countries as well as the various pharmacies. In all about 40 distributors and 500 pharmacies were contacted in person. The market survey assisted the Consulting Panel to come up with proactive strategies which will minimize all the problems and issues that might arise in the Y2K implementation. The company found the study "an eye opener" as it focused on issues that the company was not considering in their overall review. They company implemented all the strategies recommended. Since then it is understood that the company has been acquired by one of the biggest pharmaceutical companies in the United States.

12.  Benchmarking Study for a Chicago based Pharmaceutical Company in W. Europe (UK, France, Germany & Italy) & Latin America (Brazil & Mexico):

The Consulting Panel was commissioned to carry out this study by a $5 billion US based pharmaceutical company, as it related to some well known branded blockbuster products belonging to several other companies. These products related to one brand dealing with osteoporosis, one brand as an anti-depressant, two different brands relating to cholesterol reduction (Pravastatin and Simvastatin) and a couple of other brands. The benchmarking study, inter alia, focused on the sales revenues, promotional expenditure, number of sales personnel for each company involved with the brands, detailing criteria per sales representative and so on. This was done for a period of five years prior to the study, the companies and medical practitioners were interviewed in the respective countries, results tabulated, evaluated and some of the "best practices" of these companies identified. Some formulae were developed relating the success factors to various marketing strategies involved, the resources deployed and the efficacy of competitive products. Thereafter, the Consulting Panel came up with a set of strategies choosing selectively some of the best practices which can be adapted to the client company for two of their potential blockbuster products. This client company has since then ended up with a major US pharmaceutical company after a series of corporate takeovers.

Europe:
United Kingdom
Italy
Spain
Ukraine
Benelux
Germany
Ireland
France
Former Soviet Union
Russia
Hungary
Poland
Others
Top
Country Track Record
Tiara's Expertise in ItalyItaly  

1.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

These consulting assignments were carried out in the following countries over eight different projects:
UK. France, Germany, Italy, Russia, Romania and Turkey in Europe

2.  US-Based Insurance Giant Changes Strategy in the Expanding Pension Market in Italy:

A well established Insurance Company in the US wanted to penetrate the market more successfully in Italy. At that time Italy was on the verge of making significant changes to the Government Policy on Pensions and Pension Funds. The consulting panel was commissioned to develop a set of Strategies in this regard. The market demand was estimated as well as the forecast of demand for the next 10/15 years and the Strategic Options were outlined for each set of forecasts. A mathematical spread sheet model was developed, the investment needed for each option was estimated and the impact of various strategies on the final outcome was analyzed. A D&RA was also carried out.

3.  Market Entry Strategy into Europe for a Special Tool Box Manufacturer:

This company is a subsidiary of a major group whose total sales revenue is of the order of $6 billion. This company currently has sales revenue of about $320 million. They wanted the consulting panel to develop a market entry strategy into Benelux, France, Germany, Italy and Spain. Their existing European operation was very marginal through some distributors. Market demand was estimated together with proper segmentation of the market. Strategic Options were developed on the basis of benchmarking and competitive analysis in these countries. A mathematical spread sheet model was developed taking into account the investments needed for each strategic option and the results evaluated. A D&RA was also carried out.

4.  Market Entry Strategy into Western Europe for a Major US based Paint Manufacturer:

This manufacturer has been rated the best in the premium category paints in the US for several years. This consulting assignment involved market survey and research in several countries in Western Europe such as UK, Benelux countries, France, Germany, Italy, Spain and even in Central Europe involving Poland. Special emphasis was placed on Do it Yourself (DIY) segment. Market demand, market segmentation, market shares of various players, their strategies were analyzed. Special emphasis was placed on retail chains of major Home Centers and other distribution channels. Strategic Options were developed and presented together with a business model in which all the strategies and resources needed were embedded. The model showed the impact of each Strategic Option on the free cash flows for the company. A decision and risk analysis was carried out for each option. It is understood that the company has taken up the consulting panel's recommendations for implementation. The CEO was very pleased and gave the Consulting Panel an excellent testimonial.

5.  Co-branding Strategy for a Major US Multinational in the Beverages Segment:

The company's biggest markets for co-branding with a specified partner outside the United States were Mexico, UK, Ireland, Italy and Australia. They felt that they had to revamp their strategies in these countries. The consulting panel carried out field market research in all these countries and based on the outcome developed the Strategy for each Country. When a mathematical spread sheet model was developed using the findings of some benchmarking work, it not only outlined the strategies in these countries but also provided negotiation strategies for the company with their co-branding partner. It appears that the company implemented the strategies recommended within a short period of time.

6.  Y2K Study for a Pharmaceutical Company in Chicago for anticipated Problems with Y2K Implementation for Distribution Channel in Europe (UK, France, Germany, Italy & Spain):

Admittedly, this study was carried out in the spring of 1999 for a pharmaceutical company whose sales revenue was in the region of $5 billion. The study involved contacting major distributors in the various countries as well as the various pharmacies. In all about 40 distributors and 500 pharmacies were contacted in person. The market survey assisted the Consulting Panel to come up with proactive strategies which will minimize all the problems and issues that might arise in the Y2K implementation. The company found the study "an eye opener" as it focused on issues that the company was not considering in their overall review. They company implemented all the strategies recommended. Since then it is understood that the company has been acquired by one of the biggest pharmaceutical companies in the United States.

7.  Benchmarking Study for a Chicago based Pharmaceutical Company in W. Europe (UK, France, Germany & Italy) & Latin America (Brazil & Mexico):

The Consulting Panel was commissioned to carry out this study by a $5 billion US based pharmaceutical company, as it related to some well known branded blockbuster products belonging to several other companies. These products related to one brand dealing with osteoporosis, one brand as an anti-depressant, two different brands relating to cholesterol reduction (Pravastatin and Simvastatin) and a couple of other brands. The benchmarking study, inter alia, focused on the sales revenues, promotional expenditure, number of sales personnel for each company involved with the brands, detailing criteria per sales representative and so on. This was done for a period of five years prior to the study, the companies and medical practitioners were interviewed in the respective countries, results tabulated, evaluated and some of the "best practices" of these companies identified. Some formulae were developed relating the success factors to various marketing strategies involved, the resources deployed and the efficacy of competitive products. Thereafter, the Consulting Panel came up with a set of strategies choosing selectively some of the best practices which can be adapted to the client company for two of their potential blockbuster products. This client company has since then ended up with a major US pharmaceutical company after a series of corporate takeovers.

Europe:
United Kingdom
Italy
Spain
Ukraine
Benelux
Germany
Ireland
France
Former Soviet Union
Russia
Hungary
Poland
Others
Top
Country Track Record
Tiara's Expertise in SpainSpain  

1.  A Major Multinational Redesigns Some of Its Offerings in Europe:

This huge multinational with sales revenue of over $100 billion was endeavoring to develop redesigned offerings for some of their products. The consulting panel carried out a benchmarking study with existing and new companies that were formed especially for this type of market. The multinational bank was surprised when the benchmarking showed that they ranked 7 out of 8 participants in the markets of Germany, UK, France, and Spain. Strategies were developed after adapting some of the best practices of these institutions to the multinational bank. A mathematical spread sheet model was developed and a D&RA was carried out.

2.  Market Entry Strategy into Europe for a Special Tool Box Manufacturer:

This company is a subsidiary of a major group whose total sales revenue is of the order of $6 billion. This company currently has sales revenue of about $320 million. They wanted the consulting panel to develop a market entry strategy into Benelux, France, Germany, Italy and Spain. Their existing European operation was very marginal through some distributors. Market demand was estimated together with proper segmentation of the market. Strategic Options were developed on the basis of benchmarking and competitive analysis in these countries. A mathematical spread sheet model was developed taking into account the investments needed for each strategic option and the results evaluated. A D&RA was also carried out.

3.  Market Entry Strategy into Western Europe for a Major US based Paint Manufacturer:

This manufacturer has been rated the best in the premium category paints in the US for several years. This consulting assignment involved market survey and research in several countries in Western Europe such as UK, Benelux countries, France, Germany, Italy, Spain and even in Central Europe involving Poland. Special emphasis was placed on Do it Yourself (DIY) segment. Market demand, market segmentation, market shares of various players, their strategies were analyzed. Special emphasis was placed on retail chains of major Home Centers and other distribution channels. Strategic Options were developed and presented together with a business model in which all the strategies and resources needed were embedded. The model showed the impact of each Strategic Option on the free cash flows for the company. A decision and risk analysis was carried out for each option. It is understood that the company has taken up the consulting panel's recommendations for implementation. The CEO was very pleased and gave the Consulting Panel an excellent testimonial.

4.  Y2K Study for a Pharmaceutical Company in Chicago for anticipated Problems with Y2K Implementation for Distribution Channel in Europe (UK, France, Germany, Italy & Spain):

Admittedly, this study was carried out in the spring of 1999 for a pharmaceutical company whose sales revenue was in the region of $5 billion. The study involved contacting major distributors in the various countries as well as the various pharmacies. In all about 40 distributors and 500 pharmacies were contacted in person. The market survey assisted the Consulting Panel to come up with proactive strategies which will minimize all the problems and issues that might arise in the Y2K implementation. The company found the study "an eye opener" as it focused on issues that the company was not considering in their overall review. They company implemented all the strategies recommended. Since then it is understood that the company has been acquired by one of the biggest pharmaceutical companies in the United States.

Europe:
United Kingdom
Italy
Spain
Ukraine
Benelux
Germany
Ireland
France
Former Soviet Union
Russia
Hungary
Poland
Others
Top
Country Track Record
Tiara's Expertise in BeneluxBenelux  

1.  Port Waste Management Services with Benchmarking various Global Ports:

This was a benchmarking project. The benchmarking ports were as under:

  • Long Beach, California, Rotterdam, Netherlands & Singapore - Gold Standard
  • Jeddah, Saudi Arabia & Durban, South Africa- Silver Standard.
  • Bombay & Madras in India, Dar Es Salaam, Djibouti and Maputo in Africa - Bronze Standard
Finally, some of the best practices from these ports were selectively chosen for Mombassa Port to implement. A private business enterprise undertook the project and they have already completed their installation of waste management facilities on the basis of the recommendations. It is understood that many countries in Africa would like to use this facility in Mombassa port as a model for them to copy and follow.

2.  Market Entry Strategy into Europe for a Special Tool Box Manufacturer:

This company is a subsidiary of a major group whose total sales revenue is of the order of $6 billion. This company currently has sales revenue of about $320 million. They wanted the consulting panel to develop a market entry strategy into Benelux, France, Germany, Italy and Spain. Their existing European operation was very marginal through some distributors. Market demand was estimated together with proper segmentation of the market. Strategic Options were developed on the basis of benchmarking and competitive analysis in these countries. A mathematical spread sheet model was developed taking into account the investments needed for each strategic option and the results evaluated. A D&RA was also carried out.

3.  Market Entry Strategy into Western Europe for a Major US based Paint Manufacturer:

This manufacturer has been rated the best in the premium category paints in the US for several years. This consulting assignment involved market survey and research in several countries in Western Europe such as UK, Benelux countries, France, Germany, Italy, Spain and even in Central Europe involving Poland. Special emphasis was placed on Do it Yourself (DIY) segment. Market demand, market segmentation, market shares of various players, their strategies were analyzed. Special emphasis was placed on retail chains of major Home Centers and other distribution channels. Strategic Options were developed and presented together with a business model in which all the strategies and resources needed were embedded. The model showed the impact of each Strategic Option on the free cash flows for the company. A decision and risk analysis was carried out for each option. It is understood that the company has taken up the consulting panel's recommendations for implementation. The CEO was very pleased and gave the Consulting Panel an excellent testimonial.

4.  Marketing Strategy & Supply Chain Management for a "Car Cosmetics Company" in Benelux:

The subsidiary of a US company in UK was manufacturing and marketing most of the car cosmetics in their plant in the midlands of the UK. This plant supplied the marketing requirements of their UK operations. In France and Benelux countries, they had acquired two marketing companies which were procuring their supplies from outside manufactures. A study by the consulting panel showed that it would be more strategic and economical in the longer run to supply the requirements of all their European operations from their UK Plant. Potential JV operations or even acquisition for market entry into Germany were explored.

For their Latin American operations, possibility of organic growth in Mexico together with the possible JVs and acquisitions in Brazil and Argentina were explored. Business models were developed and a Decision & Risk Analysis was carried out.

It is understood that the company has already implemented the recommendations of the Consulting Panel for their European operations.

5.  Subsidiary of a well-known US Transport & Logistics Firm Expands its Portfolio of Services in W. Europe:

This company had its European subsidiary in the Netherlands. When this subsidiary was acquired a few years before 2001, the subsidiary was primarily a trucking company. However, the business was very unprofitable and they had an accumulated loss of over $30 million. The consulting panel recognized the tremendous competition in trucking industry and also the heavy headquarters staffing of the subsidiary in Europe. They came up with a set of recommendations, which would move the subsidiary upstream in the Supply Chain Management into "Logistics" with significantly reduced staff and with professionals trained in Logistics. Some potential acquisitions were also investigated, different sets of valuations carried out and a "Decision & Risk Analysis" fulfilled. The company was pleased with the strategic recommendations, which they eventually implemented.

Europe:
United Kingdom
Italy
Spain
Ukraine
Benelux
Germany
Ireland
France
Former Soviet Union
Russia
Hungary
Poland
Others
Top
Country Track Record
Tiara's Expertise in IrelandIreland  

1.  Co-branding Strategy for a Major US Multinational in the Beverages Segment:

The company's biggest markets for co-branding with a specified partner outside the United States were Mexico, UK, Ireland, Italy and Australia. They felt that they had to revamp their strategies in these countries. The consulting panel carried out field market research in all these countries and based on the outcome developed the Strategy for each Country. When a mathematical spread sheet model was developed using the findings of some benchmarking work, it not only outlined the strategies in these countries but also provided negotiation strategies for the company with their co-branding partner. It appears that the company implemented the strategies recommended within a short period of time.

Europe:
United Kingdom
Italy
Spain
Ukraine
Benelux
Germany
Ireland
France
Former Soviet Union
Russia
Hungary
Poland
Others
Top
Country Track Record
Tiara's Expertise in FranceFrance  

1.  Strategic Consumer Brand Acquisitions and Improving Product Portfolio for a Multi-Level-Marketing Company in the US:

The head of Strategic Marketing of this company felt that they needed to acquire new products and brands, which look possible winners in the eyes of their distribution network. It is not always possible to come up with new concepts translated into successful products and brands from within the company. The Consulting Panel was commissioned with the task investigating brands in some 8 consumer segments and come up with the strategic recommendations for their acquisition including their valuations. Once this was done on specific criteria, the Consulting Panel developed a business model and extrapolated the growth of the sales of the products given a set of strategies. A D&RA was then carried out. This was done for selected brands/products in the US, Europe, Japan and Korea. It is understood that the company is in the process of having a dialogue with the owners of these brands for possible acquisitions.

2.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

These consulting assignments were carried out in the following countries over eight different projects:
UK. France, Germany, Italy, Russia, Romania and Turkey in Europe

3.  A Major Multinational Redesigns Some of Its Offerings in Europe

This huge multinational with sales revenue of over $100 billion was endeavoring to develop redesigned offerings for some of their products. The consulting panel carried out a benchmarking study with existing and new companies that were formed especially for this type of market. The multinational bank was surprised when the benchmarking showed that they ranked 7 out of 8 participants in the markets of Germany, UK, France, and Spain. Strategies were developed after adapting some of the best practices of these institutions to the multinational bank. A mathematical spread sheet model was developed and a D&RA was carried out.

4.  Global Market Demand Estimates & Competitor Analysis for a French Telecom:

The company wanted to verify the data on global market demand segmented on a country by country basis. They also wanted to know the size and market share of each one of their major competitors and also the size and performance of each one the major customers to their competitors on a segmented basis. This was quite a major international study and the client appeared very pleased with the output of the consultants.

5.  Market Entry Strategy into Europe for a Special Tool Box Manufacturer:

This company is a subsidiary of a major group whose total sales revenue is of the order of $6 billion. This company currently has sales revenue of about $320 million. They wanted the consulting panel to develop a market entry strategy into Benelux, France, Germany, Italy and Spain. Their existing European operation was very marginal through some distributors. Market demand was estimated together with proper segmentation of the market. Strategic Options were developed on the basis of benchmarking and competitive analysis in these countries. A mathematical spread sheet model was developed taking into account the investments needed for each strategic option and the results evaluated. A D&RA was also carried out.

6.  Market Entry Strategy into Western Europe for a Major US based Paint Manufacturer:

This manufacturer has been rated the best in the premium category paints in the US for several years. This consulting assignment involved market survey and research in several countries in Western Europe such as UK, Benelux countries, France, Germany, Italy, Spain and even in Central Europe involving Poland. Special emphasis was placed on Do it Yourself (DIY) segment. Market demand, market segmentation, market shares of various players, their strategies were analyzed. Special emphasis was placed on retail chains of major Home Centers and other distribution channels. Strategic Options were developed and presented together with a business model in which all the strategies and resources needed were embedded. The model showed the impact of each Strategic Option on the free cash flows for the company. A decision and risk analysis was carried out for each option. It is understood that the company has taken up the consulting panel's recommendations for implementation. The CEO was very pleased and gave the Consulting Panel an excellent testimonial.

7.  Marketing Strategy & Supply Chain Management for a "Car Cosmetics Company" in France:

The subsidiary of a US company in UK was manufacturing and marketing most of the car cosmetics in their plant in the midlands of the UK. This plant supplied the marketing requirements of their UK operations. In France and Benelux countries, they had acquired two marketing companies which were procuring their supplies from outside manufactures. A study by the consulting panel showed that it would be more strategic and economical in the longer run to supply the requirements of all their European operations from their UK Plant. Potential JV operations or even acquisition for market entry into Germany were explored.

For their Latin American operations, possibility of organic growth in Mexico together with the possible JVs and acquisitions in Brazil and Argentina were explored. Business models were developed and a Decision & Risk Analysis was carried out.

It is understood that the company has already implemented the recommendations of the Consulting Panel for their European operations.

8.  Subsidiary of a well-known US Transport & Logistics Firm Expands its Portfolio of Services in W. Europe:

This company had its European subsidiary in the Netherlands. When this subsidiary was acquired a few years before 2001, the subsidiary was primarily a trucking company. However, the business was very unprofitable and they had an accumulated loss of over $30 million. The consulting panel recognized the tremendous competition in trucking industry and also the heavy headquarters staffing of the subsidiary in Europe. They came up with a set of recommendations, which would move the subsidiary upstream in the Supply Chain Management into "Logistics" with significantly reduced staff and with professionals trained in Logistics. Some potential acquisitions were also investigated, different sets of valuations carried out and a "Decision & Risk Analysis" fulfilled. The company was pleased with the strategic recommendations, which they eventually implemented.

9.  A Major Automotive Service Organization Develops a New Strategy for Western Europe:

The company did not have an idea as to the extent of warranty services performed for various automobile manufacturers in Europe and what their subsidiaries could do to track the same and effect significant savings for these manufacturers. The consulting panel determined the market size for warranty expenses for well established automobile manufacturers, the extent of market penetration that can be achieved, the investment and other resources needed on their part and evaluated the return on investment for different sets of scenarios. There was a special presentation made to the CEO and SVPs of this client in Detroit. The CEO remarked that even in Chrysler where he worked as Vice Chairman, he had not seen such a high quality of quantitative analysis and strategic recommendations. It is understood that they implemented the recommendations of the consulting panel.

10.  Y2K Study for a Pharmaceutical Company in Chicago for anticipated Problems with Y2K Implementation for Distribution Channel in Europe (UK, France, Germany, Italy & Spain):

Admittedly, this study was carried out in the spring of 1999 for a pharmaceutical company whose sales revenue was in the region of $5 billion. The study involved contacting major distributors in the various countries as well as the various pharmacies. In all about 40 distributors and 500 pharmacies were contacted in person. The market survey assisted the Consulting Panel to come up with proactive strategies which will minimize all the problems and issues that might arise in the Y2K implementation. The company found the study "an eye opener" as it focused on issues that the company was not considering in their overall review. They company implemented all the strategies recommended. Since then it is understood that the company has been acquired by one of the biggest pharmaceutical companies in the United States.

11.  Benchmarking Study for a Chicago based Pharmaceutical Company in W. Europe (UK, France, Germany & Italy) & Latin America (Brazil & Mexico):

The Consulting Panel was commissioned to carry out this study by a $5 billion US based pharmaceutical company, as it related to some well known branded blockbuster products belonging to several other companies. These products related to one brand dealing with osteoporosis, one brand as an anti-depressant, two different brands relating to cholesterol reduction (Pravastatin and Simvastatin) and a couple of other brands. The benchmarking study, inter alia, focused on the sales revenues, promotional expenditure, number of sales personnel for each company involved with the brands, detailing criteria per sales representative and so on. This was done for a period of five years prior to the study, the companies and medical practitioners were interviewed in the respective countries, results tabulated, evaluated and some of the "best practices" of these companies identified. Some formulae were developed relating the success factors to various marketing strategies involved, the resources deployed and the efficacy of competitive products. Thereafter, the Consulting Panel came up with a set of strategies choosing selectively some of the best practices which can be adapted to the client company for two of their potential blockbuster products. This client company has since then ended up with a major US pharmaceutical company after a series of corporate takeovers.

Europe:
United Kingdom
Italy
Spain
Ukraine
Benelux
Germany
Ireland
France
Former Soviet Union
Russia
Hungary
Poland
Others
Top
Country Track Record
Tiara's Expertise in GermanyGermany  

1.  Valuation & Strategy for a Medical Devices company to get ready for an IPO:

The Consulting Panel carried out the research in the US, Germany and UK. The research included analyzing the existing practices for treatment of prostate cancer and the newer technologies already in use and those in the horizon. It also pointed out additionally available related market segments and pointed out to the client that "it is missing the forests for the trees". The strategy recommendation combining organic growth optimized with some acquisition possibilities involving newer technologies was very much appreciated by the client. Valuations were carried and a D&RA was completed to assess the probability of enhancing or destroying shareholder value which would be of immense help to this company for its IPO.

2.  A Large Medical Devices Company in the Northeast US Implements recommended Acquisition Strategy:

The company, whose sales revenue is over $3 billion, was eager to extend its product line into treatments associated with venous disorders and diseases. The consulting panel carried out the market research in several countries such as the US, Germany and UK and came up estimates of market demand, segmentation of the market and the products currently available and their relative market shares. Thereafter, strategic options were outlined including some acquisitions. One of the recommendations turned out to be a reality and the company was very thankful to the Consulting Panel as the latter provided the valuation for the acquisition and pointed out the probability of enhancing or destroying shareholder value for the acquisition and the principal drivers of the business.

3.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

These consulting assignments were carried out in the following countries over eight different projects:
UK. France, Germany, Italy, Russia, Romania and Turkey in Europe

4.  Major US Based Computer & Server Manufacturer & Services Provider Revamps Its Strategy in W.Europe:

This well-known computer and server manufacturer, with an annual sales revenue in the region of $90 billion, commissioned the consulting panel to redesign "channel strategy" for different segments of the market in three different regions of the world, China-Japan, Germany-UK and Mexico-Brazil for their Netfinity servers The study was an eye-opener for this multinational revealing many segments of the market where a slightly different strategy would be immensely beneficial. A business model was developed for each country in each region that quantified the impact on shareholder value and the relative risk for using different channel strategies.

5.  A Major Multinational Redesigns Some of Its Offerings in Europe :

This huge multinational with sales revenue of over $100 billion was endeavoring to develop redesigned offerings for some of their products. The consulting panel carried out a benchmarking study with existing and new companies that were formed especially for this type of market. The multinational bank was surprised when the benchmarking showed that they ranked 7 out of 8 participants in the markets of Germany, UK, France, and Spain. Strategies were developed after adapting some of the best practices of these institutions to the multinational bank. A mathematical spread sheet model was developed and a D&RA was carried out.

6.  Market Entry Strategy into Europe for a Special Tool Box Manufacturer:

This company is a subsidiary of a major group whose total sales revenue is of the order of $6 billion. This company currently has sales revenue of about $320 million. They wanted the consulting panel to develop a market entry strategy into Benelux, France, Germany, Italy and Spain. Their existing European operation was very marginal through some distributors. Market demand was estimated together with proper segmentation of the market. Strategic Options were developed on the basis of benchmarking and competitive analysis in these countries. A mathematical spread sheet model was developed taking into account the investments needed for each strategic option and the results evaluated. A D&RA was also carried out.

7.  Market Entry Strategy into Western Europe for a Major US based Paint Manufacturer:

This manufacturer has been rated the best in the premium category paints in the US for several years. This consulting assignment involved market survey and research in several countries in Western Europe such as UK, Benelux countries, France, Germany, Italy, Spain and even in Central Europe involving Poland. Special emphasis was placed on Do it Yourself (DIY) segment. Market demand, market segmentation, market shares of various players, their strategies were analyzed. Special emphasis was placed on retail chains of major Home Centers and other distribution channels. Strategic Options were developed and presented together with a business model in which all the strategies and resources needed were embedded. The model showed the impact of each Strategic Option on the free cash flows for the company. A decision and risk analysis was carried out for each option. It is understood that the company has taken up the consulting panel's recommendations for implementation. The CEO was very pleased and gave the Consulting Panel an excellent testimonial.

8.  Market Entry (Site Selection) Strategy for a Solar Power Company in Europe:

After investigating a list of countries in Eastern and Northern & Central Europe, the study group narrowed their choice to four countries with the approval of the client. Thereafter, the relative advantages of the various sites in different regions of each country were calculated. A business model was developed and all the regions of each country were benchmarked. The result showed the "trade off" of each country with any other chosen country from the list. A Decision & Risk Analysis was also carried out, which showed the "risk profile" of each region and each country. It is reliably learned that the company has decided to choose one of the recommendations made by the Consulting Panel.

9.  Marketing Strategy & Supply Chain Management Strategy for a US based "Car Cosmetics" Company for U.K., France & Benelux & Market Entry Strategy into Germany

The subsidiary of a US company in UK was manufacturing and marketing most of the car cosmetics in their plant in the midlands of the UK. This plant supplied the marketing requirements of their UK operations. In France and Benelux countries, they had acquired two marketing companies which were procuring their supplies from outside manufactures. A study by the consulting panel showed that it would be more strategic and economical in the longer run to supply the requirements of all their European operations from their UK Plant. Potential JV operations or even acquisition for market entry into Germany were explored.

For their Latin American operations, possibility of organic growth in Mexico together with the possible JVs and acquisitions in Brazil and Argentina were explored. Business models were developed and a Decision & Risk Analysis was carried out.

It is understood that the company has already implemented the recommendations of the Consulting Panel for their European operations.

10.  Subsidiary of a well-known US Transport & Logistics Firm Expands its Portfolio of Services in W. Europe:

This company had its European subsidiary in the Netherlands. When this subsidiary was acquired a few years before 2001, the subsidiary was primarily a trucking company. However, the business was very unprofitable and they had an accumulated loss of over $30 million. The consulting panel recognized the tremendous competition in trucking industry and also the heavy headquarters staffing of the subsidiary in Europe. They came up with a set of recommendations, which would move the subsidiary upstream in the Supply Chain Management into "Logistics" with significantly reduced staff and with professionals trained in Logistics. Some potential acquisitions were also investigated, different sets of valuations carried out and a "Decision & Risk Analysis" fulfilled. The company was pleased with the strategic recommendations, which they eventually implemented.

11.  A Major Automotive Service Organization Develops a New Strategy for Western Europe:

The company did not have an idea as to the extent of warranty services performed for various automobile manufacturers in Europe and what their subsidiaries could do to track the same and effect significant savings for these manufacturers. The consulting panel determined the market size for warranty expenses for well established automobile manufacturers, the extent of market penetration that can be achieved, the investment and other resources needed on their part and evaluated the return on investment for different sets of scenarios. There was a special presentation made to the CEO and SVPs of this client in Detroit. The CEO remarked that even in Chrysler where he worked as Vice Chairman, he had not seen such a high quality of quantitative analysis and strategic recommendations. It is understood that they implemented the recommendations of the consulting panel.

12.  Y2K Study for a Pharmaceutical Company in Chicago for anticipated Problems with Y2K Implementation for Distribution Channel in Europe (UK, France, Germany, Italy & Spain):

Admittedly, this study was carried out in the spring of 1999 for a pharmaceutical company whose sales revenue was in the region of $5 billion. The study involved contacting major distributors in the various countries as well as the various pharmacies. In all about 40 distributors and 500 pharmacies were contacted in person. The market survey assisted the Consulting Panel to come up with proactive strategies which will minimize all the problems and issues that might arise in the Y2K implementation. The company found the study "an eye opener" as it focused on issues that the company was not considering in their overall review. They company implemented all the strategies recommended. Since then it is understood that the company has been acquired by one of the biggest pharmaceutical companies in the United States.

13.  Benchmarking Study for a Chicago based Pharmaceutical Company in W. Europe (UK, France, Germany & Italy) & Latin America (Brazil & Mexico):

The Consulting Panel was commissioned to carry out this study by a $5 billion US based pharmaceutical company, as it related to some well known branded blockbuster products belonging to several other companies. These products related to one brand dealing with osteoporosis, one brand as an anti-depressant, two different brands relating to cholesterol reduction (Pravastatin and Simvastatin) and a couple of other brands. The benchmarking study, inter alia, focused on the sales revenues, promotional expenditure, number of sales personnel for each company involved with the brands, detailing criteria per sales representative and so on. This was done for a period of five years prior to the study, the companies and medical practitioners were interviewed in the respective countries, results tabulated, evaluated and some of the "best practices" of these companies identified. Some formulae were developed relating the success factors to various marketing strategies involved, the resources deployed and the efficacy of competitive products. Thereafter, the Consulting Panel came up with a set of strategies choosing selectively some of the best practices which can be adapted to the client company for two of their potential blockbuster products. This client company has since then ended up with a major US pharmaceutical company after a series of corporate takeovers.

Europe:
United Kingdom
Italy
Spain
Ukraine
Benelux
Germany
Ireland
France
Former Soviet Union
Russia
Hungary
Poland
Others
Top
Country Track Record
Tiara's Expertise in RussiaRussia  

1.  Market Entry Strategy into Russia for a medium-sized Pharmaceutical Company in Chicago:

This company with sales revenue of around $6 billion was eager to enter into some of the East European Markets, in particular Russia. A consumer survey was carried out for this project in Moscow and St. Petersburg. It assisted the Consulting Panel to estimate the market demand, the relevant market shares of the organized sector, the extent of unorganized sector, the product pricing, distribution and promotional strategies of existing companies. Using the information, the Strategic Options of the Market Entry Strategy were developed. For each strategy the outcome was evaluated in the form of a business model which also assisted in carrying out a Decision & Risk Analysis. The company implemented the consulting panel's recommendation. The company has since then been taken over by a major pharmaceutical company.

2.  Major Multinational in Medical Devices & Pharmaceutical Products develops Marketing Strategy:

This multinational with sales revenue in the region of $30 billion commissioned the Consulting Panel to carry out these studies. These studies were carried out by the Consulting Panel for their vascular access products. Market Research such as consumer surveys, focus groups research and other forms of market surveys were carried out. Market Demand was estimated on a triangulated basis, i.e. top-down, bottom-up and distribution set-up approach to ensure that they are reliable. Market shares for various players in the industry were established and so were the marketing and manufacturing strategies for each company. The company's Unique Selling Proposition (USP) such as "Safety Catheters" was positioned in each market and the relative promotional and pricing strategies were derived. A business model was developed, the investments and strategies were properly positioned and the impact of the strategies on the final outcome was evaluated for every country. A Decision & Risk Analysis was carried out establishing the probability of enhancing or destroying shareholder value and the principal drivers of the business.

These consulting assignments were carried out in the following countries over eight different projects:
UK. France, Germany, Italy, Russia, Romania and Turkey in Europe

3.  Capital Equity Markets:

Assisted the Ukrainian Prime Minister, Government of Ukraine (GOK) and the Steering Committee in developing an action plan to significantly increase the flows of private capital/equity into the country, including benchmarking of practices and policies of other countries such as Poland, Hungary, Russia, Argentina and Chile.

4.  Country Back-Up Strategy for a Global Financial Services Company:

This Global Company, with sales revenue exceeding $25 billion, has outsourcing operations in several countries with India having the pride of place. However, they were very keen to diversify their operations and develop suitable backups for India. Admittedly, the consulting panel had to look into 80 countries studying the availability of skilled labor, English-speaking skills, development of IT infrastructure, labor availability, labor laws, real estate costs and so on for each country. This exercise reduced the number to 20 countries and thereafter a more rigorous evaluation reduced the number to 5 countries, as Russia, China, Brazil and South Africa, besides India. Field visits and market surveys were conducted in these countries and the final choices were ranked and tabulated. A mathematical spread sheet model was developed for each of the countries in the final list and a D&RA was carried out.

Europe:
United Kingdom
Italy
Spain
Ukraine
Benelux
Germany
Ireland
France
Former Soviet Union
Russia
Hungary
Poland
Others
Top
Country Track Record
Tiara's Expertise in HungaryHungary  

1.  Capital Equity Markets:

Assisted the Ukrainian Prime Minister, Government of Ukraine (GOK) and the Steering Committee in developing an action plan to significantly increase the flows of private capital/equity into the country, including benchmarking of practices and policies of other countries such as Poland, Hungary, Russia, Argentina and Chile.

2.  Market Entry (Site Selection) Strategy for a Solar Power Company in Europe:

After investigating a list of countries in Eastern and Northern & Central Europe, the study group narrowed their choice to four countries with the approval of the client. Thereafter, the relative advantages of the various sites in different regions of each country were calculated. A business model was developed and all the regions of each country were benchmarked. The result showed the "trade off" of each country with any other chosen country from the list. A Decision & Risk Analysis was also carried out, which showed the "risk profile" of each region and each country. It is reliably learned that the company has decided to choose one of the recommendations made by the Consulting Panel.

Europe:
United Kingdom
Italy
Spain
Ukraine
Benelux
Germany
Ireland
France
Former Soviet Union
Russia
Hungary
Poland
Others
Top
Country Track Record
Tiara's Expertise in PolandPoland  

1.  CIME Endeavor Group:

The consulting panel assessed and evaluated the proposed accession of Poland as part of the EU and its impact on the traffic and movement of nationalities of the neighboring non-EU countries in and out of Poland. Specifically, the study included a benchmarking exercise and analysis of similar borders between countries such as US / Canada, US / Mexico, Finland / Russia, Spain / Morocco and Greece / neighbors. The recommendations included some of the best practices in these border-administrations, the investments involved and the costs of administering it as well as the revenues generated. The President's office of the Government of Poland liked the study as it was the first of its kind to address the trans-border issues between Poland and its Non-EU neighbors.

2.  Capital Equity Markets:

Assisted the Ukrainian Prime Minister, Government of Ukraine (GOK) and the Steering Committee in developing an action plan to significantly increase the flows of private capital/equity into the country, including benchmarking of practices and policies of other countries such as Poland, Hungary, Russia, Argentina and Chile.

3.  Market Entry Strategy into Western Europe for a Major US based Paint Manufacturer:

This manufacturer has been rated the best in the premium category paints in the US for several years. This consulting assignment involved market survey and research in several countries in Western Europe such as UK, Benelux countries, France, Germany, Italy, Spain and even in Central Europe involving Poland. Special emphasis was placed on Do it Yourself (DIY) segment. Market demand, market segmentation, market shares of various players, their strategies were analyzed. Special emphasis was placed on retail chains of major Home Centers and other distribution channels. Strategic Options were developed and presented together with a business model in which all the strategies and resources needed were embedded. The model showed the impact of each Strategic Option on the free cash flows for the company. A decision and risk analysis was carried out for each option. It is understood that the company has taken up the consulting panel's recommendations for implementation. The CEO was very pleased and gave the Consulting Panel an excellent testimonial.

4.  Market Entry Strategy for Specific Pharmaceutical Products into Poland for a Chicago based Pharmaceutical Company:

The Consulting Panel was commissioned with this study in the late nineties. The company had a potential blockbuster and they were keen to introduce the product in Eastern Europe and Poland was considered the test market for this purpose. The study was well developed by the Consulting Panel with a good understanding of the Polish pharmaceutical market and the role of the domestic companies. Further, this blockbuster product was arthritis related illnesses. The Consulting Panel came up with a strategy with special emphasis on pricing. A business model was developed and a decision and risk analysis was carried out. It is understood that the blockbuster is a great success all over the world and that the company has been taken over by a major pharmaceutical company in the US.

Europe:
United Kingdom
Italy
Spain
Ukraine
Benelux
Germany
Ireland
France
Former Soviet Union
Russia
Hungary
Poland
Others
Top
Country Track Record
Tiara's Expertise in UkraineUkraine  

1.  Reorganization & Strategic Options of A Major Shipyard:

In the year 1999, a Major Shipyard in Black Sea Port was already acquired by a private party. The party was running it at a great loss with far too many branches of business unconnected with their core activity related to the shipyard business. The private owner commissioned the consulting panel to come up with strategic options for the shipyard to turn its business around. The consulting panel came up with a set of recommendations involving strategic options. A business model was developed and all these options as well as the relative investments and the operating costs were embedded in the model. The model forecast the performance of the shipyard for each strategic option. A Decision & Risk Analysis was performed. The client liked the study very much and has already implemented the recommendations made by the study group.

2.  Capital Equity Markets in Ukraine:

Assisted the Ukrainian Prime Minister, Government of Ukraine (GOK) and the Steering Committee in developing an action plan to significantly increase the flows of private capital/equity into the country, including benchmarking of practices and policies of other countries such as Poland, Hungary, Russia, Argentina and Chile.

SigmaBleyzer:

3.  Evaluation of the Flow of Foreign Direct Investment (FDI) into all fifteen countries in the Former Soviet Union (FSU):

This was a major study undertaken to forecast the flow of FDI in each of the countries of FSU by evaluating around 120 countries. These countries were grouped into ten segments and then a matrix algebraic model was developed for each of the segments. Thereafter, by benchmarking the "best practices" of countries in each segment, FDI forecasts were made on a "most likely", pessimistic" and "optimistic" basis. Thereafter, the principal drivers for each segment were identified and evaluated.

4.  Confectionery Business with Manufacturing base in Ukraine:

This business had a confectionery in Poltava, Central Ukraine. There was significant growth of confectionery consumption in Ukraine and the factory was limited in its capacity. The Consulting Panel carried out a demand analysis, examined the opportunities for expanding the factory with additional investments as opposed to an acquisition strategy for other plants in Ukraine. The strategic options were analyzed and a business model was developed which displayed the impact of each strategy on the free cash flows generated by the company. The recommendations included streamlining the marketing organization as well. A decision and risk analysis was carried out. The client was very appreciative of this study and has already implemented major aspects of the recommendations.

5.  Strategic Plan for a Cable TV Company in Kiev, Ukraine:

This company was eager to move into a telecom and internet broadband communications company. Further, they wanted to branch out into other areas IT business including software development, business process outsourcing (BPO) and so on. In due course, they wanted to operate a "FM radio and music division" as well. The Consulting Panel carried out a strategic plan for this company. They developed a business model with all the inputs such as capital investments needed for each segment of the business, the extent of manpower required, an assessment of other operating costs, the extent of market demand growth rate in each segment and so on. A Decision and Risk Analysis was also carried out. The client liked very much the Strategic Options as outlined by the group and the overall Strategic Plan

6.  Venture Capital Project:

Item 4 as above led the consulting panel to be commissioned with the next project from the Ukraine based investment company called "Ukrainian Growth Funds". They wanted the group to develop concepts, proposals, and strategies for securing venture capital for their group of Ukrainian based companies involved in Cable TV, Internet, B2B / C Portal, Media & the like, under overall umbrella of "Volia". This project was presented just after the "dot.com" bubble burst. While the client liked the presentation, they wanted to wait until the stock market picked up.

Europe:
United Kingdom
Italy
Spain
Ukraine
Benelux
Germany
Ireland
France
Former Soviet Union
Russia
Hungary
Poland
Others
Top
Country Track Record
Tiara's Expertise in F S UFormer Soviet Union  

SigmaBleyzer

1.  Evaluation of the Flow of Foreign Direct Investment (FDI) into all fifteen countries in the Former Soviet Union (FSU):

This was a major study undertaken to forecast the flow of FDI in each of the countries of FSU by evaluating around 120 countries. These countries were grouped into ten segments and then a matrix algebraic model was developed for each of the segments. Thereafter, by benchmarking the "best practices" of countries in each segment, FDI forecasts were made on a "most likely", pessimistic" and "optimistic" basis, depending on what these countries adopt as the best practices of the respective countries in each segment. Thereafter, the principal drivers for each segment were identified and evaluated.

Europe:
United Kingdom
Italy
Spain
Ukraine
Benelux
Germany
Ireland
France
Former Soviet Union
Russia
Hungary
Poland
Others
Top
Country Track Record
Tiara's ExpertiseOthers  

1.  Market Entry (Site Selection) Strategy for a Solar Power Company in Eastern Europe(Czech, Slovakia Republics):

After investigating a list of countries in Eastern and Northern & Central Europe, the study group narrowed their choice to four countries with the approval of the client. Thereafter, the relative advantages of the various sites in different regions of each country were calculated. A business model was developed and all the regions of each country were benchmarked. The result showed the "trade off" of each country with any other chosen country from the list. A Decision & Risk Analysis was also carried out, which showed the "risk profile" of each region and each country. It is reliably learned that the company has decided to choose one of the recommendations made by the Consulting Panel.

Africa & Middle East:
Kenya
Uganda
Zimbabwe
Zambia
Malawi
South Africa
Tanzania
U.A.E
Saudi ArabiaGoban

Others
Top
Country Track Record
Tiara's Expertise in KenyaKenya  

1.  Port Waste Management Services with Benchmarking various Global Ports for Mombassa Port in Kenya:

This was a benchmarking project. The benchmarking ports were as under:

  • Long Beach, California, Rotterdam, Netherlands & Singapore - Gold Standard
  • Jeddah, Saudi Arabia & Durban, South Africa- Silver Standard.
  • Bombay & Madras in India, Dar Es Salaam, Djibouti and Maputo in Africa - Bronze Standard

Finally, some of the best practices from these ports were selectively chosen for Mombassa Port to implement. A private business enterprise undertook the project and they have already completed their installation of waste management facilities on the basis of the recommendations. It is understood that many countries in Africa would like to use this facility in Mombassa port as a model for them to copy and follow.

2.  Investment Evaluation for Setting up a Major Used Car Center in Mombassa, Kenya for meeting the requirements of East Africa & Other Economic Supply Area:

For the purpose of this study benchmarking exercises were carried out in Dubai, Japan, Peru and Singapore and their "used car" operations were fully analyzed. It is understood that most of the supplies were being received from Japan and Korea, while some supplies would arise from auto-centers in Europe. Special recognition of left-hand and right-hand drives has to be taken into consideration and their relative cost constraints. Further moving the cars from Mombassa to other locations in Africa either by road or by sea were evaluated. A business model was developed to portray the projected operations and the return on investment was evaluated. The client was also offered the services of the Consulting Panel to introduce various parties in Japan and Korea for auto supplies.

3.  Management Contract or Acquisition of the retail network of US-based Oil Company in East Africa:

Developed Special Strategic Options Plan whereby the petroleum company involved could either manage the retail network of the subsidiary of another US based oil company on a contracted management fee basis or acquire outright. Both strategic options were laid out. The options appeared very viable for the seller. Meanwhile, the national government of one of the countries in that region issued an edict to the seller to sell it to a specific entity with the incentive of the availability of immediate foreign exchange for repatriation.

Africa & Middle East:
Kenya
Uganda
Zimbabwe
Zambia
Malawi
South Africa
Tanzania
U.A.E
Saudi Arabia
Goban
Others
Top
Country Track Record
Tiara's Expertise in UgandaUganda  

1.  Management Contract or Acquisition of the retail network of US-based Oil Company in East Africa:

Developed Special Strategic Options Plan whereby the petroleum company involved could either manage the retail network of the subsidiary of another US based oil company on a contracted management fee basis or acquire outright. Both strategic options were laid out. The options appeared very viable for the seller. Meanwhile, the national government of one of the countries in that region issued an edict to the seller to sell it to a specific entity with the incentive of the availability of immediate foreign exchange for repatriation.

Africa & Middle East:
Kenya
Uganda
Zimbabwe
Zambia
Malawi
South Africa
Tanzania
U.A.E
Saudi Arabia
Goban
Others
Top
Country Track Record
Tiara's Expertise in ZimbabweZimbabwe  

1.  Management Contract Operations of the Retail network of another oil company in Zambia, Zimbabwe & Malawi:

Developed a strategic plan similar to the plan under item 3 above for these countries. Management Contract was the preferred route as these countries were in a bind for foreign exchange with blocked currencies. Hence outright sale with the problems of remittability of sale value in US Dollars was not a viable solution.

Africa & Middle East:
Kenya
Uganda
Zimbabwe
Zambia
Malawi
South Africa
Tanzania
U.A.E
Saudi Arabia
Goban
Others
Top
Country Track Record
Tiara's Expertise in ZambiaZambia  

1.  Management Contract Operations of the Retail network of another oil company in Zambia, Zimbabwe & Malawi:

Developed a strategic plan similar to the plan under item 3 above for these countries. Management Contract was the preferred route as these countries were in a bind for foreign exchange with blocked currencies. Hence outright sale with the problems of remittability of sale value in US Dollars was not a viable solution.

Africa & Middle East:
Kenya
Uganda
Zimbabwe
Zambia
Malawi
South Africa
Tanzania
U.A.E
Saudi Arabia
Others
Top
Country Track Record
Tiara's Expertise in MalawiMalawi  

1.  Management Contract Operations of the Retail network of another oil company in Zambia, Zimbabwe & Malawi:

Developed a strategic plan similar to the plan under item 3 above for these countries. Management Contract was the preferred route as these countries were in a bind for foreign exchange with blocked currencies. Hence outright sale with the problems of remittability of sale value in US Dollars was not a viable solution.

Africa & Middle East:
Kenya
Uganda
Zimbabwe
Zambia
Malawi
South Africa
Tanzania
U.A.E
Saudi Arabia
Goban
Others
Top
Country Track Record
Tiara's Expertise in south africaSouth Africa  

1.  Port Waste Management Services with Benchmarking various Global:

This was a benchmarking project. The benchmarking ports were as under:

  • Long Beach, California, Rotterdam, Netherlands & Singapore - Gold Standard
  • Jeddah, Saudi Arabia & Durban, South Africa- Silver Standard.
  • Bombay & Madras in India, Dar Es Salaam, Djibouti and Maputo in Africa - Bronze Standard

Finally, some of the best practices from these ports were selectively chosen for Mombassa Port to implement. A private business enterprise undertook the project and they have already completed their installation of waste management facilities on the basis of the recommendations. It is understood that many countries in Africa would like to use this facility in Mombassa port as a model for them to copy and follow.

2.  Country Back-Up Strategy for a Global Financial Services Company:

This Global Company, with sales revenue exceeding $25 billion, has outsourcing operations in several countries with India having the pride of place. However, they were very keen to diversify their operations and develop suitable backups for India. Admittedly, the consulting panel had to look into 80 countries studying the availability of skilled labor, English-speaking skills, development of IT infrastructure, labor availability, labor laws, real estate costs and so on for each country. This exercise reduced the number to 20 countries and thereafter a more rigorous evaluation reduced the number to 5 countries, as Russia, China, Brazil and South Africa, besides India. Field visits and market surveys were conducted in these countries and the final choices were ranked and tabulated. A mathematical spread sheet model was developed for each of the countries in the final list and a D&RA was carried out.

3.  JV and Acquisition for a Petroleum Company in South Africa:

A major French Oil Company preferred a JV with the subsidiary of a US based Oil Company in South Africa. The Consulting Panel developed a Strategic Plan for the JV given the location of the respective refineries and the marketing network. Came up with valuations for both acquisition and JV. Participated further in the negotiations with the French counterparts. The project investment level was of the order of $1 billion.

Africa & Middle East:
Kenya
Uganda
Zimbabwe
Zambia
Malawi
South Africa
Tanzania
U.A.E
Saudi Arabia
Goban
Others
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Country Track Record
Tiara's Expertise in TanzaniaTanzania  

1.  Management Contract or Acquisition of the retail network of US-based Oil Company in East Africa:

Developed Special Strategic Options Plan whereby the petroleum company involved could either manage the retail network of the subsidiary of another US based oil company on a contracted management fee basis or acquire outright. Both strategic options were laid out. The options appeared very viable for the seller. Meanwhile, the national government of one of the countries in that region issued an edict to the seller to sell it to a specific entity with the incentive of the availability of immediate foreign exchange for repatriation.

Africa & Middle East:
Kenya
Uganda
Zimbabwe
Zambia
Malawi
South Africa
Tanzania
U.A.E
Saudi Arabia
Goban
Others
Top
Country Track Record
Tiara's Expertise in U.A.E.U.A.E  

1.  Reentry into Retail Market in Northern UAE:

After nationalization of all retail network in the UAE, the government of UAE felt the need for the reentry of private oil companies into the market. The consulting panel developed a strategic plan to reenter the market with a network of gas stations involving around $30 million.

2.  Water Purification & Desalination Projects:

A Company in Los Angeles came up with a new process for water desalination called Modified vapor compression and distillation (MVCD), which would be significantly less expensive than various traditional processes such as vapor compression & distillation (VCD), reverse osmosis, multistage fractional distillation (MSFD), reverse osmosis (double-pass), and MED. Field research was carried out in several countries such as India, Singapore, Dubai, Saudi Arabia, Egypt, Mexico and USA and compared the existing operations with the potential new operation. This feasibility study showed as to what strategy this new company should adopt for each country. A business model was developed for each country where the strategy and investment levels were embedded and it showed the impact of the strategy on the cash flows for each country. A principal drivers Analysis was also carried out together with the risk profile of the investment for each country.

3.  Sharjah Gas Project in UAE:

in UAE had a lot of reserves of natural gas. They preferred foreign investments well over $500 million in putting up facilities in pumping the gas and extracting propane, butane and pentane out of it and trading them in world markets. Formed and worked for a Consortium consisting of Verst Alpine (government of Austria company), Linde's and Klockner (private German companies) and Lucky Goldstar from Korea along with the US based oil company and Bank of America. The bid as developed by the Consortium won the contract as the ruler of Sharjah's representative, i.e. Bechtel found the consortium's approach very "new and novel", which would work for the interest of the gas owner while protecting the interest of the JV with an assured return of 20% IRR.

4.  Acquisition of a Global Trading Oil Company with significant assets:

This company had a majority share in a lube oil refinery in Taiwan and a marketing network in the middle-east, Singapore, Hong Kong, Japan and in Latin America. The Consulting Panel developed a global plan for this strategic acquisition valued well over $500 million and participated in the negotiation with the owners of the company.

Africa & Middle East:
Kenya
Uganda
Zimbabwe
Zambia
Malawi
South Africa
Tanzania
U.A.E
Saudi Arabia
Goban
Others
Top
Country Track Record
Tiara's Expertise in Saudi ArabiaSaudi Arabia  

1.  Port Waste Management Services with Benchmarking various Global Ports:

This was a benchmarking project. The benchmarking ports were as under:

  • Long Beach, California, Rotterdam, Netherlands & Singapore - Gold Standard
  • Jeddah, Saudi Arabia & Durban, South Africa- Silver Standard.
  • Bombay & Madras in India, Dar Es Salaam, Djibouti and Maputo in Africa - Bronze Standard

Finally, some of the best practices from these ports were selectively chosen for Mombassa Port to implement. A private business enterprise undertook the project and they have already completed their installation of waste management facilities on the basis of the recommendations. It is understood that many countries in Africa would like to use this facility in Mombassa port as a model for them to copy and follow.

2.  Water Purification & Desalination Projects:

A Company in Los Angeles came up with a new process for water desalination called Modified vapor compression and distillation (MVCD), which would be significantly less expensive than various traditional processes such as vapor compression & distillation (VCD), reverse osmosis, multistage fractional distillation (MSFD), reverse osmosis (double-pass), and MED. Field research was carried out in several countries such as India, Singapore, Dubai, Saudi Arabia, Egypt, Mexico and USA and compared the existing operations with the potential new operation. This feasibility study showed as to what strategy this new company should adopt for each country. A business model was developed for each country where the strategy and investment levels were embedded and it showed the impact of the strategy on the cash flows for each country. A principal drivers Analysis was also carried out together with the risk profile of the investment for each country.

3.  LPG / Automotive LPG Projects in Singapore, Saudi Arabia:

These were developed with investments of $8 million in each of the projects. They have been successfully implemented.

Africa & Middle East:
Kenya
Uganda
Zimbabwe
Zambia
Malawi
South Africa
Tanzania
U.A.E
Saudi Arabia
Goban
Others
Top
Country Track Record
Tiara's ExpertiseOthers  

1.  Market Entry Strategy into the Sultanate of Oman:

In the early nineties, Oman did not have the presence of any US based oil companies. The consulting panel developed a strategic plan for a major US oil company to enter Oman with a network of 32 gas stations and an ocean terminal at a cost of $15 million. A Joint Venture (JV) route with a local private party was the strategic option for entry into the market. Incidentally, Oman had then highest per capita gas station sales of gasoline and diesel in the world.

2.  Egypt: Water Purification & Desalination Projects:

A Company in Los Angeles came up with a new process for water desalination called Modified vapor compression and distillation (MVCD), which would be significantly less expensive than various traditional processes such as vapor compression & distillation (VCD), reverse osmosis, multistage fractional distillation (MSFD), reverse osmosis (double-pass), and MED. Field research was carried out in several countries such as India, Singapore, Dubai, Saudi Arabia, Egypt, Mexico and USA , which compared the existing operations with the potential new operation. This feasibility study showed as to what strategy this new company should adopt for each country. A business model was developed for each country where the strategy and investment levels were embedded and it showed the impact of the strategy on the cash flows for each country. A principal drivers Analysis was also carried out together with the risk profile of the investment for each country.

Africa & Middle East:
Kenya
Uganda
Zimbabwe
Zambia
Malawi
South Africa
Tanzania
U.A.E
Saudi Arabia
Goban
Others
Top
Country Track Record
Tiara's ExpertiseGoban  

1.  DEVELOPMENT OF STRATEGIC OPTIONS FOR A MAJOR UREA PLANT USING NATURAL GAS IN GABON, WEST AFRICA WITH A CAPITAL INVESTMENT OF $3 BILLION:

One of the companies of a Conglomerate in India was approached by a Company in Southeast Asia to do a Joint Venture (JV) with them in a small West African Country for the manufacture and marketing of Urea. The country apparently has significant proven reserves of Natural Gas (NG) and the West African Country's Administration (WACA - more in the nature of a "dictatorship") was prepared to let the JV locate and pump the NG into their major manufacturing plant, where the hydrogen of NG will be made to coalesce and combine with the atmospheric nitrogen to produce ammonia which would then lead on to manufacturing Fertilizer of Urea Grade. In the first phase, they hoped to manufacture and market about 1.3 million tons of urea into various global markets. It appeared that as an inducement to make the JV invest into the country, provide the technology, export the product and develop overseas markets, the WACA was prepared to sell the natural gas at an extremely low price of $1 per million (MM) British Thermal Units (BTU) well below the world market prices of natural gas at that time around $4.50 per MMBTU.

The JV felt that they should be able to sell the urea in the world market. They had already made a series of assumptions and carried out economic evaluation of the project, which appeared to give the "go-signal" for the project. They had assumed some average price for selling the finished product of urea on a global basis. They were ready to go and sign their JV agreement when Tiara International Consulting (Tiara) was introduced to them. Tiara offered to carry out the "economic evaluation" of the project using their D&RA approach. The D&RA called for Pessimistic, Most Likely and Optimistic Estimates for each of the variables and they were eventually assumed as below. Incidentally, the "most likely" value was assumed as a "single-point" value by the JV which was extended further by Tiara using Pessimistic and Optimistic Values as under:

INTERNATIONAL JV (IJV) - WEST AFRICAN COUNTRY ADMINISTRATION (WACA) PESSIMISTIC MOST LIKELY OPTIMISTIC
PROBABILITIES 25% 50% 25%
CAPITAL INVESTMENT FOR PLANT & EQUIPMENT OUT OF THE ABOVE - 000'S US$ 1,495,000 1,300,000 1,170,000
COST OF NATURAL GAS AS PROVIDED BY WACA - US$ PER MMBTU2.000.800.80
OTHER MARKETING COSTS AT US$/TON OF UREA0.00 10.005.00
CAPACITY OF THE PLANT IN 000'S TONS1,0871,3591,427
S-AMERICAN MKT PRICE AT DISTRBTR LEVEL -US$/TON250.00275.00300.00
CENTR-AMCN MARKET PRICE AT DISTRIBTR LEVEL - $/TON 255.00275.00300.00
AFRICAN MKT PRICEAT DISTRIBUTOR LEVEL $/TON255.00275.00300.00
AVERAGE MARKET DEMAND GROWTH RATE IN LATIN AMERICA 0.89% 1.79% 2.68%
MARKET DEMAND GROWTH RATE IN CENTRAL AMERICA 2.24% 4.48% 6.72%
MARKET DEMAND GROWTH RATE IN AFRICA1.87% 3.75% 5.62%
POTENTIAL MARKET SHARE - SOUTH AMERICA 8.00% 16.00% 20.00%
POTENTIAL MARKET SHARE - CENTRAL AMERICA1.00%2.00%2.50%
POTENTIAL MARKET SHARE - AFRICA 1.50%3.00% 3.75%
WEIGHTED AVERAGE COST OF CAPITAL FOR THE JV - WACC8.50% 8,50%8.50%
TIME TAKEN TO ACHIEVE FULL MARKET SHARE 4.00 2.001.00

It appeared that the JV did not take into account the following risks

  • Sovereign Risk: This is a "major risk" especially in a WACA, which is under the rule of a Dictator. Once the JV puts in their investment, technology and develops the global market in a few years, WACA may revert to them stating that $1 per MMBTU is too low a price for their only "raw material" in the country and people demand a much higher price, say world market price of $4.50 per MMBTU. This can completely destroy the project economics! Tiara felt that in all probability WACA would increase the price of NG by the third year of operation to at least $3.50 per MMBTU. Incidentally, such a situation occurred exactly three months after Tiara made the forecast in Oman where GOI had sponsored a JV with Omani Government. In 2014, Reliance is procuring a price of over $7.50 per MMBTU in the Indian Market.
  • The other Sovereign Risk also involves "Nationalization" of the company as has happened in many countries in Africa, Asia and South America with expropriation of all company's assets.
  • Obsolescing Bargain Risk: This is a risk that takes place with Private Sector Partners in any country. Once the loans are approved for a project using the global partner's name and the project is implemented, one of the influential private sector partners in the JV may gradually demand a higher share of equity and a greater role for themselves. While such a situation may not arise with the JV partner from Southeast Asia to the Conglomerate from India as the former already has majority equity, this has happened very frequently as observed by Tiara for many of the companies the latter has dealt with.
  • Currency Risk: It is not clear what currency is used by the country in West Africa. Admittedly, for a project like this, all monetary issues are likely to be denominated in US Dollars or Euros. Nevertheless, it is useful to take cognizance of this in the final agreement with WACA
  • Market Risk: The output of the project apparently will be sold in global markets. On investigation, it was found that the output could be sold in South and Central America as well as in the surrounding geographic markets to the West African Country. However, it was noticed that they did not have a marketing plan to show how much market shares would be achieved in each individual market, what the product pricing would be and what could go wrong in these markets. Further, the freight element for supplies to various markets was not taken into account.
  • All Other Risks: Some of these risks may not arise or can be of very minor in nature, but nevertheless worth taking into account as below:

    • Risk towards Funds Repatriation
    • Legal & Regulatory Risk
    • Risk due To Corruption
    • Operational Risk
    • Labor Market Risk
    • Intellectual Property Risk
    • Supplier Risk
    • Infrastructure Risk
    • Political Stability Risk
    • Security Risk
    • Governmental Effectiveness Risk
    • Risk Due To Tax Policies

    Once someone assesses the above risks, then the person may wish to ignore many of these, which would not apply and concentrate only on the remaining ones which one endeavors to quantify. In this particular project, Tiara did not take them into account or quantify them as the JV was in a hurry to proceed with a D&RA.

    A Quantitative Model was developed by Tiara taking into account whatever variables that could be quantified to include in the D&RA with their Pessimistic and Optimistic Values. The different sets of Scenarios assumed for the Model and the Results are shown in the Table hereunder:

    • Scenario One: All assumptions are as per the Global JV without any increase in the price of NG, which was kept at the level of $1 per MMBTU for the entire 15 year project period with the average prices of Urea at (i) $300 per ton and then again at (ii) $275 per ton
    • Scenario Two: All assumptions are as per Tiara without any increase in the price of NG, which was kept at the level of $1 per MMBTU for the entire 15 year project period with the average prices of Urea at (i) $300 per ton and then again at (ii) $275 per ton. Tiara's assumptions include "Freight" to global destinations and also some "Marketing Costs"
    • Scenario Three: All assumptions are as per the Global JV with the price of NG increasing from $ 1 to $ 3.50 per MMBTU in 5th Year with the average prices of Urea at (i) $300 per ton and then again at (ii) $275 per ton
    • All assumptions are as per Tiara with the price of NG increasing from $ 1 to $ 3.50 per MMBTU in 5th Year with the average prices of Urea at (i) $300 per ton and then again at (ii) $275 per ton. Again, Tiara's assumptions include "Freight" to global destinations and also some "Marketing Costs"
      • Economic Evaluation and Results in the form of Economic Indicators for Scenarios 1 & 2 show significantly positive Net Present Values (NPVs) and as such we have not considered them in this write-up. However, economic results of Scenarios 3 & 4 involving Sovereign Risk show that except for one situation involving JV's assumptions with Urea price at $300 per ton, all other results show negative NPVs for the Project in what is described as the "Most Likely Scenario" as shown by the center column under the List of Assumptions.
      • These have been tabulated and shown below. Some companies focus on NPVs while others pay special emphasis to IRRs & Payback Periods (nominal and real), while a few others look for Present Worth Payback Periods (PEPs - also known as Discounted Cash Flow Payback Periods) and Present Worth Index or PWI (the Bang for the Buck - given by the formula = NPV of Project Free Cash Flow/ (NPV of Project Free Cash Flow + NPV of max Cash Inflow). This PWI is frequently used by Investment Bankers and Venture Capitalists.

      Economic Indicators for Scenarios involving Sovereign Risk

      ECONOMIC INDICATORS OF WEST AFRICA UREA PROJECT UNDER SOVREIGN RISK JV ASSUMPTIONS - UREA PRICE $300/TON TIARA ASSUMPTIONS - UREA PRICE $300/TON JV ASSUMPTIONS - UREA PRICE $275/TON TIARA ASSUMPTIONS - UREA PRICE $275/TON
      NET PRESENT VALUE OF BUSINESS - MUS$ 34,462 (248,961) (148,566) (416,414)
      NPV OF TERMINAL VALUE - MUS$ 47,427 43,680 40,754 37,007
      DISCOUNTED CASH FLOW RATE OF RETURN - DCFROR OR IRR - NOMINAL 10.91% 7.82% 8.69% 5.82%
      DISCOUNTED CASH FLOW RATE OF RETRUN - DCFROR OR IRR - REAL 10.91% 7.82% 8.69% 5.82%
      SIMPLE PAYBACK PERIOD - NOMINAL - YEARS 8.35 12.61 11.13 16.02
      SIMPLE PAYBACK PERIOD - REAL - YEARS 8.35 12.61 11.13 16.02
      PRESENT WORTH PAYBACK PERIOD (PWP) - YEARS 24.40 - - -
      PRESENT WORTH INDEX (PWI) -" the Bang for the Buck" 1.05 0.69 0.80 0.50

      "MUS$" means in 000's of US$ and "MMUS$" means in Millions of US$

      The above is "Static" and not "Dynamic". All variables have been kept at "single point" value without varying them. Frequently, companies do Sensitivity Studies by changing "selected variables" and increase or decrease their values by say 10% and see the impact on the final outcome.

  • UNIQUENESS OF D&RA, WHERE IT ADDS VALUE TO THE ABOVE:

    This is where "Decision & Risk Analysis" (D&RA) with Simulation Exercises differs significantly from the above. Future forecast of any assumption is considered a variable and the following is done for each one of the variables:

    • Pessimistic and Optimistic Values are taken for each one
    • Probability of occurrence for the "Most Likely" as well as the Pessimistic and Optimistic values is estimated, say at 25% for the "pessimistic", 50% for the "most likely" and 25% for the "optimistic" values
    • Probability Distribution is given for each variable; it can be "Normal", "Log Normal", "Poisson", "Exponential", "Logarithmic" and so on. Here we have used "Normal Distribution".
    • Thereafter, using a Special Software, Sensitivity Analysis is carried out for all "Variables". Sometimes, these variables number more than 50. In the present case, Tiara encountered more than 20 variables
    • Such a Sensitivity Analysis ranks all the Variables in a "Tornado Diagram", showing the variables with maximum impact on top and the variables with less and less impact in a descending order.
    • Thereafter, the top "7 Variables" called "Top Seven Drivers" are projected in a Tornado Diagram as below. These diagrams represent Scenarios 3 & 4 with JV and Tiara assumptions separately for Urea Price at $ 275 and $300 per ton respectively:

    Sovereign Risk

    The following are the abbreviations which stand for the variables list:

    • MSH - Market Share
    • SAMCA - South America
    • WKG_REC - Working Capital Receivable
    • PRC - Price
    • DMDGR - Demand Growth Rate
    • CAMCA - Central America

    Sovereign Risk

    FRT - Freight

    Sovereign Risk

    Sovereign Risk

    These Tornado Diagrams do show what the Principal Drivers are for a given Scenario and a set of Assumptions. Each variable in the Tornado Diagram has "three values", i.e., pessimistic, most likely and optimistic. If two variables are taken together, there could be 9 different and mutually exclusive combinations, i.e., 32. Since there are 7 variables, the number of possible combinations would run at 37, i.e., 2,187 possible mutually exclusive combinations or values. There are two different approaches to carrying this out:

    • Monte Carlo Simulation - this would examine roughly around 500 possible combinations for a total number of 2,187 combinations
    • Full Enumeration - This will examine all the 2,187 combinations. Since this number is relatively small and the Software that Tiara uses would be able to carry out these iterations in a very short period of time (less than 2 minutes) Tiara carried out full enumeration (2,187 iterations or values) of each of the Scenarios for which the Tornado Diagrams have been drawn.

    The Results are shown in the Chart (S-Curves) below:

    S-Curves

  • Interpretation of Results in The Form of S-Curves:

    There are four curves each representing the following sets of assumptions:

    • These curves are drawn, each representing 2,187 Iterations of the scenario under discussion with the Cumulative Probability on the Y-axis and the Net Present Values (NPVs) on the X-Axis.
    • The Vertical Lines show the "Expected Values" for the Sovereign Risk Scenario for the JV and Tiara and that too for each of the Urea Price Scenarios, which represent the weighted average (between the probabilities and the NPVs) of each Scenario and the numbers are shown at the bottom. It will be observed that all the NPVs of Expected Values are negative, although for the JV's "Most Likely Scenario", the single point value as per the table was US$ 34.462 million
    • The Curves cut the Zero axis (Y-axis) at a specific point. To the left of this point, all the NPVs are negative, whereas to the right of this point, all the NPVs are positive.
    • It would also be observed that the curve in "pink color" running at the very bottom, representing JV's assumptions with Sovereign Risk with urea price at $300 per ton intersects the "Zero Axis" at 58%. This would mean that 58% of the NPV's are negative. In the alternative, one could say that the "Probability of Destroying Shareholder Value" in this Scenario is 58%
    • All other Scenarios show >90% Probability of Destroying Shareholder Value
  • Lessons Learned from the West African Project:

    • Management too often comes up with "gut-feel" in the Decision Making Process. While this is a good exercise in itself since Management carries a lot of "built-in-experience", this contains the very "perceptions, prejudices and biases" that the Management has started with
    • It is always good to envision in future Scenarios as to what could go wrong or the "worst" that could affect a company so that the company is prepared for it
    • In International Business, it is always good to envision "Sovereign Risks" in future Scenarios. This is particularly relevant for countries in Africa, Asia and South & Central America and the countries in the Former Soviet Union
    • One of the major sovereign risks is complete "Nationalization". Even today, it is happening in many countries in Africa and South America.

    Decision & Risk Analysis (D&RA), besides envisioning future Scenarios including various Risks involved also has a "Disciplined Environment" to carry out the following:

    • Goes into significant granularity of each variable
    • Takes into account the pessimistic and optimistic values for each variable
    • Provides Probability Distribution of these values for each variable
    • Carries out Sensitivity Analysis of "All Variables" in the form of a major Tornado Diagram
    • Thereafter, it focuses on the top 7 to 9 Variables or Drivers. If it is top 7 Drivers, the number of possible combinations in the S-Curve for Full Enumeration Option would be 37 , i.e., 2,187 combinations. If one takes top 9 Drivers, then the number of possible combinations would be 39 , i.e., 19,683 combinations. It is possible to carry out such full enumeration in less than 2 minutes with the special software that Tiara carries along with its experience in Quantitative Modeling.
    • Runs the S-Curve for each Strategic Option and shows the following:
      • The "Expected Values" for each Strategic Option. These are more robust than the single-point values one obtains in a regular quantitative model
      • The Risk Profile of the Project with the Probability of enhancing or destroying shareholder value.
  • It is the considered opinion of Tiara that the D&RA with Simulation Exercises should be carried out for every capital investment project involving more than $50 million

    This D&RA should be introduced at the conceptual level

Africa & Middle East:
Kenya
Uganda
Zimbabwe
Zambia
Malawi
South Africa
Tanzania
U.A.E
Saudi Arabia
Goban
Others
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