Economic and Profitability Analysis
This resource enables us to showcase a general overview of the company’s financial condition. Through it, we are able to review the evolution on sales and costs, seasonal peaks, customers / products / services with the highest influence over revenues and economic profitability presentation. In this sense, we check the following items:
- Survey on the sales history;
- Distribution channels analysis;
- Checking customer concentration;
- Analysis on the fixed and variable costs structure;
- Profitability analysis.
OSM (Organization, Systems and Methods)
OSM activities involve carrying out a review on the company’s operation flow with a focus on minimizing failures, simplifying processes, eliminating rework, reducing bureaucracy on routine activities, creating a work methodology, preparing hierarchical organization charts, manuals of procedures, among others. The works are focused on:
- Reviewing the current flowchart;
- Eliminating bureaucracy;
- Eliminating duplication;
- Assessing added-value;
- Simplification;
- Reducing cycle time;
- Provide an error-proof process;
- Using a simple language;
- Standardizing activities and tasks;
- Improving inputs and outputs;
- Automation and/or mechanization.
ZBB (Zero-based Budgeting)
BS Strategy also provides assistance and implements ZBB, used by companies for preparing their budgetary planning as a strategic tool for a certain period, starting from a zero base, i.e., disregarding the history of revenues, costs, expenses and investments from previous periods.
Cash Flow
Cash flow is a tool evidencing cash and cash equivalents, revenues and expenses in a future line, whereby we are able to have a broad view for decision-making. The following items are reviewed:
- Identification of the company’s cash and cash equivalents;
- Day-by-day review of accounts payable and receivable;
- Day-by-day review of overdue accounts payable and receivable;
- Future assessment, on a weekly and daily basis, of financial inflows and outflows.
Pricing
With the current growing competition in the market, companies need to rely on pricing strategies. In our work, we review direct and indirect costs, check feasibility, market acceptance and financial return. Items analyzed include:
- Fixed costs composition;
- Variable costs determination;
- Apportionment of costs by product;
- Price setting through checking market sensitivity;
- Absorption and profitability tests.
Strategic Planning
Strategic planning is a managerial process enabling the establishment of a direction to be pursued by the company, with the purpose of optimizing the relationship between the company and its environment.
The work is based on the items below:
- The company’s business priorities and its competitive advantages;
- Strategies bound to defined goals;
- Planning-related powers, responsibilities and roles;
- Required resources for action implementation;
- Planning and review schedule.
Business Plan
Business plan is a key tool for evidencing whether a project may or not be successful. BS Strategy will assist you in the preparation of a good business plan, carrying out a study through which it will analyze market challenges, target-audience, risk identification, development of strategies and the business financial feasibility.
- Market Analysis - Covering the market segment, competition, potential customers and Suppliers;
- Marketing Plan - Analysis of matters such as advertising, promotion, public relations, merchandising, personal sales;
- Operating Plan - Survey of materials and equipment required, staff dimensioning and time required for each production stage;
- Financial Plan - Acquisition of equipment, furniture and vehicles, refurbishments and company’s records, funds for financing forward sales and paying suppliers (working capital).
- Risk Analysis - Taking into account actions for bullish scenarios, but particularly for bearish scenarios, such as those involving cost increases, reduction in sales and revenues, among other extraordinary events that may affect the business, and developing short- and long-term strategies to mitigate its effects;
- Strategy - Consolidation of all previous information included in the business plan for developing business strategies taking into account strengths, weaknesses, opportunities and threats to which the business will be exposed;
- Company - Development of a broad and clear overview of the company, outlining the business description, company’s differentials, mission, entrepreneurs’ profile, products and services provided and main benefits, among other relevant information on the business.
Valuation
BS Strategy relies on specialists in the financial area, with deep background in carrying out valuation processes, for the purpose of calculating the actual and current enterprise value, forecasting its share price for the future, as well as the return on investment over an asset.
Using different valuation methodologies such as Discounted Cash Flow - DCF (the most used in the market), the comparative multiple analysis and valuation via history of multiples, BS Strategy is able to assess your enterprise value as a whole and to identify ways to improve its market positioning in the event of the company’s disposal, as well as situations when seeking any financial contribution.
BS Strategy Consulting