Working PPT Presentation

oppositemincedManagement

Oct 28, 2013 (4 years and 13 days ago)

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CSI


Iryna Butler

Michael Dongieux

Carrie Hogue

Lifeng Geng

Steve Martin


Agenda


Company Overview


SWOT Analysis


Macro
-
Economic Outlook


Micro
-
Economic Outlook




Company Overview


MD

SWOT Analysis


MD

US Economic Outlook


Current Conditions


2008 GDP grew by 1.1%, 4Q 2008 contracted by
6.2%


Business and consumer spending contracted,
sentiment low


Unemployment 8.5%, lowest number of
manufacturing jobs since 1985.


Outlook


GDP contract 2.4% in 2009, grow 2.0% in 2010



Unemployment 10% before getting better


Tight consumer and business credit market


Stimulus, Fed policy and recovery


Brazil Economic Outlook


Current Conditions


9
th

economy by GDP, regional industrial power,
prudent economic, financial and fiscal policy, strong
trade balance and reserves


GDP grew 5.1% in 2008, Q4 2008 contracted 3.6%,
inflation 5.7%, unemployment 8.5%


Outlook


GDP contract 0.3% to 1.5% in 2009


Inflation 3.5% in 2009


Retail continues to be strong


Earlier recovery compare to developed economies

Macro
-
Economic Environment


CSI: a local small company with limited
financial, human and technical resources


Weak economic outlook in U.S.


Brighter growth potential in Brazil and
Latin America region


Recession impact on strategic decisions


Risk of expansion to U.S. vs. position for
future growth: tight credit market

US Industrial Process Control
Industry


NAICS 334513
-

Industrial process control
instrument
is in contracting manufacturing
sector of the economy


As of 2007, 66 out of 108 firms are small
businesses, 34% failure rate among small
businesses


Industry total sales: $1,376 million, firms with
sales less than $4.99 million has a market share
of 6.6%


Segment sales grew 18% annually from 2005 to
2007,
average EBITDA is 11.37% of sales

Industry Trends and Drivers


Data collection and access are standard and
routine operations



Integrated information across enterprises and
organized context for decision makers


Predict and find assignable causes of
operational variations.


Disconnected initiatives vs. integrated solutions


Product life cycle management, control system
security, and system agility


Integration of IT and industrial process control


Real
-
time optimization and future planning
based on internal and external events


What
-
if scenarios


US and Brazil Auto Industry


US Auto Industry


Sales tumbles from 16.1 million in 2007 to 13.2 million in 2008


In March 2009, GM, Ford, Chrysler sales fell 45%, 41%, and 39%


Big Three are in surviving mode


GM is pursuing “
fewer, and better” strategy



Brazil Auto Industry


Government

support: $4 billion


Tax breaks for manufacturers


16.9% sales increase in March 2009 compare to March 2008


Future drivers: booming ag and mining sector, 2014 world soccer
cup

Brazil Industrial Process
Control Industry


High
-
end industrial process control suppliers are
dominated by companies from developed
countries

such as GE, Honeywell, Invensys,
Siemens, Rockwell Automation


Brazilian multinational: WEG Industies


Local system integrators/service
providers/consultants: AGNUS Tecnologia
Eletrônica, CONCEPT ENGENHARIA E
AUTOMAÇÃO, MagnoCorp Automation, SEA
Systems
-
Unicontrol International Ltda, Vision
Industrial Systems


Local Advantage: Service providers

CSI Prospective


Major clients in automotive industry: Risks and advantages in
US vs. Brazil


Barrier

to entry to US. Market: High small business failure rate
in US industrial process control industry, culture and cost


CSI strength: low cost provider, retrofitting existing small
business manufacturers with CSI process technology


Virtual manufacturing model


Market: Small Latin America business as potential customers


Cost advantages over multinationals


CSI is well positioned to take advantage of small manufacturing
firm modernization in Latin American region.

Competitive Analysis


SM

Industry analysis of potential
client base


SM

Pricing Analysis


SM

Value Chain Analysis

Large
Business


Operations

Medium
Businesses

Research &
Development

Niche/focused services

Customized solutions for business clients

Development of both hardware and software solution

Development and deployment of innovative technologies



Lean operations with focus on staying small yet agile

Outsource hardware production

Focus on the software solutions and hardware prototypes

International Footprint

Consulting services

Contract maintenance services


Most new business opportunities come from past clients referrals

Comprehensive website, yet no English version

Word of Mouth referrals

Repeat contracts and maintenance after sale

No structured sales force team

Weak marketing solutions to increase brand awareness

The owner is critical driver of the business for CSI

Market research

Limited market research and analysis both regional and global

Further investment into tracking studies, monitoring industry trends and drivers

No developed action
-
planning process identified


Sales/Services

Small
Businesses

Segmentation


IB

Targeting


IB

Positioning


IB

Legal Considerations


Regional Governance & Corruption


Corruption among government officials


Transparency International’s Corruption
Perceptions Index


Control of Corruption index

Legal Considerations


Labor Laws


Regulated by collective bargaining &
agreements


Employer Costs


Social Security Contribution


13
th

Annual Salary


Severance Pay


Vacation

Legal Considerations


Labor Laws


Regulated by collective bargaining &
agreements


Employer Costs


Social Security Contribution


13
th

Annual Salary


Severance Pay


Vacation

Legal Considerations


Copyright, Trademark, & Industrial Rights


Grant of rights


Copyright


Trademark


Industrial Rights


Courts


Recommendations


CH

Conclusions


CH