3PL Strategies for Moving to New Markets, Slawomir Blotny, Vice President of the Board, Raben Group
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The document outlines Raben Group's strategies for expanding into new markets, emphasizing their preference for organic growth through customer service and acquisitions based on cultural fit and operational stability. It highlights the importance of company culture, management capability, and integration plans in successful expansion, along with lessons learned from past experiences. The presentation concludes with a call to consider various strategic options while recognizing the complexities involved in decision-making.
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3PL Strategies for Moving to New Markets, Slawomir Blotny, Vice President of the Board, Raben Group
- 1. Brussels, 24-25 November 2010 3PL Strategies for Moving to New Markets Slawomir Blotny Vice-President of the Board / Key Account Executive Raben Group
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- 3. The dilemma 98 600 m2 EBITA ROI 98,2% 7 424 893€ 3
- 4. Agenda • Introduction of Raben Group • How we entered the countries we now operate in • The advantages and challenges of starting operations in new markets vs. acquisitions • Lessons learned 4
- 5. Raben Group – Employment 6000 5200 * 5000 4700 4500 4000 4000 3500 3000 3000 2300 2000 2000 1600 1150 1000 700 209 0 1 50 1931 1991 1994 1997 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 Data at the end of each year * status as at 31.10.2010 5
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- 7. Raben Group’s operations in Europe Raben Group depots countries in which branches of Raben Group are located countries covered by Raben Group services 7
- 8. Raben Group • Family-owned & family-managed • Group of companies with serious intention of growth • Focus on Customer Service • Corporate rules of management • Employment - ca. 5200 • Total warehouse capacity - ca. 485.000 m2 • Transport means at disposal - ca. 4000 8
- 9. How we entered the countries we now operate in
- 10. • Our vision is To Become a Leader Everywhere We Are • Growth scenarios are: • organic growth or • acquisitions 10
- 11. • Organic growth: • Field sales • Key Account sales • High sales retention through the best customer service 11
- 12. Analyze... & Rabenize. 12
- 13. • Acquisitions: • Product fit • Company culture • Position in the market • Management capabilities • Profitability 13
- 14. The advantages and challenges of starting operations in new markets vs. acquisitions
- 15. Culture Yes No Organic Acquisition growth Stable Unstable company company 15
- 16. Culture Yes No • Culture • Local • Business 16
- 17. Organic growth Culture Yes No Organic growth Advantages Challenges Customers, business partner need a long time implementation of own processes to give trust to the new organisation perfect match with the company vision, long way to achieve satisfying market mission, strategy, products share/critical mass to be cost effective create own organization culture, people act in difficulties to hire excellent staff the same direction investment can be spread over longer period overpay salaries 17
- 18. Stable company Culture Yes No • Acquisitions of a stable company Organic Acquisition growth • Financial performance Stable Unstable company company • Management capabilities • Customers • Market shares • Operations 18
- 19. Stable company Culture Yes No Organic Acquisition growth Stable Unstable company company Advantages Challenges integration plan - 100 and 360 days CEO? If owner, what is his/her future like? providing managers with new opportunities for own funds needed in today’s financial market career growth situation you can share the best practices buy „healthy” market share, Customers, Employees, know how synergy effects 19
- 20. Unstable company Culture Yes No • Acquisition of an unstable company Organic Acquisition growth • Financial performance - low or Unstable company • Management capabilities - poor or • Customers - not satisfied or • Market shares - low or • Operations - low/poor level 20
- 21. Unstable company Culture Yes No Organic Acquisition growth Unstable company Advantages Challenges difficulties to explain this path to shareholders synergy effect possible and stakeholders providing managers with new opportunities for integration plan with support of full team (HQ, career growth other BUs’ of the Raben Group and local) skeletons in the closet own funds needed in today’s financial market situation CEO? If owner, what is his/her future like? 21
- 22. Rabenizing starts from... 22
- 23. Values at the Raben Group Entrepreneurship Customer Orientation We Act With Passion Professionalism Reliability 23
- 24. Lessons learned
- 25. Lessons learned • The culture of the company, especially its management is crucial • It seems that our business units do much better if their HQs are located outside the countries' capitals • Due diligence may show good financial and legal result but this does not mean that operations and customer relations are at expected level • International company versus local entrepreneur • We do not have to be present everywhere 25
- 26. Rabenizing in progress Total: 485,000m2 Poland 250,000m2 Germany Baltic States 70,000m2 3,000m2 Ukraine 50,000m2 The Netherlands Hungary 4,000m2 22,000m2 The Czech Rep. / Slovakia 85,000m2 26
- 27. No matter which solutions you choose… Just remember… 27
- 28. You have plenty of nails in each decision, the key is to choose the proper one 28
- 29. Thank you for your attention! If you have any questions, please, do not hesitate to ask now or contact us later: Slawomir Blotny Vice-President of the Board / Key Account Executive Raben Group phone: + 48 61 89 88 219 e-mail: [email protected] 29