Case Example

Validation of Assumptions for Business Plan

Client Challenge

The client, a leading food solutions enterprise, is one of the India's largest seasonings, flavors and food solution providers. The client’s top management believed that the vision for the group and the SBUs was well crafted, however, the assumptions around long term business plan to achieve the vision needed validation. The management also believed that the plan lacks rigor and robustness in long range plans for two SBUs
● Seasoning SBU – B2B Institutional
● Food service SBU – B2B HORECA

The management also indicated to UC STRATEGY to extend support towards implementation of the proposed strategy with respect to processes, structure and people

Our Approach

UC adopted the following approach:
● Build Context
- Key characteristics of each business - revenue and profits, product, pricing, drivers and inhibitors, constraints and challenges
- Understand strategic intent for each SBU and analyze past data
- Build hypothesis for validation
● Validate Market Dynamics and Trends Assumptions
- Understand external market dynamics and macro trends impacting the business
- Understand Competition, Channel and Customer dynamics
- Identify the value chain for each business and assess revenue and margin pool
● Validate assumptions around “Where to Play” and “How to Win”
- Synthesize and present findings about attractiveness of the opportunities
- Map client’s capabilities against selected opportunities
- Define business model and capability build up agenda
● Recommend changes in the Financial Plan
- Suggest changes in the financial summary - Investment plan, revenue, profitability and returns
-Devise an implementation plan for the proposed strategy

Our Impact

The client benefited with following
● Validation of existing assumptions with recommendation (upside or downside)
● Bringing outside-in rigour in assumptions and thought process
● Well-articulated business plan with potential upside of 15-25% y-o-y for 3 years
● The business plan was presented to investors in the fund raising exercise