Strategic planning is the route for any organizational success, as it integrates relevant endogenous and exogenous factors. At this stage, more and more companies in the region are ascertaining the need for strategic planning as a key managerial tool.
AlShall is involved in assessing, positioning and forecasting performance of different industries, undertaking SWOT analyses, identifying critical value drivers, as well as developing the overall organizational strategic plan accompanied by focused measurable objectives that are both practical and implementable.
Project Example – Strategic Planning.
Assignment
Strategic plan for restructuring an investment company’s assets in order to reallocate assets to more attractive asset classes, and facilitate meeting debt obligations.
Alternative business models were developed with a focus on a real estate investment strategy
Client Name
Kuwaiti listed investment company.
Client’s Activities
Direct investment, investment banking and asset management.
Project Size
Assets Size: ~USD 700 million.
Assignment Date & Duration
2012, 5 months.
Main Area of Focus
Assist the client in developing a strategic plan with the aim of: i) optimally restructuring assets and liabilities in order to meet current financial obligations while allowing future growth, ii) evaluating new sources of revenues and different operating models, iii) revising the strategy to focus on real estate investments, iv) recommending optimal skills and staffing levels for the target organization structure, and v) recommend new grading and compensation schemes. The objective is to advice the Company on the optimal method of restructuring, which would assist in the progress towards its revised business strategy focusing on real estate investments as well as repayment of debt obligations.
Services Provided
Reviewed and assessed the company’s financial, liquidity and solvency position, its underlying assets/investments, and subsidiaries’ base and their composition.
Reviewed the company’s existing and adopted corporate debt restructuring plan and assessed its impact on the company’s existing strategic plan and business model.
Assessed the company’s strategic position within its sector and identified any gaps in its strategic plan, business model, and implementation action plan.
Reviewed and recommended alternative business strategies
o Reviewed possibilities of improving the company’s investment activities/services by adding new activities
o Reviewed the role and strategy for each subsidiary within the group to fit within the Parent’s revised strategic plan
o Reviewed capabilities that could be provided by existing resources and capabilities that would have to be sourced separately.Reviewed and assessed overall asset-liability management to ensure that timing of cash flows from assets investments/divestments fitted the company’s overall strategy and adjusted where required the company’s asset allocation.
Advised on company’s capital restructuring plan and provided guidance on writing-off losses, capitalizing premiums and reserves and reaching an efficient equity capital structure.
Recommended optimal skills and staffing levels to match target organization structure, including right-sizing and alternative skills and structure wherever applicable.
Outcome
Adjusted and developed the existing business strategy to match the revised focus towards real estate investments as well planned for adequate cash inflows to serve debt obligations.
Three detailed presentations were approved by the company’s management and a summary presentation was made to the board of directors which included:
– External and internal analysis of the company’s situation, positioning and review of strategic plan
– Second opinion on the strategy, business model and asset allocation
– Human resources analysis and recommendations (including new organization structure and compensation scheme)Recommendations were adopted and put to implementation.
Project Example – Feasibility Study, Strategic Planning, Establishing Companies and Private Equity Placement.
Assignment
Establishing an Islamic Bank – Cham Bank, Damascus, Syria.
Client Name
Promoters of Cham Bank.
Client’s Activities
Islamic commercial, investment and retail operations.
Project Size
USD 105,000,000 (KD 30,000,000).
Assignment Date & Duration
2005, 20 months.
Main Area of Focus
AlShall worked with promoters to envision the concept and take it from idea to reality by introducing the Islamic banking concept to the regulatory authorities in Syria, undertaking the feasibility, preparing the entry strategy, identifying risks, securing the required licenses, setting the legal and financial structure of the new entity, and placing the entire required equity capital through a private placement.
Services Provided
AlShall conducted a comprehensive feasibility study including all sub-components such as market research, industry trends, supply and demand quantification, competitors, customers, legal framework, identification and quantification of revenue streams, operating expenses, capital expenditures, capital structure, required rates of return and associated risks. As part of the feasibility, AlShall developed the bank’s entry strategy to the Syrian market in terms of size of capital to be deployed, customer segments to be targeted, value proposition and operating model. Finally, AlShall raised the required equity capital through a private placement. Two third of the new bank’s capital was allocated to strategic investors and non-strategic investors while the remaining third was allocated to Syrian small investors via an oversubscribed public placement.
Outcome
The capital issue was successfully closed and the bank became operational.
Project Example – Feasibility Study, Strategic Planning, Establishing Companies and Private Equity Placement.
Assignment
Establishing a private sector oil and gas company – AlDorra Petroleum Services K.S.C.C.
Client Name
Promoters of AlDorra Petroleum Services Company.
Client’s Activities
Kuwait-based investment holding with operating subsidiaries within the oil services industry across the MENA region.
Project Size
USD 42,000,000 (KD 12,000,000).
Assignment Date & Duration
2006, 13 months.
Main Area of Focus
AlShall worked with promoters to envision the corporate concept and take the concept from idea to reality. Primary tasks included setting the strategy, identifying risks, conducting a feasibility study, acquiring the licenses, preparing the legal and financial structure, and placing 100% of the required equity capital.
Services Provided
AlShall conducted a comprehensive feasibility study including all sub-components such as market research, industry trends, supply and demand quantification, competitors, customers, legal framework, identification and quantification of revenue streams, operating expenses, capital expenditures, capital structure, required rates of return and associated risks. Finally, AlShall raised the required equity capital through a private placement with both strategic and non strategic investors. At a second stage, AlShall successfully negotiated and acquired, on behalf of promoters and the company, four oil services companies that formed the nucleus of the new company.
Outcome
The capital was successfully raised and the company established.
Assistance in Strategic Planning Experience List
By Project Name | Country | Sector | Services Performed
2012
Strategic and HR planning for a listed investment company | Kuwait | Financial Services | Financial and organizational restructuring – strategic and human resources planning
Strategic and financial planning for a listed investment company | Kuwait | Financial Services | Financial and strategic consulting
Strategic planning for an investment company for dissolution purposes | Kuwait | Financial Services | Strategic planning for dissolution purposes
Strategic planning for a medical company | Kuwait | Health Care | Market assessment, financial assessment and strategic consulting
Strategy and financial assessment for a company operating within the services sector | Kuwait | Services | Financial and strategic consulting
Strategic planning of a telecommunications company for acquisition purposes | Kuwait | Telecommunication | Strategic planning for acquisition purposes
2011
Development of a pricing strategy for a large government RE Project in Qatar | Qatar | Real Estate – Hospitality | Development of a pricing strategy for each of the project’s services and activities which include a beach, restaurants, cafes, retail shops, exhibition centers, conference halls, theatres and commercial offices
Participating in setting a government strategy for Kuwait as trade hub | Kuwait | Government | Assess qualitative, quantitative and social impact of project on economy, and ascertain cash flows and project returns.
Investment company information memorandum presentation | Kuwait | Financial Services | Listing prospectus
2010
Real estate sector study | Kuwait | Real Estate | Developing a strategy for investing in the Kuwaiti real estate sector
Strategic advisory to an investment company for divesting its stake in a school | Kuwait | Education | Strategic advisory to an investment company for divesting its stake in a school
Study for the establishment of an investment company in Syria | Syria | Financial Services | Preparation of a soft placement presentation for the establishment of a Kuwaiti-Syrian investment company, including market assessment and opportunities short listing
2009
Strategic advisory for valuation of troubled companies | Kuwait | Financial Services | Strategic advisory for valuation of troubled companies
2008
Outsourced marketing company business planning | Qatar | Media | Business concept development and rationale for outsourcing the marketing function of a large conglomerate
2007
Establishment of Kuwait Capital Markets Authority | Kuwait | Government – Financial Services | Consulting services- survey ; law on regulating the securities industry – establishment of a capital markets authority
2006
Consultancy services for establishing a holding company | Kuwait | Family Holding | Consultancy services – establishing a holding company for organizing the ownership of a prominent family
Strategic and business planning for a listed Qatari financial institution | Qatar | Financial Services | Strategic and business planning, economic and market studies, review of governance structure and departmental policies, and redesign of human resources policies
2003
Strategic planning on investments in Tunisia | Kuwait | Financial Services | Strategic planning on investments in Tunisia
Strategic planning for a tourism services company | Kuwait | Tourism | Strategic planning for a tourism services company
2002
Strategic plan and valuation of a pharmaceuticals manufacturing/Trading Company | Kuwait | Industrial – Trading | Assist executives in developing strategic plan, and conduct valuation of a pharmaceutical marketing and trading company
1999
Developing strategic business plan for a major warehousing/logistics company | Kuwait | Logistics | Assist executives in developing a strategic business plan for a major warehousing/logistics company