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The 11 Corporate Lessons From Movie Rocket Singh By Ashraf Chaudhry — Document Transcript 1. The 11 Corporate Lessons from Movie „Rocket Singh‟ The 11 Corporate Lessons from Movie Rocket Singh SALESMAN OF THE YEAR Reviewed by: Ashraf Chaudhry Sales & Marketing Trainer & Author of International Best Seller The Craft of Selling “YOURSELF” Email:
[email protected] Cell: +92 321 9274723 Timezone: GMT+5 1st February 2010 [Google Profile]
2. The 11 Corporate Lessons from Movie „Rocket Singh‟ On Money & Motivation Lesson # 1 Money doesn‟t motivate everybody equally. • You cannot always convince people with money only. • You need to persuade, converse, negotiate and engage. • Money is one of the several variables of motivation. Someone needs just sweet words and someone needs a little persuasion. • Tailor the approach of motivation. Use money where it is required only.
3. The 11 Corporate Lessons from Movie „Rocket Singh‟ On Right Aptitude Lesson # 2 To thrive in sales, you need right aptitude (not just marks on your degrees). You can be a topper in the university and the greatest number cruncher on planet earth but may not be a great salesperson (an influencer, a persuader and negotiator.) To be a great salesperson, you need to have right aptitude……an aptitude of empathy, an aptitude to see beyond the obvious.
4. The 11 Corporate Lessons from Movie „Rocket Singh‟ On Ice- breaking Lesson # 3 “Disturbing” others is pre-requisite to be salesperson. Asking (or disturbing people) is pre-requisite to become a great salesperson. If you are hesitant to break the ice, start conversations and ask for help and guidance and engage people in discussions, you then need to cultivate
people skills. Great salespeople come one step forward, after saying hello, they confidently say, “Can you please help me”?
5. The 11 Corporate Lessons from Movie „Rocket Singh‟ On Honesty & Integrity Lesson # 4 What is good for the goose cannot be bad for the gander! Don‟t expect honesty from salespeople in the organization if you encourage them to become kick-backers and bribers with the clients. If organization encourages its sales and marketing teams to bribe the clients‟ organization to take orders, it is, in fact, plowing the seeds of dishonesty in the organizational culture. Organization has no right to expect internal integrity and honesty if it is promoting malpractices in the clients‟ organizations.
6. The 11 Corporate Lessons from Movie „Rocket Singh‟ On Customer Service Lesson # 5 The greatest secret of success in business: Satisfied Clients Customer Service (24/7) makes the organizations outsmart the competition. In order to thrive and excel in the business, organizations need to cultivate a service culture across the board. You cannot afford to forget the customer once you take the check. Delighted and satisfied customers are your ambassadors and their referral can generate more business than you can handle.
7. The 11 Corporate Lessons from Movie „Rocket Singh‟ About Ashraf Chaudhry Despite his early education from roofless and ghost schools of rural Pakistan, he graduated from no less than Institute of Business Administration (IBA), Karachi. He has worked for around one and a half decade for blue chip companies like Chevron, Tapal Tea, Pearl Continental & Marriott Hotels and Worldcall Group before joining corporate training industry. He is author of international best-seller The Craft of Selling “YOURSELF”. He is also co-author with Bob Urichuck, Sales Trainer ranked # 7 in the world, for their up- coming sales novel, The 10
Commandments of Selling: Story of Danial, to be launched world- wide in June 2010. Some of the most popular training programs created by Ashraf Chaudhry are: 1. The 10 Commandments of Selling 2. The Real Guerrilla
Selling 3. Heart Selling 4. Unlocking the Real “YOU” 5. Raising Sales Infantry To book Ashraf Chaudhry for customized Sales & Marketing trainings and for conferences, please call Ms. Faiqa Hafeez at +92 321 9444 522 or drop an email at [email protected] [Google Profile]
8. The 11 Corporate Lessons from Movie „Rocket Singh‟ On
Intra-preneurship Lesson # 6 Make people Partners in business; they will be no more Pain! If associates are treated like partners, they will own the organization. Allow them to grow as the company grows. If humans are treated as Resources and Capital meant to be consumed and used, they will act like leaches sucking away the vital veins of the organization and reaching out to the bone marrows. Sales & Marketing people employed on fixed salary work from 9 to 5. If they are partners in the profitability, they will sell even in dreams and will become killer sales machines……timeless and spaceless. Mediocres become Masterminds when they are involved.
9. The 11 Corporate Lessons from Movie „Rocket Singh‟ On Value of Zero Lesson # 7 Even zero has the value. Zero is magical in character. It can multiply the value of any number if placed rightly. The lowest person in the organizational hierarchy can do wonders if he/she is put at the right place. And genius can ruin the whole game if placed wrongly. Matching of inherent talent with job description is critical for success of the organization.
10. The 11 Corporate Lessons from Movie „Rocket Singh‟ On Inherent Quality of “Rise & Fall” Lesson # 8 Every one is born with potential of „vice & virtue‟. Every employee has both the qualities……the qualities of Rising & Falling in career. Which quality is dominant, determines your destiny. Certain attitudes will put a gravitational pull on you while others will make you „sky‟s the beginning‟ type.
11. The 11 Corporate Lessons from Movie „Rocket Singh‟ On Risk Taking Lesson # 9 Spiderman also takes the risk. Jumping out of comfort zones, taking initiatives and playing with risks is what makes the difference. If you
are stuck in the grooves of „safety‟, you end up nowhere. The road from Good to Great is paved with taking initiatives. The biggest risk in life is to avoid the risk. Even Spiderman has to take the risk.
12. The 11 Corporate Lessons from Movie „Rocket Singh‟ Have you booked your seat for cutting edge workshop on Sales & Marketing? Cracking the Code: How to Use Social Media for Sales & Marketing? Karachi Marriott Hotel, 23rd February 2010 Lahore Avari Hotel, 26th February 2010 Please download the brochure for more information. [Google Profile]
13. The 11 Corporate Lessons from Movie „Rocket Singh‟ On Team building Lesson # 10 You need a loyal team to build Rocket Sales Corporation. Great organizations are built by great teams and not by accident. Teams are built by reinforced trust, mutual respect, sharing and caring. The trust deficit among the team members erodes the team spirit. Build a great team; build a great organization.
14. The 11 Corporate Lessons from Movie „Rocket Singh‟ On Gathering Intelligence Lesson # 11 If salesperson cannot read the paper in reverse, he/she is blind. Every Sales & Marketing person has to keep his/her eyes and ears open to scan the information regarding prospects, competition and the market influencers. In the game of business, right information at the right time gives you „unfair‟ advantage. Be the corporate Sherlock Holmes.
15. The 11 Corporate Lessons from Movie „Rocket Singh‟ Did you like the review? If yes, please share it with your colleagues and friends. Feedback? [email protected] Want to get connected with Ashraf?
Facebook LinkedIn Twitter Free e-book every week Join the Facebook Group (Seminars, Conferences & Workshops) and get free e-book every week. Instant download 1st chapter of Ashraf Chaudhry‟s book The Craft of Selling “YOURSELF”. Please click here [Google Profile]
Volunteer Engagement Mobilization Plan
Volunteerism is an important value in our society. When people are engaged in their
community, there are benefits to the volunteer, to the people and organizations that they serve and, for the community as a whole. Volunteers help agencies provide the wide range of services that are available in our community. Nonprofit agencies and community organizations would not be able to provide the breadth and depth of services they offer if they didn’t involve volunteers. Volunteers:
• Bring fresh perspectives • Expand diversity • Provide leadership
• Help agencies reach new audiences and markets • Extend staffing capacity
• Are ambassadors and advocates for the causes in which they are involved • Create an environment of people that care about their communities • Donate money at a higher rate than non-volunteers
There is increased national attention on volunteerism. The Edward M. Kennedy Serve America Act was passed in March 2009. This bill reauthorized and expanded the mission of the
Corporation for National and Community Service (CNCS) to: • Increase opportunities for Americans of all ages to serve • Support innovation and strengthen the nonprofit sector
• Strengthen management, cost-effectiveness, and accountability of programs supported by CNCS
• Authorize a Civic Health Assessment comprised of indicators relating to volunteering, voting, charitable giving, and interest in public service in order to evaluate and compare the civic health of communities
From the White House to the entertainment industry, from corporations to college campuses, initiatives have been created to encourage volunteerism and help people get involved locally and globally. Websites include: serve.gov, dosomething.org, Volunteer Match, idealist.org and iparticipate.org.
Locally, our United Way has been committed to helping people find interesting and meaningful volunteer opportunities for over 30 years when the Volunteer Center (originally the Volunteer Services Bureau) became a part of our organization. The Board has affirmed the importance of mobilizing volunteers to advance the Agenda for Change while helping people find volunteer opportunities that meet their personal interests, skills, time availability, and other needs.
It’s the marriage of strategic financial investments, effective and efficient nonprofit organizations, well managed volunteer programs and the dedication of community volunteers that creates meaningful community impact.
Although we know that the people in Dane County are very generous with their time, we also know that there are a lot of people who do not volunteer but would if presented with the right opportunity. This plan will address why people don’t volunteer and how we will increase the rate of volunteerism in Dane County. 2
I. Problem Statement
According to a survey by the Corporation for National and Community Service (CNCS), 1
the
rate of volunteering has remained fairly steady from 2005-2008, with 61.8 million Americans (26.4%) of the adult population volunteering in 2008. As the population grows, the number of volunteers is increasing. The study noted that informal volunteering (i.e. working with
neighbors) increased by 31% from 2007 to 2009.
time spent volunteering, participating in groups and doing other civic activities due to the economic downturn.
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Given these challenging times, it may not make sense to read too much into the long-term implications of these short terms trends.
The CNCS survey finds that Dane County has very high rates of volunteerism: 41.5% of residents volunteer, ranking us 4
th
within mid-size cities surveyed in United States. This is a
total of 191,700 volunteers. These volunteers are generous: averaging 87.5 hours of service annually. Unfortunately, we volunteer only 36.3 hours per resident per year – three hours a month – making us 42
nd
in among mid-sized cities in the U.S. 3
Thus the net impact of our
volunteering may fall short of local need. There are many reasons do not volunteer.
• The main reason is they simply have never been asked to do so by someone they trusted.
• Non-volunteers see themselves as essentially different from volunteers. They tend to think of volunteers as retired, without children, and with an abundance of leisure time. • Many non-volunteers fear the time commitment of service, expressing concerns that signing up for a volunteer activity would require that they continue indefinitely, even possibly for a lifetime.
• Poor volunteer management turns people off. Former volunteers said that if they had a bad experience with one organization, they were turned off from volunteering
altogether. 4
According to one study, the median paid staff volunteer coordinator in agencies only spends 30 percent of his or her time on this task.
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This same study
showed that less than half of the organizations had adopted most volunteer management practices advocated by the field.
Other reasons people do not volunteer:
• Lack of understanding of program – job, organization, clientele • Insecurity about skills
• Agency is unfriendly to newcomers – too exclusive
• Cultural/environmental obstacles – language, transportation, child care • Job doesn’t sound exciting
• Organization is too controversial • Recruitment goals too general 6
And…
• They don’t think they have anything to contribute • Don’t know who to ask
• Think there are enough volunteers already 7
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Corporation for National and Community Service (CNCS) Volunteering in America 2009 2
Civic Health Index – 2009 3
CNCS – Volunteering in America 2009 4
CNCS – Volunteering In America: Pathways to Service: Learning from the potential volunteer’s perspective – July 2009
5
Urban Institute. 2004. Volunteer Management Capacity in America’s Charities and Congregations: A Briefing Report. Washington,
D.C. 6
NAFSA – National Association of International Educators 3
For the near future, issues related to the economy may have an impact on people’s interest and ability to volunteer. It will be more difficult for people to volunteer if employment, housing and other basic needs continue to be of concern. However, we also know that people who are unemployed sometimes turn to volunteering to build their résumé and increase self esteem, which can lead to an increased interest in volunteering in the future.
Why people stop volunteering
The number one reason people start to volunteer is simply because they were asked (more on this later). But in order for volunteers to continue volunteering they must feel valued, see results of their work and be respected. Here are the top reasons why volunteers leave an organization (in order of importance)
:
• They were underutilized
• The physical environment did not support their efforts • The atmosphere was impersonal, tense or cold
• They made a suggestion that was not acted on, or responded to • They did not know how to say they wanted to leave
• They did not see the connection between one day's work and another • Veteran long term volunteers wouldn't let them into their "insider" group
• Employees treated them as an interruption, not as welcome (and anticipated) help • The reality of their experience was not what they expected when they signed on II. National Research
Nonprofit and voluntary organizations, individuals, and society as a whole benefit from the activities of volunteers. According to the Canadian Centre for Philanthropy:
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Benefits of volunteering
• 79% of volunteers said that their volunteer activities helped them with their interpersonal skills, such as understanding people better, motivating others, and dealing with difficult situations
• 68% said that volunteering helped them to develop better communication skills • 63% reported increased knowledge about issues related to their volunteering. More volunteering = more benefits
• 78% of people who volunteer 188 or more hours per year reported gaining communication skills, compared to just over half (52%) of those who contributed 19 hours or less
Job skills as a motivator
• 23% of volunteers said that they volunteered to acquire job related skills and improve job opportunities.
• 55% of volunteers aged 15 to 24 said that they volunteered to improve their job opportunities
There are also health benefits of volunteering
Over the past two decades, a growing body of research indicates that volunteering provides not just social benefits, but individual health benefits as well. This research has established a strong relationship between volunteering and health: those who volunteer have lower mortality rates, greater functional ability, and lower rates of depression later in life than those who do not volunteer. Highlights of this work:
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National Council of University Research Administrators 2005 8
VolunteerLimirick.com 9
2000 National Survey for Giving, Volunteering and Participating, Canadian Centre for Philanthropy 4 Older volunteers are most likely to receive greater health benefits from volunteering.
Research has found that volunteering provides older adults (those ages 60 or older) with greater benefits than younger volunteers. These benefits include improved physical and mental health and greater life satisfaction. In addition, while depression may serve as a barrier to volunteer participation in mid-life adults, it is a catalyst for volunteering among older adults, who may seek to compensate for role changes and attenuated social relations that occur with aging.
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Volunteering leads to greater life satisfaction and lower rates of depression.
Evidence indicates that volunteering has a positive effect on social psychological factors, such as a personal sense of purpose and accomplishment, and enhances a person's social networks to buffer stress and reduce disease risk.
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Evidence suggests the possibility that the best way to prevent poor health in the future is to volunteer.
A number of studies demonstrate that individuals who volunteer earlier in life experience greater functional ability and better health outcomes later in life, even when the studies control for other factors, such as socioeconomic status and previous illness.
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III. What Works/Best Practices
To build a plan to mobilize more volunteers and to have an impact on giving volunteers a
positive experience, we need to understand why people volunteer, how they volunteer and what it will take to get them to do more and be effective.
Let’s examine the reasons why people volunteer 13
• Giving back to a cause/issue/agency they are passionate about, to make the
neighborhood or greater community a better place or to help with an area in which they have received services from in the past and now they are able to give their time to others facing this situation.
• Trying something new. Many people want to do something completely different in their volunteer work than they do in their “regular” work (ex: an accountant who would rather read to children than be the treasurer of the board or a teacher who would rather build
houses than be a tutor).
• Learning about other areas of their community. Often we have our routines of where we go in our community – home, work, regular shopping places, etc. By volunteering, you can go to and learn about people who live in different areas of your city/community, different cultures, environments, etc.
• Personal satisfaction. In most cases the biggest personal benefit is simply feeling good about yourself. Volunteers can go home knowing they have done something important for their community and the people they touch through their involvement. • Developing personal and professional skills such as leadership skills (by serving on a board), sharing business skills such as marketing, strategic planning, facilitation, etc.
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Li and Ferraro, 2006; Van Willigen, 2000 11
Herzog et al., 1998; Greenfield and Marks, 2004; Harlow and Cantor, 1996 12
Lum and Lightfoot, 2005; Luoh and Herzog, 2002; Morrow-Howell et al.,2003 13
i-to-i.com5
• A sense of accomplishment. Many people choose to volunteer simply for the pride that comes from completing something such as putting the last roof tile on a house or
hearing a student read a story or complete a math problem on their own.
• Recognition and feedback. This doesn’t mean that volunteers are in it “for the glory.” But many times we don’t get feedback or recognition for a job well done in our regular work, so getting it through volunteering is a double bonus – you know you are doing
something meaningful and others realize it as well. This inspires pride and confidence and a desire to do even more!
Volunteers make commitments to volunteering on multiple levels.
According to a 2009 Summit held with United Way Worldwide staff leaders in volunteerism, there are five levels of volunteering, each with distinct roles and impact.
14 Direct Service Advocacy Board Committees Skills-based Capacity Building Ongoing Impact
One Day & Episodic Service Projects Volunteer Segments
Board / Committees = Multiplier for agency’s effectiveness, (if properly engaged and supported) can accelerate agency’s impact, fund raising and reputation by improving agency’s strategies, executing strategies and communicating work. They are the premier ambassadors for an agency.
Skills-based = accomplish deep capacity building as they will drive efficiencies. Example: Volunteer consultants who share their business skills to help strengthen the business side of nonprofits
Ongoing = see the direct impact and see contribution to larger issue Example: Volunteers who answer United Way 2-1-1 phones
Episodic = “point of sale” for United Way/agency Example: Days of Caring volunteers
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United Way of Massachusetts Bay and Merrimack Valley 6 What this means for us
Each of these segments is important to our work, each has appeal to a certain segment of volunteers, and each plays a critical role in our organization. Some of the greatest value from volunteers (for us and volunteers) comes from people who are in the “ongoing” segment. Focusing on the “ongoing” segment can increase:
Impact: Accelerate impact by providing much needed services (i.e. every child gets a mentor, increases likelihood of graduating high school)
Revenue: These volunteers are more likely to be donors; Broad volunteer mobilization makes United Way more attractive for grants and other funding
Reputation: These volunteers will be the best informal ambassadors and advocates for United Way.
Leadership: These volunteers can be cultivated and moved up the pyramid toward committee and Board roles, creating a more diverse pipeline to Board
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How do people get started?
While there are many reasons that motivate people to volunteer, the main reason people start to volunteer is because someone asked them….it may be a friend, a colleague, an agency’s
volunteer, a family member, etc. An “ask” by someone you relate to is very powerful. However, while that personal ask may get a person started volunteering, the reason people continue to volunteer at an agency is because they:
• feel valued
• see the results of their work • are respected
• have meaningful work to do
• have a clear job description and duties
What’s important at the nonprofit/community agency?
In order for volunteers to have meaningful volunteer experiences and want to continue volunteering, it is critical that there is someone at the agency that understands volunteer management and is trained in best practices. Agencies that are deploying volunteers needs to identify a volunteer manager with time allocated for this role, duties spelled out clearly as a part of their job description, training and professional development, and accountability for assuring meaningful volunteer work.
The best volunteer managers are leaders who possess the following skills:
1. Proven organizational and management skills. Volunteers have a strong desire to add value and see results. Organizational skills will contribute to the manager's success in gaining confidence and trust.
2. Strong communication and interpersonal skills. Volunteers are typically seeking openness and interpersonal relationships in their work and expect reciprocal behavior from their manager.
3. Ability to create clearly defined goals and objectives for the volunteers. Having a set of goals and expectations will help both the manager and the volunteer to stay focused and optimize the available resources.
4. Project management skills are a must. Deploying volunteers is only part of the work. Overseeing the ongoing work to ensure expectations are met is critical and a project plan and timeline will enable the manager to succeed in overseeing the multiple projects
performed by volunteers. 15
United Way of Massachusetts Bay and Merrimack Valley 7
5. Flexibility in deploying and allocating resources. Volunteers are not paid employees and cannot be treated the same way. They need to be allowed more flexibility in order to retain them. However, there is still a job to be done and the manager needs to be flexible in identifying options and opportunities.
6. Excellent listening skills to enable them to understand the wants, desires, and needs of the volunteers. Volunteers want to add value and if they do not believe they are being heard and utilized effectively, they will move on to another organization.
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In other words, volunteer managers are basically human resource managers for people who are not getting paid to do important work. Therefore they need to have appropriate training and ongoing professional development in the area of volunteer management. They also need to help train and support other staff in their agency who will be working with the volunteers so they too have (at the minimum) basic volunteer management skills.
We have experienced this first hand within our United Way 2-1-1 service. With the need for more volunteers and continued training and development of volunteers, we have placed a greater emphasis on having a staff person trained as our volunteer manager. We have also provided training for all staff on volunteer management skills so that everyone can provide the support and environment that makes people want to volunteer with us….and to continue to volunteer with us!
How other United Ways have integrated best practices to mobilize volunteers in meaningful ways
United Way of Greater Portland (Maine) – Skill-based volunteering Best Practices: Developing personal and professional skills
On their local Day of Caring, United Way of Greater Portland partners with area marketing, advertising and design professionals to bring local non-profits free marketing and advertising advice. Agencies participate in 90-minute one-on-one sessions of personalized, pro-bono advice with a team of marketing, media, PR, design and event planning professionals. In 2009 to date, 85 skilled volunteers have assisted over 30 partner agencies.
United Way of the Greater Seacoast (Portsmouth, NH) – alignment with Impact Areas Best Practices: Giving back to an important issue and personal satisfaction
United Way of the Greater Seacoast’s Volunteer Center worked with their partner agencies to develop new volunteer opportunities that aligned with their Impact areas. Over 60 new opportunities were created and are now featured on their website. Volunteers are able to see where the greatest needs are and how they can make a direct impact on the most critical issues facing their community.
United Way of Rhode Island – Short-term project focused on an Impact area
Best Practices: Providing a sense of accomplishment and feeling of personal satisfaction United Way of Rhode Island’s Volunteer Center identified five summer learning programs the desperately needed supplies for their summer education programs. By having a specific goal and partnering with the local companies and volunteer groups they were able to collect all the supplies needed for these programs.
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Susan Ellis – Energize Inc. a national training consulting and publishing firm 8 IV. Local research
The Corporation for National and Community Service conducted a study called Volunteering in America which contains many interesting statistics and trends in volunteerism. In addition to
showing national trends, the data is broken down by states, major-size cities and selected midsize cities. Madison is one of the mid-size cities on which they report. Here is some of the local
information from that study.
41.5% of Madison residents volunteer (compared to the national average of 27%) placing Madison 4
th
within mid-size cities surveyed in United States.
Madison residents volunteer an average of 36.3 hours/resident placing Madison close to the national average, but 42
nd
among mid-sized cities in the U.S. 17 17 CNCS – Volunteering in America 20099 B. Community engagement
United Way of Dane County promotes volunteerism in a number of important ways. 1. Days of Caring - For the past seventeen years, we have kicked-off our annual fundraising campaign with Days of Caring. This countywide volunteer event began with 125 volunteers in 1993, and has grown to a record number of 3,139 volunteers in 2009. The more variety of and quality of projects, size of projects, locations, and date/times we have, more volunteers will participate. Giving new and exciting ideas to partner agencies has given a variety of opportunities to volunteer teams and individuals over the years. In 2009, the
Volunteer Center developed new strategies to involve more organizations, groups, and individuals and give quality experiences to all volunteers during Days of Caring. These strategies include:
• Focus on increasing agency participation - Although we strive to have additional agencies participate in Days of Caring, this is only of value when the projects at the agencies are meaningful. Therefore as we seek to add more agencies to participate in Days of Caring, we will also work with them to ensure that their projects are appropriate and will provide volunteer teams with a positive experience.
• Cerebral, or “Brains vs. Brawn” projects - By offering these opportunities, volunteers are able to share their business skills with nonprofits. This could be reviewing marketing materials, reviewing personnel policies or doing a space analysis.
• Large scale Volunteer Team coordination –
o Born Learning Trails – In 2009, we installed twelve trails in parks throughout Dane County that provide fun learning activities for children and their parents/caregivers. Volunteer teams of 15-20 installed the trails (over 200 volunteers total) making a lasting legacy for early childhood development in our communities.
o Specific project assistance/coordination to large group teams
• We matched over 700 employees from American Family Insurance and over 260 employees from Oscar Mayer/Kraft Foods to Days of Caring projects.
• A “Camp United Way” theme to engage people not only in the day-of volunteer activity, but energizing them to take what they learned and share it with others • More follow-up and technical assistance to agencies regarding project
development. Better communication between agencies and team leaders is also needed to ensure that volunteers are prepared for the work they will be doing and the agency knows that they will have the people power they need to get the
work done.
When we asked team leaders about the quality of the types of projects available this year, 73% rated the choices as Very Good or Excellent.
2. VolunterYourTime.org – This website is a five-agency collaboration (partners with United Way are UW-Madison Morgridge Center for Public Service, Madison Area Technical College (MATC), RSVP of Dane County and Edgewood College) which is the local one-stop for volunteering in Dane County. Currently, the website lists 293 agencies and 753
opportunities allowing 24/7 access to volunteer opportunities throughout Dane County. VolunteerYourTime.Org
Registered Volunteers
Unique Visitors Average Unique Visitors per Month
2007 1,869 45,002 3,750 2008 2,857 39,344 3,279
2009 (to date) 2,212 35,822 3,582 10
3. We have experience in effective targeted volunteer recruitment for a variety of opportunities and time commitments.
Long-term
• Schools of Hope – When we started Schools of Hope, an article in the newspaper put out the call for volunteer tutors for K-3 grade. We were hoping for perhaps several dozens calls the day the article ran…instead we had over 400! 60% of volunteers stay in the program from year to year and we recruit about 40% new volunteers. So this would mean that about 900 stay and 600 are recruited every year.
• United Way 2-1-1 volunteers -- United Way 2-1-1 volunteers are key to the provision of our service. In order to provide a high quality service and keep volunteers’ skills up, they receive 25 hours of training and are asked to make a weekly commitment for one year. Over the past year, we have experienced more complex calls coming to 2-1-1 which involves more volunteer training, supervision, ongoing skill development and continuous training. More time for volunteer management has been designated to one staff
person’s job and all staff receive training on effective volunteer management practices. Volunteers at United Way 2-1-1
19 21 24 16 18 13 0 5 10 15 20 25 30 2007 2008 2009 Volunteers during the year
Additional volunteers during Thanksgiving Basket Special project
• Health Access Pilot – In 2005/2006 HAP was a pilot program with United Way and the local Healthcare Council. The purpose of this program was to reduce emergency room usage for non-acute care by the uninsured. Volunteers were recruited as Family Health Navigators to assist clients with accessing resources and providing transportation to medical appointments at primary healthcare homes. Fifteen volunteers applied and six were assigned to patients.
Short-term
• United Way 2-1-1 – During the floods in 2008, 2-1-1 was the number to call for information on resources available to flood victims and how people could volunteer to help. Over the course of one week, 198 volunteers responded to help.
One time
• For our 2009 Days of Caring, we added some new strategic opportunities for volunteers including sponsoring and installing Born Learning Trails and using volunteers “cerebral” (i.e. business) skills to strengthen agencies’ efficiencies. Even though this was a tough economic year for many companies and individuals, we had a record number of volunteers that participated - 3,139 a 22% increase over 2008! By adding these new ways to be engaged, more people found their niche and wanted to be involved. United Way 2-1-1 Total Volunteer Hours
10 20 30 40 50 60 70 2007 2008 2009 Total Volunteers Number of Hours per Volunteer on Average 200911
V. Hypothesis and goal
Dane County residents are committed to volunteerism, but need to do so with greater frequency and longevity to accelerate our success on Agenda for Change goals. We need to raise community awareness of the need for volunteers to advance the Agenda for Change; we need them to feel “asked” to volunteer and for them to know that they can make a meaningful contribution to solving a crucial community concern. We need to increase outreach to a larger and more diverse pool of potential volunteers to expand the talent pool of volunteers. We need to train nonprofit agencies in best practices with regard to volunteer management to improve their ability to recruit, match, train and retain volunteers.
These strategies will result in an increase in the number of people who volunteer and the average number of hours of service by these volunteers. Our goal is to increase the number of hours of volunteer service each year in Dane County from 16,767,950 in 2008 to 17 million by 2015.
Achieving this goal would come from a combination of increases in the number of volunteers and increases in the number of volunteer hours. Below is a chart that illustrates possible ways that we may achieve our goal.
Number of volunteers
Average number of hours served during the year per volunteer
Total volunteer hours
Baseline 2008 191,700 87.5 16,767,950 193,000 88.1 Scenarios for reaching our goal in 2015 194,285 87.5 17 million (232,050 more volunteer hours)
Combined hypothesis/goal statement: By raising awareness of the need for increased volunteerism to solve critical community problems, increasing outreach to a larger and more diverse pool of potential volunteers, and improving volunteer management practices to recruit, match, train and retain volunteers, we can increase the number of hours of volunteer service each year in Dane County to 17 million by 2015.
VI. Strategies
• Raise awareness of the need for increased volunteerism to accelerate success on the Agenda for Change,
• Increasing outreach to a larger and more diverse pool of potential volunteers, and • Improving volunteer management practices to recruit, match, train and retain volunteers. We propose the following tactics:
A. Raise awareness of the need for increased volunteerism to accelerate success on the Agenda for Change
1. Develop and promote volunteer opportunities for each Agenda for Change area Timeframe to begin
Identify ways volunteers can make the greatest impact in each Agenda for Change area
1 st and 2 nd
quarters 2010
Work with agencies to develop these opportunities where they don’t exist
3 rd - 4 th
quarter 2010 and into 2011
rd and 4 th
quarters 2010 12
B. Increasing outreach to a larger and more diverse pool of potential volunteers 1. Expand the diversity of leadership volunteers
Timeframe to begin
Provide opportunities and information to (especially) young professionals and diverse populations on how and why to serve on a board or committee
2010
2. Facilitate increased corporate volunteerism Timeframe to begin
Present opportunities to Business Volunteer Network (BVN) members related to the Agenda for Change Ongoing
Provide technical assistance to companies that are interested in developing or enhancing employee volunteer programs
Start 3 rd
quarter 2010
Work with agencies to develop meaningful ways for companies and their employees to be involved through volunteerism that meet both the needs of
both the companies and the agencies 2011
3. Develop youth leadership and increase youth engagement Timeframe to begin
Reach out to youth through schools, youth groups, faith-based organizations, neighborhood centers, etc to encourage and facilitate increased volunteerism 2011
Develop a presentation portfolio and engage youth/young leaders as trainers/presenters to reach out to their peers
2011
Work with agencies to develop more – and more interesting – opportunities for youth engagement including leadership opportunities
related to best practices in volunteer management 2011/2012
Through Youth Service Day:
• ensure youth understand and directly experience the relevance of their work
• let them know how they can continue to volunteer • measure their satisfaction with their Youth Service Day and interest in continuing to volunteer
2010 2010
2010
C. Improving volunteer management practices to recruit, match, train and retain volunteers.
1. Teach best practices in volunteer management Timeframe to begin
Enhance Volunteer Center staff’s expertise in effective volunteer management practices 2010 and 2011
Provide technical assistance to agencies related to best practices in volunteer management
2010 13
Teach best practices in volunteer management (continued) Develop Peer-to-Peer learning series for experienced volunteer managers to facilitate sharing of best practices, critical thinking skills and the development of new ways to involve volunteers
Spring/Summer 2010
Provide quality and relevant training and networking opportunities such as conferences, Lunch N Learns, facilitated discussions, etc
2010 (in partnership with Dane County Administrators of Volunteer Services/DCAVS)
Offer and refresh as needed our Professional Development for Nonprofit Managers series
Offer 4 th
series in 2010 Refresh in 2011
Increase “library” of resources – in-house, on-line via website and VolunteerYourTime.org
2011
2. Position the Volunteer Center as the premiere local resource on volunteerism Timeframe to begin
Know and share (with agencies, the community, our volunteers, etc) the research related to volunteerism 2011
Be knowledgeable about and, as appropriate, engaged in national, regional programs, promotions, etc related to volunteerism.
2010
Enhance VolunteerYourTime.org website to highlight meaningful opportunities and other relevant
information related to volunteerism 2010
Use social media in effective ways to reach a wider audience
2010/2011
Have volunteers referred through us or participating in volunteer events we do (DOC, YSD, etc) feel a
stronger connection to our United Way. 2010
Recognize the impact of volunteerism on the Agenda for Change through the Community Volunteer Awards 2010
The specific tactics for each of these strategies will be developed once we have the go ahead from the Board on whether we are on the right track in terms of hypothesis, goals and strategies. A finalized list will be presented at the January Board meeting.
VII. MEASURES
We will use the Corporation for National and Community Service (CNCS) report on volunteerism to track our success in meeting the goal to increase volunteerism. This report was the source for the baseline value of our metric: 41.5% of Dane County residents volunteer; each volunteer contributes an average of 87.5 hours.
We will also track the following metrics:
• Volunteer service towards Agenda for Change Mobilization Plan initiatives.
• Local youth participation in Youth Service Day, By Youth For Youth and the President’s Volunteer Service award.
• Days of Caring volunteer involvement and feedback • VolunteerYourTime.org statistics
o Unique visitors o Feedback surveys
o New opportunities and agencies registered o Matches through Board Match
• Company retention and new members in Business Volunteer Network (BVN) • Attendance and feedback from training participants.
The logic behind Indian FMCG companies acquiring foreign companies is based on many economic theories. The following article touches upon a few important ones.
GLOBALISATION
One of the fundamental concepts behind firms expanding their market outside of their domicile country is to take advantage of the encouraging demand and supply conditions abroad.
These favourable supply-demand market situations could be with respect to goods, services, knowledge, resources, goodwill or information, or a combination of them.
Knowledge sharing is perhaps the key characteristic of globalisation. For instance, by acquiring Hobi in Turkey, Dabur has taken advantage of the Turkish company's knowledge on the domestic market. To explain, Dabur has eliminated the cost of acquiring information on legal aspects, resource
availability, and domestic demand and supply conditions associated with starting the production of hair care products in Turkey.
So, instead of venturing out to set up a plant from scratch and begin production, Dabur has bought a company which already has a “sheltered” market. In the process, the Indian company has eliminated the cost of time and resources involved in generating a stable revenue stream.
Sometimes, it is more profitable to sell products directly in foreign markets than acquire local companies with existing customer base. Two of the important reasons for this is the cost of
acquisition, and uncertainty in returns. An example in this regard is Marico, which sells variants of its “Parachute” brand directly in West Asia, Bangladesh and Nepal. Similarly, another important aspect of globalisation is the ease with which technological know-how can be transferred across companies in different geographies. Godrej's acquisition of Rapidol in South Africa is a fitting example.
If Godrej discovered that Rapidol was following a cost-effective process, it would then be able to apply the same methods in its domestic factories.
RISK DIVERSIFICATION
Basic consumer economics theory suggests that risk-aversion is an innate utility-based human behaviour. And reasons behind cross-country acquisitions of firms are not very different in that regard. Termed “defensive strategy” in managerial economics, similar sized companies merge in anticipation of changes in demand patterns, import composition and other production-related factors.
Demand distortions are likely to occur in the FMCG segment, mainly because of the nature of the goods. For instance, if the competitor of, say, Vatika hair oil, is able to decrease its cost of production and pass it on entirely to its customers, then users of Vatika are very likely to switch to the competing product. Also, product differentiation is not pronounced in such types of goods. To explain, olive-based body soap cannot be very different across brands, which makes substitutability that much easier compared to other goods.
INDIAN ECONOMIC CONDITION
The Indian economy is fraught with profound issues in recent times such as depreciating currency, stubborn inflation, and decelerating economic growth. These are some factors that affect both the demand and import patterns, which in turn influence mergers and acquisitions.
Mergers and Acquisitions have been very common incidents since the turn of
the 20th century. These are used as tools for business expansion and
restructuring. Through mergers the acquiring company gets an expanded
client base and the acquired company gets additional lifeline in the form of
capital invested by the purchasing company.
Recent mergers and
acquisitions
authenticate such a view.
The Long Success International (Holdings) Ltd merged with City Faith Investments Ltd on the 8th of April 2008. The value of the merger was US $3.2 million. The agency in this instance was Bermuda Monetary Authority, Hong Kong Stock Exchange and other regulatory authority that was unspecified.
Novartis AG acquired 25% stake in AlconInc. This acquisition was worth 73,666 million common shares of the company. They bought this stake from Nestle SA for $10.547 billion by paying $143.18 for every share. It was a privately negotiated transaction that needed to have a regulatory approval. Simultaneously, Novartis AG also received an offer of 52% interest that was equivalent of 153.225 million common shares of Alcon Inc.
Kinetic Concepts acquired each and every remaining common stock of LifeCell Corp for $51 for each share. Their total offer was $1.743 billion. The deal was done in accordance to regulatory approvals and the conventional closing conditions.
Kapstone Paper & Packaging Corp acquired the kraft paper mill as well as other assets of
MeadWestVaco.Corp. They paid them $485 million. The deal was conducted as per the regulatory approvals, receipt of financing and conventional closing conditions. This deal included a lumber mill in Summerville, hundred percent interest in Cogen South LLC. The Chip mills in Kinards, Elgin, Andrews and Hampton in South Carolina are also parts of this deal.
Petrofalcon Corp acquired the remaining shares of Anadarko Venezuela Co
fromAnadarko Petroleum Corp. The deal was worth 428.46 million Venezuelan bolivar or US $200 million. The deal was completed as per the regulatory approvals.
Discover Financial Services, LLC acquired Diners Club International Ltd from Citigroup Inc. The deal was worth US $165 million. The deal was subjected to regulatory approvals and normal closing conditions. Cobham PLC took over MMI Research Ltd. The deal was worth ?16.6 million or $33.099 million. In this deal ?12.2 was paid in cash, ?1.4 million in loan notes and almost ?3 million in payments related to profits.
WNS (Holdings) Ltd from India, took over the total share capital of Chang Ltd. The deal was worth ?9.6 million. Of this amount ?8 million was to be paid in cash and the rest was to be paid in payments related to profits.
AptarGroup Inc acquired the Advanced Barrier System wing of the CCL Industries Inc. The deal was worth almost 9.4 million Canadian dollars. The entire amount was paid on cash. Varian Inc from USA took over 23% stakes of Oxford Diffraction Ltd. The deal was worth ? 4.6 million pounds. ? 3.5 million was paid in cash, and the rest was to be paid from the profits made by the company.
Spice PLC took over Melton Power Services Limited. The deal was worth ?4.5 million. ?2.5 million was paid in cash and the rest was to be paid from the profits made by the company. Spice PLC also got Utility Technology Ltd., GIS Direct Ltd, and Line Design Solutions Ltd as part of the deal.
Atlas Iron Ltd. Took over a 19.9% stake in the Warwick Resources Ltd. This was equivalent of 15.124 million new common stock of the Warwick Resources Ltd. They paid A$ 3.781 million in a transaction that was privately negotiated. The transaction was executed as per the approval from the
shareholders. The selling price of the shares was A$ 0.23 and it was based on the value of each share that stood at A$ 0.25 on 4th of April 2008.
Republic Gold Ltd of Australia took over the remaining stocks of Vista Gold (Antigua) from Vista Gold Corp. The deal was worth $3 million. Republic Gold also got the Amayapampa project in Bolivia as a part of the deal.Manpower Software PLC took over Key IT Systems Ltd. The deal was worth ?0.83 million. ?0.375 million was paid in cash and the rest is supposed to be paid from profits.
Spice PLC took over Utility Technology Ltd. The deal was worth ?0.2 million – ?0.1 million was to be paid in cash and the rest was to be paid from the profits. As part of this deal Spice PLC also acquired Melton Power Services Ltd, GIS Direct Ltd and Line Design Solutions Ltd.
Spice PLC took over Line Design Solutions Ltd and GIS Direct Ltd. The total deal was worth ?0.1 million and the entire amount was paid in cash. Spice PLC also acquired Utility Technology Ltd and Melton Power Services Ltd as part of the deal.
Thomas Cook Group PLC acquired Elegant Resorts Ltd from Barbara Catchpole and Geoff Moss. Australian Social Infrastructure Fund merged with API Fund. The deal was subjected to regulatory approvals and shareholder. Greenbier Cos Inc took over Roller Bearing Industries Inc., from AB SKF. Fijian Holdings Ltd has took over 50.2% interest in RB Patel Group Ltd.
Honeywell International Inc has acquired Norcross Safety Products LLC from Odyssey Investment Partners LLC. The deal was worth $1.2 billion. It was subjected to various kinds of regular closing conventions and regulatory approvals.
bout International Mergers and Acquisitions
International mergers and acquisitions are growing day by day. These mergers
and acquisitions refer to those mergers and acquisitions that are taking place
beyond the boundaries of a particular country. International mergers and
acquisitions are also termed as global mergers and acquisitions or
cross-border mergers and acquisitions.
Globalization and worldwide financial reforms have collectively contributed towards the development of international mergers and acquisitions to a substantial extent. International mergers and
acquisitions are taking place in different forms, for example horizontal mergers, vertical mergers, conglomerate mergers, congeneric mergers, reverse mergers, dilutive mergers, accretive mergers and others.
International mergers and acquisitions are performed for the purpose of obtaining some strategic benefits in the markets of a particular country. With the help of international mergers and acquisitions, multinational corporations can enjoy a number of advantages, which include economies of scale and market dominance.
International mergers and acquisitions play an important role behind the growth of a company. These deals or transactions help a large number of companies penetrate into new markets fast and attain economies of scale. They also stimulate foreign direct investment or FDI.
The reputed international mergers and acquisitions agencies also provide educational programs and training in order to grow the expertise of the merger and acquisition professionals working in the global merger and acquisitions sector.
The rules and regulations regarding international mergers and acquisitions keep on changing constantly and it is mandatory that the parties to international mergers and acquisitions get themselves updated with the various amendments. Numerous investment bank professionals, consultants and attorneys are there to offer valuable and knowledgeable recommendations to the merger and acquisition clients.
Methods of Financing International Mergers and Acquisitions
Usually, the following methods are implemented for funding international mergers and acquisitions: Financing (or taking loans)
Cash Factoring Hybrid Financing
Following are the instances of the major international mergers and acquisitions:
The merger of British Petroleum (BP) with Amoco (erstwhile Standard Oil of Indiana) The acquisition of Mannesmann AG by Vodafone Airtouch PLC
The merger of Exxon with Mobil (The name of the company formed as a result of the merger is ExxonMobil)
The acquisition of AirTouch Communications by the Vodafone Group The acquisition of Compaq by Hewlett-Packard
The acquisition of Shell Transport & Trading Company by Royal Dutch Petroleum Company The merger of Bank One Corporation with JPMorgan Chase & Company
Factors Affecting International Mergers and Acquisitions
The following elements influence the international mergers and acquisitions from many aspects:
Corporate governance Company acts
The capacity of average workers Expectation of the consumers Political features of a country Tradition and culture of a country
Acquisition Of Companies And Brands - Fmcg Sector
Posted By: Nitin Kochhar on 4/26/2006 at 5:54 AM 300 PointsHi,
We have seen Mergers and Acquisition in FMCG sector as well as acquisition of lot individual brands. Here are few examples: 1. P&G and Gillette
2. Dabur acquired Balsara for 143 crores
3. Godrej Consumer Care bought Keyline Brands 4. Marico acquired HLL Nihar brand
I have done some research on this topic. I want the following inputs: a) Rationale for companies going for acquistions (strategy)
b) Please give more examples of acquisition of companies and brands c) Do you forsee any future acquisitions in FMCG globally or in India? If yes, what is the rationale behind this?
Any type of help will be useful. Thanks and Regards,
Nitin Kochhar
Read more: http://www.marketingprofs.com/ea/qst_question.asp?qstID=12949#ixzz2A6zjOgCt there was one sector that saw furious action on the mergers and acquisitions (M&A) front this year, it was fast moving consumer goods (FMCG). Data from advisory firm Grant Thornton shows the growth in M&A deals this year was 16 times more in comparison to last year.
The total value of deals last year was $47.9 million. In 2008, the value of these deals was even lower, at $34 mn, so when compared with 2010, the growth is over 23 times, says Grant Thornton.
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Compared to 2007, a boom year, the growth in value of transactions this year was 34 per cent, says Grant Thornton. The value of deals in 2007 was $596.6 mn versus $797.8 mn (Rs 3,630 crore) this year.
However, the growth in volume of deals was marginal this year over 2007, at 34 registered to 32 then. In contrast, 2009 saw 12 M&A deals and 2008 saw 10 deals.
“There has, no doubt, been a rebound in activity levels this year. Companies which had postponed M&A activity in the past two years were clearly making up for the lost time,” says Srividya C G, partner, advisory services, Grant
Thornton.
A significant contributor to the growth registered this year were outbound deals — domestic companies making acquisitions abroad. These were worth $506.9 mn vis-a-vis $45.5 mn registered in 2009 and $2 mn registered in 2008. In 2007, outbound deals were $266.9 mn.
Expansion
Most mid-tier FMCG companies such as Dabur, Marico, Godrej Consumer and Emami were snapping up companies or brands this year to expand their sphere of activity. GCPL did five outbound deals and one domestic deal this year, emerging as the most aggressive of the lot. Rivals Dabur and Marico were next in line with two outbound deals, respectively.
GCPL Chairman Adi Godrej says the acquisitions were in line with its global three-by-three strategy, to grow in the regions of Asia, Africa and Latin America in the areas of home care, personal wash and hair care. “We have been following a very disciplined and focused approach to identifying acquisitions that represent a strong fit with our business, both strategically and operationally.”
This was on display when the company quietly acquired Mumbai-based Priya Kothari group’s Swastik and Genteel brands for under Rs 50 crore. Company watchers and analysts were caught by surprise when the company made the announcement earlier this month, indicating it could shift its attention from international deals to domestic deals if required. “We are open to the prospect of more domestic acquisitions provided it makes strategic sense to do so,” says Godrej.
GCPL and other home-grown majors had expressed interest in Ahmedabad-based Paras Pharmaceuticals, which finally went to Reckitt Benckiser. The Paras deal, at eight times sales and 30 times earnings before interest, tax, depreciation and amortisation, was unprecedented in an industry where deals are normally three to four times sales.
FMCG DEALS OVER THE LAST FOUR YEARS
Volume Value ($ million)
FMCG, Food & Beverages 2007 2008 2009 2010* 2007 2008 2009 2010*
Inbound 7 3 2 1 300.87 23.84 - 35.00
Outbound 5 2 4 18 266.91 2.00 45.50 506.89
Crossborder 12 5 6 19 567.78 25.84 45.50 541.89
Domestic 20 5 6 15 28.84 8.13 2.44 255.93
Total M&A 32 10 12 34 596.62 33.97 47.94 797.83
Source: Grant Thornton; *from January to December 15
But the high valuation of local assets is what is driving homegrown companies abroad, say analysts. Sunil Duggal, CEO, Dabur Ltd, agrees as much. He says, “Valuations abroad are not stretched, especially in the personal care space.”
Dabur’s two outbound deals this year were in the personal care arena. Duggal says expanding abroad is a
geographical hedge against the domestic market. The latter is increasingly getting competitive with the entry of new players, especially multinational companies. “International markets contribute about 25 per cent to our turnover. This should grow over time.”
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FMCG biggies in acquisition-valuation fix
Published: Tuesday, May 15, 2007, 3:29 IST
By Sindhu Bhattacharya
NEW DELHI: Are acquisitions the key to growth for fast-moving consumer goods (FMCG) companies?
The answer will be different for different companies. With many FMCG biggies still facing limited pricing power, steadily rising input costs and moderate near-term growth projections, analysts have begun looking at mergers and acquisitions (M&As) as a panacea for inducing robust growth in the FMCG business.
A look at the operating margins of the four biggies — Hindustan Lever Ltd (HLL), Dabur India, Godrej Consumer Products Ltd (GCPL) and Marico - make it clear that each company has seen margins fall in the January-March quarter this year.
And analysts are prescribing a simple remedy: acquisitions. Sample this: While analysing the healthy growth numbers reported by leading FMCG company Dabur India, Citigroup analysts
observed that “overall growth remains strong, we believe that current valuations … at the higher end of Dabur’s historical trading band cap re-rating potential for the stock. As such, we also do not see any near-term re-rating triggers, with the exception of a potential acquisition.” Not only Dabur, even HLL is seen facing intense competitive pressure. Analysts at Merrill Lynch recently pointed out that with ITC expected to enter the soaps and shampoo categories in the near future and Procter & Gamble likely to launch its skincare business in India, HLL must brace for tougher times ahead.
“This implies a tougher competitive outlook for HLL… Margin outlook is dismal. We expect HLL’s margin to remain under pressure, owing to steep raw material inflation, likely new competition from ITC and P&G, and management plans to rebuild its foods business,” Merrill said.
This is perhaps why some FMCG firms are seeing some truth in advice of increased inorganic growth. GCPL, for example, bought UK-based Keyline Brands and then Rapidol hair colour brand last year. Marico acquired two soap brands in Bangladesh, another in the home market and Nihar hair oil business from HLL. And Dabur India has also been on the look-out. Hoshedar K Press, executive director and president, GCPL, remains committed to acquisitions as a way to grow his business. “Hair colour is an area where we would like to make more acquisitions.”
What’s important here are the reasons for a company acquiring any other company or business? For instance, for Marico, acquiring Nihar hair oil business from HLL would mean further strengthening its market leadership position and building further on scale advantages. On the other hand, GCPL’s acquisition of Rapidol, UK’s hair colour business in South Africa had a different intent. It provided company access to a large ethnic hair colour market, brands and also a springboard for the introduction of its other products in South Africa and
neighbouring markets. And notably, all that in a profitable way — Rapidol was a profit making entity.
Hence, what an acquisition means for a company is important to understand. Acquiring companies for the sole purpose of sustaining growth rates may also not help unless and until the acquisition fits well with the company’s strategic growth plans and vision. For the time being, the high valuations are also a big hurdle and are spoiling the M&A party for FMCG companies. Deepankar Sanwalka, executive director at KPMG, avers that the FMCG sector does need economies of scale. “But this need not necessarily come through M&As… given the current trend of high valuations for target companies, too much money is chasing too few brands. Companies need to figure out whether acquisitions would give them the necessary scale or is building own brands a more viable option”. So, the business also needs to come at the right price.
Dabur, despite being on the look-out for a suitable acquisition target, appears to have come across repeated roadblocks over the last two years, mainly due to exorbitant valuations. So, FMCG companies need to work out ways of solving this acquisition-valuation riddle in order to generate higher growth rates.
Meanwhile, there are other prudent ways of improving margins as well as sustaining growth rates. Says an analyst with a foreign brokerage: “I prefer process improvement and volume growth as better margins levers rather than acquisition. It is the onus of the market leader to drive the category growth, which would increase volumes. And then there is always a case to increase efficiencies and cut costs by better operational processes.” He avers, “Looking at the valuations, an acquisition is like buying topline, which is not very healthy.”
Mergers and Acquisitions Intro
At the beginning of the 21st century the future of the beverage and food industry seemed to be unclear. With a slow growth rate of only 2% per year, food and beverage companies were desperately seeking the ways to enhance sales and profits. Many companies such as Kellogg's, Sara Lee, Quaker Oats and
