Strategic Planning

A key point of differentiation for Regent Pacific is our strategic planning. The strategic plan is the roadmap for the business and the foundation for financial forecasts. The planning process is led by the Regent Pacific team with the active participation of management and the Board. The strategic plan includes an analysis of industry maturity and the competitive position of the client company. Industries, like products, experience a life cycle. Industries (1) start out small and embryonic, (2) grow in terms of revenues, competitors and product offerings, (3) mature, and (4) age with declining sales.

Chart : Industry Maturity Example

Note: The chart depicts these phases as being of roughly equal duration; in fact these periods are highly variable.

Additionally, whole industries can change their maturity due to exogenous events as seen in the demise of the domestic nuclear power industry as a result of 3 Mile Island. The stage of industry maturity has profound implications on the selection of strategies. For example, one would rarely see the building of excess capacity in an aging business, or the pruning of product lines in an embryonic industry.

The second variable we assess is competitive positioning. One of the key elements in competitive position assessment is understanding the basis of competition. Basis of competition are those elements the company must increase in order to gain market share or improve performance relative to the competition. Reviewing the competitive landscape for the client company and the major competition helps assess the probability of successful strategy implementation. The more dominant a company, the greater the range of strategic options as well as the likelihood of success.

Chart : Business Development

After developing the client’s strategic plan, we evaluate various tactical alternatives, timetables and the resulting financial consequences. Those pro-forma financials permit us to develop an assessment of the valuation of the business.