Business Model Design Report (PowerPoint PPT)

This presentation is a final report of a business model design project for a European construction service provider. The firm started a "Margin Improvement Program" comprising of five initiatives. One of these initiatives is aimed at the European "Home Markets," which focuses on:
•  Development of an adapted business model
•  Performance improvement plans

The report provides a strategic assessment of the firm's competitive position in 5 European countries including new business models, cost reduction opportunities and business alignment.

The Business Model Design Report delves into a comprehensive analysis of the firm's current market position and competitive landscape. It breaks down the financial performance and organizational structure across various European markets, providing a granular view of revenue streams and cost structures. The report identifies key areas for improvement and potential growth, supported by detailed financial data and strategic insights.

The document outlines twelve distinct Product/Market/Combinations (PMCs) that have been defined for the home markets, offering a clear activity map that highlights the firm's strengths and weaknesses. It also includes a thorough evaluation of the firm's EBIT margins, revealing that average EBIT was less than 5% of revenues, with significant variations across different markets and activities.

The strategic assessment includes a detailed analysis of the competitive landscape, highlighting that the firm's decentralized business model limits economies of scale. Competitors with more centralized and focused approaches are better positioned to exploit market opportunities. The report suggests that the firm needs to streamline its operations and focus on core activities to enhance profitability.

The report also provides a roadmap for implementing the new business model, emphasizing the importance of achieving economies of scale, optimizing resources through centralization, and divesting non-core loss-making activities. It presents various strategic options, each evaluated based on financial impact and risk-reward trade-offs, to guide the firm in making informed decisions for future growth.