abstract 2008 vlg entrepreneurship presentation

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1 1 Agenda VUELING CASE: Business plan extract (2003)- spot the opportunity Launch, progress (2004-2007), Second phase (2008 and beyond) SOME THOUGHTS ON ENTREPRENEURSHIP 2 WHY AN ENTREPRENEUR?? Economics degree (ICADE, 1992), MBA (Harvard, 1998) 7 years in 4th generation family business AMC, in citrus and juices industry (1992-1996, 2000-2002) 1.5 years at McKinsey in California (1998-1999) Leave to go out “on my own” in late 2002 Fund seed company EVIA with Lazaro Ros (2003), run vueling (2004-2007) Twins!! (late 2007) Pondering next project… Brief bio Carlos Muñoz Factors Family tradition (“empresarios” since 1920s) HBS, example from friends Youngest brother, need to do “my own thing” Family support- wife is a daring risk-tolerant American! Philosophical- “Make a difference”, or “parabola de los talentos” Practical- free, creative, fun, and potentially very profitable

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Abstract 2008 Vlg Entrepreneurship Presentation

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  • 1. 1Agenda VUELING CASE:Business plan extract (2003)- spot the opportunityLaunch, progress (2004-2007), Second phase (2008 and beyond)SOME THOUGHTS ON ENTREPRENEURSHIP2WHY AN ENTREPRENEUR??Brief bio Carlos MuozFactors Economics degree (ICADE, 1992), Family tradition (empresarios MBA (Harvard, 1998)since 1920s) 7 years in 4th generation familyHBS, example from friends business AMC, in citrus and juices industry (1992-1996, 2000-2002) Youngest brother, need to domy own thing 1.5 years at McKinsey in California (1998-1999) Family support- wife is a daringrisk-tolerant American! Leave to go out on my own in late 2002Philosophical- Make adifference, or parabola de los Fund seed company EVIA with Lazaro talentos Ros (2003), run vueling (2004-2007) Practical- free, creative, fun, and Twins!! (late 2007)potentially very profitable Pondering next project1

2. 3LEARNING AS YOU GO ALONG (NEW B-PLAN 2009)Vueling, the Barcelona based LCC, is poised to become Spain`s second largest carrier in 2009, 1 after merging with its main competitor, Clickair . It will also be Barcelonas largest airline, with traffic share of approx. 25% of total. Vueling grew in 4 years to over 6M annual pax, 360 million in revenue, and 24 AC fleet. Key achievements Lessons learned Europes second lowest cost based airline (after DOsRyanair)2 High capitalization Very strong brand recognition: 80/85% Efficiency, low-cost focus, new fleetawareness in key BCN/MAD markets; 2nd airline Strong, creative advertising and brandin Spain with highest unaided advertisement Top financial/industrial/political partnersrecall (DYM Institute); largest traffic travel Strong management teamwebsite in Spain Results based, variable retribution (no ESOP) Highest operational integrity standards: on-time No Unionsperformance, dispatch reliability Highest customer service rating, directDONTsconsequence of its young, client-oriented culture Underestimate big competitor (Iberia-Clickair) Excellent financial returns for launch investors: Overestimate enthusiasm, underestimateIPO in late `06 for 450M, with 3,5-7X return experience Solely focus on web distribution Highest growth plans despite environment1. Despite the 45% equity position of Iberia, the merger agreement and political support explicitly rely on the new Vueling remaining an independent,Barcelona-based carrier 2. Among publicly quoted carriers Sources: Vueling IPO documents, Alaeo Team analysis 3 4Business and context will change, so be ready Secret #1 - Its always about People! Low pricing and differentiated, closer personal treatment have consistently been the most valued attributes of vueling At peak (October 07) we were 1325 vuelings, including 366 cabin crews, 186 pilots, 177 self-handling staff (5 airports), 95 maintenance and 49 call center agents Pilots a key group of its own in airlines vueling together cultural activities now in place (BBQs, Friday afternoon drinks, sport events and tournaments etc), originating on ground-up initiative of several volunteers across company. Major corporate objective 2007: to be the favorite airline to work in SW Europe Sources: vueling team analysis; over 10,000 monthly surveys during four years 2 3. 5People- management team and staff Crewscelebrating! Maiden flight (28th june 2004) with leadership team 6Secret #2- have personal skin in the game fate is at your elbow, make yourself good while life and power are still yours (Marcus Aurelius) A good (if somewhat dramatic) example 3 4. 7Secret #3 - Having good mentors helps 8Secret #4- Your company is a dream coming true, remember to have fun! 4 5. 9Secret #5- strong will and perseverance are key, and can move mountains!! by believing in his dreams, man makes them come true (Herg)10Entrepreneurship is largely about daring to take the step Borrowing from a recently famous guy, yes we can! In business as in life! 5 6. 11Many Thanks!Questions & Answers6