gsb 611 return driven strategy presentation on omnicom group

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Page 1 Do not copy or redistribute without express written consent of Dr. Mark L. Frigo Return Driven Strategy: Analysis of the Strategy and Execution of GSB 611 Return Driven Strategy Spring 2008 Professor Mark L. Frigo Professor Joel Litman Kellstadt Graduate School of Business DePaul University May 17, 2008 Do not copy or redistribute without express written consent of Dr. Mark L. Frigo Rajarshi Das / [email protected] Andy Deutschmann / [email protected] Scott Gottman / [email protected] John Hering / [email protected] Voula Moragiannis / [email protected] Ryan Pearce / [email protected] Kyle Reinert / [email protected] Kurt Wunderlich / [email protected]

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Page 1: Gsb 611 Return Driven Strategy Presentation On Omnicom Group

Page 1Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

Return Driven Strategy:Analysis of the Strategy and Execution of

GSB 611 Return Driven StrategySpring 2008Professor Mark L. FrigoProfessor Joel LitmanKellstadt Graduate School of BusinessDePaul University

May 17, 2008

Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

Rajarshi Das / [email protected]

Andy Deutschmann / [email protected]

Scott Gottman / [email protected]

John Hering / [email protected]

Voula Moragiannis / [email protected]

Ryan Pearce / [email protected]

Kyle Reinert / [email protected]

Kurt Wunderlich / [email protected]

Page 2: Gsb 611 Return Driven Strategy Presentation On Omnicom Group

Page 2Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

Video: http://www.youtube.com/watch?v=8Vx1BTBhg4c

Page 3: Gsb 611 Return Driven Strategy Presentation On Omnicom Group

Page 3Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

Omnicom Group (OMC) Overview

“We are a strategic holding company...”

“Our companies provide advertising, marketing and corporate communications services…”

“We provide professional services to clients through multiple agencies operating in all

major markets around the world...”

Page 5: Gsb 611 Return Driven Strategy Presentation On Omnicom Group

Page 5Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

Omnicom Group (OMC) Overview

Page 6: Gsb 611 Return Driven Strategy Presentation On Omnicom Group

Page 6Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

RDS Performance Profile of Omnicom (OMC)

Page 7: Gsb 611 Return Driven Strategy Presentation On Omnicom Group

Page 7Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

Commitment Tenet

Ethically Maximize Wealth

Seek consistent returns through a diversified, complimentary portfolio

Creative-centric business model backed with outstanding service quality

Rich dividends $0.60 dividend

Continuous Investment Skills, tools & talents Employees (Omnicom University) Communities and environments

9/11Off-Balance

Sheet Allegations

Page 8: Gsb 611 Return Driven Strategy Presentation On Omnicom Group

Page 8Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

Goal Tenets

Unmet Customer Needs

Maintain creative talent 70,000 employees / Fierce competition

CRM 37% of total revenue 14% growth from 2006

Digital Marketing Industry’s largest digital holding

company (Advertising Age) Internet, Mobile Marketing, etc

Target Appropriate Groups

Demographics Hispanics spending $1 trillion by 2010

Target Emerging Markets China & India

Page 9: Gsb 611 Return Driven Strategy Presentation On Omnicom Group

Page 9Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

Competency Tenets

Deliver Offerings Client-centric model Customer touch points

Innovate Offerings “Great ideas are all delivered by the right

person at the right time” - DDB CEO Chuck Brymer

Talent development Invest tools (Catalyst) “Disruption” (TBWA)

Brand Offerings One source for all advertising and

marketing needs

Page 10: Gsb 611 Return Driven Strategy Presentation On Omnicom Group

Page 10Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

Supporting Tenets

Partner Deliberately“The future is finding the right partners and the right

way to work with these partners.”

– CEO John Wren

Engage Employees Attract, Retain, and Develop Omnicom University

Advanced Management Program Global commitment to development Localization

Balance Focus & Options

Page 11: Gsb 611 Return Driven Strategy Presentation On Omnicom Group

Page 11Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

Top Three Risks

Loss of key personnel Loss of key clients Consolidation Reduction in client budgets

Technology Shifts in viewing habits Mobile media Non-advertising revenue

Global economics Regional market conditions Government regulations Exchange rates Political instability

Page 12: Gsb 611 Return Driven Strategy Presentation On Omnicom Group

Page 12Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

Page 13: Gsb 611 Return Driven Strategy Presentation On Omnicom Group

Page 13Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

Page 14: Gsb 611 Return Driven Strategy Presentation On Omnicom Group

Page 14Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

3 or more pages: Bibliography, sources, research notes

• Omnicom Group. 2008. Omnicom Group, Inc. 8 May 2008. <http://www.omnicomgroup.com>

• Donald, William H. and James Peters, CFA. “Industry Surveys: Advertising”. Standard & Poor’s, 9 August 2007. Net Advantage. DePaul University, Chicago, IL 8 May 2008. <http://www.lib.depaul.edu/>

• Donald, William H. “Global Industry Surveys: Advertising Asia”. Standard & Poor’s, May 2007. Net Advantage. DePaul University, Chicago, IL 8 May 2008. <http://www.lib.depaul.edu/>

 • Donald, William H. “Global Industry Surveys: Advertising Europe”. Standard & Poor’s,

April 2007. Net Advantage. DePaul University, Chicago, IL 8 May 2008. <http://www.lib.depaul.edu/> • “HP and Omnicom enter into strategic marketing agreement”. 21 April 2008 Telecomworldwire. 27 April 2008.

<http://www.m2.com>

• “Omnicom Group Inc. March 2008 Quarterly Report.” 2008. 2 May 2008. Omnicome Group Inc. <http://sec.gov> • Morrissey, Brian. “What’s Driving OMC’s Digital Strategy?” 15 October 2007. AdWeek. <http://www.adweek.com> • “OMD Worldwide Ranked Most Creative Media Agency in the World by the Gunn Report for Fourth Consecutive

Year; Omnicom Media Group Named Most Awarded Media Holding Company”. 10 April 2008. PR Newswire, <http://www.prnewswire.com>

 • Creamer, Matthew. “Wren Gives Omnicom Tools to Reinvent the Ad World”. 8 January 2008. Advertising Age,

<http://www.adage.com> • Cuneo, Alice Z. “Hewlett-Packard, BBDO Form Alliance That Goes Beyond Ads”. 21 April 2008. Advertising Age.

<http://www.adage.com> 

Page 15: Gsb 611 Return Driven Strategy Presentation On Omnicom Group

Page 15Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

3 or more pages: Bibliography, sources, research notes

• “Omnicom Expands Omnicom University’s Advanced Management Program to Asia Pacific”. 20 September 2007. PR Newswire. <http://www.prnewswire.com>

 • Johnson, Bradley. “Omnicom Group: 2007 Year in Review”. 5 May 2008. Advertising Age.

<http://www.adage.com>

• Atkinson, Claire. “Agencies in Quest for Respect”. 14 April 2003. Advertising Age. <http://www.adage.com>

• “The Industry Battles for Multinationals’ Global Accounts”. 19 March 2005. Economist. DePaul University, Chicago, IL 10 May 2008. <http://www.lib.depaul.edu/>

• “Media Perspective: Omnicom Can’t Risk Taking Its Eye Off The Media Playing Field.” 1 June 2007. Campaign. DePaul University, Chicago, IL 8 May 2008. <http://www.lib.depaul.edu/>

• Quinton, Brian. “How Bulletproof?” 1 May 2008. PRIMEDIA. DePaul University, Chicago, IL 8 May 2008. <http://www.lib.depaul.edu/>