gsb 611 return driven strategy presentation on omnicom group
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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
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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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Video: http://www.youtube.com/watch?v=8Vx1BTBhg4c
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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...”
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Omnicom Group (OMC) Overview
#1 Media conglomerate in the world
Formed in 1986
5,000 clients in 100 countries
$15.70 billion market cap
$12.6 billion in revenue 80% from Advertising & Customer Relationship
Management 8% Domestic Growth (yoy) vs. 16% International
Growth (yoy)
Service offerings include: Media Advertising ❏ CRM Public Relations ❏ Specialty Communications
Largest of “The Big 4”
Omnicom, WPP, Publicis & IPG
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Omnicom Group (OMC) Overview
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RDS Performance Profile of Omnicom (OMC)
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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
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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
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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
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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
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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
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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>
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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/>