PROJECT OUTLINE

• Pagamon assists the commercial subsidiary of a national federation of health care institutions in redefining its strategy and positioning to sustain its activities and profitability.
• The company’s profitability is particularly affected by the decline in the consulting business (-70% over 3 years). Without sufficient cost reduction, the company is no longer profitable over the two years considered (-€300k and -€250k).
• In this context, the client and its shareholder mandate Pagamon to carry out a strategic diagnosis of the company and a study of the markets of its four activities, as well as to propose evolution scenarios.

PROJECT APPROACH

• Elaboration of an institutional audit through the analysis of the following elements:
  • Financial analysis, initial strategy and alignment with the shareholder federation, governance, shareholding, management.
  • By activity: economic performance, offer, positioning, marketing mix, adequacy of resources and skills.
• Study of the markets of the four activities: analysis of the competitors and the level of attractiveness of the markets.
• Development of performance improvement recommendations and estimation of their financial impact.
• Identification of evolution scenarios and further analysis:
  • Impacts on shareholding, legal structure, HR, governance and organization, business performance.
  • Economic impacts for the company and the shareholder federation, financial impacts.
• Key implementation milestones.

RESULTS

• For the company as a whole: SWOT analysis, mapping of the ecosystem, mapping of current and potential synergies.
• By business: SWOT, benchmarks, Porter’s strengths, strategic opportunities for performance improvement, strategic evolution options.
• Identification of six evolution scenarios, three of which are further developed.
• Satisfaction of the shareholder federation, able to choose among the evolution scenarios.
• In agreement with the shareholder, the subsidiary launches a performance improvement plan.