Gsb 611 Return Driven Strategy Presentation On Omnicom Group
- 1. May 17, 2008Return Driven Strategy:Analysis of the Strategy and Execution ofGSB 611 Return Driven StrategySpring 2008 Professor Mark L. FrigoProfessor Joel LitmanKellstadt Graduate School of BusinessDePaul UniversityRajarshi Das / rajarshid@yahoo.comAndy Deutschmann / am_deutsch@yahoo.comScott Gottman / scottagottman@yahoo.comJohn Hering / jphering1@comcast.comVoula Moragiannis / voula.moragiannis@gmail.comRyan Pearce / rpearce@williamblair.comKyle Reinert / kyle_reinert@us.schindler.comKurt Wunderlich / wunder26kj@yahoo.comDo not copy or redistribute without express written consent of Dr. Mark L. Frigo
- 2. Video: http://www.youtube.com/watch?v=8Vx1BTBhg4c
- 3. 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...”
- 4. Omnicom Group (OMC) Overview#1 Media conglomerate in the world
- 6. 5,000 clients in 100 countries
- 7. $15.70 billion market cap
- 8. $12.6 billion in revenue
- 9. 80% from Advertising & Customer Relationship Management
- 10. 8% Domestic Growth (yoy) vs. 16% International Growth (yoy)
- 12. Media Advertising ❏ CRM
- 13. Public Relations ❏ Specialty Communications
- 14. Largest of “The Big 4”
- 15. Omnicom, WPP, Publicis & IPG Omnicom Group (OMC) Overview
- 16. RDS Performance Profile of Omnicom (OMC)
- 17. Commitment TenetEthically Maximize Wealth
- 18. Seek consistent returns through a diversified, complimentary portfolio
- 19. Creative-centric business model backed with outstanding service quality
- 20. Rich dividends
- 21. $0.60 dividend
- 23. Skills, tools & talents
- 24. Employees (Omnicom University)
- 25. Communities and environmentsOff-Balance Sheet Allegations9/11
- 26. Goal TenetsUnmet Customer Needs
- 28. 70,000 employees / Fierce competition
- 29. CRM
- 30. 37% of total revenue
- 31. 14% growth from 2006
- 33. Industry’s largest digital holding company (Advertising Age)
- 34. Internet, Mobile Marketing, etc
- 36. Demographics
- 37. Hispanics spending $1 trillion by 2010
- 39. China & IndiaCompetency Tenets Deliver Offerings
- 42. Innovate Offerings “Great ideas are all delivered by the right person at the right time” - DDB CEO Chuck BrymerTalent development
- 45. Brand Offerings
- 46. One source for all advertising and marketing needsSupporting TenetsPartner Deliberately“The future is finding the right partners and the right way to work with these partners.” – CEO John WrenEngage Employees
- 47. Attract, Retain, and Develop
- 49. Advanced Management Program
- 50. Global commitment to development
- 51. Localization
- 52. Balance Focus & OptionsTop Three RisksLoss of key personnel
- 53. Loss of key clients
- 54. Consolidation
- 55. Reduction in client budgets
- 56. Technology
- 57. Shifts in viewing habits
- 58. Mobile media
- 60. Global economics
- 63. Exchange rates
- 66. 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>
- 67. 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/>