Strategy and Responsibility 1:

Corporate Strategy

Seminar Template

NB: Do Not Change Slides before saving/photo-ing your work

What are the stages in Esquel’s supply
chain?

Which do they own?

Esquel Overview and KSFs
Sales to
What are the KSFs at each stage? Major Brands

Farming Retail

Farming KSFs: Retail KSFs:

Where in the supply chain is Esquel’s origin?:

How much does this origin influence their approach?:

Consider the fit with the Esquel Group
and the potential to add additional value
to each stage of the value chain
Accessing Parenting Value
NB: Additional value beyond what they
already have provided - as a portfolio
manager, synergy manager or parental 3. What potential does the
2. Looking at the KSFs for
developer
Esquel’s original business Esquel Group have to add
how closely do the KSFs of more value to each stage? (4
1. Enter stage of each stage match?( 4= high 1 = high 1 = low)
supply chain = low)

Potential to add
Supply Chain Stage Parent Fit more Value

Retail

Farming…

Other……
Use scores from previous slide to plot supply
chain stages on to the Parenting Matrix Draw Parenting Matrix

Ballast Heartland
4 --

3 --
Parent Fit

2 --

1 --

Alien Territory Value Trap

1 2 3 4
Potential to add more Value
What does the parenting matrix suggest Esquel should do in its corporate strategy?
 Analysis and Discussion
Why should Esquel follow the recommendations
the Parenting Matrix suggests? What might be
counter arguments?

Should Esquel follow the guidance suggested by the parenting

matrix? Why?

Key Tip: Remember you are assessing the value the HQ Group provides the
subsidiary NOT the value the subsidiary provides the group!