Finance-based Strategic Decision Making Solutions FSM (Financial Strategy Management) The New Frontier of Business Strategy Consulting

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1 Finance-based Strategic Decision Making s FSM (Financial Strategy Management) The New Frontier of Business Strategy Consulting HUCORE Gangnam-gu, Yeoksam1-dong , Taeyoung 6th Seoul, South Korea T F info@hucore.com HUCORE R&D Center Seongbuk-gu, Anam Road 145 Korea University Techno Complex 303 Seoul, South Korea T HUCORE [A strategy consulting firm ] Providing business advisory services and Financebased Strategic Decision Making s Having acquired leadership in technology by joining the National R&D Program for Original Technology and accumulating ten years of consulting knowledge and experience

2 HUCORE Financial Strategy Management Consulting 2000 A B Developed Corporate Financial Consulting Methodologies Started Mid to long-term Financial Strategy Projects 2007 Developed Finance-based Strategic Consulting Methodologies and Financial Forecasting Excel Program Developed Mid to long-term Financial Forecasting Developed Business Feasibility Ver.1 Developed Business Feasibility Ver.2 Developed Financial Feasibility for Aiding Enterprises in Overseas Expansion C Started BSC based Business Strategy Projects Developed Strategy Action Plan Management Finance-based strategy consulting (IT convergence) D Developed Financial Structure Stability Methodologies Started Strategic HR policy implementation projects Developed Financial Structure Stability Management Model Commenced a Research Project on Long-term Plan for National Public Funds Improvements Developed Integrated Finance Management Strategy s and Consulting Methodologies Developed Financial Structure Stability Management Model E Developed Financial Risk Management F Developed B/S-based Short-term Performance Management G Commenced Consulting Projects on Budget Management Developed Budget Management H Developed Growth target management solution for 300 World-Class companies CEO Message 04 R&D Center (Knowledge Service) 05 Finance-based Strategic Decision Making s 06 - The features of HUCORE s Finance-based Strategic Decision Making s 07 - The compositions of HUCORE s Finance-based Strategic Decision Making s 08 - The extension/integration process by interconnecting each solution 09 - Mid- to long-term Financial Forecasting 11 - Business Feasibility 12 - Strategy Action Plan Management 13 - Financial Structure Stability Management 14 - Financial Risk Management 15 - B/S-Based Performance Management (Strategic business unit-based) 16 - Budget Management 17 - Growth Goal Management 18 I Founded HUCORE HUCORE History The History of Challenges based on R&D focused Management A Mid to long-term Financial Forecasting B Business Feasibility C Strategy Action Plan Management D Financial Structure Stability Management E Financial Risk Management F B/S-Based Performance Management (Strategic business unit-based) G Budget Management H Growth Goal Management I HUCORE Implemented the Master plan for Overseas Expansion for KEPCO Selected to supervise the Government s National R&D Program Commenced Consulting Projects on Organizational Restructuring Established HUCORE R&D center Established Research Center affiliated with Korea University to further automate Business Scenario Generation Developing Scenario-based Strategy Management By developing specialized consulting methodologies and strategic decision making solutions in Korea, HUCORE has opened a new frontier in the IT integrated strategy consulting business. HUCORE s finance-based strategic decision making solutions have been provided to about 60% of public enterprises in Korea, each of which has revenue greater than three billion won. The solutions are currently adopted to measure, evaluate, and manage the performance of the entire National R&D programs. We are planning to market the solutions through collaboration and/or alliances with global companies which may accept and modify the solutions for their own use.

3 04 CEO Message Financial Strategy Management STRATEGY CONSULTING GROUP HUCORE 05 HUCORE CEO Message Dear Interested Parties, HUCORE has become one of the top business strategy advisory firms in Korea with its motto of Becoming an Enterprise which Gives Benefits to all Human Beings. Established in 2000, HUCORE provides top-notch strategy consulting services and Finance-based Strategic Decision Making s to public enterprises, large companies, and SMEs. For the last ten years, HUCORE has built a team of outstanding consultants and researchers and has developed specialized consulting methodologies and financial management solutions through our R&D center at Korea University, one of the country s most elite universities. HUCORE s R&D center was established for the development of Decision Making s. With the accumulated consulting expertise, the center has developed the best consulting methodologies and knowledge services in Korea. The R&D center is located in the Techno Complex of Korea University and has conducted continuous research projects with Korea University, Yonsei University, and Sogang University. Through the research projects, HUCORE has acquired five domestic and international patents and nine software registrations. The R&D center is committed to developing scenario-based decision making technology and finance-based business strategy management technology by continuously cooperating with world-class researchers. HUCORE has also endeavored to become a top performer in the technological development of knowledge services in the area of strategy management by participating in and performing numerous national R&D projects. A recognized leader in domestic and international industry innovations, HUCORE specializes in delivering trustworthy, accurate, and prompt business strategy consulting knowledge and Finance-based Strategic Decision Making s. Our clients are our number one priority! Committed to your success, Seung-Tae(John) Lee HUCORE stands for Human Core, meaning that we pursue human-centered businesses with the values of Alive, Open, and Professional. KNOWLEDGE SERVICE SCIENCE CONVERGENCE LAB

4 06 Financial Strategy Management FSM Introduction STRATEGY CONSULTING GROUP HUCORE 07 Finance-based Strategic Decision Making s The features of HUCORE s Finance-based Strategic Decision Making The importance of Strategic Decision Making Securing future superiority is as important as maintaining current growth. True superiority means retaining an entity s current competitive advantage. Strategic decision making starts from accurately predicting future changes in environments and setting up strategy for an entity s sustainability. An entity s future growth depends on having strategic decision-making capability that copes with uncertain business environments. Integrating consulting knowledge about Finance-based Strategic Decision Making with IT systems Provides the internalization of decision making process and standardized indices of decision making Applies optimal methodologies of Finance-based Strategic Decision Making Develops scenario-based business performance forecasting models Enhances sensitivity analysis for risk maneuver and management objectives related to changes in external environments Enhances the accuracy of business planning through financial feasibility analysis rather than managements experience and intuition Provides enterprise-wise customized solution with diverse financial consulting knowledge and experience Applying scientific decision making and problem solving methodologies The trend of Strategic Decision Making s The trend of enterprises strategic decision making is changing from short-term action plan management to long-term strategic objective management. s are also enhanced to include strategic objective management solution which features forecasting capability Short-term Action Plan Management Accounting / Closing Budget Management Business Feasibility Performance Management The needs for implementing Finance-based Strategic Decision Making s The need for mid to long-term growth targets is on the rise Long-term Strategic Objective Management Mid to Long-term Financial Forecasting Short-term Action Plan Management Portfolio Optimization Strategy Management Defining and analyzing strategic decision making problems Decision Making Phase Phase Determining the Optimum Outcome and Examination Determining Outcomes / Visualization of Reporting Implementing Models Module(Unit) Input Variables Interface Web Designing problem solving models Comparing the Alternatives Devising the structures of problem solving alternatives Decision making through the real-time and bi-direction controls conjugating the web-based - Forecasting of the results from implementing alternatives on each Scenario - Sensitivity analysis - Stress test Implementing the Decision Making Assistance Comparing the Alternatives / Deciding the optimal Main Points of strategic decision making - Examination of financial feasibility of business strategy - Business feasibility analysis/ Follow-up management - Action plan management of strategic objectives - Stability of capital structure management - Financial risk management and crisis management - Responsible unit-based performance management - Management and budget plans, and operations - Implementation of support in growth torget Establishing a Globally Standardized Business Structure that Actively Deals with Business Environment Changes Increases in the variability of external business environments - Global financial crisis - FTA effects - Middle East situation/euro zone crisis - Domestic political/ economic matters Finance-based Strategic Decision Making s Growing complexity of business process - Increases in competition and cooperation between entities - Changes in interested parties and customers needs - Business diversification and overseas expansion - Increases in the need for integrated task management - Diversified modes of Investment Increases in the burden of strategic decision making - Increasing significance of scenarios which are based on business forecasting - Need for accuracy and promptness of decision making - Sustainability development through financial risk management The technical uniqueness of HUCORE s solution Development-Oriented Point Similar Products Focusing on execution management on determined alternative Strong features of data collection and processing Attempt functional extension through M&A by forecastingspecialized solution companies HUCORE Implementation of decision making process in the solution Forecasting feature and scenario comparison / selection solution Integrating extension of strategic decision making problems Ease of Comprising Scenarios Weak scenario formation for decision making Ease of composing business portfolio on diverse scenarios and strategy alternatives Response Time Delaying on run time of scenario (Approximately for 20 minutes) Errors on automatic calculation for forecasting (Hand-works required for major calculation) The real-time simulation on the changes in sensitivity factors Automatic calculation of logic cycle Decision Making Display Operator-focused display Practicability of comparison of results of strategic alternatives by each scenario (Maximizing efficiency of decision making) Convenience of Inputting Data Complexity for operators when inputting data Providing customized input/output interface for operator s convenience

5 08 Financial Strategy Management FSM Introduction STRATEGY CONSULTING GROUP HUCORE 09 The composition of HUCORE s Finance-based Strategic Decision Making The extension/integration process of solutions C Strategy Action Plan Management A Mid to Long-term Financial Forecasting D Financial Structure Stability Management E Financial Risk Management Enterprise Resource Allocation / Strategy & Performance Management Setting Up Enterprise Strategy and Objectives Setting Up Divisional Strategy and Objectives Enterprise Cash Flows / Financial Stability Examination of Feasibility of Enterprise Strategic Attainability / Comprising Optimal Business Portfolio Examination of Feasibility of Individual Business s Strategic Attainability Financial Structure Stability Management Building Optimal Capital Structure Economic Financial Performance Financial Risk Management Risk Performance Evaluation Limit Management for Performance Management Indicators Monitoring Risk Indicators and Implementing Contingency Plan 2011 Financial Structure Stability 2008 Business Feasibility 2012 Financial Risk Management Setting Up Business Plans for individual business units Examination of Feasibility of Individual Business Entity Valuation B Business Feasibility Investment Management Module Strategic Cost Estimation Short-term Business Plan Management Modules 2007 Mid to Long-term Financial Forecasting 2012 Integrated Financial Strategy Management G Budget Management H B/S-based Performance Management Cost Consulting Short-term Business Plan Implementation Short-term ed Performance Management(Rolling) Yearly raw material cost feedback Budget Compilation Responsibility Unit Short-term Performance Management Comparison of target and actual raw material cost Budget Allocation/ 2007 Mid to Long-term Financial Forecasting The processes for optimizing finance-based strategic decision making Implementing Business Strategy and Objectives Setting up the Business Plan Feedback Examining the Reality of Business Objectives Establishing Plans for Financial Stability Establishing Risk Management System 2008 Business Feasibility 2012 Growth Goal Management The basic premise of scenario suggestions for plan implementation sets up mid to long-term strategic targets - Sales target for new business - Mid to long-term profit targets - Mid to long-term Financial status target Strategy Action Plan Management Implementation of target sales attainment for enterprise target achievement(building strategic alternatives) - Composing business portfolio - Investment plan - Sales plan - Personnel plan - Cost plan Business Feasibility Management Feedback Performance management and examination in strategy target attainment on financial feasibility side(by business and strategic alternatives unit) - Confirmation of business plan which has high possibility of achievement - Feedback for modification of uncertain business plan Mid to long- term Financial Forecasting, B/S-based Performance Management Implementation of planto increase the financial feasibility and stability - Advanced investment methodologies - Self-efforts - Optimal portfolio for liabilities - Dividend policy - IPO Financial Structure Stability Management Execution of risk management system for changes in major strategic risks - Risk measurement - Risk assessment - Risk monitoring - Stress test - Contingency plan Financial RiskManagement 2011 Short-term Performance Management 2012 Strategic Action Plan Management 2013 Scenario-based Strategic Business Management

6 STRATEGY CONSULTING GROUP HUCORE Mid to Long-term Financial Forecasting STRATEGY CONSULTING GROUP HUCORE A strategic consulting firm providing business advisory services and Finance-based Strategic Decision Making s Having acquired leadership in technology by joining the National R&D Program for Original Technology and accumulating ten years of consulting knowledge and experience Mid to long-term Financial Forecasting The mid to long-term Financial Forecasting forecasts the company s five- to ten-year financial status while taking into account the current external/internal environments. This solution supports and suggests the management strategy and investment policy by examining feasibility; thus, it provides the proper course of action that the entity should take in the future. The solution enables the entity to identify and cope with latent management risks caused by some changes in business enviornment since it contains the scenario-based decision making process that supports the entity to effectively handle them. Basic Hypothesis and Issue External External Environments Industry Structure Internal Raw material cost Structure Benefit Structure Strategy Review Enterprise Strategy and Objectives Business Strategy Investment Plan Financial Forecasting Detection of the Entity s Inherent and Major Variables of Estimated Logic by Accounts of StrategicAlternatives Logic Scenario and Sensitivity / Frame Changes of External Environments Changes of Industry Structure Needs of Interested Parties Changes of Business Structure Creating Scenarios Feedbacks for Achievement Applying Financial Forecasting B/S Pro-Forma Financial Statements by Scenarios I/S CF Financial Forecasting Report(Web) Appropriate Financial Strategy planning Examination of Appropriateness of Strategic Cash Flow / Financial Stability Examination of Feasibility of Enterprise Strategic Attainability Creating Optimal Business Portfolio Interconnection of the Logics of Pro-Forma Financial Statements Creating Sensitivity System Profitability Ratio Stability Ratio Growth Ratio Examination of Feasibility of Individual Business s Strategic Attainability Interconnection of the Individual Business Feasibility Activity Ratio - Provides pro-forma financial statements on forecasting entity s financial status - Provides scenarios for coping with changes in external environments - Provides sensitivity analysis about external/internal environment variables by each scenario - Provides mid to long-term financial forecasting analysis (e.g., profitability ratio, stability ratio, growth ratio, activity ratio, etc.) - Consultants provide advice about the optimal financial strategy plan after implementing the solution - Interconnects with the entity s own business feasibility analysis system for analyzing the feasibility of each individual business unit - Composes the enterprise level business portfolio by interconnecting the feasibility analysis and the financial forecasting

7 12 Financial Strategy Management STRATEGY CONSULTING GROUP HUCORE Business Feasibility 03 Strategy Action Plan Management Business Feasibility Strategy Action Plan Management The Business Feasibility analyzes and evaluates the entity s existing and/or prospective business. The solution provides an accurate analysis of the current business economic and financial performance and gives precise information for the entity to decide on the appropriate business. The solution supports decision makers to comprise the optimal business portfolio by analyzing the feasibility of the individual business unit along with the business portfolio as a whole; therefore, it provides the priority level of each individual business unit. Business Feasibility Process Business Feasibility Relevance Business and Policy Operation Ability Appropriateness of Business Models External Factors Internal Factors Marketability Current Market Products Competitive Factors Demands Sales Plan Investments Plan Debts Plan Profits Plan Costs Plan Technical Feasibility Environmental Factors for Technology and Production Purpose/Quality/ Competitiveness Production Ability/ Plant Plan Asset Plan Financial Feasibility Profit Prospect Break-Even Point Economics Funds Receipts and Disbursement Pro-Forma Financial Statements Break-Even Point Cash Flow / Funds Receipts and Disbursement NPV/ IRR/ BCR/ PI ROE/ ROA Growth Possibilities and Risk Factors Growth Risk Factors Investment Sources Trends of Changes in Feasibility Growth level Risk level Sensitivity level Enterprise Portfolio Interconnection Ex post facto Management The Strategy Action Plan Management assists the efficient use and administration of the diverse strategies and provides real-time monitoring and gap analysis. The solution derives the optimal distribution of investment sources that accomplishes strategic objectives. Moreover, it enables prompt decision making when the environment changes since it provides the possibility of achieving strategic objectives related to the changes. Strategic structure Vision Analyzing Strategy, Objectives, and other major variables Analyzing Strategic Assignments Detailed of Action Plan Management by Strategic Assignments Strategic Action Plan Management Interconnection of the Entity s Inherent and Major Variables Interconnection of Business Policy Modifications Quantification of Strategic Performance Interconnection of Financial Estimation Models Applying Strategic Action Plan Management of Possibilities of Attainment within the Changes of Environmental Variables and Recent Results Monitoring Inspection of Strategic Assignments and Subordinate Assignments to Work as Planned Resource Management Identifying the Allocating Resources for Strategy Implementation and Preparing for Future Use Performance Management of Strategy Management Seeking for Alternatives for Attainment Identifying Issues and Improvements of Poor Assignments Business Resources Allocation for Changes in Environments - Provides pro-forma financial statements automatically through investment plan/ debt plan/profit plan/cost plan - Materializes algorithms of the feasibility analysis derived from scientific methodologies (e.g., cash flow, NPV, IRR) - Provides and analyzes mid to long-term financial forecasting results for each individual business unit (e.g., profits/stability/growth indicators, etc.) - Provides information regarding the priority of business units by implementing sensitivity analysis tool on internal/external environment variables - Compares and analyzes business/financial performance simulation of each strategic scenario alternative - Provides ex post facto management modeling in case of actual data and/or environmental variable alteration - Interconnects with mid to long-term financial forecasting module to predict the performance of the entity s entire business portfolio - Provides vision/business goals and information on strategic assignments achievement through simulation analysis - Grasps the validity of strategic alternatives on rolling-based simulation for environmental changes - Enhances the consecutive management of the execution of strategic assignments by monitoring - Manages resources by providing the integrated real-time information about business divisional resources such as personnel and investment costs - Separates/or interconnects IFRS standard financial statements by business unit

8 14 Financial Strategy Management STRATEGY CONSULTING GROUP HUCORE Financial Structure Stability Management 05 Financial Risk Management Financial Structure Stability Management Financial Risk Management The Financial Structure Stability Management, an extension of the mid to long-term Financial Forecasting, enables model financial stability as achieving prospected vision and strategy with creating optimal information on the optimal capital structure and financing portfolio by analyzing the financial structure that is a result of the forecasting solution. The solution also provides information about fund-raising expenses as well as accruable valuation price and the scope of equity financing for IPOs by applying scenario analysis methodologies to the solution for changes in the entity s environments. Mid to long-term Financial Forecasting Implementing mid to long-term Financial Forecasting Mid to long-term Financial Forecasting Enterprise Cash Flows Enterprise Financial Structure Estimation of the Capital Cost Financial Structure Stability Determining Optimal Capital Structure Optimal Capital Structure ed Debt Ratio Gap on the Optimal Capital Structure Gaps between mid to longterm Financial Structure and Optimal Capital Structure of Financial Structure Stability Applying and Implementing Financial Structure Stability Formulating Financial Structure Stability Scenario Cost of Equity Capital Side Alternatives Cost of Borrowed Capital Side Alternatives Combined Alternatives Results from Scenario Performance of Alternatives of Financial Structure Stability Examining Scenario Feasibility ed Debt Ratio ed Cost of Financing ed Interest Earned Ratio Portfolio Comprising of Economic Liabilities The Financial Risk Management identifies, monitors, and evaluates risks which are inherent to an enterprise. This solution also assists in identifying, assessing, measuring, monitoring, and managing the risks in a proactive fashion. Quantitative management of financial risks for sustainable growth and financial stability in such unpredictable environments is also available in the solution. I. AS-IS / Areas for Improvements Current Financial Status Current Risk Status Risk Management Level Improvement Plan Identifying Risk Financial Statement Current Risk Managing Status Five enablers Improvement list Risk Measurement II. Risk Measurement Risk Measurement Currency Risk Measurement Interest Rate Risk Measurement Liquidity Risk Measurement Measurement System VaR, CFaR VaR, EaR Liquidity Ratio, CFaR Risk Assessment III. Risk Performance Evaluation Risk Assessment Earnings before Operation (RAR) Cost of Capital Equity EVA, RAROC EVA : Economic Value Added RAROC : Risk Adjusted Return on Capital Managing Risk IV. Risk Indicators Monitoring/ Contingency Plan Case on Other Entities Current Status of Plans by Risk Types Financial Risk Indicators Best Practice Plan Examination Identifying Risk Level Examination in Thresholds by Risk Level Cost of Equity Capital Cost Structure of Capital Trends of Cost of Equity Capital Liabilities / Cost of Borrowed Capital Minimizing the Gaps of Capital Structure Trends of Liabilities Ratio Implications from AS-IS Identifying Key Risks Obtaining Data and Cleansing Raw Data Defining Measurement Items by the Types of Risks Calculating Risk Assessment Indicators Defining Risk-Performance Indicators Managing Risk Limit for Performance Analyzing Financial Risk Levels Assisting Contingency Plan Main Features and Functions - Models financial structure stability based on the optimal fund-raising scenario - Provides directions for financial structure management considering the range of the indicators of the financial stability - Determines the range of the valuation-based equity capital - Makes suggestions for customized liability portfolio utilizing domestic/international financing, exchange rates, and interest rates - Provides trend analyses on Weighted-Average-Equity Size by changes in the capital structure - Provides performance management information about the mid to long-term financial structure stability plan - Provides precise information about current financial risks and management status - Provides quantitative estimates of financial risks through accurate assessments - Minimizes enterprise risks through systematic risk management methodologies Proactively manages risks through warning process as per risk level Enhances early warning Enhances entire control system and minimizes risks through the contingency plan - Provides performance management information about financial risk management plan

9 16 Financial Strategy Management STRATEGY CONSULTING GROUP HUCORE B/S-Based Performance Management 07 Budget Management B/S-Based Performance Management (Strategic business unit-based) Budget Management The solution assists entities in increasing organizational efficiency in an integrated manner by strengthening the management system of divisional responsibilities through monitoring performance of each department. The solution allows the entity to analyze and evaluate performance by providing financial statements of each responsibility unit. Responsibility Centered Settings Current Situation Core Competency Empowerment and Responsibility Responsibility Centered Settings Profit-oriented Investment-oriented Managerial Accounting Structure Separation of Assets, Liabilities and Equities Direct Attribution Method Grouping of Common Items Separation of Profits and Losses Direct Attribution Method Grouping of Common Items Internal Transactions Defining Internal Transfer Plan Applying and Implementing Performance Management Data Creation B/S Data Creation P&L Data Creation Distribution and Verification Distribution Verification Before / After- Distribution Subtotals and Verification Subtotals by Responsibility Centered Unit Preparing Responsibility Accounting Based Financial Statements and Performance Preparing Responsibility Accounting Based Financial Statements Balance Sheet Income Statement Cash Flow Statement Definition and of Performance Defining Performance Indicators Performance The Budget Management analyzes the difference between the budget based on the annual business plan and the actual performance to suggest solutions for minimizing the gaps; hence, it assures efficient budget management and optimized cost/objective management. The solution eases monthly/semiannual rolling when there are changes in budget and optimizes the entity s budget management. Annual Business Plan Mid to long-term Strategy Establishing Annual Business Plan Objectives by Organizations (Sales/ Profits) Objectives by Strategic Action Plan Assignments Estimation of Strategic Objective Costs Budgeting Structure Defining Budgeting Standard by Accounts Variable Costs (Sales, etc) Application rate of Standard Accounts Fixed Costs Standard Cost Budget Deliberation and Confirmation Applying Budget Management / Setting-up Operating Budget Applying standards for account/ Distributing by organization Autonomy Formation by Organizational Unit Applying Budget Management / Budget Operation Management Monitoring Budget Execution Gap between Actual and Budgeted Costs for Minimizing Gap Applying Gap Minimization Plan Budget Amendment/ Modification Cost-oriented Determining Transfer Price for Transaction Adjustments Short-term Performance Management(Rolling) Rolling Budget Plan / Operation Rolling Event - Number of Employees - Sales Amount - Standard Cost Rolling Budget (Budget Reorganization) Business Performance Forecasting - Suggests the scope of the performance management by setting up responsibility centers - Provides precise structure for performance management by utilizing managerial accounting model - Automatically creates and verifies responsible unit-based B/S, P&L data - Provides financial statements of each responsible unit and comparative performance analysis - Performs efficient periodic analyses to achieve optimal performance by using the short-term objective management as the basis - Supports budgeting standard set-up and budgeting process - Enhances the convenience and efficiency of budgeting - Provides a feedback process for budget compilation by organization unit - Enhances the flexibility of budget compilation by managing budget by each account - Facilitates communication on budget compilation and distribution processes - Implements rolling plans and promptly changes budget by profit-oriented simulation - Minimizes gaps between budget plan and actual budget through simulation

10 18 Financial Strategy Management 08 Growth Goal Management Growth Goal Management The Growth Goal Management assists in achieving an entity s longterm goals by forecasting mid to longterm financial business performance and validating action plans as well as individual/enterprise business portfolio. The solution consists of business feasibility analysis, financial forecasting, and performance management. The Ministry of Knowledge Economy of Korea Government recently acknowledged it as a solution with high potential to effectively support 300 midsized companies which are recognized to become World-Class companies. Feedbacks about Changes in Strategic Feedbacks for Attainment Strategic Growth Objectives Growth Attainment/ Validating Growth Detailed Action Plan Achievement External Environments Vision Market Growth Forecasting Attainment Plan by Business Unit Sales Plan Plant Investment Plan Sensitivity / Scenario Gap between and Expected Performance Assessment of Individual Business Feasibility Validating Sustainability of Financial Stability Sensitivity / Scenario Examining Financial Status for Attainment Cash and External Raising Funds Stretching Goal HR Plan Raw Material Purchase Plan Assessment of the Optimal Business Portfolio Financial Structure Stability Past Performance Successful Case Benchmarking R&D Plan Funding Plan Checking Business Attainment of Enterprise/ Individual Business Unit Increase in the Stability of Financial Structure - Examines the financial feasibility of growth goal for sustainability - Validates the financial feasibility of business strategy for the growth goal attainment - Validates the financial feasibility of investment/debt/profits/costs for growth strategy - Performs sensitivity analysis on external/internal environment variables - Formulates the optimal business portfolio through mid to long-term business forecasting for each scenario - Provides analytical tools for financial mid to long-term forecasting by business level (e.g., profitability/stability/growth indicators) - Analyzes gaps between growth objectives and expected performance for each individual business unit - Analyzes performance of financial stability strategy derived by minimizing the growth objective gap HUCORE FSM This booklet can be downloaded on HUCORE s home page. If you have any questions, please contact us. HUCORE Gangnam-gu, Yeoksam1-dong , Taeyoung 6th Seoul, South Korea tel_ fax_ _ info@hucore.com HUCORE R&D Center Seongbuk-gu, Anam Road 145 Korea University Techno Complex 303 Seoul, South Korea tel_