2019

STRATEGIC & OPERATIONAL PLAN

– HAWK ELECTRONICS

Devansh .
Amsterdam Business School
Contents
INTRODUCTION ....................................................................................................................................... 2
KEY ISSUES............................................................................................................................................... 3
WHAT NEEDS TO BE DONE? .................................................................................................................... 5
SPLITTING RESPONSIBILITIES BETWEEN DAILY OPERATIONS AND PROJECT .......................................... 5
THE STRATEGY MAP ................................................................................................................................ 9
Purpose: Providing Exceptional Client Service................................................................................... 9
Mission: Become the most responsive and profitable company ....................................................... 9
Vision: Be a Tech Vanguard .............................................................................................................. 10
Values ................................................................................................................................................ 10
Productivity Strategy: ....................................................................................................................... 11
Value Proposition .............................................................................................................................. 13
Growth Strategy ................................................................................................................................ 13
Ultimate Goal .................................................................................................................................... 16
CALENDAR OF GROWTH INITIATIVES.................................................................................................... 17
FINANCIAL OVERVIEW .......................................................................................................................... 17
What Do you want to achieve? ......................................................................................................... 17
REFERENCES .......................................................................................................................................... 19
INTRODUCTION
Hawk electronics problem arises from the complexity in sharing resources among divisions especially
when one gets exploited to serve the ambitious needs of the other. Hawk electronics is bifurcated into
two major segment – Peripheral Division and Unified Division. Peripheral Division is being headed by
Martinez. This division involves off-the-shelf solutions and requires a broad knowledge of the
ecosystem. Peripheral Division managed a healthy cash reserve due to its production outsourcing
method. It managed to increase revenue by expanding into emerging markets with lower cost
products. On the other hand, Unified Division, headed by Sarah Chan, required extensive training as
the clients pays premium for its offerings. When Sarah Chan became the CEO, she had the credibility
that complimented the promotion. As a leader of the Unified Division, she had stuck along with her
team through the 08-09 recession. Not only did she kept the division solvent but also improved
company’s visibility while locking in favourable terms with the suppliers in a crunch time. After 2010,
when the market for converged system took off, people at Hawk Inc expected Sarah to move Hawk
Inc from the threat of commoditization. Martinez was side-lined from the CEO position due to his lack
of risk-taking abilities.

According to Sarah, Hawk Inc does not need incremental growth but should ‘Move Fast and Break
Things’. She wants to instil an entrepreneurial mindset in the workforce. Her pet projects wherein she
set up a new investment model – Disruptive Dozens was designed to fulfil the purpose. Ironically,
Sarah Chan utilized the cash reserve generated through a disciplined strategy of Peripheral Division to
fund her ambitious dreams with Unified Division. Hawk would encourage employees who would like
to set aside job security and work on futuristic product. If their product is approved by Hawk Inc, they
have the opportunity to set a viable business model, funded by Hawk Inc, in the market for their
offering. Hawk Inc had the option to buy back the company if they manage to come up with an MVP
or a ‘Go-To-Market’ opportunity within 18 months. This minimized Hawk’s investment risks as well.

Such an uneven investment strategy led to dissatisfaction between segments. There was financial
pressure, compatibility issues, emergence of non-cooperative silos, low workforce morale and slipping
Brand equity with pivotal resources leaving the firm. The cash reserve that Sarah Chan was relying on
to fund her dream projects – Peripheral Division was losing ground as well. Being at the crossroad,
Sarah had to address the growth rate and sliding market share. She is contemplating the way forward
– Should the products be developed internally? Should Hawk Inc move towards acquiring stealth start-
ups? Should she sell Peripheral Division?

In order to answer these questions, it would be informative to look at few key issues closely.

KEY ISSUES
• Financial Pressures: While Sarah Chan tried to instil the entrepreneurial mindset in the
workforce by putting her weight behind the “Disruptive Dozen”, it came at a cost. The
innovative challenges that Hawk deemed fruitful for its futuristic product line came with a
baggage of expectation for investment in marketing, sales and distribution capabilities. This
meant that the maintenance of this ‘adoption’ policy had to be borne by the market. Hawk
had already raised $2B and sold 3 M shares of stock to raise capital. There was a risk that the
bond-rating agencies might downgrade the bond in case Hawk tried to borrow more or run
into the trouble of diluting the value of the shares in case it issues too much equity.

• Distribution of Power: Even though Sarah Chan was made the CEO in 2011, she still kept
Unified Division close to herself. As the ventures became relevant, Sarah had to divert her
attention to Disruptive Dozens as well. Though, she made Yu the Vice-President of Unified
Division, Sarah still preferred to be reported on ongoing operations in the segment. As a
 leader, Sarah has to identify and delegate few tasks. Not only is she the head of the Unified
Division or the Disruptive Dozen, but also of the Peripheral Division. Therefore, her inability
to delegate tasks is taking a toll on the overall operations of the company.

• Compatibility: Each venture supported by Hawk had a different growth trajectory. Initial idea
in incubating these ventures was to assimilate them into the Hawk’s product line as soon as
they arrive at a viable MVP. But, creating a standardization among various ventures and find
synergy with Hawk is an expensive and time-consuming process. The time to market factor
had also been a critical challenge.

• Non-Cooperative Silos: One of the intended consequences with the Disruptive Dozen Project
was that the entrepreneurial mindset from the workforce of the ventures would trickle down
into intrapreneurial culture. Unfortunately, the venture workforce remained aloof and di not
mingle with the rest of the employee base. Sarah’s initial plan was to envelope the talented
resources from the Ventures into the Hawk’s workforce in order to prepare for next
generation of leaders. Unfortunately, the start-up workforce felt scuffled in the Hawk’s
hierarchy and therefore attrition rate spiked. Not only did Hawk lose the resources but also
lost customers on account of lack of experts available. Hawk was losing the core that would
lay the foundation of its Knowledge base and create the next generation’s product line.

• Lack of Coherence: Hawk’s culture didn’t boast of a healthy inter-team collaboration.

Manufacturing, Sales, Marketing and procurement were run by different philosophies which
came into conflict with each other often. Estimation of prices and cost for customized
products always remained a point of contention.

• Losing Brand Equity: Hawk trouble didn’t limit itself within the workplace cubicles but also
expanded to its revenue books. Cost-overruns, product management and quality affected
market share and profitability. Hawk lost prominent customers along with significant resource
base.

• Low Morale workforce: While catering to the ‘Queen Bees’, Sarah forgot that Hawk comprises
of ‘Worker Bees’ as well. Due to unclarity regarding the product development pipeline and no
significant profitable plan for venture products, the morale of the workforce was at all-time
low.
 • The Peripheral Problems: Sarah Chan satiated her thirst for the entrepreneurial spirit at
Hawk’s through her Unified Division. In order to fuel this program, the cash reserve generated
through Peripheral Division was exploited. Peripheral Division sustained this through
outsourcing. Unfortunately, since the exodus of key resources and the migration of prime
customers to competitors, Peripheral Division is on backfoot and close down the funnel of
cash reserve to ambitious ventures of Sarah Chan.

WHAT NEEDS TO BE DONE?

SPLITTING RESPONSIBILITIES BETWEEN DAILY OPERATIONS AND PROJECT
1. Ground Realities: In order to fix the short-term issues at Hawk while ensuring a long-term
solution for relevancy in the market, Hawk should be aware of its ground realities. Jim
Collins’ Good To Great discusses the road map who want to wrap themselves the mental
frame of a start-up and yet scale up like a Goliath. While the ‘Red mark’ refers to the status
quo – the current state of Hawk’s cultural discipline in line with the entrepreneurship
mentality, a lot needs to be done to reach the desired ‘Green mark’.

Fig : Hawk’s Cultural Analysis

Sarah Chan does have all the capabilities of a Level V leader. She even tried to groom Yu as the
future leader at Hawk. Unfortunately, Sarah’s emphasis on catering to ‘Queen Bees’ with little or
no attention to ‘worker bees’ created an environment of low trust and morale. The delta between
green and the red mark reflects this trend. Due to the emergence of ‘Disruptive Dozen’, Hawk has
moved towards the start-up end of the chart, unfortunately the rise of such ventures also led to
the creation of ‘silos’, with no collaboration, in Hawk’s workplace thereby diminishing the
disciplined culture. Hawk can move from a hierarchical system to become a ‘Great Organisation’
if it could sustain its entrepreneurial skill set and yet maintain the discipline in terms of
constructively channelized energy.

What can Sarah Do?

In order to tackle the problem of drift between two sorts of workforce, Sarah Chan needs to drop
the distinction between ‘Queen’ and ‘Worker’ Bee. The dimension and shape of an organisation
is curated by the entire workforce. As a manager and a leader, one needs to identify and play
according to the strength of his/her team while working on the areas of improvement. Sarah
could tackle problems such as Creation of un-cooperative Silos, Low Workforce morale and lack
of inter-team coherence as follows:

2. Create a Learning Environment: Sarah intention to create a collaborative workforce that

would ‘Move Fast and Break Things’ was never questionable. By creating ‘Disruptive
Dozen’, she envisaged that it would inspire more employees to innovate in their
respective product line. She imagined that the industry experts from the ventures team
would provide Knowledge Transfer to the rest, thereby reducing dependency on a small
fraction of the workforce. Unfortunately, it didn’t go as planned. Key resources left the
organisations creating a knowledge gap and void between customers and the futuristic
product. The remaining workforce was inept to handle the situation as there was no
collaborative relationship between employees. Sarah should have created a conducive
learning environment, where people could master over new skills at work and draw a
sense of accomplishment [1]. By segregating them into ‘worker bees’ class, Sarah already
undermined and discouraged their contribution. In order to raise the morale and bridge
the knowledge deficit, Sarah should organise Tech Talks, wherein each resource should
share his expertise in line with the Hawk’s product line. Therefore, not only will Sarah
reduce the dependency on few resources but also prepare its workforce for the challenges
of tomorrow.
 Through such an exercise, Sarah should aim
to shift majority of work base from being a
‘Solid Professional’ to ‘High professional
Plus’. In-house training would not only build
a collaborative work environment but also
improve the potential of its employees by
exposing them to newer market trends and
providing them the skill-set to prepare
them. Sarah should aim to create a workforce with a balanced view of ‘Potential’ and
‘Performance’ by identifying the various intrinsic motivating factors. Incorporating the Google’s
method of 80-20 ratio of work allocation would do wonders in an environment such as Hawk.
Employees would work 80% of their time as per their profile, the rest 20% should be utilised in
learning new skills relevant in the market or attending in-house training programs. Not only will
this help in improving the employee engagement factor but also prevent non-cooperative work
silos at Hawk.
3. Keep Them In Loop: Most of the key issues that Hawk is facing rose from the failure of
Sarah, the manager. Sarah had displayed at multiple occasion her reluctance to delegate.
As a manager, delegation of work is as important as deriving performance. Even though
the revenue books shrieked of market size over-estimations and introduction of non-
profitable products, Sarah took a conservative approach to not confront Yu. Lack of
feedback from Senior Management creates an opaque culture, far from reality. Sarah
should not await Yu’s response, instead confront her on recent underperformance of
Unified Division.
What Should Sarah Do?
In my view, Sarah should fire Yu as the VP of Unified Division as establish someone from the
Hawk’s original workforce. Yu, being from the ventures arm was too pre-occupied with the
performance of her start-up and blinded by her close proximity with the idea. It was a case of
conflict of interest. Yu failed to bring in order to the system with no concrete plan to set up an
industry standard for converged systems. Nor did she lay out ground rules as how can Hawk
benefit from the futuristic products of Disruptive Dozen in its core pipeline.
But just firing Yu will not yield any result. Finding a suitable replacement is a major challenge.
Sarah’s another blunder was to dilute her concentration from the overall workings of the
company by still being reportable to in matters concerning Unified Division. Firstly, it takes away
the gravity from the VP position headed by Yu. Secondly, the attachment of Sarah with Unified
Division prevented her to reach objectively in crunch situations. Trust can only be ensured if Sarah
lets Unified Division to work independently, without being a ‘helicopter parent’.

4. Letting Go of Obsessions: Sarah has survived with Unified Computing through horrendous
times. She donned the role of a true leader and pulled her company through the crisis of
’08. Not only did she attended major tech events to maintain the visibility on her
company, but also forged favourable partnership with the suppliers. She continued her
march towards finding the ‘Next Big’ idea and developing products that she perceived the
customer wants. Therefore, if Hawk has to find its ground and cover up lost market share,
it needs to re-wire its strategy methods.

What should Sarah do?

Sarah as always believed in ‘Moving Fast and Breaking Things’. Unfortunately, riding on the
success of Disruptor Dozen will not take Hawk electronics very far. Instead of devising product
which they think customers want, Sarah should incorporate a Customer Value Chain that would
be connected to the KPIs thereby preventing the creation of silos. With KPIs enabled CVC as the
engine, Hawk would set itself on a path of auto-correction. The revenue would align as Hawk’s
offering would be compatible with market demand, thereby translating into profitable ventures.
In order to realise this, Sarah needs to lay down few KPIs that defines the ‘actual’ needs of the
customers and remains a balanced set of KPIs in terms of Productivity, Timeless and Quality.
 In terms of defining KPIs for converged systems, we need to keep track of KPIs at different levels:
1. Result KPIs: Result KPIs resonates with the customer value of the chain. In an industry of
Converged systems, following KPIs could be the Result KPIs
• Scaling Capacity and Performance
• Net Promoter Score
• Single Vendor Purchase and Support
• Automation Capabilities Score
2. Process Level 1 KPIs: In accordance with the Result KPIs, the Process Level 1 KPIs would be
• Manual and Automation Test Cases
• Developing/ Maintenance of CRM tool
• Identifying and eliminating defects in the ecosystem (count)

Sarah needs to link strategy to daily operations. Daily operations at each level co-relates with the
identifies KPIs which will be supported with a feedback mechanism in an Agile fashion so as to
eradicate any mistakes while working on the areas of improvement.

THE STRATEGY MAP

Purpose: Providing Exceptional Client Service
A public B2B company is answerable to its shareholders. But the market will only respond favourably
if the customer base is satisfied with the company’s offerings. Therefore, the purpose of Hawk
Electronics should be to create an Employee centric organisation aligning the shareholder’s interest
with customer’s needs. Hawk Inc doesn’t lack talented resources. It has to meticulously identify and
share responsibility. In order to provide an exceptional client service, setting up a ‘Feedback
mechanism’ is very critical. The feedback mechanism will not only log the ‘Voice of Customer’ and
their recommendations but also will act as an internal check among different departments. This would
keep the employees on toes and hone their skill-set with changing demands in the market.

Purpose
Exceptional Client Service

Mission: Become the most responsive and profitable company

Hawk Inc’s mission should be to become the most successful converged infrastructure solution
provider company in the market that it serves while paddling underneath to identify its customer’s
problems of tomorrow and arrive at a profitable solution. The converged infrastructure market is
generally dictated by ‘First Mover’ bundled with financial support. Therefore, Hawk Inc must study the
markets it is, wants to be and eliminate its operations in the non-profitable ones. While the mission
might lead Hawk Inc to unchartered territory and make it compete against other global players, it has
to find its own niche corner in the market. The only way Hawk can maintain its USP is by ‘listening to
its customers’ and therefore preparing for tomorrow’s needs in the market. The only caveat in the
plan is that it is susceptible to many ventures that might sound like the ‘Next Big Thing’ but shall
remain a façade. Hawk Inc needs to carefully gauge the market, identify the customers who are ready
to pay for it and then invest into it.

Mission
Establish as the most responsive and profitable company

Vision: Be a Tech Vanguard

Hawk’s vision should revolve around its healthy interaction with the shareholders, customer’s needs
and global business community. By being the vanguard in its respective field of converged
infrastructure, the onus lies with Hawk Electronics to create a conducive environment for future
market to grow and shake up the ecosystem through its high-pace innovation cycle in case stagnancy
creeps in.

Vision
Be an ethical technology Vanguard

Values
The Values that Hawk Inc need to imbibe in its preamble should not only reflect on the highlights of
the present but also derive inspiration from its past and seek opportunities in the future. Following
are the values that Sarah Chan should focus on:

1. Premium Quality
2. Leading Technology
3. Accountability
4. Financial Stability

By ensuring Quality and accountability, Sarah could establish trust and bond between the companies
and its customers. Financial Stability would ensure safe return to its shareholders as well as the
employees. The value of being a leader in technology will ensure that Hawk Inc has safeguarded its
future in the industry by creating the standards instead of following them.

Productivity Strategy:
In order to improve Hawk’s productivity Strategy, we need to eliminate the existing pain points. The
existing bottlenecks not only prevents a smooth flow of ideas but also act as catalyst in creation of
silos. In order to achieve the desired result, Hawk Inc needs to establish a new VP – Unified Division.
Sarah Chan already has her plates full with CEO responsibility, it would be better if Hawk Inc could find
someone who would look at the problems in Unified Division more objectively. The following are the
strategies aimed at improving the workforce productivity:

1. Rearrange the Silos: In order to achieve maximum output from its employees, Hawk Inc
needs to do away with the mentality of ‘Queen Bees’ and ‘Worker Bees’ and identify
employees based on performance. Therefore, the silos at Hawk Inc needs to be replaced by
‘Tribes’ [2]. Hawk In needs to identify the technologies that it would cater to its clients in short
term and long-term goals. Based on the gather information regarding market short term and
long-term needs, Sarah can identify resources who are experts in the required field. Each such
experts would lead a ‘Tribe’, wherein it would provide training to the members of the tribe.
Each tribe cannot be more than 15 employees. The project plan would lay out the trainings in
accordance with the short term and long-term goals of the company. At the end the of the
Quarter, employees could choose to take up challenges as set by the ‘tribe leader’. These
challenges could be finding new customers outside the ones existing with Hawk Inc and roping
them in. Each new quarter would set a new learning chart that would help the tribes to be
abreast with the recent development in the converged infrastructure industry. In case, Hawk
Inc lacks resources who are skilled enough to train the rest of the workforce, company should
hire or call external trainers to suffice the purpose. Creating a skilful workforce would also
allow Sarah to provide the best customer support on various topics and showcase the
workforce efficiency to win new contracts.
The measurable KPIs would be: Hours of Training, New Businesses won at the training
completion and new skills acquired.

2. Bring in AGILE: Working in tribes needs a certain degree of discipline wherein each client
engagement could be broken down into visual story boards such as set up of security or user
authorisation and authentication. Working in Agile would allow customers to push in the
change requests as the need arises. Involving customers at various levels of the project would
not only increase transparency and therefore trust but also make the customer feel involved.
 This would propel Hawk’s mission of providing ‘Exceptional Client Service’. An Agile work
environment at Hawk would begin with a short stand-up meeting wherein each individual
would answer 3 questions – What I did yesterday? What will I do today? Are there any
hurdles?
Not only will it ensure the smooth flow of project completion but also improve the
collaboration among employees as they could help others if they had solved a similar issue
before. Building comradery, measuring daily productivity (without micromanaging) and timely
deliverables will reflect positively on the revenue books as well as in the healthy relationship
with the customer.
KPIs: Sprint’s success rate

3. Collaborative Tools: Being in a converged infrastructure industry, IT solutions should be

exploited effectively to derive maximum output. Considering Hawk is divided into two primary
segments – Peripheral Division and Unified Division. It is imperative that not only should there
be a free flow of ideas within the division but also among the division. This communication is
important to gauge the changing trends in the industry and for sharing best practices. In this
regard, Sarah Chan will need to spend in setting up a collaboration tool across work segment
globally. Having such as collaborative tools, employees could utilise them to crowd-source
new ideas and form small remote teams to solve intricate business problems.

4. Encourage Autonomy: In order to cultivate a breathing cauldron of fresh ideas, an

organisation needs to eliminate micromanagement and ensure autonomy. Ensuring

autonomy does not mean that the employees are not answerable, instead it would convey
the message that the senior management trusts the workforce and encourage them to think
outside the box to come up with innovative solution. Providing autonomy would act as a
catalyst in optimising the productivity of the workforce.

5. Deploy KANBAN: No matter how functional is an organisation, it requires shaking down

once in a while. Sarah should ensure that monotony doesn’t creep in the work culture at Hawk
Inc. Borrowing the concept of Kanban, Hawk Inc should always look forward to continuously
improve its process – work distribution and resource allocation. Complacency eats up the
productivity from inside and is contagious. Therefore, incorporating Kanban would ensure
that the teams are always on the toes and give in their best work.

6. Identify Incentives: Sarah made some inroads in identifying incentive-based [1]

work

distribution. Unfortunately, she committed the error of creating echo chambers by bundling
people with similar incentives together. The resources who wanted to take the risk and
 innovate were encouraged to join the ventures while the people who preferred job security
continued doing the same work. Sarah forgot that incentives can be contagious as well. If each
team had few resources who could inspire the rest to think outside the box, the cycle of
innovation at Hawk Inc could have moved at a much faster pace. Therefore, it is important to
identify the incentives of workforce and bring them together in such a way so that they
complement each other. This would spike up the productivity charts.

7. Employee Wellness: In order to improve productivity, Hawk should keep the wellness
factor of the employees in mind. Work pressure especially in a public company wherein each
day stick prices fluctuations can bring in new targets, it is important that the employees don’t
experience a burnout. Therefore, in order to keep the workforce intact and operational at
maximum efficiency, wellness is an important factor to consider.

Value Proposition
If Hawk Inc has to carve a niche corner for itself, it needs to do away with ‘Disruptive Dozen’ model.
Employees can be motivated to bring in a fresh pair of ideas without being cast-away from the core.
The present model sends out the message that ‘Hawk Inc is with you if your venture turns out to be
successful’. Financially, it might sound comforting to the shareholders but it doesn’t strike confidence
with the employees. The desired outcome of fast track innovation cycle can be achieved with the
overall support of relevant stakeholders.

The value proposition that Sarah Chan should advocate for revolves around creating a cutting-edge
technology company with a healthy research and development wing. Being operational in multiple
markets, Hawk can cater its prices ranges depending on the purchasing pattern and power of its
customers. More importantly, it is the trust and accountability that sticks around with customers.
Sarah Chan needs to play according to her strengths. While Peripheral Division has an improved R&D
wing with faster innovation cycle, the Unified Division had more growth prospect and risk-taking
abilities. Peripheral Division has a strong hold in emerging markets with lower cost products at the
same time Unified Division charges premium price for its offerings. Therefore, Hawk should identify
different markets and the kind of products that would complement it, thereby coining its value

proposition as ‘Providing Most Effective Solutions at Competitive Price’

Growth Strategy
Among numerous other troubles that surrounds Hawk Inc, Sarah’s prime areas of concern revolve
around the significance of Peripheral Division and if it is still an integral part of Hawk Inc. Since Sarah
donned the role of CEO, it was expected of her to move Hawk Inc away from the threat of
commoditization and replace Peripheral Division with Unified Division as the epicentre of Hawk Inc.
But Sarah’s problem is more than just cost over runs. With $1996 M worth in Revenue Peripheral
Division was still running on a healthy throttle, even though most of its cash reserve was being utilised
by the Unified Division. Even if setting up Sarah as CEO was intended to shift the focus of Hawk towards
more ambitious project such Unified Division, we cannot ignore the low cost but improved R&D that
Peripheral Division possess. It has faster innovation cycle and dwells in the economies of scale model.
In sheer numbers, the total R&D cost of Peripheral Division between 2012-2016 amounts to $135M,
which is still less than what Unified Division spent in 2016 alone ($140 M). Therefore, it would be
disastrous to abolish the Peripheral Division. Peripheral Division has the advantage of laid out network
to outsource production. This saves them money as it allows them to find avenues in emerging
economies with lower cost products. With major consumption power shifting towards emerging
economies, this is one asset that Hawk Inc wouldn’t want to lose. Instead, Hawk should focus the
strengths and risk-taking capabilities of Unified Division to look for new market opportunities.

In the chart above while existing product base and low risk appetite of Peripheral Division made
inroads in Market Penetration, Sarah should focus to move into Market Development segment. In
2016, converged infrastructure (CI) market was shifting towards Hyperconverged Infrastructure (HCI)
[3]
. Unified Division should divert its attention from Disruptive Dozen and plan to invest resources and
energy is constantly upgrading its higher end product. The new investment model didn’t work well
with revenue books and it disturbed the cultural fit within the organisation as well. Therefore, Sarah
Chan should look at individual market, identify a niche corner for Hawk and find a promising start-up
to acquire or go into Joint Venture with another giant. Emerging markets offers enough space for
multiple players to exist, Hawk Inc to choose to invest into an upcoming start-up where as in saturated
market, Hawk Inc should win on service (outsourced through peripheral network) and quality. In order
to generate revenue, Hawk Inc could trim the product line of Peripheral Division and focus primarily
on available cash-cow options.

The growth % of revenue shows a downward trend with the highest being 21.3% in 2013-14 and
lowest being 10% in 2015-16. The targeted growth prospect for Hawk Inc should be a gradual shift
towards 20%, with projected growth for 2016-17 hovering around 14%, 2017-18 - 17% and 2018-19
to be around 20%.

The graph below illustrates as follows:

Growth % (Revenue)
25

20

15

10

0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Growth % (Revenue)

Sarah Chan might have to make some bold decision and let go of few aspirations and people. As
discussed, Yu should be asked to leave as the VP – Unified Division. Sarah should also abolish the
Disruptive Dozen project as it did more harm than good. The capital that Sarah thought she will save
from risking at another start-up was burnt into ensuring interoperability among products from
different ventures as well as the hiring and procurement tasks of various ventures. She will also look
forward to hire key resources who were pivotal in client interactions and securing up the business.

Therefore, saving money from being squandered through the maintenance of Disruptive Dozen by
their abolishment, identification of key promising markets, acquisition of healthy start-ups and others
to go into JV with established partners, seeing of newer market opportunities, benefitting from the
robust R&D wing at peripheral division and the network to outsource production in emerging markets
could propel Hawk Inc on a pathway of healthy revenue growth numbers growing into 20%.
 Ultimate Goal
The eventual target is to create a sustainable financial model wherein employees can contribute to
the innovation cycle and market can be assured on the challenges of tomorrow. Employees can
collaborate without the presence of silos and drive the revenue growth chart to 20% within the next
3 years.

Purpose
Exceptional Client Service

Missio Vision
Be an ethical technology Vanguard
nEstablish as a responsive and profitable company

Values
Premium Quality

Leading Tech
Ultimate goal
Accountability
Creating a self-sustainable financial model with disparate cross NPS score
Financial Stability
functional employee collaboration with primary focus on
Growth %
customer interaction Revenue

Growth Productivity strategy

strategy
Abolishment of Disruptive Dozen Hours of
Rearranging the Silos Training
Identification of new market opportunities
Bring in AGILE New
Acquisition and JV options Businesses
Collaborative Tools
won
Utilising the strengths of PD and UD
Encourage Autonomy
Sprint’s
Target Growth % - revenue: 20% in 3 years
Deploy Kanban success
rate

New skills
acquired

New Start-
ups
acquired /
JV
Value proposition
Providing Most Effective Solutions at
Growth Competitive Price’
Target

Newer
markets
expanded
CALENDAR OF GROWTH INITIATIVES

The Growth and Productivity Improvement initiatives have been segregated into Short-Term and
Long-Term action over the course of a year.

Year 1 Quarter Quarter

Quarter 1 Quarter 2
Description actions 3 4
Gradual Phase Out of Disruptive 10% 30% 30% 30%
Dozen

Creation of ‘Tribes’ and training

schedules Long Term Action
Converted/Won cases from the 2 5 6 8
training

Identification of JV/Acquisition
opportunity Long Term Action
Growth %age – Revenue check 10% 12% 13% 14%

Establishment of Agile model

Long Term Action

The aforementioned Template Initiative calendar creates a cursory plan for next 4 Quarter for Hawk
Inc, wherein the short terms goals are set up as above while few are bracketed as ‘Long Term Action’.
The training programs would result in acquiring more customer base every quarter which would add
onto the revenue stream while cost-cutting the Disruptive Dozen program. Hawk Inc needs to
incorporate Agile methodology as it trims the added weight and creates a lean mode of work ethics.

FINANCIAL OVERVIEW
What Do you want to achieve?
In terms of long term, Hawk Inc would like to register a growth in revenue of 20% while in short term
set the operations of the company towards a growth trajectory. In terms of intangible changes, there
needs to be cost-cutting measures in Disruptive Dozen and Peripheral Division. Utilization of the
outsourcing channel for production and expanding to newer markets and newer partners - through JV
or Acquisition.

In 2016, the Net Profit was $222 M with outstanding shares 25.6 M (this included Disruptive Division).
Therefore, the Earnings per share boiled down to $8.68. As per the growth strategy if Hawk Inc,
disintegrates the Disruptive Division and buys back the shares, which could be around 7M, it can
provide a more flexible way of returning money to the shareholders. The outstanding shares in 2012
was 18.4 M. With the growth in revenue targeted at 14%,17% and 20% for 2016-17, 2017-18 and
2018-19 respectively, the expected revenue would be: (in Million Dollars)

2016-17 2017-18 2018-19

Expected Revenue 3884 4544 5453
Generation
REFERENCES

[1] Pink, Daniel (2011). Drive: The Surprising Truth About What Motivates Us. London: Riverhead
Books

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