Building profits and MOats with Best Practice standards....(PT 4 Leverage, collaboration and earnings Power of strategic Alliances)....
- Steve Fleetwood
- May 1
- 5 min read
You now have a clear strategy for a excellent last qtr for 25/26 FY, and. also a formulative start for 26/27. If not click here for step by step:
Part 2: Building profits and Moats with Best Practice standards....(PT 2 Strategic Advantages for End 25/26 & exceptional start of 26/27 FY...)
Part 3: Building profits and Moats with Best Practice standards....(PT 3 Utilising Blue Ocean Strategy as a core pillar)....
In the first year MBA students learn about a foundational strategy of Build, Borrow or Buy.
Borrow (other company's resources. e.g. IP, facilities etc) in this case can mean, Strategic Alliances or Joint Ventures or Strategic and Joint Partnerships. This happens daily, especially in mature markets as Boards, CEO's are looking for new markets and the penetration to new fields of endeavours!
Strategic Alliances in this case, offer many benefits (IF both parties are open, honest, straight and true (Balance sheet, operations, free cash flow, culture etc) with each other, see our culture blogs, and how this can benefit you in these dealings!):
1/ Vertical and Horizontal supply chain (integration) can be extremely advantageous due to cost control, resource supply efficiencies, cornering markets, and of course economies of scale (fixed and variable cost reductions),
2/ Combining of Technological forces (e.g. software, manufacturing advances) and Social-Culture sharing,
3/ Financing of new projects to form a Joint Venture (new company and product, where both collaborate), once the strategic alliance "Test of marriage" has been passed through the honeymoon phase of 12 months,
4/ New cultural rebirth to a higher level as the integration, synergy phase is unveiled,
5/ Cross collaboration of Brand Building for enhanced Brand Power and Protection for both parties from new competition! Think International foreign companies with bigger balance sheet and power, the most notable is the "infinite funding" of the Chinese government to take international market share!
In your planning for FY26/27, you should within your strategic plan (which sits in your Business plan), have a one page document (or more), of
What's our Build/Borrow/Buy Strategy for 26/27 or within your 2030+ Business plan? And systematically go through each point during the research and formulation stage:
1/ Build: jot down few points,
2/ Borrow: jot down few points,
3/ Buy: jot down a few points.
And how will this serve our:
1/ Enterprise Strategy, (sub $ 10 million organisations, generally Enterprise/corporate/business are collapsed into one),
2/ Corporate Strategy,
3/ Business Strategy
4/ Marketing (and Sales) Strategy,
5/ Financial Structure and Strategy,
6/ Functional Strategy.
A Interesting Story: I was working with a CEO ($ 20+ Million-dollar company) who was keen in doing a strategic alliance with one of his indirect competitors. Their competition with each other only represented about 5-10% of top line for them both. However, both had strategic assets (buildings) and services where they could collaborate and cross pollinate with each other with their clients and products.
Thus, build AND borrow in one alliance, a good strategy going forward (excellent synergy with more skin in the game for them both!)
So, the CEO set up a formal meeting with her (this company similar size top line) , JANE (not her real name), as his external consultant to start the process of the viability of this Collaboration. He wanted my view whether it was functional, compatible, synergistic and good and healthy cultural fit!
I sat down with Jane, good people skills, savvy board and people smarts. After around 30 minutes, the next 45 minutes was all about was cost control mechanisms, process's and very little on markets, creation, branding, strategy, culture and leadership development (even though I asked simple questions to unlock this part of her company). It was very obvious she was running the company like a GM would, however, she was the CEO!.
I reported back to Harold (not his real name), and went through the process of how a GM runs their organisation Vs a CEO, Vs a Business Owner, Vs a Business Advisor Vs a Business Expert Vs an Entrepreneur.
And how this told us where her business and corporate expertise development level was. Think apprentice to Master Level and the skills you can apply!
NB: all styles have their benefits and strengths, like arrows in your quiver, tools in your tool box, paints on your pallete.
His eyes widened, because he truly thought she was at the same level of development, and it meant he would be the Leader of this SA. And he had to consider this dynamic play and its approach! This was only one of many and varied minor and major projects we were working on for him, e.g. balance sheet adjustments, new markets, existing clients, new products and services.
It was considerable, to say the least, e.g. building military and government contracts as well to bid on!
He finally realised, the effort of this dynamic might not be worth his personal effort (being the leader in this SA), in addition with all the projects we were working through!
Key Lesson: Make sure you evaluate the human element, and the investment that is required and not just the business functional and strategic benefits. Also, understand where you are on the development curve and business maturation spectrum!
You may have more business-corporate expertise than them and end up coaching them. Or they could have more than you, AND, you don't know it!
We have made improvements to our entry level programs: Gold (4 weeks), Platinum (8 weeks) and Diamond (12 weeks), based on our experience you're having with your dynamic and fluctuating markets to help you do a "Quick Turnaround" for earnings power improvement!
Services that STAR can assist you with for 26/27:
1/ Essential Business Planning,
2/ We have launched our new Email and Vlog consultation service, go here:
Where you can email us or record voice or a vlog (say in your drive to work or at lunch, or when you're doing your private planning) and send to us, and we will answer with a 1-3 page Executive Summary and Personalised Vlog just for you and your organisation.
3/ Also, we will be introducing a ongoing "Business Partnership Mentoring" program, within 90 days, for sustainable results, than a quick 6 to 12 month Kaizen result.
Contact Star for a consult with our MBA+ consultants... for fast development, improvement, and growth in Strategy, Sales, Marketing, Leadership, and Culture for
Sustainable Strategic Advantages and Earnings power!
Book Now
OR Myself,
We look forward to interacting with you soon.
Steve Fleetwood: Founder,
MBA, MApp Fin (CF, IA), DFP-CFP, Cert 4 Training and Assessment.
M Int: +61 433 622 265
M Aus: 0433 622 265
Also, we are receiving more international enquiries, so we will be instigating a phone consult per minute service, allowing for quick and easy access to US.
Our Founder, Steve Fleetwood, has extensive business acumen, including running his own company from his early twenties. And was the youngest Investment Advisor of Austock Brokers, Analysing and evaluating new business and investment Opportunities for his clients, family partnerships, CEO's and Companies.
Managing 10's of millions of wholesale and retail capital. He has consulted to Boards, CEO's, Telstra Businesswomen of the Year and many Industries Developing, Improving and Growing Top/Bottom line and successful application of Business Leadership, Strategy, Branding, Marketing, Sales and Culture.
NOTE: No AI was used in any of these posts besides grammar/spelling checker and Picture generation!
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