1. Hamill Bassue
Owen Hendershot
Goran Nagradic

2. Compass Group PLC World’s largest foodservice company
Providing services in more than 90 countries
Providing food and beverages in myriad form from vending machines and corporate catering to bringing popular franchises such as Burger King, KFC, Taco Bell, Pizza Hut and T.G.I.-Fridays
Operating in schools, airports, military bases and correctional and healthcare facilities
Employing more than 400,000 people

3. Operating Sectors

4. Owned & Franchised brands and Major Clients

5. Mission and Vision Statements
Our Vision
Our Mission
To be a world-class provider of contract foodservice and support services, renowned for our great people, our great service, and our great results.
Everyone in Compass is committed to consistently delivering superior service in the most efficient way, for the shared benefit of our customers, shareholders and employees.

6. New Mission and Vision Statement
Our vision is to become the worldwide leader in food and support service, providing world class services, and setting the standard of excellence in the foodservice industry. To achieve this, everyone that is a part of Compass Group is passionate and committed to working together, to delivering superior food and service in the most efficient way for the share benefit of our environment, customers, shareholders and employees. We approach every opportunities and challenges with a positive and commercially aware "can-do" attitude. We operate with openness, trust and integrity and aim to never compromise on the safety and health of our customers and our people, and to manage responsibly the impact that our business has on the environment.

7. Objectives
Our objective is to deliver value to our shareholders and our customers by leveraging the benefits of being a Group to deliver structured and sustainable organic growth in our chosen markets and achieve our vision to be a world-class provider of contract foodservice and support services.

8. Our Guiding Principles
Safety, Health and Environment First
Delivering for Clients and Consumers
Developing our People and Valuing Diversity
Profitable Growth
Constant Focus on Performance and Efficiency

9. Our Values Openness, Trust and Integrity Passion for Quality
Win Through Teamwork
Responsibility
Can-do

10. Sir Roy Gardner – Chairman
Management
Sir Roy Gardner – Chairman
Richard Cousins – Group Chief Executive Andrew Martin – Group Finance Director

11. Brief History
Group founded in the UK as ‘Factory Cateens Ltd’ Bateman & Midland Catering acquired by Grand Metropolitan and eventually merged as Grand Met Catering Services Grandmet Catering re-launched as Compass Contract Services Management buy out the contract services division of Compass Services from Grand Metropolitan and form the new Compass Group Compass Group PLC listed on the London Stock Exchange Beginning of global expansion

12. Global Presence

13. MAP Strategy
MAP is a performance driven strategy focused on five key points:
MAP 1 – Client sales and marketing
Achieved through better targeted businesses, tighter contracts and sharper contract evaluation.
Concentrated on client pricing strategies and growing client volumes (through additional services: cleaning, portering, reception and concierge).
MAP 2 – Consumer sales and marketing
Focuses on developing our retail philosophy in order to increase participation and spend per head (extending our offer to include breakfast and “Grab & Go” concepts.

14. MAP Strategy (cont’d) MAP 3 – Cost of food MAP 4 – Unit costs
Addresses cost efficiencies through a systematic approach to menu planning, purchasing and supply chain, and unit processes.
MAP 4 – Unit costs
We spend nearly £5.5 billion per year on unit costs and we have been managing this through: labor productivity and scheduling; control of labor costs; and in-unit overhead opportunities.
MAP 5 – Above unit overheads
we spend £0.8 billion on above unit overheads per year. The savings have been achieved through: management reorganization; consolidated back office functions; change management processes; and tightened control of discretionary spend.

15. Internal Assessment
In the inside

16. Compass Group PLC’s performance chart 2007

17. Financial Statements
Income statement
Balance sheet
Cash flow

18. Financial Ratios
Ratio
Compass Group PLC
Industry
Current
1.06 1
Quick
0.98
0.7
Debt-to Total assets
0.25
Debt-to Equity
0.74
1.07
Long-term debt-to Equity
0.67
Time-interest-earned
2.81
15.5
Net Profit Margin
0.05
8.0
Gross Profit Margin
16.5
Operating profit Margin
21.4
Ratio
Compass Group PLC
Industry
Return on Total Assets
0.08
8.14
Return on Equity
0.24
24.5
EPS
0.25
P/E
12.87
12.8
Sales (growth)
0.01%
8.9
Net Income (growth)
77.63%
13.71
EPS (growth)
92.31%
24.6
Dividends (growth)
6.93%
6.28

19. Strengths & Weaknesses
EPS increased by 62%
Increase in net income 78%
Strong brand name
High income clientele
Large employee base
Liquidation of assets
Very low revenue growth
Diversity (hard to manage)
Very poor cash reserves
Poor usage of Internet (as a marketing tool)

20. IFE Matrix

21. External Assessment
Outside of the box

22. Opportunities & Threats
Aging population
Consumers value leisure time (want to spend less time cooking and cleaning)
Industry experiences a steady growth
Increasing environmental consciousness of consumers
Increase in desire for awareness in healthy eating
Food cost inflation
Rise in unemployment rate
Higher fuel prices
Decrease in value of money
Competition (Aramark, Sodexho)

23. EFE Matrix

24. Global Cost Foodservice Industry
The global cost foodservice sector grew by 3.6% in 2007 to reach a value of $250.9 billion.

25. Global Cost Foodservice Industry (cont’d)
The global cost foodservice sector grew by 0.7% in 2007 to reach a volume of billion transactions.

26. Global Cost Foodservice Industry (cont’d)

27. Future Forecast of the Industry

28. Competitive Profile Matrix

29. Strategic Formulation

30. Space Matrix FS Conservative Aggressive IS Defensive Competitive +6 +5+4 +3 +2 +1 IS -6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6 -1 -2 -3 -4
Defensive -5
Competitive -6

31. IE Matrix
Grow and Build

32. SWOT Matrix

33. The Grand Strategy Matrix

34. Alternative Strategies
Matrix Evaluation
Alternative Strategies IE
SPACE
GRAND
Total count
Forward Integration X 2
Backward Integration
Horizontal Integration
Market Penetration
Market Development
Product Development
Related Diversification
Unrelated Diversification
Joint Venture 1

35. QSPM

36. Possible Strategies
Developing new organic-only products (S2, S3, S4, O4, O5) – 1.67
Further global expansion – Russia in particular (S2, S3, S4, O2, O3) – 1.67
Acquire local farms to minimize the cost of transport and to provide fresh and organic products(S2, S3, T1, T2, T3) – 1.65

37. Grow + Organic = Groganic
Future Plans
Grow + Organic = Groganic

38. Objectives Continue exercising MAP Strategy Increase revenue
Establish company as market leader in organic environment-friendly food industry
Increase quality of food
Selling out certain companies within our fast food sector (everyone except Burger King)

39. Recommendations
Turn into producing only organic (healthy) environment-friendly food (which is also applies “going green”) 1,000,000,000
Get out of fast food business by selling out company’s franchises and own brands to weaker competitors than the market leader – $10,000,000,000
Acquiring local farms to minimize the transportation costs and to improve the freshness of products 1,000,000,000
Invest into development of healthier and more organic products 1,000,000,000
Build new organic menu for Burger King (adjust the fast food business to provide the new menu) 2,500,000,000
Build a recycling center for all of the company’s waste 1,000,000,000
Plant trees and spend money into cleaning the environment 2,000,000,000
Total Profit: 1,500,000,000

40. Implementation
A new beginning

41. Other Issues Environment pollution Cultural differences
Laws and regulations in foreign countries
Use of Internet must improve

42. Evaluation
Healthy
Rotten
Polluted

43. Update 2009
Compass Group PLC
Stock performance

44. Questions ???