Professional Documents
Culture Documents
& Profile
WRSX
GLOBAL ADVERTISING & MARKETING
COMMUNICATIONS
1
File name: WRSX_Group_Profile_Feb2010_v21 next page>
WRSX
GLOBAL ADVERTISING &
MARKETING COMMUNICATIONS
2
<home next page>
WRSX Company History / 1
Global Advertising
Introduction:
WRSX (Waldron Roux Silberstein Xao) was founded 15 years ago with the merger of
three agencies: a long-established London-based advertising agency, WWMV and new
partner agencies in New York (Silberstein & Lord) and Paris (Roux Toussaint Berthe).
3
<return to contents page next page>
WRSX Company History / 2
Global Advertising
4
<return to contents page next page>
WRSX Company History / 3
Global Advertising
WRSX went public through an Initial Public Offering 8 years ago on the London Stock
Exchange (LSE) where its shares are traded. The company is a diversified advertising
agency offering advertising, media, direct marketing, PR and speciality
communications services across a range of disciplines.
While WRSX is quoted on the LSE “big board”, through significant account gains in
France, the centre of gravity of the company is largely in Paris, where Board meetings
are held. Concurrent with these account gains in Paris, Raphael Roux was appointed
CEO five years ago and is now retiring as global CEO and you, as one of a new Board
of Directors, have recently been appointed to take over the strategic and business
management of the WRSX Group. The WRSX share price has been underperforming in
the advertising sector for the past 18 months and analysts have written of “strategic
drift” and “lack of strategic focus in low-margin subsidiaries”. Because of your strong
strategic track record in a related industry, you have been brought in to help redirect
the fortunes of the company.
5
<return to contents page next page>
WRSX Mission Statement
Global Advertising
Mission Statement
We exist to make our clients successful through differentiating and strengthening
their brands.
Sector Specialism
WRSX has developed its reputation as a leading advertising agency through its
expertise in the following sectors:
• Telecoms
6
<return to contents page next page>
WRSX Company Timeline / 1
Global Advertising
7
<return to contents page next page>
WRSX Company Timeline / 2
Global Advertising
8
<return to contents page next page>
WRSX Company Timeline / 3
Global Advertising
9
<return to contents page next page>
WRSX Company Timeline / 4
Global Advertising
10
<return to contents page next page>
WRSX Company Timeline / 5
Global Advertising
11
<return to contents page next page>
WRSX Board Directors –
Global Advertising Executive
Picture
yourself
here… …because you are also a main
board director
© Copyright Learning Dynamics 2010. All rights reserved.
Francoise Bjorn
Mellier Krog Jensen
12
<return to contents page next page>
WRSX Board Directors
Global Advertising Non-Executive
Non-Executive Directors:
There are also three non-executive directors who advise the board. These three
non-executive directors are up for re-election within the next year.
13
<return to contents page next page>
WRSX Biographies:
Non-Executive
Global Advertising
Directors
Non-Executive Directors:
Below are summary biographies of the three current Non-Executive Directors of WRSX:
14
<return to contents page next page>
WRSX Corporate
Global Advertising Governance
Corporate Governance
There have been reporting irregularities in the past. The problem was the way
certain offices reported revenues and associated costs. There have been
allegations of bribes to win business which have come from the Paris office and
while an internal investigation was conducted no charges were made.
The Group does not currently have a stated code of corporate governance as this
issue is managed at a local level.
15
<return to contents page next page>
WRSX Group Structure
Global Advertising
WRSX Group
Main Board
Company Secretary
Chairman’s PA
OfficeCentral
Office Central Services Office CentralServices
Services Office Central Services Office Central Services
Consumer
Consumer Advertising
Advertising Consumer Advertising Consumer Advertising
Consumer Advertising
PR Company
PR Direct Marketing Media Services Branding & Identity
Consultancy
Branding Productions
Branding &
& Identity
Identity
Office Central Services = Planning & Finance, HR, Marketing, Procurement & IT
16
<return to contents page next page>
WRSX Operating Units / 1
Global Advertising
17
<return to contents page next page>
WRSX Operating Units / 2
Global Advertising
18
<back to contents page next page>
WRSX Operating Units / 3
Global Advertising
19
<back to contents page next page>
WRSX Operating Units / 4
Global Advertising
20
<back to contents page next page>
WRSX Financial Performance
Global Advertising Measures
Our objective is to create value for our shareholders in both the short and
long-term through effective strategies that deliver year-on-year growth in
our existing markets and sectors as well as sound investment in developing
markets and emerging sectors.
Note: An Income Statement and the PBIT and Staff Costs Ratio only will be displayed
at the end of each decision period in Phase 3 - Strategy in Action - of the simulation.
© Copyright Learning Dynamics 2010. All rights reserved.
21
<back to contents page next page>
WRSX Share Price & Market
Global Advertising Capitalisation
Following the unproven allegations of bribery in the Paris office and the resignation of
the CEO the share price has been in a long term decline over a number of quarters
and is now trading in a narrow band around 230p and shows the average share price
per quarter over the past 9 quarters.
With 125,000,000 issued shares in circulation, this puts WRSX market capitalisation at
approximately £285m.
4.00
3.71
3.50 3.51
3.25
3.00
2.77 2.78
2.50 2.52 2.52
2.32 2.28
2.00
1.50
1.00
0.50
0.00
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9
© Copyright Learning Dynamics 2010. All rights reserved.
22
<back to contents page next page>
WRSX Financials/ 1
Global Advertising
Please note:
Period 0 denotes the position for all WRSX finances at the start of the simulation.
INCOMESTATEMENT
INCOME STATEMENTforfor Period
Period n 0 £m €m
Operating costs:
Staff costs (126.0) (151.2)
Establishment costs (16.0) (19.2)
Other operating costs (15.0) (18.0)
Total operating costs (157.0) (188.4)
23
<back to contents page next page>
WRSX Financials/ 2
Global Advertising
24
<back to contents page next page>
WRSX Financials/ 3
Global Advertising
Non-current assets
Intangible assets
Goodwill 215.0 258.0
Other intangible assets 50.0 60.0
Property, plant and equipment 15.0 18.0
Other investments 10.0 12.0
Other non-current assets 5.0 6.0
295.0 354.0
Current assets
Inventories and work in progress 10.0 12.0
Trade and other receivables 175.0 210.0
Cash and short-term deposits 70.0 84.0
255.0 306.0
Current liabilities
Trade and other payables (275.0) (330.0)
Corporation tax payable (2.0) (2.4)
Bank overdrafts (17.0) (20.4)
(294.0) (352.8)
Non-current liabilities
Bank loans (75.0) (90.0)
Provisions for liabilities and charges (5.0) (6.0)
(80.0) (96.0)
Equity
Called up share capital 8.0 9.6
Share premium 5.0 6.0
© Copyright Learning Dynamics 2010. All rights reserved.
25
<back to contents page next page>
WRSX Financials/ 4
Global Advertising
CASH FLOW
CASH FLOWSTATEMENT
STATEMENTforfor Period
Period n 0 £m €m
Investing activities:
Acquisitions and disposals of subsidiaries (12.0) (14.4)
Purchases of property, plant and equipment (5.0) (6.0)
Purchases of other intangible assets (1.0) (1.2)
Proceeds on disposal of property, plant and equipment 0.5 0.6
Net cash flow from investing activities (17.5) (21.0)
Financing activities:
Net movement in long-term borrowings 20.0 24.0
Proceeds from share issues 2.0 2.4
Equity dividends paid (5.0) (6.0)
Net cash flow from financing activities 17.0 20.4
26
<back to contents page next page>
Non-Financial
WRSX Performance
Global Advertising
Measures / 1
WRSX key Non-Financial Performance Measures are divided into six major
categories, each with sub-categories, which are those used in the ADCOM
Industry Benchmark Survey:
1. Management of Growth:
Entrepreneurial capability & management of organic growth
Competence in acquisition management
International/global market positioning
Branding, trade names and intellectual property rights
2. Management of Risk:
Management of Financial Risk: Forex, liquidity, creditworthiness
Management of Legal & Reputational Risk
Management of Operational & Business Risk
3. Leadership Capability
Strategic leadership
Excellence in operations, information management, admin etc
Ability to lead and manage change
Retention of key personnel
Attraction of next generation / new talent
27
<back to contents page next page>
WRSX Non-Financial
Performance
Global Advertising
Measures/2
NOTE:
Please see the next page for the results of the latest ADCOM Industry
Benchmark Survey to see how WRSX has performed in the last year compared to
the industry average.
28
<back to contents page next page>
WRSX Non-Financial
Performance
Global Advertising
Measures/3
Twice a year this survey is carried out that benchmarks companies in the
Advertising and Marketing Communications Industry. The survey is
conducted through research with all key stakeholders in the industry: Clients,
suppliers, employees, the financial community, shareholders, relevant
government and quasi-government departments, activist groups, competitors
and trade associations.
29
<back to contents page next page>
WRSX Non-Financial
Performance
Global Advertising
Measures/4
WRSX Scores:
1 Management of Growth 43.5
30
<back to contents page next page>
WRSX Non-Financial
Performance
Global Advertising
Measures/5
31
<back to contents page next page>
WRSX Non-Financial
Performance
Global Advertising
Measures/6
32
<back to contents page next page>
<home
COMMUNICATIONS
WRSX
GLOBAL ADVERTISING & MARKETING