Technology Company’s First Strategic Plan

TypeStrategy Development
Quick FactsFoodCo is a food ingredient technology company with revenues of less than $10 million. The company's founder developed an all natural product that reduces fat and lower costs to food processors. Both the process and composition are patented in the U.S. and 38 other countries. Raised over $5 million from a collection of accredited angel investors.
ChallengesFoodCo was founded by a scientist/entrepreneur. The company began with great expectations around the technology's potential impact on large segments of the food industry. After making initial inroads into some niche markets, the company stalled as attempts to penetrate the 'killer' applications' hit a variety of roadblocks. The company's Board brought in new leadership with industry experience to lead the business development efforts. Sales still did not take off.
ApproachMcHugh & Company was retained to conduct a 'fresh pair of eyes' assessment of the company and to help the management team craft a focused strategic direction. The objective was twofold: 1) find a strategy that delivers results and 2) get the management, Board and investors in alignment about the business model and strategy. We completed a comprehensive review of the company, did extensive industry analysis, interviewed industry experts and customers and worked with management to sort through strategic choices.
ResolutionAll parties called this an 'invaluable process'. The process:
  • allowed key decision makers to provide input and buy into the strategic plan
  • enabled the Board to clearly see the strategic decisions that had to be made
  • produced a clear business model
  • provided the CEO a path forward given the patent and manufacturing process the company was trying to develop and successfully market

Implementation of the plan enabled the company to first hit cash flow breakeven and then become and stay profitable. The “plan” is still in place today.
Links to the other strategy development cases:
  1. New Strategy Generates Action…Operational Plan Produces Results
  2. Changing the Business Model
  3. Corporate Planning in a Diversified Multi-National
To view a list of all McHugh & Company Case Studies, click here.