Oompa-Loompas in Large Numbers

I have my Strategy Formulation and Implementation exam tomorrow. I have Finance as well, but I’ve given up on getting a respectable grade for Fin, so it’s only SFI I’m going to worry about.

Due no doubt to a regrettable lack of application on my part, I have failed, in the past month and a half, to become a brilliant formulator of strategy for multibillion dollar international firms.

Take, for instance, a company called – to avoid copyright violation and keep myself from getting sued right, left and centre – XYZ. A couple of hundred billion worth of assets, retail outlets in 47 countries across four continents, fifty billion sales in the past quarter… OK, so I tacked on a few zeroes here and there. It makes it all sound so much more impressive.

I start by identifying the problem or potential for improvement or whatever it is. Step One is to go to the Google advanced search option and see if some philanthropic person has posted the solution to the case as an Adobe document on the Internet. If Step One results in success, the job is done there. If – as is more common – it fails, you curse a bit, close the browser, and define a problem.

So XYZ has massive profits, its CEO owns two yachts and an island in the Caribbean, and it had higher earnings last year than several countries. What could possibly be wrong? Nothing. Nope, it’s perfect, nothing to do, just be careful not to rock the boat.

Do not rock the boat, one types. And then one realizes that may be a little too short for a graded submission, and makes liberal use of the backspace key.

There isn’t a problem I can see, so let me assume a problem. An underground party of Oompa-Loompas is planning to take over XYZ because they don’t like the CEO’s twelve-storey island home. It spoils the view of the palm trees.

OK, now I have a problem. To repel the Oompa-Loompa takeover bid and emerge a better, stronger firm. But that is a very nebulous objective; to be scientific and disciplined and logical and deserving of a good grade, I should introduce some quantifiable aims. God demands Numbers.

I could just add another zero to the profit margin and advise the CEO to gun for that, so that earning enough money to buy XYZ would require the entire Oompa-Loompa population to engage in pillaging ancient treasures for the next six decades. But no, five hundred billion is an obscene figure, and I doubt it’s achievable in any case.

I haven’t any other numbers, so let’s find some quantifiable parameter and give it a Number. The state of the CEO’s relations with the Oompa-Loompa chief, that’s one. When all is peace and light and friendship, the Number is one, and when the Oompa-Loompa chief is busily handing out the Violet Beauregarde treatment, the Number is zero. The way things are at the moment, the Number is roughly 0.05.

Objective: The Number should be above 0.95. (An argument about whether daffodils are prettier than lilies is acceptable.) (A full description of how the Number is calculated is provided in footnote 4(a) to Exhibit 25.)

Strategy: Offer the Oompa-Loompa chief $25,000,000,000 to tell the people back home that the twelve-storey house is just a mirage. Back it up with the theory of relativity, and fund research on bending the space-time continuum to solve the problem. There may be some legal issues involved in the bribery though – no, wait, there is no group in the entire universe that has authority over human beings and Oompa-Loompas. No trouble there, then… Now we just fork another hundred million or so out to a mad scientist to come up with the physics of the explanation, and we’re all set.

Time Horizon: An hour to call the Oompa-Loompa chief and explain the proposition, another two hours to arrange for the money transfer, thirty seconds to make a trans-Atlantic call and three minutes to tell the Head of Research to stop playing with his toys and expound some reasoning. Totally, 183 minutes 30 seconds. Allowing some cushion for the telephone lines being busy, 184 minutes 14 seconds.

Positive Outcomes: The Oompa-Loompa chief keeps his sceptre, the CEO keeps his yachts and mansion, and XYZ will shortly be able to finance a submarine or so.

Negative Fallouts: Well, it just may happen that the Oompa-Loompas throw their chief in the chocolate river and go at the CEO’s mansion with a truckload of dynamite and a match, but then again it may not. And anyway it’s worth the risk.

As was writing this.