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Case Study FDM Nov 2023 > Big Picture > Flashcards

Big Picture Flashcards

1
Q

What is your name?

A

Stockard Matelier

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2
Q

Who do you work for?

A

Newell Mast

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3
Q

What proportion of sales are expected to be online retail at 2028?

A

53%

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4
Q

How Many agencies are in the industry currently (approx.)?

A

8000

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5
Q

How much Martech and AI software’s are available (approx.)?

A

10000

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6
Q

When was FDM founded?

A

2016

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7
Q

What is the proportion of SEO work by FDM?

A

20%

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8
Q

What is the proportion of Paid Search Management work by FDM?

A

40%

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9
Q

What is the proportion of other services by FDM?

A

40%

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10
Q

In 2022, what is the total number of staff?

A

85

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11
Q

What is the director charge out rate in 2022?

A

£215

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12
Q

What is the manager charge out rate in 2022?

A

£115

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13
Q

What is the team leader charge out rate in 2022?

A

£90

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14
Q

What is the team member charge out rate in 2022?

A

£60

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15
Q

What are some of the downsides of the billable pricing approach?

A

adversarial client relationship, large clients resist increases or demand discounts

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16
Q

Which pricing method is seen to reduce the client churn rate?

A

performance based pricing

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17
Q

Which pricing method is higher risk but often higher reward?

A

performance based pricing

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18
Q

Which pricing method is only sometimes negotiated by clients and is a risk for FDM if costs overrun?

A

fixed price

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19
Q

How to work out lifetime in years of a client?

A

1/churn rate

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20
Q

How to calculate client LTV?

A

Expected GP x Potential Lifetime of Engagement

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21
Q

LTV - what should be considered when taking on a new client?

A

clients often cost more in early stages of development, billable hours could be uncompetitive, uses estimated churn rate

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22
Q

What’s the revenue mix in 2023 from major to small client sizes

A

25%, 25%, 24%, 26%

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23
Q

What is the closing cash balance in 2022?

A

£1,757k

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24
Q

What kind of work do FDM provide for Compere?

A

SEO under Billable Hours

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25
Q

What is the current annual revenue for Compere?

A

£25,320

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26
Q

What kind of work do FDM provide for Sublime?

A

SEO under Billable Hours (heavily discounted rates) and Paid Search Management which is Performance Based

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27
Q

Who has expressed interest in the FDM Shares?

A

Big Bison

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28
Q

What would be the strategy likely employed by FDM is they were to sell to Big Bison?

A

“Pump and Dump”

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29
Q

What does the staff attrition KPI not include?

A

staff who leave and join in the same year

30
Q

What are the main operational improvement suggestions?

A

invest more in “martech”, exit interviews for staff, staff attrition KPI updated, strategically understaff the business, allow more home working, potential move to Manchester

31
Q

What is the non-billable time allowance given to staff?

A

15%

32
Q

How many directors are there in 2022?

A

5

33
Q

How many managers are there in 2022?

A

7

34
Q

How many team leaders are there in 2022?

A

10

35
Q

How many team members are there in 2022?

A

63

36
Q

What is the average salary including bonus in 2022?

A

£45.4k

37
Q

How is AMFIH calculated?

A

total revenue/ total headcount

38
Q

What is the relationship between revenue and headcount?

A

strongly linear

39
Q

If FDM have a 35% growth in headcount and revenue, what would the staff headcount be at the end of 2023?

A

115

40
Q

What are the two key risks to FDM?

A

client churn and margin dilution

41
Q

What are FDM’s strategic goals?

A

award winning service levels, highly engaged staff, broad mix of satisfied and profitable clients

42
Q

What are the other risks to FDM?

A

failure to win new clients, missed staff recruitment and attrition targets, London office short term lease, inappropriate use of confidential data

43
Q

What were the financial results of Collective Link when Big Bison acquired them?

A

Operating profit £3.8m (30% margin), CAGR 20%, revenue doubled since 2018

44
Q

What is the martech platform detailed in the media coverage?

A

Jetstream - global remote working AI driven reporting and analytics & high levels of data encryption

45
Q

What percentage of mattresses are purchased online (Sublime)?

A

50%

46
Q

Where are FDM advertising for new job roles?

A

London

47
Q

What does the research article published by Camford University Business School state?

A

Employees have greater power, “quiet quitting” is increasing

48
Q

What percentage of UK workers are said to be “quiet quitting”?

A

30%

49
Q

What are the 6 key reasons for staff leaving over the past 6 months?

A

Job not what was promised, Long hours, Boring Work, No time to take holiday, No recognition, Micro-management

50
Q

What are the 6 key reasons for staff staying in the digital marketing sector?

A

flexibility, work-life balance, job satisfaction, opportunity for career progression, recognition, rewards

51
Q

What may happen if the business is strategically understaffed?

A

the “right” individuals stay on and the “wrong” ones leave

52
Q

How much lower are salaries in the North of the UK in comparison to London?

A

20-25%

53
Q

Who is most against the proposed sale to Big Bison?

A

Jerzel

54
Q

What target of social media followers has Brienne just surpassed?

A

1 million

55
Q

What are the risk management techniques proposed?

A

monitor client mix (25% per client size), offer flexible pricing (to improve profitability and client retention), reduce pitch costs and gain clients through reputation, focus on high-margin activities

56
Q

What’s the average client churn rate in 2022?

A

15.2%

57
Q

What is the target AMFIH for 2023?

A

£8.1k (same as 2022 as both revenue and headcount are forecasted to increase by 35%)

58
Q

What do all new billable staff have to do on joining FDM (unless they have a proven track record of experience)?

A

6 week induction training programme

59
Q

Who is part of the staffing committee?

A

1 manager, 1 team leader and 2 team members. They meet monthly with Zizi and one other director. The members of the committee are elected each year.

60
Q

What did Brienne agree for HSG?

A

she reluctantly agreed to sign them on under the performance based method. A perk for her was the beneficial reputational impact for her personal brand as she would be promoted as a supporter of organisations with a social mission.

61
Q

Who is the full service agency based in Manchester named as a competitor?

A

Collective Link

62
Q

Who are the two digital marketing agencies based in London named as competitors?

A

Tribalist and Bracket

63
Q

What is Brienne’s shareholding (managing director)?

A

35%

64
Q

What is Jerzel’s shareholding (sales and technology director)?

A

30%

65
Q

What is Jai’s shareholding (Finance director)?

A

25%

66
Q

What is Zizi’s shareholding (HR Director)?

A

5%

67
Q

What is Ron’s shareholding (Operations director)?

A

5%

68
Q

What is an issue with FDM being more socially and environmentally responsible?

A

tension with clients who do not share FDM’s views

69
Q

How to most and large agencies differ when in comes to media buying?

A

most agencies pass cost on to client, large agencies have buying power so can make a margin which is included in their reporting revenue

70
Q

What are some ways in which martech has transormed marketing?

A

process of buying and selling digital market space, automation of marketing copy, AI driven CRM systems

71
Q

What is the main legal and regulatory requirement to consider?

A

GDPR which require organisations to obtain explicit consent from individuals before using personal data

72
Q

What has the compound annual growth rate (CAGR) in the digital marketing sector over the last ten years?

A

10%

Case Study FDM Nov 2023 (1 decks)

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