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Company Profile

& Report


Company History 3
Mission Statement 6
Statement from the Chair 7
Company Timeline 8
Board Directors 12
Corporate Governance 15
Group Structure 16
Operating Units 17
Financial Performance Measures 21
Share Price and Market Capitalisation 22
Financials 23
Non-financial Performance Measures 27

Learning Dynamics 2015
Global Advertising
Company History / 1

Company History
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).

The London Agency

Westcott Waldron Morrissey Vickers (WWMV) was founded more than 30 years ago but
as three of the original founding partners Westcott, Morrissey and Vickers cashed-out,
the last remaining founding partner, Juliette Waldron, saw the opportunity to take
advantage of globalisation to grow the agency network by merging with the New York
agency Silberstein & Lord and the Paris agency Roux, Toussaint, Berthe.

The New York Agency

Silberstein & Lord is on Madison Avenue and Lloyd Silberstein is both president and
creative director. He was described in Ad Age as one of those old-style advertising
mavens who would go onto the ledge of his 50th-floor office to fight for a creative idea. The
agency dates back nearly 30 years when it established its reputation as a highly creative
boutique and attracted some of the top Fortune 500 companies as clients. Its reputation
was set in stone when it won a slice of the General Automotive business. Robert Lord,
the second founding partner and previously director of client services, left the agency due
to failing health, leaving Lloyd Silberstein in charge. A large personality, Lloyd Silberstein
has the reputation of not being able to keep his top staff.

Learning Dynamics 2015
Global Advertising
Company History / 2

The Paris Agency

Roux, Toussaint, Berthe (or RTB as they were known) is based in Paris. Raphael Roux,
who had a highly successful career with a major cosmetics firm as international
marketing director, teamed up with two of the agency staff who serviced the companys
business: Serge Toussaint and Philippe Berthe. RTB soon had an enviable reputation
and produced highly creative award-winning work in the French tradition of 'risqu
iconoclasm' as it was referred to in an advertising survey in Le Monde.

The Merged New Agency WRSX/WaldronRouxSilbersteinXao

These three companies merged 15 years ago and decided upon the name of
WRSX/WaldronRouxSilbersteinXao, which a majority of the founding partners believed
reflected the size and reputation of the merging companies. The founding partners and
shareholders consisted of: Juliette Waldron of WWMV, Lloyd Silberstein of Silberstein &
Lord, Raphael Roux of Roux, Toussaint, Berthe and Victor Xao, a senior director in the
London agency. Their stated strategy at the time was:

Creative quality and a range of advertising and marketing

communications services to support targeted clients globally.

Learning Dynamics 2015
Global Advertising
Company History / 3

WRSX LSE Listing

WRSX went public through an Initial Public Offering eight 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. You, as one of a 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.

You have been brought in to help redirect the fortunes of the company because of your
strong strategic track record in a related industry.

Learning Dynamics 2015
Global Advertising
Mission Statement

Mission Statement
We exist to make our clients successful through differentiating and strengthening their
brands by creating advertising and using a range of marketing related activities.

How We Add Value

WRSX is a creative, innovative, customer-driven communication company built around
highly specialised business units. Due to the way the Group has developed historically,
mainly through merger and acquisition, the structure of the business contributes to the
independence of the various business units with a great deal of autonomy that we believe
contributes to the effectiveness of the service we offer our clients. Industry sector and
business unit specialisations are a key part of delivering our mission.

Advertising Specialisation by Industry Sector

WRSX has developed its reputation as a leading advertising agency and has attracted
global clients through its expertise in the following sectors: automotive & transport;
health & pharmaceuticals; telecoms; personal care, beauty & fragrances; public sector &

Business Unit Service Specialisations

In addition to advertising, WRSX has acquired business units with expertise in the
following service sectors: media buying, public relations, research & insight, direct
marketing, branding, film production, sports marketing.

Learning Dynamics 2015
Global Advertising
Statement from the

Statement from the Chair

We are a mid-sized advertising agency group with a good creative reputation offering a
range of advertising and marketing communications services. Our challenge, as I see it,
is to take a mid-sized player and turn it into a top 20 agency group with a global presence
and, through this strategy, to increase return on investment for our shareholders.

If we want to increase our market share, we have to take it from someone else. We can
do this either by: expanding our market share in our existing markets; or by expanding
the range of products and services we offer our clients in those markets; or by growing
ahead of our competitors through expanding our operations geographically; or by
targeting new industry sectors.

Many of our competitors are pursuing growth strategies by mergers and acquisitions.
Most are relying on acquiring advertising businesses alone, while at WRSX, our strategy
to date has been to increase our portfolio, not only in advertising businesses, but also in
research, PR, direct marketing, branding, film production and even sports marketing. We
have acquired businesses in the past and some acquisitions have been more successful
than others, so we will balance the opportunity to grow through acquisition with a firm
focus on growing our existing businesses.

We are no longer appropriately described as an advertising agency. We can be more

accurately described as a diverse but related marketing communications group which can
offer our clients an integrated package of services within the same group of companies
with service quality and creative quality being assured by our improving reputation.

Our strategy is going to put a heavy demand on our management abilities. As you already
know, I have taken steps to strengthen the Board of Directors in order to have a Board
that challenges our thinking and that takes a dispassionate view of our strategy and

I am confident that continuing with our growth strategy, and increased focus on business
strategy in bringing our costs in line with industry averages, will set us on the path to
increased growth in market share, profitability and returns for our shareholders.

Juliette Waldron, Chair, WRSX Group

Learning Dynamics 2015
Global Advertising
Company Timeline /

31 years ago Youthful talent and drive

At this time, the present-day WRSX chairman Juliette Waldron gets together with Richard
Westcott, Sean Morrissey and John Vickers to found one of the new-wave London creative
agencies. Creative directors Morrissey and Vickers have many awards between them.
Campaign magazine calls it a marriage made in creative heaven. Many client accounts
follow the talent to the new agency.
30 years ago First big win
WWMV wins a slice of an international airline account from one of the larger, more
established agency groups.
29 years ago First diversification
PR division started. Leading PR person joins and starts new division.
27 years ago WWMV goes west
New York contact office opened through client pressure.
24 years ago Consumer advertising agency of the year
WWMV confirmed as the fast moving consumer goods agency of the year.
21 years ago Retail advertising unit established
WWMV offered the advertising account of the second largest retailer in the UK if they set
up a retail unit. WWMV agrees to do this.
19 years ago WWMV on the continent
Paris contact office opened through client pressure.
17 years ago Waldron buys out partners
Three founding partners bought out by Juliette Waldron.

Learning Dynamics 2015
Global Advertising
Company Timeline /

Silberstein & Lord Timeline

28 years ago The Big Apple

Lloyd Silberstein and Robert Lord join forces to establish their agency in New York. Lloyd
Silberstein has a background in copywriting with a top agency in Chicago but his ambition
was always to be on Madison Avenue. He is approached by Robert Lord, something of a
father figure and a famous marketing name and they decide to start their own agency.
27 years ago First creative award
Copywriters Association of New York votes S&L top consumer advertising agency.
26 years ago Direct Marketing Unit
S&L acquires a Direct Marketing company with a large downstream mailing services
25 years ago DM Agency of the Year
S&L Direct Communications named DM agency of the year.
21 years ago Car account win
S&L main agency wins the launch of a new GM car model.
19 years ago Robert Lord retires
Due to ill health, Robert Lord retires. Lloyd Silberstein becomes president, S&L NY.
17 years ago Approach by WWMV
Invited to merge and found a large international agency grouping by Juliette
Waldron of WWMV to form WRSX.

Learning Dynamics 2015
Global Advertising
Company Timeline /

Roux, Touissaint, Berthe Timeline

21 years ago French flair

Raphael Roux always believed that you never do things by halves, so he persuades his
new agency partners, Serge Toussaint and Philippe Berthe, to launch the agency with a
bang by stopping the traffic on the Champs lyses with a parade and being featured on
the evening TV news. The agency has always had a high profile ever since.
20 years ago FMCG account wins
The major competitor to Rouxs former employer appoints the agency to handle a portfolio
of brands through EMEA.
19 years ago New creative director
Pierre-Jean Xavier (P-J), creative high-flier, joins the agency as creative director.
18 years ago PR and film production unit
RTB starts a PR company and the new creative director persuades the board to invest in
a film production unit.
17 years ago Consumer agency of the year
RTB named consumer agency of the year in France.
17 years ago Financial services account win
RTB wins the account of Europes largest insurance company.
17 years ago Approach by WWMV
Invited to merge and found a large international agency grouping by Juliette Waldron of
WWMV to form WRSX.
15 years ago WRSX The new integrated agency is born
Present-day WRSX chairman, Juliette Waldron, gets together with Raphael Roux, Lloyd
Silberstein and Victor Frederick Xao to re-invigorate the business and restructure the
equity with personal investments. This is billed by Campaign magazine in London and Ad
Age in New York as an integration of massive talents watch this space.

Learning Dynamics 2015
Global Advertising
Company Timeline /

15 years ago NY offices combined

The WWMV contact office closes and personnel transfer to the S&L offices.
1314 years ago Fastest growing agency
18% growth per annum.
10 years ago Advertising Age Agency of the Year Award
Judges vote WRSX International Agency of the year.
8 years ago WRSX makes public offering
Shares traded for the first time on the London Stock Exchange.
7 years ago Big account wins in France
Paris office expanded. Range of services widened.
6 years ago New York account losses
Lloyd Silberstein had to announce the loss of a big account. New York office re- structure
5 years ago Raphael Roux appointed as global CEO
Juliette Waldron appoints Raphael Roux as CEO.
5 years ago Singapore office opened
With Victor Xaos experience and encouragement from an FMCG client wanting to launch
in Thailand, Malaysia, Philippines, Hong Kong and Singapore, an office in Singapore is
4 years ago Diversification
The board decides to widen the range of disciplines and makes acquisitions in research.
3 years ago Revenue tops 200 million
The Groups revenue topped the 200 million mark this year.
2 years ago The Group makes further acquisitions
The Group diversifies into brand identity and digital media.

Learning Dynamics 2015
Global Advertising
Board Directors -

The Main Board of Executive Directors

Executive Chairman Juliette Waldron

Global CEO Raphael Roux

Paris office MD Serge Toussaint

London & Singapore office MD Victor Frederick Xao

New York office President Lloyd Silberstein

Chief Financial Officer Leena Chakrabati

Group HR / Talent Director Francoise Mellier

Group Market Insights Director Bjorn Krog Jensen

Juliette Raphael Leena Victor Lloyd Serge

Waldron Roux Chakrabati Frederick Xao Silberstein Toussaint




Francoise Bjorn because you are also a main Board

Mellier Krog Jensen Director

Learning Dynamics 2015
Global Advertising
Board Directors

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.

Sandrine Mauret Director, GDF Industries, Brussels

Mervyn Hill-Lewis Director, RLT Financial Services, London

Rod Raoul Saurez Director, Telecoms Worldwide Inc., New York

Sandrine Mervyn Rod Raoul

Mauret Hill-Lewis Saurez

Learning Dynamics 2015
Global Advertising
Biographies: Non-
Executive Directors

Non-Executive Directors
Below are summary biographies of the three current Non-Executive Directors of WRSX:

Sandrine Mauret, Director, GDF Industries, Brussels.

Sandrine Mauret is seen as a rising star at GDF where she is Director of Operations
(Brussels). GDF is a major utility supplier of gas and electricity to the commercial and
residential sector. Mauret obtained her MBA at IMD in Switzerland where she met
Raphael Roux. Roux invited Sandrine Mauret to join the WRSX Board as a Non-Exec
three years ago. Mauret is also a Non-Exec of three other companies, a trustee of the
Opera House in Paris, a UNICEF Special Envoy for Humanitarian needs in Africa and a
prospective member of the European Parliament.

Mervyn Hill-Lewis, Director, RLT Financial Services, London.

RLT were major clients of WRSX during Mervyn Hill-Lewis time as Marketing Director of
RLT. RLT are the UKs seventh largest financial services company. Mervyn retired from
RLT when it was acquired by Spanish financial Services Group, Santos, four years ago.
He has been a Non-Executive Director of WRSX for six years.

Rod Raoul Saurez, Director, Telecoms Worldwide Inc., New York.

Telecoms Worldwide Inc. is a major player in the telecoms industry in the USA. He has
an astute brain and is seen as giving wise counsel to the Board.

Learning Dynamics 2015
Global Advertising

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 have been made to date.

This occurred despite the appointment of three Non-Executive Directors, all of whom are
up for re-election this year. There is a move among shareholders to ask for the
appointment of new Non-Executive Directors who are strong in corporate governance.

The Group does not currently have a group-wide stated code of corporate governance as
this issue is managed at a local level.

Learning Dynamics 2015
Global Advertising
Group Structure

WRSX Group Main Board

Company Secretary Chairmans PA

Paris Office New York Office London Office Singapore Office

Office Central Office Central Office Central Office Central

Services * Services * Services Services

Consumer Consumer Consumer Consumer

Advertising Advertising Advertising Advertising

Media Services Media Services Retail Advertising Media Services

PR Company Direct Marketing Media Services Branding & Identity

Film Production Photographic PR Company Exhibitions &

Studio Conferences

Photographic Mail Handling Consumer Outdoor Media

Studio Services Research

Web Design Digital Media / New Media New Digital/Media

Company Web Design

Relationship Research & Branding & Sports Promotions

Marketing / CRM Insight Identity

Research & Insight Lobbying Audio Visual

Consultancy Consultancy Productions

Branding &

* Office Central Services = Planning & Finance, HR, Marketing, Procurement & IT

Learning Dynamics 2015
Global Advertising
Operating Units / 1

Paris Consumer Advertising Agency Photographic Studio

Name: WRSX Paris Name: Atelier Photographique
MD: Serge Toussaint MD: Jean-Luc Breton
Specialisation: Consumer Specialisation: Packaging and food
advertising photography

Media Services Web Design Company

Name: WRSX MediaCom Name: InterDessin
MD: Dominic de la Noe MD: Pierre Rousset
Specialisation: Media planning and Specialisation: Interactive websites

PR Relationship Marketing/CRM
Name: Publicitas Name: WRSX 121
MD: Sylvie Tourre MD: Daniel Auchan
Specialisation: Consumer PR Specialisation: Direct marketing

Film Production Research and Insight Consultancy

Name: Cine FX Name: Perspectives Consommateur
MD: Jean-Luc Breton MD: Ghiselle Briant
Specialisation: Animation and Specialisation: Behavioural research
digital effects
Global Advertising
Operating Units / 2

New Consumer Advertising Agency Digital Media/Web Design

York Name: WRSX New York Name: Quazar
MD: Lloyd Silberstein MD: Rick la Motta
Specialisation: Consumer advertising Specialisation: Corporate websites

Media Services Photographic Studio

Name: WRSX MediaCom Name: Drive-In Studios
MD: Ronald Rosenshine MD: Rick la Motta
Specialisation: Automotive photography
Specialisation: Media planning and
Research and Information
Direct Marketing Agency Name: A. W.
Name: WRSX Direct
MD: Liz-Anne Botma
MD: John Soares
Specialisation: Direct marketing
Specialisation: Classic DM

Lobbying Consultancy
Mail Handling Services
Name: FastTrak Mailings Name: Smith Inc.
MD: John Soares MD: Bradley W. Smith
Specialisation: Mailings Specialisation: Political lobbying & PR

Branding & Identity

Name: Identica2000 New York
MD: Lloyd Silberstein
Specialisation: Design & corporate

Learning Dynamics 2015
Global Advertising
Operating Units / 3

London Consumer Advertising Agency Consumer Research

Name: WRSX London Name: Synergy Insight
MD: Victor Frederick Xao MD: Penny Alder
Specialisation: Consumer advertising Specialisation: Consumer behaviour

Retail Advertising New Media

Name: WRSX Retail Name: Silverfish
MD: John Hooper MD: Jay Bravura
Specialisation: Specialist retail Specialisation: Digital media channels
Branding & Identity
Media Services Name: Bellamy Borthwick Jones/
Name: WRSX MediaCom Pentagraph
MD: Adrian de Bock MD: Matt de Wolff
Specialisation: Media planning and Specialisation: Corporate identity
Audio Visual Productions
PR Company Name: Audio Image
Name: BTP MD: Grahame Edmunds
MD: Rosie Burton-Taylor Specialisation: Product launches
Specialisation: Consumer PR

Learning Dynamics 2015
Global Advertising
Operating Units / 4

Singapore Consumer Advertising Agency Outdoor Media

Name: WRSX AsiaPacific Name: Impact Media
MD: Victor Frederick Xao MD: J. N.Wang
Specialisation: Consumer Specialisation: Poster sites
New Media/Digital
Branding & Identity Name: The Tube
Name: ImageMedia
MD: Victor Frederick Xao
MD: Stephen Lim
Specialisation: Corporate identity Specialisation: Digital media channels

Sports Promotions
Exhibitions & Conferences Name: Sports World
Name: PromoCo MD: Royce Moon
MD: Deena Patel Specialisation: Brand sports
Specialisation: Exhibitions &

Media Services
Name: MediaCom AsiaPacific
MD: John Read
Specialisation: Media planning and

Learning Dynamics 2015
Global Advertising
Financial Performance

How We Judge Our Performance

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.

WRSX key financial performance ratios (Start Position Period 0) are:


Group average

PBIT Margin 16.5% 19%

calculated as PBIT/Revenue:

Staff Costs Ratio: 63% 58%

calculated as Staff Costs/Revenue

Return on Capital Employed: 12.9% 15%

calculated as PBIT/Total Assets Current Liabilities

Gearing Ratio: 45.5% 42%

calculated as Non Current Liabilities/Total Equity

Note: An Income Statement and the PBIT and Staff Costs Ratio will be displayed
at the end of each decision period in Phase 3 Strategy in Action of the

Learning Dynamics 2015
Global Advertising
Share Price and
Market Capitalisation

Share Price and Market Capitalisation

Following the below industry average performance and allegations of bribery in the
Paris office, 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. The graph below shows
the average share price per quarter over the past nine quarters.

With 125,000,000 issued shares in circulation, this puts WRSX market

capitalisation at approximately 285m.

Earnings per share (pence) last dividend was 15.23p.

Learning Dynamics 2015
Global Advertising
Financials / 1

Please note: Period 0 denotes the position for all WRSX finances at the
start of the simulation.

INCOME STATEMENT for Period 0 m m

Revenue 200.0 240.0

Direct costs (10.0) (12.0)

Gross profit 19.0 228.0

Operating costs:
Staff costs (126.0) (151.2)
Establishment costs (16.0) (19.2)
Other operating (15.0) (18.0)
Total operating costs (157.0) (188.4)

Profit before interest and taxation 33.0 39.6

Finance income 5.0 6.0

Finance costs (10.0) (12.0)

Profit before taxation 28.0 33.6

Taxation (9.0) (10.8)

Profit for the year 19.0 22.8

NOTE: Left-hand column above is in GBP and

right-hand column in Euros (at prevailing
exchange rate)

Learning Dynamics 2015
Global Advertising
Financials / 2


By region Revenue PBIT Revenue PBIT

m m m m

North America 100.0 19.0 120.0 22.8

Western Europe 50.0 8.0 60.0 9.6
Central & Eastern Europe 30.0 3.9 36.0 4.7
Asia Pacific 20.0 2.1 24.0 2.5
200.0 33.0 240.0 39.6

By division Revenue PBIT Revenue PBIT

m m m m

Advertising & Media 76.0 10.0 91.0 13.0

Information, insight & 48.0 7.7 57.6 9.3
Public relations 28.0 6.8 33.6 8.1
Branding & Identity 22.0 4.0 26.4 4.8
Specialised communications 14.0 2.1 16.8 2.5
New media & digital 12.0 1.6 14.4 1.9
200.0 33.0 240.0 39.6

Learning Dynamics 2015
Global Advertising
Financials / 3

BALANCE SHEET at the end of Period 0 m m

Non-current assets
Intangible assets
Goodwill 215.0 258.0
Other intangible assets 50.0 60.0
Property, plant & 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)

Net current assets (liabilities) (39.0) (46.8)

Total assets less current liabilities 256.0 307.2

Non-current liabilities
Bank loans (75.0) (90.0)
Provisions for liabilities and charges (5.0) (6.0)
(80.0) (96.0)
NET ASSETS 176.0 211.2

Called up share capital 8.0 9.6
Share premium 5.0 6.0
Retained earnings 163.0 195.6

TOTAL EQUITY 176.0 211.2

Learning Dynamics 2015
Global Advertising
Financials / 4

CASH FLOW STATEMENT for Period 0 m m

Profit before interest and taxation 33.0 39.6

Adjustments for non-cash items:
Depreciation 4.0 4.8
Impairment of intangible assets 2.0 2.4
Profit/loss on disposals 1.5 1.8

Operating cash flow before movements

in working capital 40.5 48.6
Movements in working capital 12.0 14.4

Cash generated by operations 52.5 48.6

Taxation paid (5.0) (6.0)

Interest paid (7.0) (8.4)
Interest received 3.0 3.6

Net cash flow from operating activities 43.5 52.2

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 0.5 0.6
Net cash flow from investing activities (17.5) (21.0)

Financing activities:
Net movement in long-term borrowing 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

Net movement in cash and cash 43.0 51.6


Cash and cash equivalents at start of 10.0 12.0


Cash and cash equivalents at end of 53.0 63.6


Learning Dynamics 2015
WRSX Non-Financial
Global Advertising

Measures / 1

WRSX key Non-Financial Performance Measures are divided into six

major categories, each with sub-categories (see page 31 for full
list), which are those used in the ADCOM Benchmark Survey:

Twice a year, this survey is carried out to benchmark 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.

The survey uses a selection of Non-Financial Performance Indicators to measure

the perceived performance of each company in the survey against its peers. This
survey is important because it has a direct impact on the projected P/E ratio of
each business and through this the share price of each company in this industry.

In general, a high P/E suggests that investors are expecting higher earnings
growth in the future compared to companies with a lower P/E in the same industry.
A higher P/E also reflects the quality and reliability of those earning and their
perceived risk. Therefore two companies with identical forecast future earnings
may well trade at different P/Es if the market perceives significant differences in
their business strategies, their long-term growth prospects or the capability of
their management teams.

Each of the scores for the Non-Financial Performance Indicators (NFPIs) is driven
by how WRSX performs in the Industry Benchmark Survey.

Learning Dynamics 2015
WRSX Non-Financial
Global Advertising Performance
Measures / 2

Industry Average Score each NFPI 50

WRSX Scores:
1. Management of Growth 43.5

2. Management of Risk 41.3

3. Leadership Capability 39.2

4. Corporate Social Responsibility (CSR) 38.5

5. Client Attraction and Retention 52.0

6. Procurement and Supplier Management 38.7

Average of All Six NFPIs for WRSX 42.2

What the Survey Results Mean:

1. Management of Growth: WRSX is perceived as just below average in terms of
its Entrepreneurial Capability & Management of Organic Growth but well below
average in terms of the way it has managed Acquisitions to date. According to the
survey, it is not seen as a Global player measured against competitors. The WRSX
Brand is quite well known but it is not a Top 20 Brand in the industry. Equally, its
ownership of Trade Names and Intellectual Property Rights is below the industry

Learning Dynamics 2015
WRSX Non-Financial
Global Advertising Performance
Measures / 3

2. Management of Risk: Traditionally WRSX has performed well in benchmark

surveys in terms of its management of Financial Risk but it has dropped below
average as a result of a sustained investment in acquisitions in recent years. Some
acquisitions have not been perceived as financially astute. The recent corruption
scandal involving Raphael Roux has damaged WRSX Groups Reputational Risk
score. Equally, the way the business is structured and managed, i.e. local autonomy
and a light-handed approach by the WRSX Group Board, results in a low score in
terms of Management of Operational, Market and Business Risk against the industry

3. Leadership Capability: Some offices perform well but others perform badly in
terms of Management of Operations, Information Management and Administration
so that across the Group scores average out at below the industry average. WRSX
performs well below the industry average in terms of its Strategic Leadership
Capability, its Ability to Lead and Manage Change and its ability to attract and retain
high quality personnel in key positions in its businesses.

4. Corporate Social Responsibility (CSR): Previous surveys have shown high

scores for WRSX in terms of its ethical stance and its social profile (its social
contribution to the communities in which it trades) but lower for corporate
governance (the set of processes, customs and policies affecting the way the Group
is administered or controlled). All three scores have dropped dramatically following
the corruption scandal involving Raphael Roux and concerns about the strength of
the WRSX Board. WRSX also scores well below industry average in terms of its
sustainability profile/carbon footprint.

Learning Dynamics 2015
WRSX Non-Financial
Global Advertising Performance
Measures / 4

5. Client Attraction and Retention: WRSX scores highly on its market research
capability and its understanding of market segments and channels. It also scores
very highly in terms of its creativity and innovation but this masks a poor score for
this factor in the USA. The breadth of services and disciplines WRSX offers matches
the industry average, being neither a specialist provider nor one of the Top Four
that provides a full range of services to clients. Its account management structure
is perceived as providing a below average service. Value added to clients
businesses is seen currently as very slightly below industry average. This is an
improvement on some previous surveys.

6. Procurement and Supplier Management: WRSX performs badly in terms of

the way it manages production buying and how well it builds and exploits good
relationships with suppliers. It performs particularly badly in terms of the synergies
it achieves through exploiting economies of scale across the Group and it also fails
to use its Group buying power in terms of buying media for clients.

Learning Dynamics 2015
WRSX Non-Financial
Global Advertising Performance
Measures / 5

The six major WRSX Non-Financial Performance Measure category

headings have sub-categories as follows:

1.0 Management of Growth:

1.1 Entrepreneurial capability and management of organic growth
1.2 Competence in acquisition management
1.3 International/global market positioning
1.4 Branding, trade names and intellectual property rights

2.0 Management of Risk:

2.1 Management of financial risk: Forex, liquidity, creditworthiness
2.2 Management of legal and reputational risk
2.3 Management of operational and business risk

3.0 Leadership Capability:

3.1 Strategic leadership
3.2 Excellence in operations, information management, admin, etc.
3.3 Ability to lead and manage change
3.4 Retention of key personnel
3.5 Attraction of next generation / new talent

4.0 Corporate Social Responsibility (CSR):

4.1 Corporate Governance
4.2 Ethics
4.3 Social profile
4.4 Sustainability profile/carbon footprint

Learning Dynamics 2015
WRSX Non-Financial
Global Advertising Performance
Measures / 6

5.0 Client Attraction and Retention:

5.1 Market research/understanding market segments and channels
5.2 Breadth of services and disciplines
5.3 Creativity and innovation
5.4 Account management structure
5.5 Value-added to client businesses

6.0 Procurement and Supplier Management:

6.1 Media buying effectiveness
6.2 Exploitation of synergies that deliver economies of scale
6.3 Effective production buying and management of suppliers/spend

Learning Dynamics 2015