IMES undertakes four main types of consultancy project:
“Is this a viable business venture?”
Case Study 1:
Leading investment company Al Faisaliah Group distributes electronic products in Saudi Arabia through its subsidiary Modern Electronics. A review of business opportunities had suggested that the company should become more widely involved in the retailing of consumer electronics, and so IMES was called in to carry out a feasibility study for the proposed venture, examining several alternative models, with an ‘electronics megastore’ the company’s initially preferred option.
The IMES team visited the Kingdom’s main commercial centres (Riyadh, Jeddah, Dammam) and interviewed a cross-section of over 30 key electronics market participants such as importers, distributors and retailers of different sizes. The insights obtained from them were fed into several alternative scenarios, such as a chain of smaller stores or a small number of megastores, in order to estimate potential Return On Investment.
The conclusion of the study was that the existing intense competition for business was resulting in low net margins for retailers, and that this was likely to become even worse with several new entrants already in preparation. Under the circumstances, it was highly unlikely that a venture into the sector could meet the client’s internal ROI requirements. The client was advised to drop the idea, which it did.
Case Study 2:
A member of the Saudi Royal family wished to contribute to the country’s development by building a private hospital. However, there remained a number of key questions such as the optimum location (Jeddah, Riyadh etc.), the services to be offered (e.g. general medicine, cardiac specialisation etc.) and the optimum size (number of beds). Advisers approached IMES to conduct a feasibility study.
The IMES consultants began by mapping current hospital provision in the major cities. Detailed statistical analysis was then conducted to determine the frequency of different types of medical intervention and compare these with availability. Finally, interviews were held with healthcare professionals and the Ministry of Health to obtain views on the gap between available and required coverage.
It was initially concluded that Riyadh was the preferred location from a feasibility perspective, although for external reasons the client then lent towards Jeddah. Working within this parameter, IMES was able to recommend a 150 bed general surgical and medical facility with additional specialisations in orthopaedics and rehabilitation therapy.