1. May 17, 2008 Return Driven Strategy: Analysis of the Strategy and Execution of GSB 611 Return Driven Strategy Spring 2008 Professor Mark L. Frigo Professor Joel Litman Kellstadt Graduate School of Business DePaul University Rajarshi Das / rajarshid@yahoo.com Andy Deutschmann / am_deutsch@yahoo.com Scott Gottman / scottagottman@yahoo.com John Hering / jphering1@comcast.com Voula Moragiannis / voula.moragiannis@gmail.com Ryan Pearce / rpearce@williamblair.com Kyle Reinert / kyle_reinert@us.schindler.com Kurt Wunderlich / wunder26kj@yahoo.com Do not copy or redistribute without express written consent of Dr. Mark L. Frigo

2. Video: http://www.youtube.com/watch?v=8Vx1BTBhg4c

3. Omnicom Group (OMC) Overview “We are a strategic holding company...” “Our companies provide advertising, marketing and corporate communications services…” “We provide professional services to clients through multiple agencies operating in all major markets around the world...”

5. Formed in 1986

6. 5,000 clients in 100 countries

7. $15.70 billion market cap

8. $12.6 billion in revenue

9. 80% from Advertising & Customer Relationship Management

10. 8% Domestic Growth (yoy) vs. 16% International Growth (yoy)

11. Service offerings include:

12. Media Advertising ❏ CRM

13. Public Relations ❏ Specialty Communications

14. Largest of “The Big 4”

16. RDS Performance Profile of Omnicom (OMC)

18. Seek consistent returns through a diversified, complimentary portfolio

19. Creative-centric business model backed with outstanding service quality

20. Rich dividends

21. $0.60 dividend

22. Continuous Investment

23. Skills, tools & talents

24. Employees (Omnicom University)

25. Communities and environmentsOff-Balance Sheet Allegations 9/11

27. Maintain creative talent

28. 70,000 employees / Fierce competition

29. CRM

30. 37% of total revenue

31. 14% growth from 2006

32. Digital Marketing

33. Industry’s largest digital holding company (Advertising Age)

34. Internet, Mobile Marketing, etc

35. Target Appropriate Groups

36. Demographics

37. Hispanics spending $1 trillion by 2010

38. Target Emerging Markets

40. Client-centric model

41. Customer touch points

43. Invest tools (Catalyst)

44. “Disruption” (TBWA)

45. Brand Offerings

47. Attract, Retain, and Develop

48. Omnicom University

49. Advanced Management Program

50. Global commitment to development

51. Localization

53. Loss of key clients

54. Consolidation

55. Reduction in client budgets

56. Technology

57. Shifts in viewing habits

58. Mobile media

59. Non-advertising revenue

60. Global economics

61. Regional market conditions

62. Government regulations

63. Exchange rates

66. 3 or more pages: Bibliography, sources, research notes Omnicom Group. 2008. Omnicom Group, Inc. 8 May 2008. <http://www.omnicomgroup.com> Donald, William H. and James Peters, CFA. “Industry Surveys: Advertising”. Standard & Poor’s, 9 August 2007. Net Advantage. DePaul University, Chicago, IL 8 May 2008. <http://www.lib.depaul.edu/> Donald, William H. “Global Industry Surveys: Advertising Asia”. Standard & Poor’s, May 2007. Net Advantage. DePaul University, Chicago, IL 8 May 2008. <http://www.lib.depaul.edu/> Donald, William H. “Global Industry Surveys: Advertising Europe”. Standard & Poor’s, April 2007. Net Advantage. DePaul University, Chicago, IL 8 May 2008. <http://www.lib.depaul.edu/> “HP and Omnicom enter into strategic marketing agreement”. 21 April 2008 Telecomworldwire. 27 April 2008. <http://www.m2.com> “Omnicom Group Inc. March 2008 Quarterly Report.” 2008. 2 May 2008. Omnicome Group Inc. <http://sec.gov> Morrissey, Brian. “What’s Driving OMC’s Digital Strategy?” 15 October 2007. AdWeek. <http://www.adweek.com> “OMD Worldwide Ranked Most Creative Media Agency in the World by the Gunn Report for Fourth Consecutive Year; Omnicom Media Group Named Most Awarded Media Holding Company”. 10 April 2008. PR Newswire, <http://www.prnewswire.com> Creamer, Matthew. “Wren Gives Omnicom Tools to Reinvent the Ad World”. 8 January 2008. Advertising Age, <http://www.adage.com> Cuneo, Alice Z. “Hewlett-Packard, BBDO Form Alliance That Goes Beyond Ads”. 21 April 2008. Advertising Age. <http://www.adage.com>

67. 3 or more pages: Bibliography, sources, research notes “Omnicom Expands Omnicom University’s Advanced Management Program to Asia Pacific”. 20 September 2007. PR Newswire. <http://www.prnewswire.com> Johnson, Bradley. “Omnicom Group: 2007 Year in Review”. 5 May 2008. Advertising Age. <http://www.adage.com> Atkinson, Claire. “Agencies in Quest for Respect”. 14 April 2003. Advertising Age. <http://www.adage.com> “The Industry Battles for Multinationals’ Global Accounts”. 19 March 2005. Economist. DePaul University, Chicago, IL 10 May 2008. <http://www.lib.depaul.edu/> “Media Perspective: Omnicom Can’t Risk Taking Its Eye Off The Media Playing Field.” 1 June 2007. Campaign. DePaul University, Chicago, IL 8 May 2008. <http://www.lib.depaul.edu/> Quinton, Brian. “How Bulletproof?” 1 May 2008. PRIMEDIA. DePaul University, Chicago, IL 8 May 2008. <http://www.lib.depaul.edu/>