BU战略计划基本(1).pptx

BU Strategic Plan BasicsJune 2001This presentation contains detailed notes to the slides. If you are viewing the downloaded version, please click on Notes Page in the View menu to see both slides and commentary511246DESCRIPTION OF MATERIALSThis document was developed as a training presentation for the newly appointed business unit CEOs of an Asian family-owned conglomerateThe purpose of this document is to guide new CEOs through the basic elements of developing a BU-level strategic planThis pack includes a companion document, “BU Strategic Plan Template Book,” which provides completeness and consistency of BU strategic plan submissions. These templates are not intended to replace or constrain BU strategic thinking and should be adapted to reflect a particular BUs sectoral context as required2WHAT IS A BU STRATEGY?A strong business concept that drives an integrated set of actions that creates value by:Creating products/services whose value exceeds the cost of providing themCapturing value from competitors, customers, distributors, suppliers, and producers of substitute products and services3RATIONALE FOR PROPOSED DEFINITIONA strong business concept that drives an integrated set of actions that creates value by:Creating products/services whose value exceeds the cost of providing themCapturing value from competitors, customers, distributors, suppliers, and producers of substitute products and services1. Recognizes dual role of creating and capturing value in all elements of business system2. Forces choices6. Competitive7. Externally oriented, customer driven4. Recognizes importance of cost as competitive tool5. Considers trade-offs between benefit provided to customers and costs they incur3. Gives consideration to all elements of the business system4COMMON ELEMENTS OF REAL-LIFE STRATEGIESVisionWhere?Strong businessconcept comprising:How tocompete?Integrated set of actionsDeveloped high quality standards and excellent operational proceduresFocus on developing critical mass of stores and establishing market dominanceMcDonalds experienced phenomenal success in globalization due to: Successfully screening franchisees and a dedication to intense initial and ongoing training Consistent delivery of high-quality food and service around the world Huge economies of scale and powerful supplier leverage Capitalization of “American” appeal of McDonalds Success in tailoring assortment mix to meet local needs“We want to be the worlds best quick-service restaurant experience”“We will offer consistently excellent quality across the world”Targeting a broad set of the urban population, increasingly offering a bundled product (meals) at a low price in major cities around the worldMcDONALDS EXAMPLE5BU STRATEGY REVIEW INTERACTIONSHighly interactive debate driven by fact-based understanding of environment and internal capabilitiesHow do you expect Competitor A to react?How sustainable is your business model? Can it be easily duplicated?How robust are your contingency plans?How quickly can you shift your business emphasis to capture industry opportunities?BU CEO6BU STRATEGIC PLAN DEVELOPMENTIndustry dynamics and implicationsEnvironmental and internal assessmentCompetitive assessmentInternal assessmentWhat are the major changes in industry dynamics and resulting opportunities and risks?What are your competitive strengths and weaknesses?How does your current business emphasis fit with industry opportunity and competitive landscape?Strategy articulationStrategic definition and implicationsStrategic initiativesFinancial projectionsWhat strategy will your BU pursue over the next 3 years?What will be the impact of major strategic initiatives?What are the expected financial returns of your strategy?+Risk/contingen-cies & strategic alternativesWhat strategic alternatives have you considered?+7INDUSTRY DYNAMICS AND IMPLICATIONSEconomics of demand By segment Substitutes, ability to differentiate Volatility, cyclicalityEconomics of supply Producer concentration and diversity Import competition Capacity utilization Entry/exit barriers Cost structure (fixed and variable)Industry chain economics Customer and supplier bargaining powerWhat are the major changes in industry dynamics and the resultingopportunities and risks?How is industry structure changing with respect to demand, supply, and industry chain economics? What are the resulting opportunities and risks?What is the expected competitor conduct? What are the resulting opportunities and risks?What are the present and future external factors that could present new opportunities and risks?Major industry competitor moves Marketing initiatives Industry capacity changes M&As, divestitures Vertical integration/disaggregation Alliances and partnerships Cost control and efficiency improvementsImpact and likelihood of major industry discontinuities Changes in regulation/government policy Technological breakthroughsKey questionSubquestionsIssues to be considered*May or may not be applicable to all BUsWhat industry are you competing in? What are the various segments in the industry?Industry definitionIndustry segmentation Definition Sizing8SEGMENT ANALYSISILLUSTRATIVEIndustryboundariesSegmentsIndustry segmentsRelatively distinct subgroupings within the industryMarket is relatively similar within the segment but different across segmentsDifferent industry dynamics may vary in importance in different segments9ProducersIndustrySTechnology breakthroughsChanges in government policy/regulations Domestic InternationalEconomics of demand Availability of substitutes Differentiability of products Rate of growth Volatility/cyclicalityEconomics of supply Concentration of producers Import competition Diversity of producers Fixed/variable cost structure Capacity utilization Entry/exit barriersIndustry chain economics Bargaining power of input suppliers Bargaining power of customersMarketing Pricing Volume Advertising/promotion New products/R&D DistributionCapacity change Expansion/contraction Entry/exit Acquisition/merger/divestitureVertical integration Forward/backward integration Vertical joint ventures Long-term contractsInternal efficiency Cost control Logistics Process R&D Organizational effectivenessFinance Profitability Value creationTechnological progressEmployment objectivesExternalshocksFeedbacktructureConductPerformanceSTRUCTURE-CONDUCT-PERFORMANCE (SCP) MODEL101. Determinants of supplier power Differentiation of inputs Switching costs of suppliers and firms in the industry Presence of substitute inputs Supplier concentration Importance of volume to supplier Cost relative to total purchases in the industry Impact of inputs on cost or differentiation Threat of forward integration relative to threat of backward integration by firms in the industry2. Determinants of barriers to entry Economies of scale Proprietary product differences Brand identity Switching costs Capital requirements Access to distribution Absolute cost advantages Proprietary learning curve Access to necessary inputs Proprietary, low-cost product design Government policy Expected retaliation5. Determinants of rivalry Industry growth Fixed (or storage) cost/value added Intermittent overcapacity Product differences Brand identity Switching costs Concentration and balance Informational complexity Diversity of competitors Corporate stakes Exit barriers3. Determinants of buying power Bargaining leverageBuyer concentration vs. firm concentrationBuyer volumeBuyer switching costs relative to firm switching costsBuyer informationAbility to backward-integrateSubstitute productsPull-through4. Determinants of substitution threat Relative price performance of substitutes Switching costs Buyer propensity to substitute2. New entrants3. Buyers4. SubstitutesIntensity of rivalry1. Suppliers Price sensitivityPrice/total purchasesProduct differencesBrand identityImpact on quality perceptionBuyer profitsDecision-makers incentives5. Industry competitorsFORCES AT WORK FRAMEWORK11Opportunities and threats How are demand and supply expected to evolve? How do you expect the industry chain economics to evolve? What are the potential major industry discontinuities? What competitor actions do you expect?Your BUSWOT ANALYSISConvert opportunitiesBuild on strengthsNeutralize threatsAddressweak-nessesStrengths andweaknesses What are your BUs assets/competencies that solidify your competitive position? What are your BUs assets/competencies that weaken your competitive position? Can be used as a thought-starter for competitive analysis and internal assessmentDiscovers potential opportunities/threats arising from factors external to the BU12SCP APPLIED TO LEXMARKRapidly changing technology, e.g., birth of portable, handheld, wireless computersRapidly changing customer preferencesPossibility of a paperless society, given increasing environmental concern and rise of the InternetEconomics of demandInk-jet printers replacing laser in nonnetwork environmentHigh price sensitivity; minimal opportunity for major product differentiationGrowth of laser and ink-jet printer markets stable but dependent on PC sales and degree of replacementEconomics of supplyHP holds lions share of printer marketIndustry capacity exceeds market demandPresence of counterfeit and recycled product supply, especially in consumablesHigh exit barriers due to asset intensityIndustry chain economicsBargaining power of suppliers low Bargaining power of distributors highLittle integration (forward or backward)MarketingManufacturers competing mainly on priceRetail dominant distribution channelAggressive development and release of new productsMoves to increase brand awareness via marketing campaignsCreative financing packagesInternal efficiency Relentless drive to low-cost manufacturingContinuous efforts to create more specialized features and/or functionsOthersEntry of PC and peripherals playersClamp down on counterfeit and recycled consumables suppliersFinancePrice competition on printer hardware drives margins down and forces players to rely on profits from consumable products (good margins) and high volume capture on hardwareSExternalshocksFeedbacktructureConductPerformanceSource: Lexmark Case Presentation associate training materials13RESULTING OPPORTUNITIES AND RISKS FOR LEXMARKOpportunitiesRisksBecome the first mover in printers for portable, handheld, wireless computer marketGrow demand base via use of creative, nontraditional channels and alternative financing/payment methodsGrow demand for consumables via programs to increase printing usage Be the supplier of printers for PC/peripheral players hoping to the expand into printer marketExpand leadership in corporate institutional accountsIncreasing demand for customization may increase costs and erode marginsAny decline in PC sales may significantly decrease revenuesMarket share may be eroded as competition intensifies Branding/marketing push from established players Pricing push from low-cost manufacturersMargins at risk if printing usage declines with push for paperless societyNOT EXHAUSTIVESource: Team analysis14COMPETITIVE ASSESSMENTPrivileged assets that create competitive advantage, e.g., physical assets, location/space, distribution/sales networkDistinctive skills and competencies that create competitive advantage, e.g., innovation, talent developmentWhat are yourcompetitivestrengths andweaknesses?What are the capabilities required to succeed in this industry?How do you compare against these necessary capabilities?Strengths and weaknesses of your competitive position vs. necessary capabilitiesBenchmark performance against the industrys relevant key performance indicators (KPIs),* with margin and market share as the required minimumKey questionSubquestionsIssues to be considered* KPIs are a handful of levers that drive the value of the industry or business15CAPABILITY PLATFORM: ASSESSING SOURCES OF COMPETITIVE ADVANTAGE Physical assetLocation/spaceDistribution/sales networkBrand/reputationPatentRelationship with license allocator BHPs low-cost mines Telecom/media company with rights to radio spectrum Avons representatives Coca-Cola Pharmaceutical company with a wonder drug Favored nation status with a key minister in liberalizing economyInnovationCross-functional coordinationMarket positioningCost/efficiency managementTalent development 3M with new products McDonalds with QSC&V J&J branded consumer health products Emerson Electrics Best Cost Producer program P&G brand management programPrivileged assetsDistinctive competenciesCapabilities needed to succeed in industryExample16Step 1: Ensure that these are the capabilities required to succeed in the industry. Use this list as a thought starter, and add and delete as you see appropriateBU OverallSegmentsABCStep 2: Assess your overall position relative to the capabilities required to succeed in the industry. Also, determine whether these capabilities are relevant to the segments you servePhysical assetLocation/spaceDistribution/sales networkBrand/reputationPatentRelationship with license allocatorInnovationCross-functional coordinationMarket positioningCost/efficiency managementTalent developmentPrivileged assetsDistinctive competenciesCapabilities needed to succeed in industryCAPABILITY PLATFORM: ASSESSING SOURCES OF COMPETITIVE ADVANTAGE (CONT.)ILLUSTRATIVE Extremely relevantSomewhat relevantIrrelevant17RANKING YOURSELF AGAINST THE COMPETITIONKey midmarket buying factorsExplanationConvenient locationOfferPrice*Customer serviceShopping environment*Competitive positioning of Department Store 2 (DS2) vs. DS1MuchworseWorseRDSpositionBetterMuchbetter-2-1012DS2 is located in major thoroughfares and is accessible via public transport, resulting in higher trafficDS2 is considered a destinationDS2 and DS1 have the same categories except for snacks and appliancesDS2 has historically been viewed as the low-price player. This is reinforced by continuous customer experience as well as the continuous reminder of the low prices via store signs and the strategic placement of loss leaders all around the storesBoth provide the standard offeringRangeDS2 has it allX* Best/lowest price, promotions* Cleanliness, ambience, signageSource: Team analysisXXXXX18BENCHMARK PERFORMANCE AGAINST RELEVANT INDUSTRY KPIsKPIs (examples)Financial indicatorsMarginNet incomeROCE Operating indicatorsAdvertising effectivenessUtilization rate Strategic indicatorsMarket sharePercent of revenue from new productsWorking capital trend External indicatorsMarket prices of raw materials BUCompetitor ACompetitor BCompetitor C19KPIsFinancial indicators*Operating incomeMarginsROCE*Operating indicatorsDistribution reachCycle timeStrategic indicatorsMarket shareBrand awarenessLexmarkHPEpsonBENCHMARKING APPLIED TO LEXMARKStrongMediumWeak * Includes other information equipment (e.g., scanners, projectors)* Return on capital employed$457 million12%29%$1,573 million 9%11%$583 million6%N/A12%47%17%Source: Lexmark Case Presentation associate training materials20INTERNA