贝恩Bain-零售行业分析PPT课件.ppt

bcCompiler:Reviewer:Retail Co.Created:August 26,1999Copyright 1998 Bain&Company,Inc.Seva RozanovThomas ShannonRetailCo2 1bcRetail CoCorporate Strategy Toolkit2可编辑BackgroundApproachConclusionImplementationResultsAgendaAgendabcRetail CoCorporate Strategy Toolkit3可编辑 Retail Co is$10+B Retail Co is$10+B“speciality retailspeciality retail”conglomerate whose conglomerate whose financial performance has deteriorated since 1990financial performance has deteriorated since 1990BackgroundBackgroundbcRetail CoCorporate Strategy Toolkit4可编辑Achieve top quartile performance-market/book value:2.8x-return on equity:17-18%-annual earnings growth:10-12%Divest businesses that are poor fitsPrepare the company to weather challenging industry conditionsCreate a compelling vision and growth strategyFinancial ObjectivesFinancial ObjectivesStrategic ObjectivesStrategic ObjectivesBackgroundBackgroundRetail Co ObjectivesRetail Co ObjectivesbcRetail CoCorporate Strategy Toolkit5可编辑AgendaAgendaBackgroundApproachConclusionImplementationResultsbcRetail CoCorporate Strategy Toolkit6可编辑Define the characteristics of a successful strategy Develop a range of viable strategic alternativesAssess and prioritise the strategic alternativesBuild consensus around the preferred strategyFully quantify the impact of appropriate action stepsGain final approvalLaunch implementationApproachApproachbcRetail CoCorporate Strategy Toolkit7可编辑Components of Successful StrategyComponents of Successful StrategyDoable:Doable:Evolves from current business mixFits Retail Cos core competenciesIs fundableDevelops significant competitive advantagesCapitalizes on the volatility of retail cyclesUnderstandable:Understandable:Communicates a clear and compelling approach to the businessWill be fully valued by analysts and shareholdersDesirable:Desirable:Creates clear economic value and top-quartile financial resultsbuilds a portfolio of high-potential businessesmakes business units more valuable to Retail Co than to othersAvoid excessive layers,overheads,and decision processesIs attractive to key managers in targeted businesses and functionsApproachApproachbcRetail CoCorporate Strategy Toolkit8可编辑 Market sizeMarket growthSegment returnsSegment profitability trendsCompetitive intensitySupplier powerSegment stabilityMarket AttractivenessMarket AttractivenessMarket shareMarket share trendGeographic coverageCurrent profitability/EVAEarnings trendManagement teamRetail brand equityInfrastructure and systemsCustomer value propositionStrategic PositionStrategic PositionCorporate experience,skills,and valuesCorporate functional supportCorporate portfolio developmentCross-divisional sharingFitFitRetail Co businesses were evaluated along three Retail Co businesses were evaluated along three groups of criteriagroups of criteriaApproachApproachRevising the Mix of BusinessesRevising the Mix of BusinessesbcRetail CoCorporate Strategy Toolkit9可编辑Fact BaseFact BaseHow structurally attractive is this market segment?(projected)industry sizeindustry growthindustry profitabilitycompetitive intensitybuyer concentration/powersupplier concentration/powercommitted capital requirementsstage in market evolutionacquisition opportunitiesHow does the stock market value this segment?industry volatilitymarket valuation multiple and timingvalue transparency to stock marketDo we have a strong position today?market share(local/regional)market share growth trendsprofitabilityrelative cost positionbrand equitycondition of assetsDo we have the key success factors to achieve a strong position tomorrow?(or can we acquire/build them)functional process capabilitiescost structurenew product/concept developmenthuman resources/people skillscapital resourcesHow does this business fit with other Retail Co divisions and capabilities?cash flow generations/requirementscommon functional processescommon customer profileslinkage to central resourcesunique people skillsThe five questions approach was used to build fact The five questions approach was used to build fact base on every business of Retail Cobase on every business of Retail CoApproachApproachbcRetail CoCorporate Strategy Toolkit10可编辑AgendaAgendaBackgroundApproachConclusionImplementationResultsbcRetail CoCorporate Strategy Toolkit11可编辑Business Unit Evaluations(1 of 2)Business Unit Evaluations(1 of 2)DivisionDivisionConclusionConclusionStrategic Strategic PositionPositionMarket Market AttractivenessAttractivenessFitFitNorthLarge market ready for consolidation,good profitability,very strong positionHollandLarge potential market with opportunity to boost growth and profitability through acquisitions and improved operating efficiencyItalyRapidly growing channel with high returns.Need to invest to capture market share and improve operating efficiencyHong KongLarge overall market with slow growth.Cash provider capable of funding growth businessesLuxembourgReevaluate growth plans.Economies of scale not yet achieved but segment extremely profitableConclusionConclusionbcRetail CoCorporate Strategy Toolkit12可编辑Business Unit Evaluations(2 of 2)Business Unit Evaluations(2 of 2)BritainModerate size segment with good profitability but strong competition;declining market share,low relative operating marginsIrelandDeclining market segment,poor position,little opportunity for sale,potential for savings by folding into Hong KongFranceOvercapacity in segment,losing market share,below average profitabilitySwedenLarge overall market but requires substantial investment to develop new products and achieve scale to improve cost position;business has poor fit with Retail Co skillsSpainSmall segment,low growth,high volatility,and seasonalityDivisionDivisionConclusionConclusionStrategic Strategic PositionPositionMarket Market AttractivenessAttractivenessFitFitConclusionConclusionbcRetail CoCorporate Strategy Toolkit13可编辑Business Unit RecommendationsBusiness Unit Recommendations DivisionDivisionStrategic Strategic PositionPositionMarket Market AttractivenessAttractivenessFitFitGrowGrow(Spin Off)(Spin Off)North*HollandItalyHong KongLuxembourgHoldHold Britain DivestDivest Ireland France Sweden Spain *SpinOffConclusionConclusionbcRetail CoCorporate Strategy Toolkit14可编辑Strategic AlternativesStrategic Alternatives Long-term Long-term vision:vision:Corporate Corporate profile:profile:The leader in selected business lineschain drugapparelfootwearhometoysBusiness line competenciesCost and experience sharing in the groupsAcquisitions to achieve business line dominanceGroup-based organisationA balanced portfolio of speciality retailersResource allocation competenciesLean corporate structureDecentralised managementGrow and keep successful businesses.Divest the unsuccessfulA leading developer of targeted growth-stage retailersSelection and expansion competenciesCorporate expertise in critical growth functionsbusiness development(R&D and research)real estatesystemslogisticsCost and experience sharing in key activities across all businessesAcquire and grow promising concepts.Divest when value-added peaksConclusionConclusionGroup SpecialistRetail ConglomeratesGrowth-stage greenhouse(Retail Co.“Classic”)bcRetail CoCorporate Strategy Toolkit15可编辑Revise the mix of businesses in the portfolio-allow North to pursue an independent strategy-sell France,Spain and Sweden at the right price and timeEnsure remaining businesses address the most important strategic issues-establish clear strategies for growth businesses(Holland,Luxembourg,Hong Kong,Italy)-finalise turnaround plans for businesses which cant be sold at reasonable prices-take write-offs as requiredConsider acquisitionsReduce corporate expensesAdd value to the businesses in the portfolio-build R&D capabilities-leverage costs-upgrade the organisationConclusionConclusionAction RecommendationsAction RecommendationsbcRetail CoCorporate Strategy Toolkit16可编辑Chain drug industry is consolidatingeconomies of scale in systems investmentsrelationships with third-party payersAn independent North generates significantly more shareholder value as it participates in the evolution of the industryNorth makes minimal use of corporate functions;there is little cost-sharing among North and the other divisionsMarket timing is attractiveNorths value is not being fully recognized in the marketplaceConclusionConclusionExample:Rationale For an Independent NorthExample:Rationale For an Independent NorthbcRetail CoCorporate Strategy Toolkit17可编辑Planned capacity additions will result in industry-wide negative comp store sales through 1998Consolidation is essential to eliminate excess capacitylowers costsallows comp store sales growthRetail Co is better suited to be a seller than a buyersynergy is equal whether France chooses to acquire or be acquiredleading competitors market value is highermanagement group at France has several significant holesConclusionConclusionExample:Rationale for the Sale of FranceExample:Rationale for the Sale of FrancebcRetail CoCorporate Strategy Toolkit18可编辑Continue to pursue opportunities to consolidate and reduce over-capacityFill key executive openingsRestore the historical bargain edge with core customersincrease the mix of opportunistically-purchased goodsdeliver values averaging 20%below department store sale pricesReduce costs to support price reductionsreduce overhead costs by approximately$60MMreduce investment cost for new stores and remodelsClose unprofitable locations and exit several markets which France cannot dominateIf the sale of France takes longer than anticipated,several actions If the sale of France takes longer than anticipated,several actions will be taken to improve Frances performance:will be taken to improve Frances performance:ConclusionConclusionExample:France-Strategic ImperativesExample:France-Strategic ImperativesbcRetail CoCorporate Strategy Toolkit19可编辑Vision:Vision:To consolidate our position as the leading widget retailer to our target customers(high-volume purchasers of trendy widgets in their 20s and 30s)To be recognized by our target customers as the leader in product assortment and customer service for widget retail(our unique positioning)To reach a 10%share of the national widget retail market by the year 2000Financial Financial Goals:Goals:To reach and maintain ROIC levels of 20%To grow sales by 5%per year and net earnings by 10%per year81998 sales objective:$1,225MM81998 net earnings objective:$47MMStrategy Summary(1 of 2)Strategy Summary(1 of 2)ConclusionConclusionbcRetail CoCorporate Strategy Toolkit20可编辑Key ImperativesKey ImperativesInitiativesInitiativesDevelop our new concept,Widget Factory,into the second-largest non-mall based widget retailerRetail Co Real Estate audit of potential new sitesWidget Factory rapid deployment initiative(opening of 30 new stores per yearClose non-performing storesClosing of the 10 worst performing mature stores(both XYZ and Widget Factory)each yearImprove margins by changing mix and reducing costsMix change based on GMROI approachImplementation of 4-Walls systemRedesign of logistics flow based on Retail Co studyImprove density of markets by backfillling five marketsModify our image in the eyes of the customerAssortment redesign based on demand and profitabilitySales force training initiative on customer serviceLaunch of a new advertising campaignFocus new stores in Southern geographiesAcquire and integrate Southern Widget by end of 1996Retail Co Real Estate audit of potential new sitesProposed partnership with Southern Malls,Inc.Strategy Summary(2 of 2)Strategy Summary(2 of 2)ConclusionConclusionbcRetail CoCorporate Strategy Toolkit21可编辑Fit with Retail Co-clear opportunity for value creation-potential to maximize sharing with related divisionsMarket attractiveness-substantial market potential-dominant market position opportunity-concept in early stages of a long lifecycleFinancial opportunities-affordable within target capital structure-meets minimum return and growth hurdlesLimited risk factors-existing management talent or supplementable-low to moderate volatilityConclusionConclusionCriteria for AcquisitionCriteria for AcquisitionbcRetail CoCorporate Strategy Toolkit22可编辑Corporate Cost Reduction OpportunitiesCorporate Cost Reduction Opportunities *Excluding interestConclusionConclusionbcRetail CoCorporate Strategy Toolkit23可编辑 Primary Primary Levers:Levers:Corporate Corporate Roles:Roles:Corporate portfolio developmentKeep aware of market and customer trends driving potential opportunitiesDevelop criteria for screening acquisitions and partnerships or alliancesIdentify and evaluate new concepts and consolidation opportunitiesDevelop a network of deal contactsStructure,negotiate and close dealsCoordinate effective integration planningEvaluate opportunities to spin-off/exit businessesFinancial controlsDefine primary measures of financial performanceSet specific financial return and earnings growth targetsDevelop financial planning and control systemsAllocate capital and other resourcesBusiness oversightDefine management decision-making processesCoach divisional managementfocus managers on measurable resultsquestion assumptions and challenge thinkingProvide leadership on critical issues(e.g.,division strategy,value disciplines,and priority and resource conflicts)Identify opportunities to improve operations and set specific improvement goalsPrimary Levers Available to Add Value(1 of 2)Primary Levers Available to Add Value(1 of 2)ConclusionConclusionbcRetail CoCorporate Strategy Toolkit24可编辑 Primary Primary Levers:Levers:Corporate Corporate Roles:Roles:Expertise sharing and operational improvementInstill company wide commitment to spreading best practicescoordinate regular experience sharing at all levelsfacilitate communication among divisions and functionsDrive value disciplines to improve operations across all processes,functions and divisionsProvide leadership and expertise to support improvements in performanceManagement allocation and developmentAttract,motivate and retain the best managementrecruit top tier candidatesreward based on performancepromote based on abilityProvide strong,profit-related incentives linked to corporate objectivesRotate managers across functions and divisionsDevelop formal training programsStrategydevelopmentPerform analysis to support strategic decision-making(corporate and divisional)Define corporate strategic directionAssess market attractiveness,performance,position and fit of divisionswork with divisions to build high-quality,fact-based strategic plansIntegrate division plans with corporate strategyCentralservices and infrastructure sharingProvide scale services and functions to achieve lower cost and higher qualityLeverage infrastructure across businessesPrimary Levers Available to Add Value(2 of 2)Primary Levers Available to Add Value(2 of 2)ConclusionConclusionbcRetail CoCorporate Strategy Toolkit25可编辑Projected EarningsProjected Earnings NorthNorthNew Retail CoNew Retail Co*From Monte Carlo analysisNote:Earnings equals net income after taxes and in