BusinessUnitStrategyFramework贝恩业务单元战略方法.ppt

StanMirandaLondon BusinessUnitStrategyFramework IntroductionWhatisaStrategy WhatisagoodStrategy WhatarethekeyelementsofaStrategy HowdowedevelopagoodStrategy KeyTakeawaysFrequentlyAskedQuestions StrategyDevelopmentTools CorporateVersusBusinessUnitStrategy BusinessUnitStrategysetsmarketandproductpriorities definessourcesofcompetitiveadvantageandallocatesresourcesbehindstrategicimperatives DefinesfullpotentialtargetsFocusesoncoremarkets products customersegments channelsDefinessourcesofcompetitiveadvantageandcorecompetencesPrioritisesstrategicimperativesDefinespotentialadjacentexpansionopportunities CorporateStrategy BusinessUnitStrategy BusinessUnitStrategy MarketStrategy ProductStrategy ChannelStrategy FunctionalAreaStrategy ProductStrategy ChannelStrategy FunctionalAreaStrategy MarketStrategy TheBainToolkit BusinessDefinitionandBusinessUnitStrategyareatthecoreofallresultsdeliveredthroughstrategyatBain BusinessDefinition BUStrategy BusinessDefinition PerformanceImprovement M A Org CorporateStrategy JointVenture Alliances Growth PortfolioStrategy CoreCapabilities O headCostReduction ParentValueAdded ChangeManagement PostMergerIntegration OrganisationDesign ProcessRedesign RoleofCentre ShareholderValueAnalysis LBOCommercialReviews SalesandMarketing VMR s Loyalty AcquisitionEvaluation IntroductionWhatisaStrategy WhatisagoodStrategy WhatarethekeyelementsofaStrategy HowdowedevelopagoodStrategy KeyTakeawaysFrequentlyAskedQuestions StrategyDevelopmentTools DefinitionofStrategy FromClients AroutefromAtoB Longtermplans unfetteredbyshorttermpressures BainDefinitionofStrategy Strategyisaproprietarysetofactionsthatbetterservecustomersthanthecompetition BainDefinitionofStrategy Strategyisthescienceofallocatingscarceresources ImportanceofStrategy Youwon tgettherewithoutknowingwhereyouaregoinghowtogetthereGuidesdecision makingandresourceallocationDefinesfullpotentialStrategicallymindedbusinessesgenerallyout performoperationallymanagedbusinessesClearlycommunicatestotheorganisationwheretheyaregoing ImportanceofStrategy CEO sbelieveastrongstrategyiskey Attributesthatwillmakeacompanymostrespectedinthefuture1 Strong wellthoughtoutstrategy 2 Maximizingcustomersatisfactionandloyalty3 Businessleadership4 Qualityofproducts services5 Strongandconsistentperformance FinancialTimes World sMostRespected CompaniesSurvey Nov 1998 IntroductionWhatisaStrategy WhatisagoodStrategy WhatarethekeyelementsofaStrategy HowdowedevelopagoodStrategy KeyTakeawaysFrequentlyAskedQuestions StrategyDevelopmentTools StrategicPrinciples PerhapsmymostimportantactwasmyfirstcentralideaforGEbackin1981 whichwasmydecisiontobeeithernumberoneornumbertwoinourbusinesses orgetoutofthemaltogether JackWelch CEOGeneralElectric StrategicPrinciples Foranewtechnologytoreallyflourish itshouldbemanagedandmarketedonitsown withoutexploitingthesynergiesfromotherdivisions Thatisbecausewhenatechnologyissuccessful executiveswillslowdownthegrowthofnewcompetingtechnologies RobertGalvinCEOMotorola 1 Rootedinafewpowerfulguidingstrategicprinciples2 Proprietary3 Makestrade offs4 Defines2 3topstrategicimperatives5 Builtonstrongbasicoperatingperformance i e isimplementable 6 Dynamic futureproof WhatisaGoodStrategy IntroductionWhatisaStrategy WhatisagoodStrategy WhatarethekeyelementsofaStrategy HowdowedevelopagoodStrategy KeyTakeawaysFrequentlyAskedQuestions StrategyDevelopmentTools IraqiWar IraqinvadedKuwait declaredKuwaitaprovinceUNSecurityCouncildeclaredannexationvoidAnallianceofNatoandMiddleEastcountriesappointedGeneralSchwartzkopf SecurityCouncilofAlliedforcesColinPowelltocommandtheAlliedForces YouaregeneralColinPowellYouneedastrategy let scallitDesertStorm August1990 January1991 WhatarethecriticalelementsofStrategy DesertStorm KUWAIT IRAQ SAUDIARABIA IRAN Baghdad Nasiryah KuwaitCity Basra IraqiWar KeyElementsofStrategy RemovetheIraqthreattoKuwaitNottoannihilateIraq 1 Goals NotIraq KuwaitandSouthernborderofIraq 2 Battlefield Precisionbombingattacksfollowedbyseaandlandattack 4 Weapons 1 Speed soSaddamhadnotimetomobilisearmy2 Precisionbombingattacksfollowedbysea landattack 5 Plan StrategicImperatives NATOandMiddleEastcountries 7 Allies 1 Specificlocations2 Sequencingofattacks3 Mediavisibilitytogaininternationalsupport 6 Plan Keytactics 1 SaddamHussein2 Kurds 3 Enemy 3 20mpeople4 100KNationalGuard WhataretheCriticalElementsofStrategy MilitaryContext 1 Goals 2 Battlefields 3 Enemy 4 Weapons Troops 5 Plan strategicimperatives tactics 6 Allies 1 Financialtargetsandvision 2 Product markets customersegments 3 Competitors 4 Primarysourceofcompetitiveadvantage 5 Management employees money resources 6 Managementplans programmes 7 AlliancePartners BusinessContext ACEOdoesn thaveastrategywithoutthesecriticalelements 1 Vision 2 SourceofCompetitiveAdvantage 3 TargetCompetitors 4 PrincipalBattlefields 5 StrategicImperatives 6 KeyInitiatives BusinessUnitStrategyPyramid Apyramidhelpstotranslatethestrategyintoaday to daytool 1 Vision Europe smostprofitableautomotivemanufacturerby2002 5 ROS 7 growth AutoCoPyramid 1 AutoCoPyramid 2 Lowcostproducerofhighqualityvehicles Distributionnetworkwhichdelivershighownerloyalty Customer drivenPDProcess 2 SourceofCompetitiveAdvantage 3 TargetCompetitors PremiumManufacturers VWGroup OtherMainstreamManufacturers AutoCoPyramid 3 4 PrincipalBattlefields DrivecoreCandC Dplatformseverywhere DominateUKandMCVacrossEurope DrivetoNo 2inGermany AutoCoPyramid 4 5 StrategicImperatives Achievelowesttotalenterprisecost Optimisefullportfolioofbrandsandincreasepremiumparticipation Expandintoprofitableadjacentrevenueareas AutoCoPyramid 5 MaterialscostsDemand to deliveryCapitalexpenditureCapacity labourstrategy Portfolio brandstrategyProductdevelopmentprocessPremiumstrategy DistributionstrategyAdjacentbusinesses 6 KeyInitiatives AutoCoPyramid 6 IntroductionWhatisaStrategy WhatisagoodStrategy WhatarethekeyelementsofaStrategy HowdowedevelopagoodStrategy KeyTakeawaysFrequentlyAskedQuestions StrategyDevelopmentTools HowDoWeDevelopB U Strategies ProcessStep StrategyDiagnostic ImplementationDiagnostic ChangeProgramme Output StrategicPlan ImplementationPlan s ChangeProcess Results Whereinstrategydevelopmentprocessarewe 1 BusinessDefinition2 KeyValueDrivers3 StrategicPrinciples4 StrategicOptions FourCoreSteps StrategyFramework Purch Tech R D Mfg Mktg Sales Dist Cust Svc 3 StrategicPrinciples 4 StrategicOptions OptionA OptionB OptionC 1 BusinessDefinition Tech R D Mfg Mktg Sales Dist Cust Svc Purch 2 KeyValueDrivers BusinessUnitStrategy 1 Whatarethemarket scompetitiveboundaries ActivitiescurrentlyperformedCurrentandfuturebusinessdefinitionproducts services global regional local whichvaluechainelements technology Inputs BusinessdefinitionIssuesraised Outputs BusinessUnitStrategy Customerneedscustomersegmentationwhatisimportant howdifferentiable CostanalysislargestmanageablecomponentscostsharingcapitalrequirementsCorecapabilities Industry keyvaluedrivers strategicoperational 2 Whatarethekeyvaluedriversforanycompetitor Inputs Outputs BusinessUnitStrategy Purch Mtg Dist CustSvc TechR D Mktg Sales 3 Whatisrequiredofourwinningstrategy Industrystructure todayandfutureCompetitors todayandfuturePerformancebenchmarkscustomerneedscostscapabilities Inputs Ourguidingstrategicprinciples anygoodstrategymust Outputs BusinessUnitStrategy DevelopoptionsEvaluateoptionsFinancialanalysisprofitcapitalshareholdervalue OptionA OptionB OptionC ListofstrategicoptionsRecommendedstrategyKeyelementsforstrategyvisionandtargetsbattlefieldsproducts markets customerssourceofadvantagetargetcompetitorstop3strategicimperativesresourcerequirementsQuantifiedfullpotential 4 Howdoweachieveourfullpotential Inputs Outputs StrategyFramework 3 StrategicPrinciples 4 StrategicOptions OptionA OptionB OptionC 1 BusinessDefinition 2 KeyValueDrivers Helpsdeterminewhatbusinessbattlefieldismostdefensibledefineittoobroadly areovertakenbymorefocusedcompetitorsdefineittoonarrowly areovertakenbymorebroadlybasedcompetitors ImportanceofBusinessDefinition Thisisour MagicDust BainCapitalApproach BusinessdefinitioniskeyinBainCapital sapproach BainCapitalInvestmentMemorandum 4 ProvenAnalyticalApproach MarketdefinitionMarketdefinitiondelineatestheboundarieswherecompetitiveadvantagecanbeestablishedandsustained Marketdefinitionisbasedonthebusiness seconomics sharingwithotherbusinessesandthedynamicsofcustomerbehaviourMarketsegmentationCompetitivepositionCostanalysisCapabilitiesandAssetsManagementRegulatory Environmental Tax Legal AccountingHarvestAnalysis WesleyJessonVisionCareStory Acquiredstrugglingcontactlensmanufacturerdiversifiedintoalleyewear retailoutlets solutions accessoriesLimitedcost distributionandtechnologyoverlapsuggestedbusinessdefinitionwassoftcontactlensmanufacturingonlyDivestedeverythingelseandfocusedoninnovatingwithincontactlensonly1997exitedat400 IRR M BusinessdefinitionisBainCapital sMagicDustaswell BusinessDefinition Version1 0 Onebusinesswithpotentialforsubstitution Separatebusinesseswithpotentialforbundling SeparateBusiness Separatebusinesseswithpotentialforcostleadershipshift Onebusinesswithpotentialfordifferentiationornicheposition OneBusiness Low High High Low CostSynergies CustomerSynergies InnovationsinBusinessDefinition WehavemadeseveralimprovementstoVersion1 0 1 Capabilitysharingisascriticalascostandcustomersharingindefiningbusinessboundaries2 Thinkingclearlyaboutallofthedimensionsofbusinessdefinition3 Understandingthatbusinessdefinitionisnotclearcut4 Recognisingthatbusinessdefinitionisconstantlychanging andgettingthetimingright5 Competitiveposition dominanceopensupopportunitiesforleaderstodefineboundaries ClassicBusinessDefinitionDimensions 1 Products2 Geography3 ValueChain4 Customersegments5 Channels6 Technology7 Capabilities Thesearethekeydimensionsweuse thetop3usuallymattermost 42 BrewCoExample Product Geography Channel BackwardIntegration SoftDrinks Spirits Wine Cider OtherSpecialityBeers Lager Ale Stout Mktg Sales PhysicalDist Wholesaling Retailing UK Multi CountryEurope Europeanregion EuropeandAfrica WesternCountries DevelopingWorld Global RawMaterials Malting Brewing Packaging ForwardIntegration PriceSegments CustomerSegments Client KeyTool 1 AutoCoExample Service Technology Geography Product BackwardIntegration Tourism UsedCarTrading Leasing Rental Insurance Credit AfterSalesService Parts UK Multi CountryEurope EuropeandAfrica WesternCountries DevelopingWorld CustomerSegments ForwardIntegration Client KeyTool 1 StrategyFramework Purch Tech R D Mfg Mktg Sales Dist Cust Svc 3 StrategicPrinciples 4 StrategicOptions 1 BusinessDefinition 2 KeyValueDrivers OptionA OptionB OptionC WinningStrategy Competitors Competitivepositiondefinestheboundariesforoperatingperformance ReturnsEarned RelativeMarketShareCompetitivePosition Weak Strong Low High PositiveEVA NegativeEVA CostofCapital Operations ImprovedStrategicPosition BeerIndustryKeyValueDriver Sincethebeerbusinessisanationalbusiness notglobal wewerenotsurprisedtoseeDomesticRMSasthekeydriverofvalue UK USA Ireland OpProfitperhl 15 10 5 0 0 1x 1x 10 x 12 DomesticRMS 8 4 0 0 1x 1x 10 x 10 6 2 10 8 4 0 0 1x 1x 10 x 6 2 BeerCoposition BrewCo CostAnalysis National Regionalscaleisthemajordriverofoperatingcostsinthebrewingindustry PercentofCosts BrewCo CustomerNeeds 1 Therearesizeablesegmentsofconsumerswhoarepreparedtopayapremiumpriceforaproductdifferentiatedbytasteimagefashion2 BrandLoyaltyinthesesegmentscanovercomedistributionweaknessesrelativetodominantnationalbrewers3 Dominantlocalbrewersshowlittleinterestinthissegment BrewCo StrategicandOperationalKeyValueDrivers Strategic Or Whereblockedfromachievingdominantlocalpositions seektobuildleadingbrandsinpremiumsegments Seektodominatebeermarketswithfullportfolioofbrandswhichleadtheirrespectivesegmentswithinnationalboundaries Operational And And Marketingandsalesarethecriticalactivitieswherebrewerscanachievesustainablecompetitiveadvantage Ineachmarket totalsupplycostsmustbetightlymanaged Marketing Salesmustfocusonexploitingemergingconsumerneedsandcontrollingaccesstoon tradedistribution KeyTool 2 AutomobileIndustryKVD s Engineering Launching Manufacturing Assembly Materials 0 20 40 60 80 100 Selling Marketing Regional Regional CostDrivers CostBar andPlatformRMSwithinRegion TotalCostperMinute ManageableKeyCostDrivers CostperMinute ofTotal MobileCo CostAnalysis Thekeymanageablecostdriverswererelativemarketshareoflowchurncustomersandrelativeshareofoff peaktraffic MobileCo CustomerNeeds Customerneedsmustbeunderstoodateachstageinthedecisionprocess NeedaMobilePhone WillLookforOneHere ChooseThisNetwork WillStaywithThisNetwork Pricevs FixedLine BrandawarenessRetailnetworkFriend srecommen dationMyfixedlineoperator TailoredofferservicelevelpriceIntegrationwithfixed PriceHandsetupgrade MobileCo Retention Significantlymoreprofitwascreatedbyretainingexistingcustomers ratherthanattractingnewcustomers Increasedvaluefromretentionasopposedtoacquisition ValueCreatedByReducingChurnBy5 98 2003 ValueCreatedByAcquiringEquivalent ofNewCustomers LifetimeNPV M Operational 1 Maximizehighvaluecustomers2 MaximizelowchurncustomerRMS3 MaximizeRMSofoff peakusage4 Integratefixedoffering5 Alignregulatorobjectiveswithcompanystrategicobjectives Strategic 1 Managecostsdowninlinewithscaleandexperiencecurves2 Maximizenetworkcapacityutilization3 Developworldclasscustomerserviceandbillingcapabilities4 Maximizecustomerretention MobileCo Thestrategicandoperationalkeyvaluedriverswereasfollows KeyTool 2 StrategyFramework 3 StrategicPrinciples 4 StrategicOptions OptionA OptionB OptionC 1 BusinessDefinition 2 KeyValueDrivers 90 ofindustryprofitswereearnedfromareasadjacenttoautomanufacturingThemanufacturingprofitpoolwaslikelytoshrinkbeforeitgrewandperhapsgonegativeMergersofferedsignificanteconomicopportunities AutoCo IndustryStructure Toidentifystrategicprinciples AutoCo sindustrystructuretodayandinthefuturewasexamined 1 2 3 AutoCo Competitors KeyTool 3 2 0 2 4 6 0 2 0 4 1 2 RelativeMarketShare 3 yearcumulative BMW GM PSA Ford Mercedes Fiat Renault VWGroup Pre taxReturnonSales 3yearaverage Overperformingormilking Underperformingorinvesting PremiumbrandswereoverperformingwhileVWGroupwasinvestingtogainshare AutoCo Competitors Future 1996 VWGroupwasinvestingtoconsolidateitsplatforms chassis suchthatitsWeightedAveragePlatformRMSwouldsignificantlyexceedAuto Co sby2002 2002 AutoCo PerformanceBenchmarks Areasofpotentialadvantagewereidentified AutoCocurrentlyundifferentiatedAutoCohasgreaterpotentialwith family oriented segments C CDPlatforms AutoCocurrentlymatchedcompetitiononPlatformRMS butcouldfocusonfewerplatformsandleverageothersecondarycostdriversregionalscalecrossplatform sharingglobalscale AreasofferingAutoCogreatestscopeforcompetitiveadvantagearecostproductdevelopmentprocessbasedoncustomerinsightdistributionnetwork customercareconsumerinsightcustomercare AutoCo StrategicPrinciples Any winning AutoCoEuropeanStrategymust Achievelowestcost 1 2 3 Focussegmentsgeographiesplatforms OccupypremiumsegmentsFindadjacentrevenuegrowthsources 4 StrategyFramework 3 StrategicPrinciples 4 StrategicOptions OptionA OptionB OptionC 1 BusinessDefinition 2 KeyValueDrivers StrategicOptions Thereareanumberofgenericstrategicoptions Seektowin Seekto Seektochange Dominate Redefine Focus Differentiate LowCost Definition withinaspecificmarketsegment dominateagivenmarketbyparticipatingacrossallsegmentsofthemarket thedefinitionofamarketbyexpandingbeyonditstraditionalboundaries Theseareshowngraphicallybelow StrategicOptions 1 Focus Segment3 Segment2 2 Dominate 3 Redefine BusinessA RelatedBusinessB RelatedBusinessC Markets Segment1 KeyTool 4 BrewCo StrategicOptions Focus Dominate GlobalmergerwithBrewingCompany mostdomesticoverlap Thestrategicoptionsforthebrewingcompanywereidentifiedanda focus strategyselected A Seektodominatebeermarketswithafullportfolioofbrandswhichleadtheirrespectivesegmentswithinnationalboundaries TheBrewCovisionistobetheworld smostsuccessfulmarketerandproducerofpremiumbeerbrands withparticularemphasisontheBrewCobrand FullPortfolio IrelandSpainMalaysia B Whereblockedfromachievingdominantlocalpositions seektobuildleadingbrandsinpremiumsegments GrowPremium USEuropeanExport BrewCo Vision Thevisionforthe focus strategywasthendeveloped Markets BrewingCo FullPotential OperatingProfit M StrategicPlan KeyTool 5 Andthefullpotentialcalculated MobileCo StrategicOption AsMarketGrowthslows MobileCo s0 2xRMSwill freeze belowacceptableReturnonCapital ReturnonSales ROS MobileCo StrategicOptions MobileCo sweakstrategicpositioninaslowinggrowthenvironmentdictatedthefollowingstrategicoptionsbereviewed Issues Option1 Option2 Option3 Option4 Focusonfastestgrowingsegments Controlselectedfastgrowthchannelsofdistribution Aggressiveprice ledsharegainstrategy AcuteDifferentiationStrategy SizeofgrowthsegmentsDataValue addedvoiceapplications Costof acquiring channels Short termprofitgoalsIPOimplications Organisationalchallenge MobileCo Opti