赢利经营和领导能力英文课件

ProfitPoolsandCoreCompetenceDarralGClarkeProfessorofManagementTheMarriottSchoolBrighamYoungUniversity2022/12/191DarralG.ClarkeforBM499ProfitPoolsandCoreCompetenProfitPools:AFreshLookatStrategyOritGadieshandJamesL.GilbertHarvardBusinessReviewMay-June19982022/12/192DarralG.ClarkeforBM499ProfitPools:AFreshLookatTHEPCINDUSTRY’SPROFITPOOLValuechainfocusAxesVertical—operatingmarginHorizontal—shareofindustrydata40%30201000100%shareofindustryrevenuemicroprocessorsothercomponentspersonalcomputerssoftwareperipheralsservicesThevaluechainforthePCindustryincludessixkeyactivities;theprofitabilityoftheactivitiesvarieswidely.Manufacturerscompeteinthelargestbutleast-profitablesegmentofthechain.2022/12/193THEPCINDUSTRY’SPROFITPOOLVTheProfitPoolLensTheprofitpoolisthetotalprofitearnedinanindustryatallpointsalongtheindustry’svaluechainSegmentprofitabilitymayvarybycustomergroup,productcategory,geographicmarket,ordistributionchannelProfitconcentrationmaybeverydifferentthanrevenueconcentrationShapeoftheprofitpoolreflectsthecompetitivedynamicsofabusinessInteractionsofcompaniesandcustomersCompetitivestrategiesofcompetitorsProductpoolsarenotstagnant2022/12/194TheProfitPoolLensTheprofitTHEU.S.AUTOINDUSTRY’SPROFITPOOL100%operatingmarginsource:HarvardBusinessReview,May-June1998autorental25%1510500shareofindustryrevenueautomanufacturingnewcardealersusedcardealersautoloansautoinsuranceaftermarketparts20leasingwarrantygasolineservicerepairTheautomotiveindustryencompassesmanyvalue-chainactivities.Thewaythatprofitsandrevenuesaredistributedamongtheseactivitiesvariesgreatly.Themostprofitableareasofthecarbusinessarenottheonesthatgeneratethebiggestrevenues.2022/12/195THEU.S.AUTOINDUSTRY’SPROFIProfitPools:CompanyExamplesCompaniesAutomakersU-HaulElevators(OTIS)HarleyDavidsonPolaroidCoreBusinessAutomanufacturingTruckRentalElevatorManufacturingMotorcyclesInstantPhotographyCamerasSourcesofHighestROIAutoleasing,insurancePackingmaterials,storageServiceAccessories(consumerproducts),leasing,service,restaurantsFilm2022/12/196ProfitPools:CompanyExampleManagerialImplicationsFocusongrowthandmarketsharecanleadacompanytofocusonunprofitablesegmentsofanindustryToday’sdeeprevenuerevenuepoolmaybetomorrow’sdryhole.ThegoalshouldbetofocusonprofitableopportunitiesIndustryshouldbeconsideredmorebroadlythantraditionaldefinitionAutomobileindustryincludesComponentmanufactureandsupplyNewcarassemblyanddeliveryNewcarwarranteeandserviceNewcarfinancingandinsuranceUsedcarsalesandservice2022/12/197ManagerialImplicationsFocusoTurbulentindustriesProfitpoolsareespeciallyimportantandusefulinindustriesundergoingderegulationand/ortechnologicalchangeSuchchangescanopennewprofitpoolopportunitiesanddrainoldonesChokepointsmaychangeorbeeliminatedOpportunitiesforeitherforwardorverticalintegrationmayemergeCurrentverticalintegrationmaybedisintermediated2022/12/198TurbulentindustriesProfitpooCreatingandmanagingaprofitpoolProfitpoolanalysismayindicatenewopportunitiesorthreatsImperativesBeopentoanewperspectiveonyourbusinessandindustryDevelopingnewstrategymayrequireoverturningelementsofthecurrentstrategyBeopentoreevaluatetheroleplayedbycurrentcompetitorsBevigilanttoidentifypossibilitythatnewentrantsmayseektoenteryourindustrywithradicalstrategies2022/12/199CreatingandmanagingaprofitLookingAhead:ProfitPoolsandtheFiveForcesProfitpoolsarecomputedbymultiplyingthesizeoftherevenuebytheunitprofitmarginEssentiallyanaccountingprocess--notheoryMostvaluableinsituationsinwhichexternalconditionsareessentialstableand/orunimportant(Oftendominatedbyinternaldataalone)Thefiveforcestellsus(whichwillstudynext)theunderlyingdeterminantsthatdetermineboththerevenuesizeandtheunitprofitmarginTheprofitdriverswhichallowustoforecastthedirectionofchange2022/12/1910LookingAhead:ProfitPoolsanMarakonRunnersThomasA.StewartFortuneSept.28,19982022/12/1911DarralG.ClarkeforBM499MarakonRunnersThomasA.StewaMarakonAssociates’sApproachtoCorporateStrategyConsultantstomanylargecorporationsCocaCola,HP,GM,CitiCorp,etc.Clientshavereturns3.1%higherthanindustrypeergroupGoalistoincreaseshareholdervaluethroughanalysisofeconomicprofitDeepdrillinginbusinessdatatomeasurevaluecreationProductsegmentsCustomersegments2022/12/1912MarakonAssociates’sApproachHowStrategyHappensLearningwherevalueiscreatedWaterfallchartsbyproductandcustomersegmentsEvaluatingstrategyIndustryaverageprofitperunitCompany’sprofitvsindustryaverageManagingvalueCurrentstrategyChangeproductfocusChangecustomerfocus2022/12/1913HowStrategyHappensLearningwLearningwherevalueiscreatedProductsegmentsCustomersegmentsProfit/loss($perunit)Volume(units)Volume(units)02022/12/1914LearningwherevalueiscreateEvaluatingStrategyCompanyprofitperunitIndustry-averageprofitperunit2022/12/1915EvaluatingStrategyCompanyproManagingforvalueCurrentstrategyChangeproductfocusChangeCustomerfocusValue2022/12/1916ManagingforvalueCurrentChangApplicationtoourcasesRetailindustry(Wal*Mart)Softdrinkindustry(Coca-ColaandPepsiCo)Steel(Nucor)andaluminumcans(CC&S)Hitech(Intel,Cisco,andDell)Videogames(Nintendo)Webbusinesses(eBayandYahoo!)2022/12/1917ApplicationtoourcasesRetailTheCoreCompetenceoftheCorporationPrahalad,C.K.andGaryHamelHarvardBusinessReview,May-June19902022/12/1918DarralG.ClarkeforBM499TheCoreCompetenceoftheCorCoreCompetenceAFirmismadeupofresourcespeople,patents,brandnames,plant&equipment,processes,etcAcompetenceistheabilitytoemploydiverseskillsandresourcestoperformtasksandactivities.Acorecompetenceisabroadlybasedand/orabroadlyappliedfundamentalcapability.2022/12/1919CoreCompetenceAFirmismadeCompetenceandTechnologyCompetenceisnotthesameastechnologyCompetencerequirestechnologiessocialorganizationcollectivelearning2022/12/1920CompetenceandTechnologyCompeCorecompetencequestions:Whatarewereallygoodat?Howcanwebuilduponit?Whatdoweneedtobegoodat?2022/12/1921Corecompetencequestions:WhatCharacteristicsofEffectiveCompetenciesDurability:Technicalequipmentcanbeshortlived.Reputationorknowledgemaydepreciatemoreslowly.Transparency:Themorecomplexthesourceofcompetence,theharderitistoimitateit.Transferability:Theavailabilityofresourcestocompetitors.Replicability:Acompetitor’sinternalabilitytoreplicateacompetenceusingavailableresources.2022/12/1922CharacteristicsofEffectiveCChoosingCompetenciesHowcentralisthiscompetencetooursuccessinthemarket?Howlongcouldwepreserveourcompetitivenessinthisbusinesswithoutthisparticularcompetence?Whatfutureopportunitieswouldbeforeclosedifweweretolosethisparticularcompetence?2022/12/1923ChoosingCompetenciesHowcentrCoreCompetenceandCoreProducts2022/12/1924CoreCompetenceandCoreProduAHierarchyofCompetencies2022/12/1925AHierarchyofCompetencies202BuildingStrategyfromCapabilitiesStrategyCapabilitiesResources1.Identifyresources,appraiserelativestrengthsandweaknesses.Leverageuseofresources2.Identifycapabilities.Whatdowedomoreeffectivelythancompetitors?Identifyresourceinputstocapabilities.3.Appraiserent-generatingpotentialresourcesandcapabilitiesintermsof:sustainableadvantage,inappropriability4.Selectstrategythatbestexploitsthefirm’sresourcesandcapabilitiesrela-tivetoexternalopportunities.5.Identifyresourcegapsthatneedtobefilled.Investinreplenishing,augmenting,andup-gradingthefirm’sresourcebase.CompetitiveAdvantageSource:RobertM.Grant,“TheResource-BasedTheoryofCompetitiveAdvantage,”CaliforniaManagementReview,Spring,1991,page151.2022/12/1926BuildingStrategyfromCapabilHowtomapyourindustry’sprofitpoolOritGadieshandJamesL.GilbertHarvardBusinessReviewMay-June19982022/12/1927DarralG.ClarkeforBM499Howtomapyourindustry’sproAstraightforwardexercisewithcomplicationsConceptisstraightforwardDefinevaluechainactivitiesDeterminetheirsizeandprofitabilityApplicationofconceptiscomplicatedFinancialdatadoesn’tcorrespondtovaluechainactivitiesCompanydataisaggregatedacrossbusinessesProducts,customerpurchases,channelvolumesrarelymatchupwithboundariesofanactivityConsiderablecreativityisrequired2022/12/1928AstraightforwardexercisewiFourstepprocessDefinethepoolDeterminethesizeofthepoolDeterminethedistributionofprofitsReconciletheestimates2022/12/1929FourstepprocessDefinethepoFourstepprocessDefinethepoolDeterminethesizeofthepoolDetermineprofitdistributionReconciletheestimatesTask:determinewhichvalue-chainactivityinfluenceprofitsnowandinthefutureDevelopabaselineestimateofcumulativeprofitsgeneratedbyallprofitpoolactivitiesDevelopestimateoftheprofitsgeneratedbyeachactivityComparetheoutputsofsteps2&3GuidelinesTakeabroadviewofthevaluechain(beyondtraditionalindustrydefinition)SeekaroughbutaccurateestimateShiftbetweenaggregationanddisaggregationinyouranalysisIfnumbersdon’taddup,CheckassumptionandcalculationsExamineindustryfromthreeperspective:own,otherplayers,customersTakeeasiestroute:gowherethedataareDoowneconomicsfirst,thenlargepureplayers,largemixed,smallerCollectadditionaldataDon’tdisaggregatemorethannecessaryTakeatleasttwoviewpoints:companylevelandproductlevelUseproxymeasureswherenecessaryResolveinconsistencies—don’tignorethemOutputProfitpoollistEstimateoftotalpoolprofits,(range)PointestimateofprofitsforeachvaluechainactivityFinalestimatesofactivityandtotalpoolprofits2022/12/1930FourstepprocessDefinethepoWhatis“profit”anyway?Canbethoughtofinthreeways(allofwhichmayberelevantforprofitpoolanalysis)AccountingprofitReturnoninvestmentEconomicvalueadded=after-taxoperatingprofits–costofallinvestedcapitalCash-flowEarningsbeforetakingfixed-assetandcapitalcostsintoaccount2022/12/1931Whatis“profit”anyway?CanbeExample:CreditcardsatRegionBankAcquisitionFundingServicing$80

valueofasubscriber$279

averageannualrevenuespersubscriber$60

annualpaymenttoservicerpersubscriber-$64

costofacquiringasubscriber-$235

averageannualcostspersubscriber$50

averageannualcosttoservicer$16

acquisitionprofitpersubscriber$44

annualfundingprofitpersubscriber$10

annualservicingprofitpersubscriber$3.20

annualacquisitionprofitpersubscriberamortizedover5yearaveragelifeX260millionsubscribersX260X260$800

millionprofit$11.4billionprofit$2.6billionprofit2022/12/1932Example:CreditcardsatRegioRegionBank’sProfitPoolMap100%acquisitionfundingservicingShareofindustryrevenue20%Operatingmargin2022/12/1933RegionBank’sProfitPoolMap10RegionBank’sProfitPoolMosaicBanksShareofindustryprofitsacquisitionfundingservicingShareofactivityprofits100%100%BanksBanks2022/12/1934RegionBank’sProfitPoolMosaiProfitPoolsandCoreCompetenceDarralGClarkeProfessorofManagementTheMarriottSchoolBrighamYoungUniversity2022/12/1935DarralG.ClarkeforBM499ProfitPoolsandCoreCompetenProfitPools:AFreshLookatStrategyOritGadieshandJamesL.GilbertHarvardBusinessReviewMay-June19982022/12/1936DarralG.ClarkeforBM499ProfitPools:AFreshLookatTHEPCINDUSTRY’SPROFITPOOLValuechainfocusAxesVertical—operatingmarginHorizontal—shareofindustrydata40%30201000100%shareofindustryrevenuemicroprocessorsothercomponentspersonalcomputerssoftwareperipheralsservicesThevaluechainforthePCindustryincludessixkeyactivities;theprofitabilityoftheactivitiesvarieswidely.Manufacturerscompeteinthelargestbutleast-profitablesegmentofthechain.2022/12/1937THEPCINDUSTRY’SPROFITPOOLVTheProfitPoolLensTheprofitpoolisthetotalprofitearnedinanindustryatallpointsalongtheindustry’svaluechainSegmentprofitabilitymayvarybycustomergroup,productcategory,geographicmarket,ordistributionchannelProfitconcentrationmaybeverydifferentthanrevenueconcentrationShapeoftheprofitpoolreflectsthecompetitivedynamicsofabusinessInteractionsofcompaniesandcustomersCompetitivestrategiesofcompetitorsProductpoolsarenotstagnant2022/12/1938TheProfitPoolLensTheprofitTHEU.S.AUTOINDUSTRY’SPROFITPOOL100%operatingmarginsource:HarvardBusinessReview,May-June1998autorental25%1510500shareofindustryrevenueautomanufacturingnewcardealersusedcardealersautoloansautoinsuranceaftermarketparts20leasingwarrantygasolineservicerepairTheautomotiveindustryencompassesmanyvalue-chainactivities.Thewaythatprofitsandrevenuesaredistributedamongtheseactivitiesvariesgreatly.Themostprofitableareasofthecarbusinessarenottheonesthatgeneratethebiggestrevenues.2022/12/1939THEU.S.AUTOINDUSTRY’SPROFIProfitPools:CompanyExamplesCompaniesAutomakersU-HaulElevators(OTIS)HarleyDavidsonPolaroidCoreBusinessAutomanufacturingTruckRentalElevatorManufacturingMotorcyclesInstantPhotographyCamerasSourcesofHighestROIAutoleasing,insurancePackingmaterials,storageServiceAccessories(consumerproducts),leasing,service,restaurantsFilm2022/12/1940ProfitPools:CompanyExampleManagerialImplicationsFocusongrowthandmarketsharecanleadacompanytofocusonunprofitablesegmentsofanindustryToday’sdeeprevenuerevenuepoolmaybetomorrow’sdryhole.ThegoalshouldbetofocusonprofitableopportunitiesIndustryshouldbeconsideredmorebroadlythantraditionaldefinitionAutomobileindustryincludesComponentmanufactureandsupplyNewcarassemblyanddeliveryNewcarwarranteeandserviceNewcarfinancingandinsuranceUsedcarsalesandservice2022/12/1941ManagerialImplicationsFocusoTurbulentindustriesProfitpoolsareespeciallyimportantandusefulinindustriesundergoingderegulationand/ortechnologicalchangeSuchchangescanopennewprofitpoolopportunitiesanddrainoldonesChokepointsmaychangeorbeeliminatedOpportunitiesforeitherforwardorverticalintegrationmayemergeCurrentverticalintegrationmaybedisintermediated2022/12/1942TurbulentindustriesProfitpooCreatingandmanagingaprofitpoolProfitpoolanalysismayindicatenewopportunitiesorthreatsImperativesBeopentoanewperspectiveonyourbusinessandindustryDevelopingnewstrategymayrequireoverturningelementsofthecurrentstrategyBeopentoreevaluatetheroleplayedbycurrentcompetitorsBevigilanttoidentifypossibilitythatnewentrantsmayseektoenteryourindustrywithradicalstrategies2022/12/1943CreatingandmanagingaprofitLookingAhead:ProfitPoolsandtheFiveForcesProfitpoolsarecomputedbymultiplyingthesizeoftherevenuebytheunitprofitmarginEssentiallyanaccountingprocess--notheoryMostvaluableinsituationsinwhichexternalconditionsareessentialstableand/orunimportant(Oftendominatedbyinternaldataalone)Thefiveforcestellsus(whichwillstudynext)theunderlyingdeterminantsthatdetermineboththerevenuesizeandtheunitprofitmarginTheprofitdriverswhichallowustoforecastthedirectionofchange2022/12/1944LookingAhead:ProfitPoolsanMarakonRunnersThomasA.StewartFortuneSept.28,19982022/12/1945DarralG.ClarkeforBM499MarakonRunnersThomasA.StewaMarakonAssociates’sApproachtoCorporateStrategyConsultantstomanylargecorporationsCocaCola,HP,GM,CitiCorp,etc.Clientshavereturns3.1%higherthanindustrypeergroupGoalistoincreaseshareholdervaluethroughanalysisofeconomicprofitDeepdrillinginbusinessdatatomeasurevaluecreationProductsegmentsCustomersegments2022/12/1946MarakonAssociates’sApproachHowStrategyHappensLearningwherevalueiscreatedWaterfallchartsbyproductandcustomersegmentsEvaluatingstrategyIndustryaverageprofitperunitCompany’sprofitvsindustryaverageManagingvalueCurrentstrategyChangeproductfocusChangecustomerfocus2022/12/1947HowStrategyHappensLearningwLearningwherevalueiscreatedProductsegmentsCustomersegmentsProfit/loss($perunit)Volume(units)Volume(units)02022/12/1948LearningwherevalueiscreateEvaluatingStrategyCompanyprofitperunitIndustry-averageprofitperunit2022/12/1949EvaluatingStrategyCompanyproManagingforvalueCurrentstrategyChangeproductfocusChangeCustomerfocusValue2022/12/1950ManagingforvalueCurrentChangApplicationtoourcasesRetailindustry(Wal*Mart)Softdrinkindustry(Coca-ColaandPepsiCo)Steel(Nucor)andaluminumcans(CC&S)Hitech(Intel,Cisco,andDell)Videogames(Nintendo)Webbusinesses(eBayandYahoo!)2022/12/1951ApplicationtoourcasesRetailTheCoreCompetenceoftheCorporationPrahalad,C.K.andGaryHamelHarvardBusinessReview,May-June19902022/12/1952DarralG.ClarkeforBM499TheCoreCompetenceoftheCorCoreCompetenceAFirmismadeupofresourcespeople,patents,brandnames,plant&equipment,processes,etcAcompetenceistheabilitytoemploydiverseskillsandresourcestoperformtasksandactivities.Acorecompetenceisabroadlybasedand/orabroadlyappliedfundamentalcapability.2022/12/1953CoreCompetenceAFirmismadeCompetenceandTechnologyCompetenceisnotthesameastechnologyCompetencerequirestechnologiessocialorganizationcollectivelearning2022/12/1954CompetenceandTechnologyCompeCorecompetencequestions:Whatarewereallygoodat?Howcanwebuilduponit?Whatdoweneedtobegoodat?2022/12/1955Corecompetencequestions:WhatCharacteristicsofEffectiveCompetenciesDurability:Technicalequipmentcanbeshortlived.Reputationorknowledgemaydepreciatemoreslowly.Transparency:Themorecomplexthesourceofcompetence,theharderitistoimitateit.Transferability:Theavailabilityofresourcestocompetitors.Replicability:Acompetitor’sinternalabilitytoreplicateacompetenceusingavailableresources.2022/12/1956CharacteristicsofEffectiveCChoosingCompetenciesHowcentralisthiscompetencetooursuccessinthemarket?Howlongcouldwepreserveourcompetitivenessinthisbusinesswithoutthisparticularcompetence?Whatfutureopportunitieswouldbeforeclosedifweweretolosethisparticularcompetence?2022/12/1957ChoosingCompetenciesHowcentrCoreCompetenceandCoreProducts2022/12/1958CoreCompetenceandCoreProduAHierarchyofCompetencies2022/12/1959AHierarchyofCompetencies202BuildingStrategyfromCapabilitiesStrategyCapabilitiesResources1.Identifyresources,appraiserelativestrengthsandweaknesses.Leverageuseofresources2.Identifycapabilities.Whatdowedomoreeffectivelythancompetitors?Identifyresourceinputstocapabilities.3.Appraiserent-generatingpotentialresourcesandcapabilitiesintermsof:sustainableadvantage,inappropriability4.Selectstrategythatbestexploitsthefirm’sresourcesandcapabilitiesrela-tivetoexternalopportunities.5.Identifyresourcegapsthatneedtobefilled.Investinreplenishing,augmenting,andup-gradingthefirm’sresourcebase.CompetitiveAdvantageSource:RobertM.Grant,“TheResource-BasedTheoryofCompetitiveAdvantage,”CaliforniaManagementReview,Spring,1991,page151.2022/12/1960BuildingStrategyfromCapabilHowtomapyourindustry’sprofitpoolOritGadieshandJamesL.GilbertHarvardBusinessReviewMay-June19982022/12/1961DarralG.ClarkeforBM499Howtomapyourindustry’sproAstraightforwardexercisewithcomplicationsConceptisstraightforwardDefinevaluechainactivitiesDeterminetheirsizeandprofitabilityApplicationofconceptiscomplicatedFinancialdatadoesn’tcorrespondtovaluechainactivitiesCompanydataisaggregatedacrossbusinessesProducts,customerpurchases,channelvolumesrarelymatchupwithboundariesofanactivityConsiderablecreativityisrequired2022/12/1962AstraightforwardexercisewiFourstepprocessDefinethepoolDeterminethesizeofthepoolDeterminethedistributionofprofitsReconciletheestimates2022/12/1963FourstepprocessDefinethepoFourstepprocessDefinethepoolDeterminethesizeofthepoolDetermineprofitdistributionReconciletheestimatesTask:determinewhichvalue-chainactivityinfluenceprofitsnowandinthefutureDevelopabaselineestimate