咨询行业分析课件

PPT文档演模板贝恩咨询行业分析-RetailCo12023/10/6贝恩咨询行业分析-RetailCo1Background贝恩咨询行业分析-RetailCo1PPT文档演模板ApproachConclusionImplementationResultsAgenda•BackgroundRetail

Co

is

$10+B

“speciality

retail”

conglomerate

whose

financialperformance

has

deteriorated

since

1990贝恩咨询行业分析-RetailCo1PPT文档演模板Financial

ObjectivesAchieve

top

quartile

performancemarket/book

value:

2.8xreturn

on

equity:

17-18%annual

earnings

growth:

10-12%贝恩咨询行业分析-RetailCo1PPT文档演模板Strategic

ObjectivesDivest

businesses

that

are

poor

fitsPrepare

the

company

toweatherchallenging

industry

conditionsCreate

a

compelling

vision

andgrowthstrategyBackgroundRetail

Co

ObjectivesAgenda贝恩咨询行业分析-RetailCo1PPT文档演模板BackgroundApproachConclusionImplementationResultsDefine

the

characteristics

of

a

successful

strategyDevelop

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

implementation贝恩咨询行业分析-RetailCo1PPT文档演模板ApproachDoable:贝恩咨询行业分析-RetailCo1PPT文档演模板Evolves

from

current

business

mixFits

Retail

Co’s

core

competenciesIsfundableDevelops

significant

competitive

advantagesCapitalizes

on

the

volatility

of

retail

cyclesUnderstandable:Communicates

a

clear

and

compelling

approach

to

the

businessWill

be

fully

valued

by

analysts

and

shareholdersDesirable: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

functionsApproachComponents

of

Successful

Strategy•贝恩咨询行业分析-RetailCo1PPT文档演模板Market

sizeMarket

growthSegment

returnsSegment

profitability

trendsMarket

AttractivenessCompetitive

intensitySupplier

powerSegment

stabilityMarket

shareMarket

share

trendGeographic

coverageCurrent

profitability/EVAEarnings

trendStrategic

PositionManagement

teamRetail

brand

equityInfrastructure

and

systemsCustomer

value

propositionCorporate

experience,

skills,and

valuesCorporate

functional

supportFitCorporate

portfolio

developmentCross-divisional

sharingofcriteriaApproachRevising

the

Mix

of

BusinessesRetail

Co

businesses

were

evaluated

along

three

groupsHow

structurally

attractive

is

this

marketsegment?

(projected)industry

sizeindustry

growthindustry

profitabilitycompetitive

intensitybuyer

concentration/powersupplier

concentration/powercommitted

capital

requirementsstage

in

market

evolutionacquisition

opportunitiesHow

does

the

stock

market

value

thissegment?industry

volatilitymarket

valuation

multiple

and

timingvalue

transparency

to

stock

marketDo

we

have

a

strong

position

today?market

share

(local/regional)market

share

growthtrendsprofitabilityrelative

cost

positionbrand

equitycondition

of

assets贝恩咨询行业分析-RetailCo1PPT文档演模板Do

we

have

the

key

success

factors

to

achieve

astrong

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

Codivisions

and

capabilities?cash

flowgenerations/requirementscommon

functional

processescommon

customer

profileslinkage

to

central

resourcesunique

people

skillsThe

five

questions

approach

was

used

to

buildfactbase

on

every

business

of

Retail

CoApproachFactBaseAgendaBackgroundApproachConclusionImplementationResults贝恩咨询行业分析-RetailCo1PPT文档演模板Business

Unit

Evaluations

(1

of2)•DivisionStrategicPositionMarketAttractivenessFi

tNorthConclusionLarge

market

ready

for

consolidation,

goodprofitability,

very

strong

positionHollandItalyRapidly

growing

channel

with

high

returns.Need

to

invest

to

capture

market

share

andimprove

operating

efficiencyHongKongLarge

potential

market

with

opportunity

toboost

growth

and

profitability

throughacquisitions

and

improved

operatingefficiencyLarge

overall

market

with

slow

growth.

Cashprovider

capable

of

funding

growth

businessesLuxembourgReevaluate

growth

plans.

Economiesofscale

not

yet

achieved

but

segmentextremelyprofitableConclusion贝恩咨询行业分析-RetailCo1PPT文档演模板Business

Unit

Evaluations

(2

of2)•BritainIrelandModerate

size

segment

with

goodprofitabilitybut

strong

competition;

declining

marketshare,

low

relative

operating

marginsDeclining

market

segment,

poor

position,

littleopportunity

for

sale,

potential

for

savings

byfolding

into

Hong

KongFranceOvercapacity

in

segment,

losing

marketshare,

below

average

profitabilitySwedenLarge

overall

market

but

requires

substantialinvestment

to

develop

new

products

andachieve

scale

to

improve

cost

position;business

has

poor

fit

with

Retail

Co

skillsSpainSmall

segment,

low

growth,

high

volatility,and

seasonalityDivision贝恩咨询行业分析-RetailCo1PPT文档演模板ConclusionStrategicPositionMarketAttractivenessFi

tConclusion•DivisionStrategicPositionMarketAttractivenessBusiness

Unit

RecommendationsGrowNorth*Fi

(Spin

Off)

t

Holland

Italy

HongKong

Luxembourg

•••Britain•

•Hold

•

Divest•

••••Ireland•

••France••

Sweden••

Spain•贝恩咨询行业分析-RetailCo1PPT文档演模板•

*SpinOffConclusionStrategic

Alternatives贝恩咨询行业分析-RetailCo1PPT文档演模板•Long-termvision:Corporate

profile:Cost

and

experiencesharing

in

thegroupsAcquisitions

to

achievebusiness

line

dominanceThe

leader

in

selectedbusiness

lineschain

drugapparelfootwearhometoysBusiness

linecompetenciesGroup-basedorganisationA

balanced

portfolio

ofspecialityretailersResource

allocationcompetenciesLean

corporate

structureDecentralisedmanagementGrow

and

keepsuccessfulbusinesses.

Divest

theunsuccessfulA

leading

developeroftargeted

growth-stageretailersSelection

and

expansioncompetenciesCorporate

expertise

in

criticalgrowth

functionsbusiness

development(R&D

andresearch)real

estatesystemslogisticsCost

and

experience

sharing

in

keyactivities

across

all

businessesAcquire

and

grow

promisingconcepts.

Divest

when

value-added

peaksConclusionGroupSpecialistRetail

ConglomeratesGrowth-stage

greenhouse(Retail

Co.

“Classic”)Revise

the

mix

of

businesses

in

the

portfolioallow

North

to

pursue

an

independent

strategysell

France,

Spain

and

Sweden

at

the

right

price

and

timeEnsure

remaining

businesses

address

the

most

importantstrategic

issuesestablish

clear

strategies

for

growth

businesses(Holland,

Luxembourg,

Hong

Kong,

Italy)finalise

turnaround

plans

for

businesses

which

can't

besold

at

reasonable

pricestakewrite-offs

as

requiredConsider

acquisitionsReduce

corporate

expensesAdd

value

to

the

businesses

in

the

portfoliobuild

R&D

capabilitiesleverage

costsupgrade

the

organisation贝恩咨询行业分析-RetailCo1PPT文档演模板ConclusionAction

RecommendationsChain

drug

industry

is

consolidatingeconomies

of

scale

in

systems

investmentsrelationships

with

third-party

payersAn

independent

North

generates

significantly

more

shareholder

valueas

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

isattractiveNorth's

value

is

not

being

fully

recognized

in

the

marketplace贝恩咨询行业分析-RetailCo1PPT文档演模板ConclusionExample:

Rationale

For

an

Independent

NorthPlanned

capacity

additions

will

result

in

industry-wide

negative

comp

storesales

through1998Consolidation

is

essential

to

eliminate

excess

capacitylowers

costsallows

comp

store

sales

growthRetail

Co

is

better

suited

to

be

a

seller

than

abuyersynergy

is

equal

whether

France

chooses

to

acquire

or

be

acquiredleading

competitor's

market

value

is

highermanagement

group

at

France

has

several

significantholes贝恩咨询行业分析-RetailCo1PPT文档演模板ConclusionExample:

Rationale

for

the

Sale

of

FranceConclusionExample:

France

-

Strategic

ImperativesIf

the

sale

of

France

takes

longer

than

anticipated,

several

actionswill

be

taken

to

improve

France's

performance: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

dominate贝恩咨询行业分析-RetailCo1PPT文档演模板Vision:贝恩咨询行业分析-RetailCo1PPT文档演模板To

consolidate

our

position

as

the

leading

widget

retailer

to

our

targetcustomers

(high-volume

purchasers

of

trendy

widgets

in

their

20s

and30s)To

be

recognized

by

our

target

customers

as

the

leader

in

product

assortmentand

customer

service

for

widget

retail

(our

unique

positioning)To

reach

a

10%

share

of

the

national

widget

retail

market

by

the

year

2000FinancialGoals:To

reach

and

maintain

ROIC

levels

of

20%To

grow

sales

by

5%

per

year

and

net

earnings

by

10%

per

year

1998

sales

objective:

$1,225MM

1998

net

earnings

objective:

$47MMConclusionStrategy

Summary

(1

of

2)Key

Imperatives贝恩咨询行业分析-RetailCo1PPT文档演模板InitiativesDevelop

our

new

concept,

WidgetFactory,

into

the

second-largestnon-mall

based

widget

retailerRetail

Co

Real

Estate

audit

of

potential

new

sitesWidget

Factory

rapid

deployment

initiative

(openingof

30

new

stores

per

yearClose

non-performing

storesImprove

margins

by

changingmix

and

reducing

costsMix

change

based

on

GMROIapproachImplementation

of

4-Walls

systemRedesign

of

logistics

flow

based

on

Retail

Co

studyImprove

density

of

markets

by

backfillling

five

marketsModify

our

image

in

the

eyesof

thecustomerAssortment

redesign

based

on

demand

and

profitabilitySales

force

training

initiative

on

customer

serviceLaunch

of

a

new

advertising

campaignFocus

new

stores

inSoutherngeographiesClosing

of

the

10

worst

performing

mature

stores(both

XYZ

and

Widget

Factory)

each

yearAcquire

and

integrate

Southern

Widget

by

end

of1996Retail

Co

Real

Estate

audit

of

potential

new

sitesProposed

partnership

with

Southern

Malls,

Inc.ConclusionStrategy

Summary

(2

of

2)Fit

with

Retail

Coclear

opportunity

for

value

creationpotential

to

maximize

sharing

with

related

divisionsMarket

attractivenesssubstantial

market

potentialdominant

market

position

opportunityconcept

in

early

stages

of

a

longlifecycleFinancial

opportunitiesaffordable

within

target

capital

structuremeets

minimum

return

and

growth

hurdlesLimited

risk

factorsexisting

management

talent

or

supplementablelow

to

moderatevolatility贝恩咨询行业分析-RetailCo1PPT文档演模板ConclusionCriteria

for

AcquisitionCorporate

Cost

ReductionOpportunities••*Excluding

interestConclusion贝恩咨询行业分析-RetailCo1PPT文档演模板PrimaryLevers:•贝恩咨询行业分析-RetailCo1PPT文档演模板CorporateRoles:Corporate portfoliodevelopmentKeep

aware

of

market

andcustomer

trendsdrivingpotential

opportunitiesDevelop

criteriaforscreening

acquisitions

andpartnerships

or

alliancesIdentify

and

evaluate

newconcepts

andconsolidation

opportunitiesDevelop

a

network

ofdealcontactsStructure,

negotiate

andclose

dealsCoordinate

effectiveintegration

planningEvaluate

opportunities

tospin-off/exit

businessesFinancialcontrolsDefine

primarymeasures

of

financialperformanceSet

specific

financialreturn

and

earningsgrowth

targetsDevelop

financialplanning

and

controlsystemsAllocate

capitalandother

resourcesBusines soversightDefine

managementdecision-making

processesCoach

divisionalmanagementfocus

managers

onmeasurable

resultsquestion

assumptionsand

challengethinkingProvide

leadership

oncritical

issues

(e.g.,

divisionstrategy,

value

disciplines,and

priority

and

resourceconflicts)Identify

opportunities

toimprove

operations

and

setspecific

improvement

goalsConclusionPrimary

Levers

Available

to

Add

Value

(1

of

2)PrimaryLevers:•贝恩咨询行业分析-RetailCo1PPT文档演模板Roles:Expertisesharing

andoperationalimprovementcommitment

tospreadingbest

practicescoordinateregularexperience

sharingatall

levelsfacilitatecommunication

amongdivisions

and

functionsimprove

operationsacross

all

processes,functions

and

divisionsProvide

leadership

andexpertise

to

supportimprovements

inperformanceManagementallocation

anddevelopmentAttract,

motivate

and

•Instill

company

wideretain

the

bestmanagementrecruit

top

tiercandidatesreward

based

onperformancepromote

based

onabilityProvide

strong,

profit-•Drive

value

disciplines

torelated

incentiveslinked

to

corporateobjectivesacross

functions

anddivisionsDevelop

formaltrainingprogramsStrategydevelopmentCorporate

•Perform

analysis

tosupport

strategicdecision-making(corporate

anddivisional)Define

corporatestrategic

directionAssessmarketattractiveness,performance,

positionand

fit

ofdivisions–

work

with

divisionsto

build

high-quality,fact-based

strategic

•Rotate

managersplansIntegrate

divisionplans

with

corporatestrategyCentralservices

andinfrastructuresharingProvidescaleservices

andfunctions

toachieve

lowercost

andhigherqualityLeverageinfrastructureacrossbusinessesPrimary

Levers

Available

to

Add

Value

(2

of

2)ConclusionProjected

Earnings••North贝恩咨询行业分析-RetailCo1PPT文档演模板New

Retail

Co*From

Monte

Carlo

analysisNote:

Earnings

equals

net

income

after

taxes

and

interestConclusion*With

$300MM

share

repurchase贝恩咨询行业分析-RetailCo1PPT文档演模板Gap

vs.

SBP

ProjectionsGap

vs.

RealisticROE

target:ROE*:11.1%12.0%(Gap)/surplus:•

$10.8MM15.9%19.2%$35.6M M17.0%21.6%$61.3MM11.1%9.4%($22.4MM)15.9%13.4%($28.6MM)17.0%14.9%($30.2MM)ConclusionGap

AnalysisAgendaBackgroundApproachConclusionImplementationResults贝恩咨询行业分析-RetailCo1PPT文档演模板The

decisions

of

the

Board

will

be

evaluated

under

the

traditionalbusiness

judgement

rule

standardThe

distribution

of

North

should

not

require

shareholder

approvalthe

distribution

is

a

dividend

which

requires

only

board

approvalAT&T

precedentThe

potential

divestitures

should

not

be

considered

a

sale

ofsubstantially

all

of

Retail

Co

remaining

assetsNew

Retail

Co

will

be

a

substantial

entity

with

estimated

sales

of$4.2B,

net

income

of

approximately

$119,

and

assets

of

$2.1B贝恩咨询行业分析-RetailCo1PPT文档演模板ImplementationCorporate

GovernanceNote:

Distribute

North

stock

dividend

at

appropriate

time3Q954Q951Q962Q963Q964Q961997Appr