BU战略计划基本

BU战略计划基本2024/3/11BU战略计划基本DESCRIPTIONOFMATERIALSThisdocumentwasdevelopedasatrainingpresentationforthenewlyappointedbusinessunitCEOsofanAsianfamily-ownedconglomerateThepurposeofthisdocumentistoguidenewCEOsthroughthebasicelementsofdevelopingaBU-levelstrategicplanThispackincludesacompaniondocument,“BUStrategicPlanTemplateBook,”whichprovidescompletenessandconsistencyofBUstrategicplansubmissions.ThesetemplatesarenotintendedtoreplaceorconstrainBUstrategicthinkingandshouldbeadaptedtoreflectaparticularBU’ssectoralcontextasrequiredBU战略计划基本WHATISABUSTRATEGY?Astrongbusinessconceptthatdrivesanintegratedsetofactionsthatcreatesvalueby:Creatingproducts/serviceswhosevalueexceedsthecostofprovidingthemCapturingvaluefromcompetitors,customers,distributors,suppliers,andproducersofsubstituteproductsandservicesBU战略计划基本RATIONALEFORPROPOSEDDEFINITIONAstrongbusinessconceptthatdrivesanintegratedsetofactionsthatcreatesvalueby:Creatingproducts/serviceswhosevalueexceedsthecostofprovidingthemCapturingvaluefromcompetitors,customers,distributors,suppliers,andproducersofsubstituteproductsandservices1. Recognizesdualroleofcreatingandcapturingvalueinallelementsofbusinesssystem2. Forceschoices6. Competitive7. Externallyoriented,customerdriven4. Recognizesimportanceofcostascompetitivetool5. Considerstrade-offsbetweenbenefitprovidedtocustomersandcoststheyincur3. Givesconsiderationtoallelementsof

thebusinesssystemBU战略计划基本COMMONELEMENTSOFREAL-LIFESTRATEGIESVisionWhere?Strongbusiness

concept

comprising:Howto

compete?Integrated

setofactionsDevelopedhighqualitystandardsandexcellentoperationalproceduresFocusondevelopingcriticalmassofstoresandestablishingmarketdominanceMcDonald’sexperiencedphenomenalsuccessinglobalizationdueto:SuccessfullyscreeningfranchiseesandadedicationtointenseinitialandongoingtrainingConsistentdeliveryofhigh-qualityfoodandservicearoundtheworldHugeeconomiesofscaleandpowerfulsupplierleverageCapitalizationof“American”appealofMcDonald’sSuccessintailoringassortmentmixtomeetlocalneeds“Wewanttobetheworld’sbestquick-servicerestaurantexperience”“Wewillofferconsistentlyexcellentqualityacrosstheworld”Targetingabroadsetoftheurbanpopulation,increasinglyofferingabundledproduct(meals)atalowpriceinmajorcitiesaroundtheworldMcDONALD’SEXAMPLEBU战略计划基本BUSTRATEGYREVIEWINTERACTIONSHighlyinteractivedebatedrivenbyfact-basedunderstandingofenvironmentandinternalcapabilitiesHowdoyouexpectCompetitorAtoreact?Howsustainable

isyourbusinessmodel?Canitbeeasilyduplicated?Howrobustareyourcontingencyplans?Howquicklycanyoushiftyourbusinessemphasistocaptureindustryopportunities?BUCEOBU战略计划基本BUSTRATEGICPLANDEVELOPMENTIndustrydynamicsandimplicationsEnvironmentalandinternalassessmentCompetitiveassessmentInternalassessmentWhatarethemajorchangesinindustrydynamicsandresultingopportunitiesandrisks?Whatareyourcompetitivestrengthsandweaknesses?Howdoesyourcurrentbusinessemphasisfitwithindustryopportunityandcompetitivelandscape?StrategyarticulationStrategicdefinitionandimplicationsStrategicinitiativesFinancialprojectionsWhatstrategywillyourBUpursueoverthenext3years?Whatwillbetheimpactofmajorstrategicinitiatives?Whataretheexpectedfinancialreturnsofyourstrategy?++++Risk/contingen-cies&strategicalternativesWhatstrategicalternativeshaveyouconsidered?+BU战略计划基本INDUSTRYDYNAMICSANDIMPLICATIONSEconomicsofdemandBysegmentSubstitutes,abilitytodifferentiateVolatility,cyclicalityEconomicsofsupplyProducerconcentrationanddiversityImportcompetitionCapacityutilizationEntry/exitbarriersCoststructure(fixedandvariable)IndustrychaineconomicsCustomerandsupplierbargainingpowerWhatarethe

majorchangesinindustrydynamicsandtheresultingopportunitiesandrisks?Howisindustrystructurechangingwithrespecttodemand,supply,andindustrychaineconomics?Whataretheresultingopportunitiesandrisks?Whatistheexpectedcompetitorconduct?Whataretheresultingopportunitiesandrisks?Whatarethepresentandfutureexternalfactorsthatcouldpresentnewopportunitiesandrisks?MajorindustrycompetitormovesMarketinginitiativesIndustrycapacitychangesM&As,divestituresVerticalintegration/disaggregationAlliancesandpartnershipsCostcontrolandefficiencyimprovementsImpactandlikelihoodofmajorindustrydiscontinuitiesChangesinregulation/governmentpolicyTechnologicalbreakthroughsKeyquestionSubquestionsIssuestobeconsidered** MayormaynotbeapplicabletoallBUsWhatindustryareyoucompetingin?Whatarethevarioussegmentsintheindustry?IndustrydefinitionIndustrysegmentationDefinitionSizingBU战略计划基本SEGMENTANALYSISILLUSTRATIVEIndustryboundariesSegmentsIndustrysegmentsRelativelydistinctsubgroupingswithintheindustryMarketisrelativelysimilarwithinthesegmentbutdifferentacrosssegmentsDifferentindustrydynamicsmayvaryinimportanceindifferentsegmentsBU战略计划基本ProducersIndustrySTechnologybreakthroughsChangesingovernmentpolicy/regulationsDomesticInternationalEconomicsofdemandAvailabilityofsubstitutesDifferentiabilityofproductsRateofgrowthVolatility/cyclicalityEconomicsofsupplyConcentrationofproducersImportcompetitionDiversityofproducersFixed/variablecoststructureCapacityutilizationEntry/exitbarriersIndustrychaineconomicsBargainingpowerofinputsuppliersBargainingpowerofcustomersMarketingPricingVolumeAdvertising/promotionNewproducts/R&DDistributionCapacitychangeExpansion/contractionEntry/exitAcquisition/merger/divestitureVerticalintegrationForward/backwardintegrationVerticaljointventuresLong-termcontractsInternalefficiencyCostcontrolLogisticsProcessR&DOrganizationaleffectivenessFinanceProfitabilityValuecreationTechnologicalprogressEmploymentobjectivesExternalshocksFeedbacktructureConductPerformanceSTRUCTURE-CONDUCT-PERFORMANCE(SCP)MODELBU战略计划基本1. DeterminantsofsupplierpowerDifferentiationofinputsSwitchingcostsofsuppliersandfirmsintheindustryPresenceofsubstituteinputsSupplierconcentrationImportanceofvolumetosupplierCostrelativetototalpurchasesintheindustryImpactofinputsoncostordifferentiationThreatofforwardintegrationrelativetothreatofbackwardintegrationbyfirmsintheindustry2. DeterminantsofbarrierstoentryEconomiesofscaleProprietaryproductdifferencesBrandidentitySwitchingcostsCapitalrequirementsAccesstodistributionAbsolutecostadvantagesProprietarylearningcurveAccesstonecessaryinputsProprietary,low-costproductdesignGovernmentpolicyExpectedretaliation5. DeterminantsofrivalryIndustrygrowthFixed(orstorage)cost/valueaddedIntermittentovercapacityProductdifferencesBrandidentitySwitchingcostsConcentrationandbalanceInformationalcomplexityDiversityofcompetitorsCorporatestakesExitbarriers3. DeterminantsofbuyingpowerBargainingleverageBuyerconcentrationvs.firmconcentrationBuyervolumeBuyerswitchingcostsrelativetofirmswitchingcostsBuyerinformationAbilitytobackward-integrateSubstituteproductsPull-through4. Determinantsof

substitutionthreatRelativepriceperformanceofsubstitutesSwitchingcostsBuyerpropensitytosubstitute2.Newentrants3.Buyers4.SubstitutesIntensityofrivalry1.SuppliersPricesensitivityPrice/totalpurchasesProductdifferencesBrandidentityImpactonqualityperceptionBuyerprofitsDecision-makers'incentives5.Industrycompetitors"FORCESATWORK"FRAMEWORKBU战略计划基本OpportunitiesandthreatsHowaredemandandsupplyexpectedtoevolve?Howdoyouexpecttheindustrychaineconomicstoevolve?Whatarethepotentialmajorindustrydiscontinuities?Whatcompetitoractionsdoyouexpect?YourBUSWOTANALYSISConvert

opportunitiesBuildonstrengthsNeutralizethreatsAddressweak-nessesStrengthsandweaknessesWhatareyourBU’sassets/competenciesthatsolidifyyourcompetitiveposition?WhatareyourBU’sassets/competenciesthatweakenyourcompetitiveposition?Canbeusedasathought-starterforcompetitiveanalysisandinternalassessmentDiscoverspotentialopportunities/threatsarisingfromfactorsexternaltotheBUBU战略计划基本SCPAPPLIEDTOLEXMARKRapidlychangingtechnology,e.g.,birthofportable,handheld,wirelesscomputersRapidlychangingcustomerpreferencesPossibilityofapaperlesssociety,givenincreasingenvironmentalconcernandriseoftheInternetEconomicsofdemandInk-jetprintersreplacinglaserinnonnetworkenvironmentHighpricesensitivity;minimalopportunityformajorproductdifferentiationGrowthoflaserandink-jetprintermarketsstablebutdependentonPCsalesanddegreeofreplacementEconomicsofsupplyHPholdslion’sshareofprintermarketIndustrycapacityexceedsmarketdemandPresenceofcounterfeitandrecycledproductsupply,especiallyinconsumablesHighexitbarriersduetoassetintensityIndustrychaineconomicsBargainingpowerofsupplierslowBargainingpowerofdistributorshighLittleintegration(forwardorbackward)MarketingManufacturerscompetingmainlyonpriceRetaildominantdistributionchannelAggressivedevelopmentandreleaseofnewproductsMovestoincreasebrandawarenessviamarketingcampaignsCreativefinancingpackagesInternalefficiencyRelentlessdrivetolow-costmanufacturingContinuouseffortstocreatemorespecializedfeaturesand/orfunctionsOthersEntryofPCandperipheralsplayersClampdownoncounterfeitandrecycledconsumablessuppliersFinancePricecompetitiononprinterhardwaredrivesmarginsdownandforcesplayerstorelyonprofitsfromconsumableproducts(goodmargins)andhighvolumecaptureonhardwareSExternalshocksFeedbacktructureConductPerformanceSource:LexmarkCasePresentationassociatetrainingmaterialsBU战略计划基本RESULTINGOPPORTUNITIESANDRISKSFORLEXMARKOpportunitiesRisksBecomethefirstmoverinprintersforportable,handheld,wirelesscomputermarketGrowdemandbaseviauseofcreative,nontraditionalchannelsandalternativefinancing/paymentmethodsGrowdemandforconsumablesviaprogramstoincreaseprintingusageBethesupplierofprintersforPC/peripheralplayershopingtotheexpandintoprintermarketExpandleadershipincorporateinstitutionalaccountsIncreasingdemandforcustomizationmayincreasecostsanderodemarginsAnydeclineinPCsalesmaysignificantlydecreaserevenuesMarketsharemaybeerodedascompetitionintensifiesBranding/marketingpushfromestablishedplayersPricingpushfromlow-costmanufacturersMarginsatriskifprintingusagedeclineswithpushforpaperlesssocietyNOTEXHAUSTIVESource:TeamanalysisBU战略计划基本COMPETITIVEASSESSMENTPrivilegedassetsthatcreatecompetitiveadvantage,e.g.,physicalassets,location/space,distribution/salesnetworkDistinctiveskillsandcompetenciesthatcreatecompetitiveadvantage,e.g.,innovation,talentdevelopmentWhatareyour

competitive

strengthsand

weaknesses?Whatarethecapabilitiesrequiredtosucceedinthisindustry?Howdoyoucompareagainstthesenecessarycapabilities?Strengthsandweaknessesofyourcompetitivepositionvs.necessarycapabilitiesBenchmarkperformanceagainsttheindustry’srelevantkeyperformanceindicators(KPIs),*withmarginandmarketshareastherequiredminimumKeyquestionSubquestionsIssuestobeconsidered * KPIsareahandfulofleversthatdrivethevalueoftheindustryorbusinessBU战略计划基本CAPABILITYPLATFORM:ASSESSINGSOURCESOFCOMPETITIVEADVANTAGEPhysicalassetLocation/space

Distribution/salesnetworkBrand/reputationPatentRelationshipwith‘license’allocatorBHP’slow-costminesTelecom/mediacompanywithrightsto

radiospectrumAvon’srepresentativesCoca-ColaPharmaceuticalcompanywitha‘wonderdrug’‘Favorednation’statuswithakeyministerinliberalizingeconomyInnovationCross-functionalcoordinationMarketpositioningCost/efficiencymanagementTalentdevelopment3MwithnewproductsMcDonald’swithQSC&VJ&JbrandedconsumerhealthproductsEmersonElectric’sBestCostProducerprogramP&GbrandmanagementprogramPrivilegedassetsDistinctivecompetenciesCapabilitiesneededtosucceedinindustryExampleBU战略计划基本Step1:Ensurethatthesearethecapabilitiesrequiredtosucceedintheindustry.Usethislistasathoughtstarter,andaddanddeleteasyouseeappropriateBUOverallSegmentsABCStep2:Assessyouroverallpositionrelativetothecapabilitiesrequiredtosucceedintheindustry.Also,determinewhetherthesecapabilitiesarerelevanttothesegmentsyouservePhysicalassetLocation/space

Distribution/salesnetworkBrand/reputationPatentRelationshipwith‘license’allocatorInnovationCross-functionalcoordinationMarketpositioningCost/efficiencymanagementTalentdevelopmentPrivileged

assetsDistinctivecompetenciesCapabilitiesneededtosucceedinindustryCAPABILITYPLATFORM:ASSESSINGSOURCESOFCOMPETITIVEADVANTAGE(CONT.)ILLUSTRATIVEExtremelyrelevantSomewhatrelevantIrrelevantBU战略计划基本RANKINGYOURSELFAGAINSTTHECOMPETITIONKeymidmarketbuyingfactorsExplanationConvenientlocationOfferPrice*CustomerserviceShoppingenvironment**CompetitivepositioningofDepartmentStore2(DS2)vs.DS1Much

worseWorseRDS

positionBetterMuch

better-2-1012DS2islocatedinmajorthoroughfaresandisaccessibleviapublictransport,resultinginhighertrafficDS2isconsideredadestinationDS2andDS1havethesamecategoriesexceptforsnacksandappliancesDS2hashistoricallybeenviewedasthelow-priceplayer.ThisisreinforcedbycontinuouscustomerexperienceaswellasthecontinuousreminderofthelowpricesviastoresignsandthestrategicplacementoflossleadersallaroundthestoresBothprovidethestandardofferingRangeDS2hasitallX * Best/lowestprice,promotions ** Cleanliness,ambience,signage Source: TeamanalysisXXXXXBU战略计划基本BENCHMARKPERFORMANCEAGAINSTRELEVANTINDUSTRYKPIsKPIs(examples)FinancialindicatorsMarginNetincomeROCE

OperatingindicatorsAdvertisingeffectivenessUtilizationrateStrategicindicatorsMarketsharePercentofrevenuefromnewproductsWorkingcapitaltrendExternalindicatorsMarketpricesofrawmaterialsBUCompetitorACompetitorBCompetitorCBU战略计划基本KPIsFinancialindicators*OperatingincomeMarginsROCE**OperatingindicatorsDistributionreachCycletimeStrategicindicatorsMarketshareBrandawarenessLexmarkHPEpsonBENCHMARKINGAPPLIEDTOLEXMARKStrongMediumWeak *Includesotherinformationequipment(e.g.,scanners,projectors) **Returnoncapitalemployed$457million12%29%$1,573million9%11%$583million6%N/A12%47%17%Source:LexmarkCasePresentationassociatetrainingmaterialsBU战略计划基本INTERNALASSESSMENTRelevantBUsegments(basedoncustomer,product,geography,distributionchannel)OperatingcontributionestimatesforeachsegmentHowdoesyourcurrentbusinessemphasisfitwiththeindustryopportunitiesandthecompetitivelandscape?Whichsegmentsofthebusinessareprovidingthehighestreturns?*WhathavebeentheperformancetrendsalongmajorBUKPIs?KPIperformancetrendsoverthelast3-5years,e.g.,returnoncapitalemployed(ROCE),**operatingincome,margins,capitalemployedAssessmentofunderlyingtrenddriversExpectedevolutionKeyquestionSubquestionsIssuestobeconsideredWhichintangibleassetscouldbenear-termsourcesofvalue?Identificationofin-houseintellectualproperty,talent,networks,brand/imageConversionintosourcesofvalue * Basedonlatestavailable,1-to2-yearhistoricalfinancialstatements ** ROCE=Operatingincomex(1-taxrate) Allinterest-bearingdebt(shortandlong)+minorityinterest+stockholders’equityBU战略计划基本SEGMENTANALYSISRevenueGrossprofitOperatingprofitAssetsemployedPeopleemployedOperating

profitmarginGrossprofit

marginROCEStep1:IdentifytherelevantsegmentsStep2:Provideasegmentanalysisbasedonthefollowingminimumfinancialmetrics:revenue,grossprofitandmargin,operatingprofitandmarginStep3:Totheextentassetsandpeoplecanbedisaggregatedbysegment,analyzedeploymentofassetsagainstreturns%%oftotalSegment1%oftotalSegment2%oftotalSegment3%oftotalSegment4%oftotalTotal%%%%Segment1Segment2Segment3Segment4TotalBU战略计划基本SEGMENTANALYSISAPPLIEDTOLEXMARKPrintersandsuppliersOtherofficeimagingKeyboardsandotherRestofworldEuropeU.S.Product%Geography%oftotalrevenues,1995100%=$3,807million100%=$2,494m100%=$895m11414864846100%=$3,021m100%=$1,024m14355184646100%=$3,452m100%=$1,031m1428584060100%=$3,807m100%=$1,164m9236832671GrossprofitRev1992GrossprofitRev1993GrossprofitRev1994GrossprofitRev19950Source:LexmarkCasePresentationassociatetrainingmaterials;McKinseydatabaseBU战略计划基本TRENDANALYSIS:RETURNONCAPITALEMPLOYED(ROCE)TheROCEtreecanbedisaggregatedtoshowtheotherrelevantKPIsofaBUROCE%Operatingincomex(1-taxrate)PHPmillionCapitalemployedPHPmillion÷RevenuePHPmillionOperatingmargin%x(1-taxrate)%xMarketshare%IndustrysalesPHPmillionxILLUSTRATIVEBU战略计划基本TRENDANALYSIS:CASHThecashflowtreecanbedisaggregatedtoshowtheotherrelevantKPIsofaBUCashflowgeneratedPHPmillionOperatingcashflowPHPmillionInvestingcashflowPHPmillion+NetincomePHPmillionNoncashexpensesPHPmillion+ChangeinworkingcapitalPHPmillion+FinancingcashflowPHPmillion+NOTEXHAUSTIVEBU战略计划基本ROCE%Operatingincomex(1-taxrate)$millionCapitalemployed$million÷Revenue$millionOperatingmargin%x(1-taxrate)%xMarketshare%Industrysales$millionxNOTEXHAUSTIVESource:LexmarkCasePresentationassociatetrainingmaterials;McKinseydatabaseTRENDANALYSISAPPLIEDTOLEXMARKBU战略计划基本INTANGIBLE-ASSETCHECKLIST

IntangibleassetsWaystoextractnear-termvalue

TalentHighlymotivatedandcompetentworkforceleveragingspecificskillsetstoGenerategrowthImprove/increasecompanyintangibles

IntellectualpropertyPatentsgeneratinglicensingfeesUnderstandingofcustomerbehaviorRiskmanagementSoftwareNetworkInterconnectedwebsofpartiesNonexclusiveAdditionalmemberlowerscosts,increasesbenefitsBrand/imageInherentimageorbrandbuiltuponexcellentserviceandproductofferingsLowersearchcostsforcustomers

BU战略计划基本TechnologyforproductsNetworkingsoftwareINTANGIBLE-ASSETASSESSMENTAPPLIEDTOLEXMARKIntangibleassetsWaystoextractnear-termvalueCustomizetosuitindustrysegmentscurrentlynotservedDeveloprelatedproductsthatmayusenetworkingsoftwarein-houseorviapartnershipSalesforceengineersDevelopthebestproducttosuitidentifiedcustomerneedsTalentRelationshipwithsuppliersGoodworkingrelationshipallowsbettercaptureofproductionefficienciesthatimproveproductcycletimeandcost-efficiencyNetworkIntellectualpropertyNOTEXHAUSTIVESource:TeamanalysisBU战略计划基本STRATEGYARTICULATIONWhereareyougoingtocompetealongthesedimensionsandwhy?TargetmarketDistributionchannelsProduct(breadthanddepth)GeographicscopeTargetcustomerdefinitionBenefitsthatyouwillofferthecustomersProductpricingPositionagainstcompetitionvis-à-visthebenefitsprovidedandthepricechargedDeliveryandcommunicationofcustomervalueproposition(valuedeliverysystem)CompetitiveadvantageindeliveringthesebenefitstothecustomerWheretocompete?Whatisyourcustomervaluepropositionforthedifferentsegmentsyouaregoingtoserve?Whatisyourbusinessmodel?WhatstrategywillyourBUpursueoverthenext3

years?KeyquestionSubquestionsIssuestobeconsideredIndustryattractivenessandimplicationreviewAlignmentofchosenstrategyandenvironmentalrealitiesHowdoesyourchosenstrategyexploittheindustryopportunitiesandaddresstheindustry/competitivethreats?BU战略计划基本WHERETOCOMPETE?CustomersChannelsProductsGeographicmarketsTargetcustomersandsegmentsWhichcustomersareyoutryingtotargetorattract?Whichareyouwillingtoserve,butwillnotspendresourcestoattract?Whichwouldyouprefernottoserve?WaystheentityreachesitstargetcustomersWhichdistributionchannelswillyouuse?Whatcustomersegmentscantheyreach?GeographicalscopeofbusinessactivitiesGeographiclimitstothebusiness?Local,regional,multilocal,national,international,orglobalplayer?Iflocal,whichlocalities?QualityandbreadthoftheproductlineQualityoftheproductline?Breadthoftheproductline?Productbundlesoraseriesofunrelatedproducts?BU战略计划基本WHERETOCOMPETE?LEXMARKEXAMPLEStagedexpansion:national,theninternationalFortune1000companiesinbanking,insurance,retail/pharmacyindustriesforlaserprintersHaveuniquenetworkprintingneedsLargeprinterusersValue-(notprice-)orientedsegmentsConsumermassmarketforink-jetprintersUsedbroadestrangeofchannelsforcustomerfreedomTraditionalretailchannels(i.e.,dealernetwork,value-addedresellers,about5,000retailoutlets)OwnaccountmarketingteamstoselldirecttocustomersLaserprintersColorink-jetprintersAssociatedconsumablesuppliesMarkVisioncompleteprintermanagementsystemCustomersChannelsProductsGeographicmarketsBU战略计划基本VALUEPROPOSITION

Acompany’sspecificpromisetoitstargetcustomersofthebenefitsitwillprovideatanexplicitprice.Itanswersthefollowingquestions:Whoisyourtargetcustomer?Whatexplicitbenefitsdoyouprovidetoyourcustomer?Whatperceivedvaluedoyouprovidetothecustomerbetterthancompetition?Howmuchvaluedoyourcustomersattachtothebenefitsyouprovide?BU战略计划基本‘Wewillservethefast-growingsegmentsof

thenetworkprintermarketwithhigh-quality,technologicallyadvancedproductstargetedtocustomerneedsatamoderatelyhigherpricethanundifferentiatedlaserprinters.’LEXMARK'SVALUEPROPOSITIONFORLASERPRINTERSSource:LexmarkCasePresentationassociatetrainingmaterialsBU战略计划基本FlashmemoryallowinginstantaneousprintingandupdatingofformsinmultiplelocationsDuplexprinting–abilitytoprintonbothsidesofpaperPapertraystohandlethreeormoresizesofpaperandformsTechnicalservicesupporttohelpwithsystemsdesignandproductproblemsTargetedtosegmentneedsHighqualityTechnologicallyadvancedCompetitivepriceSlightpremiumBankingPriceBenefitsWhychoose

Lexmark?SlightpremiumPharmacyTAILORVALUEPROPOSITIONTOVARIOUS

CUSTOMERSEGMENTSAbilitytoprintprescriptionlabelswithoutjamming(duetospacingofrollers)TechnicalservicesupporttohelpwithsystemdesignandproductproblemsLEXMARKEXAMPLESegmentSource:TeamanalysisBU战略计划基本BUSINESSMODELUnderstandvaluedesiresSelecttargetChoosethevalueValuepropositionDesignproduct/processProcure,manu-factureDistri-buteProvidethevalueServicePriceDefinebenefits/

priceSalesmessageCommunicatethevalueBusinessmodel:IntegratedsetofactionstoprovideandcommunicatethevaluepropositiontocustomersSegmentationValuepropositionAdver-tisingPromo-tion/PRValuedeliverysystem(VDS)EachBUmustaddressthese2issuestodefinetheirbusinessmodel

Illustrationofhowthevaluepropositionwillbeprovidedandcommunicated Identificationofexistingstrengthsthatcanbeleveragedandofthecapabilitiesthatneedtobebuilttobedistinctiveinchosenvaluedeliverysystem12BU战略计划基本LEXMARKLINKEDVALUEPROPOSITIONTO

CHANGESINBUSINESSSYSTEMProductdesignprocessProcurementManu-facturingDistributionMarketing

&salesAfter-saleserviceProvidethevalueCommunicatethevalueHighlycustomizedtocustomersegments12-monthdesigncycleFullycross-functionalLimitedtospecifictargetsegmentsIn-housecontrolofcriticaltechnologiesOutsourcedonlynon-criticalcomponentsUtilizedpreferredsuppliersKepthigh-value-addedprocesses

in-houseImprovedflexibilityandreducedproductcycletimeMinimizedchangesinproductionfornewproductsMultiplechannelsSmallchannelsalesforceProvidedincentivestoretailersviahighermarginsPartnershipswithkeymanufacturersfor“private-label”brandsLargesalesforcetargetedatendusersinspecificindustriesSophisticatedorderfulfillmentsystemMonthlycustomerindexrankingpersalesteamRetrainingtoallowmoreend-usersalesapproachDedicatedtechnicalpeopleperindustrysalesgroupRapidcustomerresponse

(<3hr)Multiplechannels,e.g.,phone,InternetLexExpressovernightexchangeifrepaircannotbedoneStrengths

toleverageCapabilitiestobuildRelationshipsoftheaccountteamswithendusersR&DtalentRelationshipswithsuppliersProductionknow-howRelationshipsinheritedfromIBMBrandstrengthBettersystemstoallowanevensmootherflowofinformationSources:LexmarkCasePresentationassociatetrainingmaterials;teamanalysisBU战略计划基本STRATEGICINITIATIVESFinancialimpactfromeachstrategicinitiativeExpectedfinancialoutlayforeachinitiativeHowmuchvaluewillbecreatedfromeachstrategicinitiative?ResourcesrequiredAvailabilityofresourcesintheorganizationPlanforfillingresourcegapsWhatresourceswilleachstrategicinitiativerequire?Whatwillbetheimpactofmajorstrategicinitiatives?KeyquestionSubquestionsIssuestobeconsideredPossiblestrategicinitiativeslistWhatmajorstrategicinitiativesarerequiredtosuccessfullyimplementyourselectedbusinessmodel?Sourcesofvaluefromeachstrategicinitiative(e.g.,EBIT,capitalemployed)Whatarethesourcesofvaluecreatedfromeachstrategicinitiative?BU战略计划基本STRATEGICINITIATIVES:SOURCESOFVALUEILLUSTRATIVE

Initiatives(examples)1. Capturegreater

marketshareVolumeincreaseEBITimpactviaPriceincreaseCostreductionOtherInvest-mentCapitalemployedimpactviaDivest-mentCapital

efficiency*Otherü2. Costreduction(e.g.,effectivechannelmanagement)3. Obtainhigherprices4. Createnewmarke