BusinessUnitStrategyFramework貝恩業(yè)務(wù)單元戰(zhàn)略方法課件

1、 Stan MirandaLondonBusiness Unit Strategy Framework第1頁，共79頁。 IntroductionWhat is a Strategy?What is a good Strategy?What are the key elements of a Strategy?How do we develop a good Strategy?Key TakeawaysFrequently Asked QuestionsStrategy Development Tools第2頁，共79頁。 Corporate Versus Business Unit Stra

2、tegyBusiness Unit Strategy sets market and product priorities, defines sources of competitive advantage and allocates resources behind strategic imperatives.Defines full potential targetsFocuses on core markets, products, customer segments, channelsDefines sources of competitive advantage and core c

3、ompetencesPrioritises strategic imperativesDefines potential adjacent expansion opportunitiesCorporate StrategyBusiness Unit StrategyBusiness Unit StrategyMarket StrategyProduct StrategyChannel StrategyFunctional Area StrategyProduct StrategyChannel StrategyFunctional Area StrategyMarket Strategy第3頁

4、，共79頁。 The Bain ToolkitBusiness Definition and Business Unit Strategy are at the core of all results delivered through strategy at Bain.BusinessDefinitionBU StrategyBusiness DefinitionPerformance ImprovementM&AOrgCorporate StrategyJoint Venture / AlliancesGrowthPortfolio StrategyCore CapabilitiesO/h

5、ead Cost ReductionParent Value AddedChange ManagementPost Merger IntegrationOrganisation DesignProcess RedesignRole of CentreShareholder Value AnalysisLBO Commercial ReviewsSales and MarketingVMRsLoyaltyAcquisitionEvaluation第4頁，共79頁。 IntroductionWhat is a Strategy?What is a good Strategy?What are th

6、e key elements of a Strategy?How do we develop a good Strategy?Key TakeawaysFrequently Asked QuestionsStrategy Development Tools第5頁，共79頁。 Definition of Strategy (From Clients)“A route from A to B.”“Long term plans, unfettered by short term pressures.”第6頁，共79頁。 Bain Definition of StrategyStrategy is

7、a proprietary set of actions that better serve customers than the competition.第7頁，共79頁。 Bain Definition of StrategyStrategy is the science of allocating scarce resources.第8頁，共79頁。 Importance of StrategyYou wont get there without knowingwhere you are goinghow to get thereGuides decision-making and re

8、source allocationDefines full potentialStrategically minded businesses generally out-perform operationally managed businessesClearly communicates to the organisation where they are going第9頁，共79頁。 Importance of StrategyCEOs believe a strong strategy is key.Attributes that will make a company most res

9、pected in the future 1. “Strong, well thought out strategy” 2. Maximizing customer satisfaction and loyalty 3. Business leadership 4. Quality of products/services 5. Strong and consistent performance Financial Times Worlds Most Respected Companies Survey (Nov. 1998)第10頁，共79頁。 IntroductionWhat is a S

10、trategy?What is a good Strategy?What are the key elements of a Strategy?How do we develop a good Strategy?Key TakeawaysFrequently Asked QuestionsStrategy Development Tools第11頁，共79頁。 Strategic Principles“Perhaps my most important act was my first central idea for GE back in 1981, which was my decisio

11、n to be either number one or number two in our businesses - or get out of them altogether.”- Jack Welch,CEO General Electric第12頁，共79頁。 Strategic Principles“For a new technology to really flourish, it should be managed and marketed on its own, without exploiting the synergies from other divisions. Th

12、at is because when a technology is successful - executives will slow down the growth of new competing technologies.”- Robert GalvinCEO Motorola第13頁，共79頁。 1.Rooted in a few powerful guiding strategic principles2.Proprietary3.Makes trade-offs4.Defines 2-3 top strategic imperatives5.Built on strong bas

13、ic operating performance (i.e., is implementable)6.Dynamic - “future proof”What is a Good Strategy? 第14頁，共79頁。 IntroductionWhat is a Strategy?What is a good Strategy?What are the key elements of a Strategy?How do we develop a good Strategy?Key TakeawaysFrequently Asked QuestionsStrategy Development

14、Tools第15頁，共79頁。 Iraqi WarIraq invaded Kuwait, declared Kuwait a provinceUN Security Council declared annexation void An alliance of Nato and Middle East countries appointed General Schwartzkopf + Security Council of Allied forces Colin Powell to command the Allied ForcesYou are general Colin PowellY

15、ou need a strategy (“l(fā)ets call it Desert Storm”)August 1990January 1991What are the critical elements of Strategy?第16頁，共79頁。 Desert StormK U W A I TI R A QS A U D I A R A B I AI R A NBaghdadNasiryahKuwait CityBasra第17頁，共79頁。 Iraqi War - Key Elements of StrategyRemove the Iraq threat to KuwaitNot to

16、annihilate Iraq1. GoalsNot Iraq; Kuwait and Southern border of Iraq2. BattlefieldPrecision bombing attacks followed by sea and land attack4. Weapons1. Speed, so Saddam had no time to mobilise army2. Precision bombing attacks followed by sea & land attack5. Plan - Strategic Imperatives NATO and Middl

17、e East countries7. Allies1. Specific locations2. Sequencing of attacks3. Media visibility to gain international support6. Plan - Key tactics1. Saddam Hussein2. Kurds3. Enemy3. 20m people4. 100K National Guard第18頁，共79頁。 What are the Critical Elements of Strategy?Military Context1. Goals2. Battlefield

18、s3. Enemy4. Weapons/Troops5. Plan- strategic imperatives- tactics6. Allies1. Financial targets and vision2. Product, markets & customer segments3. Competitors4. Primary source of competitive advantage 5. Management, employees & money (resources)6. Management plans & programmes 7. Alliance PartnersBu

19、siness ContextA CEO doesnt have a strategy without these critical elements.第19頁，共79頁。 1. Vision2. Source of Competitive Advantage3. Target Competitors4. Principal Battlefields5. Strategic Imperatives6. Key InitiativesBusiness Unit Strategy PyramidA pyramid helps to translate the strategy into a day-

20、to-day tool.第20頁，共79頁。 1. VisionEuropesmost profitable automotive manufacturer by 2002: 5% ROS & 7% growthAutoCo Pyramid (1)第21頁，共79頁。 AutoCo Pyramid (2)Low cost producer of high quality vehiclesDistribution network which delivers high owner loyaltyCustomer- driven PD Process2. Source of Competitive

21、 Advantage第22頁，共79頁。 3. Target CompetitorsPremium ManufacturersVW GroupOther Mainstream ManufacturersAutoCo Pyramid (3)第23頁，共79頁。 4. Principal BattlefieldsDrive core C and C/D platforms everywhereDominate UK and MCV across EuropeDrive to No.2 in GermanyAutoCo Pyramid (4)第24頁，共79頁。 5. Strategic Imper

22、ativesAchieve lowest total enterprise costOptimise full portfolio of brands and increase premium participationExpand into profitable adjacent revenue areasAutoCo Pyramid (5)第25頁，共79頁。 Materials costsDemand-to-deliveryCapital expenditureCapacity & labour strategyPortfolio & brand strategy Product dev

23、elopment processPremium strategyDistribution strategyAdjacent businesses6. Key InitiativesAutoCo Pyramid (6)第26頁，共79頁。 IntroductionWhat is a Strategy?What is a good Strategy?What are the key elements of a Strategy?How do we develop a good Strategy?Key TakeawaysFrequently Asked QuestionsStrategy Deve

24、lopment Tools第27頁，共79頁。 How Do We Develop B.U. Strategies?Process StepStrategy DiagnosticImplementation DiagnosticChange ProgrammeOutputStrategic PlanImplementation Plan(s)Change ProcessResultsWhere in strategy development process are we?第28頁，共79頁。 1.Business Definition2.Key Value Drivers3.Strategic

25、 Principles4.Strategic OptionsFour Core Steps第29頁，共79頁。 Strategy FrameworkPurch.Tech.,R&DMfg.Mktg.SalesDistCust. Svc.3.Strategic Principles4.Strategic OptionsOption AOption BOption C1.Business DefinitionTech.,R&DMfg.Mktg.SalesDistCust. Svc.Purch.2.Key Value Drivers第30頁，共79頁。 Business Unit Strategy1.

26、 What are the markets competitive boundaries?Activities currently performedCurrent and future business definitionproducts/services?global, regional, local?which value chain elements?technology?InputsBusiness definition Issues raisedOutputs第31頁，共79頁。 Business Unit StrategyCustomer needscustomer segme

27、ntationwhat is important?how differentiable?Cost analysislargest manageable componentscost sharingcapital requirementsCore capabilitiesIndustry “key value drivers”strategicoperationalWhat are the key value drivers for any competitor?Purch.Mfg.SalesDist.Tech., R&DMktg.Cust.Svc.2. What are the key val

28、ue drivers for any competitor?InputsOutputs第32頁，共79頁。 Business Unit StrategyPurchMtgDistCustSvcTechR&DMktgSales3. What is required of our winning strategy?Industry structure: today and futureCompetitors: today and futurePerformance benchmarkscustomer needs costscapabilitiesInputsOur guiding strategi

29、c principles “any good strategy must .”O(jiān)utputs第33頁，共79頁。 Business Unit StrategyDevelop optionsEvaluate optionsFinancial analysisprofitcapitalshareholder valueOption AOption BOption CList of strategic optionsRecommended strategyKey elements for strategyvision and targetsbattlefieldsproducts/markets/

30、customerssource of advantagetarget competitorstop 3 strategic imperativesresource requirementsQuantified full potential4. How do we achieve our full potential?InputsOutputs第34頁，共79頁。 Strategy FrameworkPurch.Tech.,R&DMfg.Mktg.SalesDistCust. Svc.3.Strategic Principles4.Strategic OptionsOption AOption

31、BOption C1.Business DefinitionTech.,R&DMfg.Mktg.SalesDistCust. Svc.Purch.2.Key Value Drivers第35頁，共79頁。 Helps determine what business battlefield is most defensibledefine it too broadly, are overtaken by more focused competitorsdefine it too narrowly, are overtaken by more broadly based competitorsIm

32、portance of Business DefinitionThis is our “Magic Dust”.第36頁，共79頁。 Bain Capital ApproachBusiness definition is key in Bain Capitals approach.Bain Capital Investment Memorandum4. Proven Analytical ApproachMarket definitionMarket definition delineates the boundaries where competitive advantage can be

33、established and sustained. Market definition is based on the businesss economics, sharing with other businesses and the dynamics of customer behaviourMarket segmentationCompetitive positionCost analysisCapabilities and AssetsManagementRegulatory, Environmental, Tax, Legal, AccountingHarvest Analysis

34、第37頁，共79頁。 Wesley Jesson VisionCare StoryAcquired struggling contact lens manufacturer diversified into all eyewear, retail outlets, solutions / accessoriesLimited cost, distribution and technology overlap suggested business definition was soft contact lens manufacturing onlyDivested everything else

35、 and focused on innovating within contact lens only 1997 exited at 400% IRR$MBusiness definition is Bain Capitals Magic Dust as well.第38頁，共79頁。 Business Definition (Version 1.0)One business with potential for substitutionSeparate businesses with potential for bundlingSeparate BusinessSeparate busine

36、sses with potential for cost leadership shiftOne business with potential for differentiation or niche positionOne BusinessLowHighHighLowCost SynergiesCustomer Synergies第39頁，共79頁。 Innovations in Business DefinitionWe have made several improvements to Version 1.0.1.Capability sharing is as critical as

37、 cost and customer sharing in defining business boundaries2.Thinking clearly about all of the dimensions of business definition3.Understanding that business definition is not clear cut4. Recognising that business definition is constantly changing - and getting the timing right5. Competitive position

38、 - dominance opens up opportunities for leaders to define boundaries第40頁，共79頁。 Classic Business Definition Dimensions1. Products2. Geography3. Value Chain4. Customer segments5. Channels6. Technology7. CapabilitiesThese are the key dimensions we use - the top 3 usually matter most.第41頁，共79頁。 BrewCo E

39、xampleProductGeographyChannelBackwardIntegrationSoft DrinksSpiritsWineCiderOther Speciality BeersLagerAleStoutMktg.SalesPhysical Dist.WholesalingRetailingUKMulti-Country EuropeEuropean regionEurope and AfricaWestern CountriesDeveloping WorldGlobalRaw MaterialsMaltingBrewingPackagingForwardIntegratio

40、nPriceSegmentsCustomerSegmentsClientKey Tool #142第42頁，共79頁。 AutoCo ExampleServiceTechnologyGeographyProductBackwardIntegrationTourismUsed Car TradingLeasingRentalInsuranceCreditAfter Sales ServicePartsUKMulti-Country EuropeEurope and AfricaWestern CountriesDeveloping WorldCustomerSegmentsForwardInte

41、grationClientKey Tool #1第43頁，共79頁。 Strategy FrameworkPurch.Tech.,R&DMfg.Mktg.SalesDistCust. Svc.3.Strategic Principles4.Strategic Options1.Business DefinitionTech.,R&DMfg.Mktg.SalesDistCust. Svc.Purch.2.Key Value DriversOption AOption BOption C第44頁，共79頁。 Winning Strategy - CompetitorsCompetitive pos

42、ition defines the boundaries for operating performance.Returns EarnedRelative Market ShareCompetitive PositionWeakStrongLowHighPositive EVANegative EVACost of CapitalOperationsImproved Strategic Position第45頁，共79頁。 Beer Industry Key Value Driver“Since the beer business is a national business (not glo

43、bal) we were not surprised to see Domestic RMS as the key driver of value.”UKUSAIrelandOp Profit per hl ()1510500.1x1x10 x12Domestic RMS8400.1x1x10 x1062108400.1x1x10 x62BeerCo position第46頁，共79頁。 BrewCo - Cost AnalysisNational/Regional scale is the major driver of operating costs in the brewing indu

44、stry.Percent of Costs第47頁，共79頁。 BrewCo - Customer Needs1. There are sizeable segments of consumers who are prepared to pay a premium price for a product differentiated by tasteimagefashion2. Brand Loyalty in these segments can overcome distribution weaknesses relative to dominant national brewers3.

45、Dominant local brewers show little interest in this segment第48頁，共79頁。 BrewCo - Strategic and Operational Key Value DriversStrategicOrWhere blocked from achieving dominant local positions, seek to build leading brands in premium segmentsSeek to dominate beer markets with full portfolio of brands whic

46、h lead their respective segments within national boundariesOperationalAndAndMarketing and sales are the critical activities where brewers can achieve sustainable competitive advantageIn each market, total supply costs must be tightly managedMarketing & Sales must focus on exploiting emerging consume

47、r needs and controlling access to on-trade distributionKey Tool #2第49頁，共79頁。Automobile Industry KVDsEngineering& LaunchingManufacturing& AssemblyMaterials 020406080100%Selling & MarketingRegionalLocalGlobalRegionalCostDriversCostBarand Platform RMS within Region50第50頁，共79頁。Total Cost per MinuteManag

48、eable Key Cost DriversCost per Minute (% of Total)MobileCo - Cost Analysis The key manageable cost drivers were relative market share of low churn customers and relative share of off-peak traffic.第51頁，共79頁。 MobileCo - Customer NeedsCustomer needs must be understood at each stage in the decision proc

49、ess.Need a Mobile PhoneWill Look for One HereChoose This NetworkWill Stay with This NetworkPrice vs. Fixed LineBrand awarenessRetail networkFriends recommen-dationMy fixed line operatorTailored offerservice levelpriceIntegration with fixedPriceHandset upgrade第52頁，共79頁。MobileCo - Retention Significan

50、tly more profit was created by retaining existing customers, rather than attracting new customers. Increased value from retention as opposed to acquisitionValue Created By Reducing Churn By 5% (98-2003)Value Created By Acquiring Equivalent # of New CustomersLifetime NPV ($ M)第53頁，共79頁。 Operational1.

51、 Maximize high value customers2. Maximize low churn customer RMS3. Maximize RMS of off-peak usage 4. Integrate fixed offering5. Align regulator objectives with company strategic objectivesStrategic 1. Manage costs down in line with scale and experience curves2. Maximize network capacity utilization3

52、. Develop world class customer service and billing capabilities4. Maximize customer retentionMobileCoThe strategic and operational key value drivers were as follows:Key Tool #2第54頁，共79頁。 Strategy FrameworkPurch.Tech.,R&DMfg.Mktg.SalesDistCust. Svc.3.Strategic Principles4.Strategic OptionsOption AOpt

53、ion BOption C1.Business DefinitionTech.,R&DMfg.Mktg.SalesDistCus.Svc.Purch.2.Key Value Drivers第55頁，共79頁。 90% of industry profits were earned from areas adjacent to auto manufacturingThe manufacturing profit pool was likely to shrink before it grew and perhaps go negativeMergers offered significant e

54、conomic opportunitiesAutoCo - Industry StructureTo identify strategic principles, AutoCos industry structure today and in the future was examined.1.2.3.第56頁，共79頁。 AutoCo - CompetitorsKey Tool #3(2)02460.20.412Relative Market Share (3-year cumulative)BMWGMPSAFordMercedesFiatRenaultVW GroupPre-tax Ret

55、urn on Sales(3 year average)Overperforming or milking?Underperforming or investing?Premium brands were overperforming while VW Group was investing to gain share.第57頁，共79頁。 AutoCo - Competitors (Future)1996VW Group was investing to consolidate its platforms (chassis) such that its Weighted Average Pl

56、atform RMS would significantly exceed Auto-Cos by 2002.2002第58頁，共79頁。 AutoCo - Performance BenchmarksAreas of potential advantage were identified.AutoCo currently undifferentiatedAutoCo has greater potential with “family-oriented” segments (C/CD Platforms)AutoCo currently matched competition on Plat

57、form RMS, but could focus on fewer platforms and leverage other secondary cost driversregional scalecross platform-sharingglobal scaleAreas offering AutoCo greatest scope for competitive advantage arecostproduct development process based on customer insightdistribution network / customer careconsume

58、r insightcustomer careCostsCapabilitiesCustomer Needs第59頁，共79頁。 AutoCo - Strategic PrinciplesAny “winning” AutoCo European Strategy must:Achieve lowest cost1.2.3.FocussegmentsgeographiesplatformsOccupy premium segmentsFind adjacent revenue growth sources4.第60頁，共79頁。 Strategy FrameworkPurch.Tech.,R&D

59、Mfg.Mktg.SalesDistCust. Svc.3.Strategic Principles4.Strategic OptionsOption AOption BOption C1.Business DefinitionTech.,R&DMfg.Mktg.SalesDistCust. Svc.Purch.2.Key Value Drivers第61頁，共79頁。 Strategic OptionsThere are a number of generic strategic options. Seek to win Seek to Seek to changeDominateRedef

60、ineFocusDifferentiateLow CostDefinitionwithin a specific market segmentdominate a given market by participating across all segments of the marketthe definition of a market by expanding beyond its traditional boundaries第62頁，共79頁。These are shown graphically below.Strategic Options1. FocusSegment 3Segm