普華永道-戰(zhàn)略分析框架

Strategy

Practitioner

ToolsCore

ToolsOctober

19991?

1998,

PricewaterhouseCoopers

L.L.P.DRAFT:

FOR

DISCUSSION

ONLY

/Version:

660_w3/ppt/sfTableof

Contents2SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.123456789101112131415ANALYSIS

PLANBREAKTHROUGH

MODELCOMPETITIVE

BENCHMARKINGCOMPETITIVE

POSITIONINGCORE

COMPETENCTY

ANALYSISCUSTOMER

SEGMENTATIONEXPERIENCE

CURVEFINANCIAL

MODELINGFIT

VS.

ATTRACTIVENESS

MODELFIVE

FORCES

ANALYSISGANTT

CHARTGAP

ANALYSISGROWTH

SHARE

MATRIXINDUSTRY

VALUE

CHAIN

ANALYSISISSUE

TREE/ISSUE

MAP1617181920212223242526272829KEY

PERFORMANCE

INDICATORSMARKET

PROFITABILITYPORTFOLIO

ANALYSISREAL

OPTIONS/STRATEGIC

OPTIONSCALE

CURVESCENARIO

ENVISIONINGSENSITIVITY

ANALYSISSEVEN

S

FRAMEWORKSTAKEHOLDER

ANALYSISSWOTVALUE

BASED

MANAGEMENTVALUE

CHAIN

ANALYSISVALUE

TREEVOICE

OF

THE

CUSTOMERAnalysis

Plan

SummaryTheanalysisplandetails

aproblem-solvingprocess

andspecificanalysis

whichmustbe

developedtoassess

ahypothesis.The

analysis

plan

must

be

flexible

and

that

the

analyses

to

be

conducted

and

the

deliverables

to

be

produced

may

changeduring

the

course

of

the

project.Analysis

PlanCLIENT

EXAMPLE:HYPOTHESIS/ANALYTICAL

PLANH

y

p

o

t

h

e

s

i

sA

n

a

l

y

s

i

sI

n

f

o

.

R

e

q

u

i

r

e

dI

n

f

o

.

S

o

u

r

c

eE

n

d

P

r

o

d

u

c

t

sOverall

HypothesisOrganizational

philosophy

needs

to

be

modifiedSupporting

HypothesisExisting

organization

does

notadequately

support

the

business

strategyDefine

business

system,

operating

environmentDefine

CSFs,

organizational

requirements

along

business

systemDefine

how

existing

organization

supports

business

system,

CSFsExisting

organizational

elements

impacting

business

systemKey

activities,

processes

by

L?OBManagement

interviewsCSFs

along

business

system

by

?

Secondary

researchLOB ?

HR

documentsBusiness

System

DiagramsA

c

t

i

v

i

t~y~y

~~~~~~~~~~~~~~~~~~~~~~C

S

F

~~~~~~~~~~~~~~~~~~~~~~~~Even

after

adjusting

for

asset

wri

t?

eF-iunpa,n

cial

performance

vs.

financial

performance

has

not

met

competitors,

budget/

plans

corporate

expectations

or

competi?t

iO

ve

rview

of

cost

structure

(

e.

g.,

standards

due

to

an

inappropriate

fixed

vs.

variable

costs)organization

(

and

cost)

structure?

ROA,

NI

adjusted

for

asset

write-

ups

production

unitsHistoric

and

projected

financ

?i

aAln

nual

reports,

10

Ks,

10

Qs,

etc.data ?

Company

financial

reportsAsset

write-

up

information

?

Financial

department

interviewsSummary

cost,

volume

info

forFinancial

Metricsinformation

flowsDefine

evolving

nature

of

organization

and

information

flowscoordination

required

between process/

responsibilities;

identify

gadpesc

ision-

making

process

specialized

expertise

requires

ch?a

nDgeefsi

ne

expertise,

info

required

to

ma

k?

eInformation

flowsin

the

decision-

making

process

and

decision,

organizational

requirementsThe

increasing

complexity

of

busi

n?e

Ds

se

fine

actual

vs.

perceived

vs.

“real?”K

ey

decisions ?

Management

interviewsand

the

evolving

importance

of,

and

organization

chart,

decision-

making

?

Key

individuals

involved

in

?

Organization

chartsMemos/

documents

on

management

processesSystem

flow

chartsData/

Info

Flows

Org

Charts3SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.When

To

ApplyWhen

it

is

necessary

to

lay

out

problem-solving

process

in

depth/detail

and

identify

the

analyses

which

need

to

be

undertakento

validate

the

selected

hypothesesApproachDefine

an

issue

on

which

a

specific

action

depends

and

phrase

it

as

a

“yes”

or

no”

questionEstablish

ahypothesis:a

statementoflikely

resolutionofthe

issueincludingthe

reasonsforanswering

“yes”

or

“no”Develop

an

analysis

statement

that

outlines

the

“models”

that

will

be

explored

in

order

to

prove

or

disprove

the

hypothesIdentify

the

likely

location

or

means

of

obtaining

data

to

accomplish

theanalysisDevelop

end

products

(presentations)

to

graphically

represent

the

output

of

the

analysis4SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.Analysis

PlanCitations

-

Client

and

Industry

Experience5SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.Analysis

PlanCompaq/Technology/Vasu

KrishnamurthyGalileo/Travel/

Spencer

Lin

&

Vasu

Krishnamurthy

Post

Office

Counters

Ltd./Transportation

Services/KITdatabasePwC

MCS/Consulting/Vasu

KrishnamurthyUnited

Airlines/Travel/Vasu

Krishnamurthy

Robert

M.

Grant,

“Contemporary

StrategyAnalysis”,

3rd

EditionSource

ListBreakthrough

Model

SummaryThe

Breakthrough

model

focuses

attention

on

most

substantial

opportunities

for

creating

value

for

customers

andshareholders.Breakthrough

ModelExternalInternalIndustryCompanyTrendsintheeconomicenvironmentinwhichthemarketsexistBestpracticesacrossthisandsimilarindustriesMarket/productstrategyandbasisforcompetitionCapabilitiesofthecompany’speople,processes,technology,systemsandstructure1

2

Market/

ProductRepositioning

3

6SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.IndustryTransformation4EnterpriseAlignmentBest

PracticePerformanceApproachWhen

creating

a

Breakthrough

model,

the

following

criteria

should

be

considered:Summarize

all

opportunities

to

improve

business

performance

from

other

analysesCategorizethem

intofour

groups:Enterprise

alignmentBest

practice

performanceMarket/product

repositioningIndustry

transformationDetermine

approximate

economic

value

of

each

type

of

strategy7SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.Breakthrough

ModelWhen

To

ApplyUtilize

the

Breakthrough

model

to

identify

and

categorize

all

opportunities

to

create

substantial

incremental

shareholder

vCitations

-

Client

and

Industry

Experience8SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.Breakthrough

ModelNon-

Pw

C:Toyota:

the

lean

production

systemFrito-Lay:

end-to-end

supply

chainmanagement

and

the

use

ofadvanced

technologyIntel:

high

velocity

productdevelopmentA:

Internet

basedchannels

of

distribution

on

behalf

of

shareholders.

Paul

Elkin,

“Mastering

Business

Planning

andStrategy:

The

Power

and

Application

of

StrategicThinking”Source

ListCompetitive

Benchmarking

SummaryCompetitiveBenchmarking

isused

to

identifyand

measurethe

factors

thatdetermine

whya

process

hasspecific

cost,qualityor

timing

attributes

and

incorporate

the

best

practices

into

an

actionable

change

plan.

It

does

so

in

part,

by

comparing

acompany’s

performance

in

key

areas

with

respect

to

its

competitors’

performance.Examples

of

presenting

Competitive

Benchmarking

findings:Competitive

Benchmarking9SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.When

To

ApplyWhile

not

a

comprehensive

comparison,

Competitive

Benchmarking

illustrates

the

efficiency

of

specific

processes

incomparison

to

a

company’s

competitors.

Select

companies

to

benchmark

against

carefully

-

remember

that

companiesoutside

the

client’s

industry

may

be

the

best

candidates.

Ensure

that

data

collected

are

comparable

and

the

the

rightprocesses

are

benchmarked;

those

which

have

the

biggest

impact

on

customer

service/satisfaction/value.ApproachExamine

the

issues

most

important

to

the

company’s

situation

to

determine

whether

roles,

processes,

or

strategicissuesshould

by

benchmarked

Identify

key

performance

variables

and

determine

which

companies

to

use

for

comparison

(both

within

company’sindustry

and

outside

the

industry)

For

process

benchmarking,

determine

the

metrics

to

be

measured;

these

can

be

key

performance

indicators

(KPI’s),

orother

measurements

Establish

data

collection

methodology

(industry

sources,

on-line

databases,

on-site

visits,

phone

interviews,

surveyquestionnaires,

competitors,

etc.)Measure

client

company

performanceMeasure

performance

of

competitors

and

best

practice

leadersIllustrate

the

spectrum

of

performances

on

an

appropriate

graphDetermine

gaps

and

reasoningDevelop

action

plans/recommendation

to

address

gapsImplement

actions

and

monitor

progress10SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.Competitive

BenchmarkingCitations

-

Client

and

Industry

Experience11SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.Competitive

Benchmarking

Ball

Corporation/Packaging

/Vasu

Krishnamurthy

&Mike

WeissMotorola/Technology/Vasu

KrishnamurthyPwC

MCS/Consulting/Vasu

KrishnamurthyUnited

Airlines/Travel/Vasu

KrishnamurthySource

ListPaul

Elkin,

“Mastering

Business

Planning

and

Strategy:ThePower

and

Application

of

Strategic

Thinking”

Liam

Fahey,

Robert

M.

Randall,

“The

Portable

MBA

inStrategy”

Robert

M.

Grant,

“Contemporary

Strategy

Analysis”,

3rdEdition

Michael

Gould,

Andrew

Campbell,

Marcus

Alexander,“Corporate-Level

Strategy:

Creating

Value

in

theMultibusiness

Company”Competitive

Positioning

SummaryCompetitive

Positioning

analysis

shows

how

a

company

is

positioned

in

its

industry

relative

to

its

competitorsPositioning

MapExample:

EntertainmentHighLowLowHighC

h

a

n

n

e

lS

tre

n

g

thC

o

n

te

n

t

Stre

n

g

thIntellectual

property

strengthProduct

strengthMediumHighM

a

r

k

e

t

S

t

r

e

n

g

t

hLow12SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.Competitive

PositioningApproachCompetitive

PositioningWhen

To

ApplyTo

show

clients

that

you

understand

their

market

and

position.

Can

also

be

used

to

develop

strategic

recommendations.STEPDATA

REQUIREDSOURCE(S)1.Choose

axesthat

are

relevant

tocustomer

decision-2.3.which

differentiatesuppliers

(second)Illustratewhere

competitors

lie

onmap(s)Interpret

map

for

strategicimplications

(e.g.,clusters

or

open

spaces)

Information

on

industry

as

awholeInformation

on

competingmaking

(first)

and

those

companies’

strategies

andpositioningTrade

associationsTrade

periodicals

andpublicationsInformation

servicesAnalyst

reportsVarious

companies’annual

reports

and

otherpublic

informationInterviews

with

competitormanagementIndustry

experts13SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.Citations

-

Client

and

Industry

Experience14SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.Competitive

PositioningBarclays

Global

Investors

(BGI)/Banking/KIT

databaseBlue

Cross/Insurance/Mike

WeissBoots/Retail/KIT

databaseGalileo/Travel/

Spencer

Lin

&

Vasu

KrishnamurthyGiddings

&

Lewis/Machine

Tool/Vasu

KrishnamurthyOsh

Kosh

B’

Gosh?SP/Retail/Mike

WeissPwC

MCS/Consulting/Vasu

KrishnamurthySave

&

Prosper/Banking/KIT

databaseSource

List

Paul

Elkin,

“Mastering

Business

Planning

and

Strategy:

ThePower

and

Application

of

Strategic

Thinking”Robert

M.

Grant,

“Contemporary

Strategy

Analysis”

Henry

Mintzberg,

James

Brian

Quinn,

Sumantra

Ghoshal,“The

Strategy

Process”

Henry

Mintzberg,

James

Brian

Quinn,

“The

StrategyProcess:Concepts,

Contexts,

Cases”Core

Competency

Analysis

SummaryCore

Competency

Analysis

provides

a

practical

and

systematic

process

to

identify

a

company’s

core

competencies

andassess

key

competitive

advantages.Examples

of

Core

Competency

Models:Core

Competency

AnalysisMarketingExample:

McDonald’sSales/

DistributionCustomer

OtherRefill

Support

Customer

ServiceCritical

Enabling

Capabilities

(EC)

-

The

capabilities

in

which

a

company

iscompetitively

equivalent

to

other

market

leaders.

These

capabilities

areoften

the

source

of

a

barrier

to

entry.Strategic/

Technology

Product

Financial

Plann

Di

en

vg

elopment

DevelopmentMfg/

Joint

Venture

Primary

Capabilities

(PC)

-

Minimum

functional

and

technicalrequirements

necessary

to

participate.COMPETENCIES

MODEL

-

FRAMEWORKCore

Competence

(CC)

-

A

competence

which

delivers

a

sustainable

competitive

advantage

incurrent

markets,

provides

access

to

a

wide

variety

of

markets,

and

makes

a

significantFast,

affordable,

fu

nc,ontribution

to

the

perceived

customer

benefits

of

the

end

product.family

dining

experienceCritical

Strategic

Capabilities

(SC)

-

The

capabilities

in

which

a

company

is

aleader.

These

capabilities

are

the

source

of

competitive

advantage.

Marketing

and

brand

mgmt.TrainingFranchise

mgmt.Product

innovationBig

Mac

recipeHigh

quality,

low

price

product

sourcingEfficient

operationHamburger

preparationMenu

selection15SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.When

To

ApplyEmployCoreCompetencyanalysistoevaluateacompany’scapabilitiesineachfunctionofthevaluechainwitha

hierarchical

model

which

identifies

capabilities

and

the

degree

to

which

they

provide

competitive

advantage

and

can

beleveraged.

Please

note

that

there

is

a

risk

of

defining

too

narrowly

the

market

in

which

the

client

competes,

thus

focusing

othe

wrong

competency

requirements

or

a

subset

of

the

competencies

required

to

effectively

compete.

It

is

key

that

thoseprojects

and

programs

that

aim

at

developing

core

competencies

should

not

be

open

to

re-prioritizationat

a

later

stage.ApproachAdhere

to

the

following

guidelines

when

analyzing

core

competencies

and

developing

a

Competencies

Model

-Framework:Interview

company

senior

management

and

business

line

management

as

well

as

competitor

management

Define

company’s

business

system

and

activities

performed

within

each

function

-

Based

on

the

total

range

ofcapabilities

identified,

ask

the

questions:Which

ones

do

we

have

to

be

“good

at”?Which

ones

do

we

have

to

be

“market/world

leading

at”?

Determine

whether

each

activity

is

a

primary

capability,

a

critical

enabling

capability,

a

critical

strategic

capability,core

competence,

based

on

the

degree

to

which

the

activity

provides

competitive

advantage

and

can

be

leveraged

Note

that

while

all

the

identified

capabilities

will

be

critical

to

achieve

the

vision

and

strategy,

the

questions

will

heldistinguish

core

from

non-core

by

invoking

management

attention

and

reflection

in

a

systematic

and

structured

manner16SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.Core

Competency

AnalysisCitations

-

Client

and

Industry

Experience17SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.Core

Competency

AnalysisGalileo/Travel/

Spencer

Lin

&

Vasu

KrishnamurthyGiddings

&

Lewis/Machine

Tool/Vasu

KrishnamurthyMetLife/Insurance/KIT

databasePwC

MCS/Consulting/Vasu

KrishnamurthySave

&

Prosper/Banking/KIT

databaseSource

ListDavid

A.

Aaker,

“Developing

Business

Strategies”,

5thEdition

Robert

M.

Grant,

“Contemporary

Strategy

Analysis”,

3rdEdition

Michael

Gould,

Andrew

Campbell,

Marcus

Alexander,“Corporate-Level

Strategy:

Creating

Value

in

theMultibusiness

Company”

Henry

Mintzberg,

Bruce

Ahlstrand,

Joseph

Lampel,

“StrategySafari:

A

Guided

Tour

Through

the

Wilds

of

StrategicManagement”Henry

Mintzberg,

James

Brian

Quinn,

Sumantra

Ghoshal,“The

Strategy

Process”Henry

Mintzberg,

James

Brian

Quinn,

“The

StrategyProcess:Concepts,

Contexts,

Cases–Establish–Segmentation–Objectives–Data–Assessment–Model–Construction–

Build

Closed

Loop–

Performance–

Tool18SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.What

are

the

objectivesof

the

segmentation?Better

ROI,

redistributespending,

change

salesefforts?What

data

is

needed

tomeet

the

objectives?How

much

of

that

datacan

be

obtainedinternally?

externally?What

data

is

essentialto

the

segmentation?What

data

can

be

afocus

for

furtherimprovement

in

thefuture?Define

the

variables

ofthe

model

withaccessible

data?Develop

an

analyticaltool

that

utilizes

thevariables

to

determine

acustomer

ranking

orgrouping

(ie

most

idealpartner

to

mostinefficient

partner).Refocus

internal

effortsbased

on

segmentationoutcome.Establish

a

way

tocapture

the

key

dataneeded

to

segmentcustomer

base.Utilize

the

data

on

anongoing

basis

toimprove

performanceand

continually

rewardthe

better

performingcustomers.Customer

Segmentation

MethodologyHigh

level

work

flow

for

a

customer

segmentationCustomer

Segmentation

Methodology

SummaryCustomer

Segmentation

SummaryCustomer

segmentationis

adivision

ofamarket

intodistinct

groupsof

buyerswhomight

requireseparate

productsand/ormarketing

mixes.Hold

inventoryCredit

problemBasic

fabrics“Opportunistic”

StrategySpecialty

productsNarrow

customer

baseNiche

Strategy

(specializedproduct

to

narrow

customer

base)purchaseEstablished

creditBroad

customer

baseBasic

fabricsLow-Cost

StrategySell

to

manufacturers

before

fabri?c

Sell

to

manufacturers

before

fabricpurchaseEstablished

creditFocused

customer

baseNovel

fabrics

(“fashionforward”)Differentiation

Strategy(specialized

product

to

broadcustomer

base)E

c

o

n

o

m

ic

R

iskInventory

positionCredit

statusProduct

mixCustomer

baseF

a

b

ric

In

n

o

v

a

tio

nPercent

noveltiesOrder

sizeNumber

of

collections19SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.THE

CONVERTER

MARKET

CAN

BE

SEGMENTED

USING

TWO

VARIABLES:

ECONOMIC

RISK

AND

FABRIC

INNOVATIONHighLowHighLowCustomer

SegmentationSC111898KR-Sydney20?

1998,

PricewaterhouseCoopers

L.L.P.When

To

ApplyApplicable

when

it

is

useful

to

better

identify

marketing

opportunities,

to

develop

the

right

offering

for

each

target

markebe

able

to

reach

the

target

market

in

the

most

efficient

manner

possible.Approach1.a)Survey

Stage:Conduct

interviews/focusgroups

with

consumers

tob)2.gain

insight

into

motivations,attitudes,

and

behaviorAnalysis

Stage:

Applyfactor

analysis

to

data

toremove

highly

correlatedvariables;

apply

clusteranalysis

to

create

a

number

ofmaximally

different

segmentsForm

segments

bylooking

at

consumer

characteristics

as

well

as

consumerresponsesa)b)GeographicSegmentationDemographicSegmentationc)PsychographicSegmentationSTEP

DATA

REQUIREDIdentify

segmentation?

Results

from

focus

groups,variables

and

segment

the

market

interviews,

and

surveysCustomer

characteristics:demographics,

statistics,

etc.SOURCE(S)Focus

groups,

interviews,surveysCompany

dataCustomer

SegmentationCitations

-

Client

and

Industry

Experience21SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.Customer

SegmentationGalileo/Travel/

Spencer

Lin

&

Vasu

KrishnamurthyGeneral

Mills/CIP/Johan

SauerGiddings

&

Lewis/Machine

Tool/Vasu

KrishnamurthyThe

Littlewoods

Organization/Retail/KIT

databasePwC

MCS/Consulting/Vasu

KrishnamurthyPaul

Elkin,

“Mastering

Business

Planning

and

Strategy:ThePower

andApplication

of

StrategicThinking”Robert

M.

Grant,

“Contemporary

Strategy

Analysis”Henry

Mintzberg,

James

Brian

Quinn,

Sumantra

Ghoshal,“The

Strategy

Process”Source

ListExperience

Curve

SummaryThe

Experience

Curve

forecasts

future

trends

in

cost/labor

and

determines

the

relative

cost

position

of

various

competitorstool

quantifies

cost

savings,

theoretically

achieved

through

experience

gained

in

conducting

a

process.The

Experience

Curve4030201020020004000400

600

800

1000Unit

Volume

(Thousands)EXPERIENCE

CURVE

FOR

WIDGETS

-

PROJECTIONSUnit

Cost

($)1974501975197619771978197919801981198219831984S

l

o

p

e

2

0

%22SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.When

to

ApplyTheGrowthShareMatrixmaybeoverlysimplistic,marketsharedoesnot

alwayscorrelatewithprofitabilityandnotallbusinesses

have

the

same

asset

intensity.

Conclusions

are

sensitive

to

business

and

market

definitions;

where

lines

aredrawn.

Practitioners

must

be

creative,

careful

and

consistent

with

market

data.ApproachCreating

the

Experience

Curve

requires

yearly

accumulated

production

volume

for

the

entire

indicative

and

individualcompetitors,

and

the

unit

cost

for

the

entire

industry

and

competitors

(use

price

data

if

cost

data

is

not

available.)

Data

csecured

from

government

agencies,

trade

associations,

and

from

internal

company

data.Experience

CurveStep

1Plot

accumulated

volume

for

different

years

against

unit

cost

on

a

log/log

scale

(unit

cost

should

be

deflated

byusing

a

general

index

such

as

the

GNP

deflator,

or

specific

indices

for

the

various

pars

of

cost

such

as

materialslabor.)Step

2

Add

a

standard

regression

line

to

the

graph.CAVEATS:

Cost

figures

must

be

defined

in

the

same

manner

by

all

sources

of

data.

If

company

cost-accounting

data

is

used,

it

mayneed

to

be

adjusted

for

overhead

allocations

and

other

costs

not

considered

to

be

part

of

the

activity,

process,

or

productunder

study.

If

price

data

is

used

pricing

behavior

of

participants

needs

to

be

considered

Innovation

within

any

functional

area

(e.g.,

product,

process,

distribution)

can

render

the

current

experience

curve

usea

strategy

tool.

Therefore,

it

is

important

to

understand

the

environmental

and

customer

trends

in

order

not

to

rely

too

he

on

this

analysis

Theexperience

curve

isonly

an

analyticalconcept,

and

there

is

no

guarantee

thatcosts

will

actually

decreaseaccordingThecompany

mustactively

manage

costsdown23SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.Citations

-

Client

and

Industry

Experience24SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.Experience

CurveSource

ListDavid

A.

Aaker,

“Developing

Business

Strategies”,

5thEditionThe

Boston

Consulting

Group,

“Perspectives

on

Strategy”

Robert

M.

Grant,

“Contemporary

Strategy

Analysis”,

3rdEditionHenry

Mintzberg,

Bruce

Ahlstrand,

Joseph

Lampel,“StrategySafari:

A

Guided

Tour

Through

the

Wilds

of

StrategicManagementFinancial

Modeling

SummaryThe

financial

model

will

allow

us

to

test

management

assumptions

and

understand

how

different

actions

may

affect

performanceon

some

key

competitive

dimensions.Financial

Modeling25SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.When

To

ApplyFinancialModeling

is

effective

in

analyzing

howa

company’s

performance,

in

core

areasof

business,

will

be

affected

bypursuing

different

courses

of

action.

This

tool

facilitates

an

understanding

of

various

cause-effect

and

provides

a

model

bwhich

to

test

various

"what

if"

statements.ApproachFollow

these

steps

to

successfully

create

a

Financial

Model26SC111898KR-Sydney?

1998,

PricewaterhouseCoopers

L.L.P.Financial

ModelingStep

1Gather

information

on

key

drivers

ie.From

the

cash

flow

analysis

performed

as

part

of

the

SVAData

and

insight

from

Voice

of

the

Customer

is

another

source

of

insightStep

2Map

the

relationshipsand

identifyfactors

whichreinforce

oneanother

vs.

thosethat

havea

neg