贝恩咨询行业分析-TetileCoProposal1.ppt

bc,TextileCoProposal,Created:October11,1999,Copyright1998BainBainResearchon1,371quotedcompanies,RecentBain&Companyresearchdemonstratesthatrevenuegrowthdoesnotguaranteevaluecreation,butwithoutrevenuegrowthitisalmostimpossibletocreateshareholdervalue,*,BackgroundandObjective,RevenueGrowthandValueCreation,14,TextileCoProposal,IncomeandRevenueGrowth,Notes:Numberofcompanies=1371Source:Worldscopedatabase,Bainanalysis,Revenue,CAGR,(1987-1996),AverageMarketValueCAGR(1987-1996),15%,10-15%,5-10%,0-5%,0-5%,5-10%,10-15%,NetIncomeCAGR(1987-1996),20,19,37,175,26,57,69,97,151,177,100,94,148,117,49,45,15%,15%,15%,17%,29%,20%,14%,11%,7%,3%,8%,12%,14%,3%,6%,6%,7%,Themarketmosthighlyratescompaniesthatgrowbothincomeandrevenue,BackgroundandObjective,15,TextileCoProposal,Source:TextileCoforecasts,ThebottomupTextileCoprojectionsshow5-6%p.a.growthforthegarmentandfurnishingsbusinesses,slightlyaheadofinflation,withonly1.4%growthfromlaceandstretchfabrics,ROS(pre-exceptionals)ROACE(continuingops),4.1%10.3%,5.3%13.7%,5.6%14.5%,5.7%15.4%,6.1%17.1%,6.3%17.6%,Total,4.5%,BackgroundandObjective,RevenuesbyBusiness(1996-2001E),16,TextileCoProposal,Source:AnnualReports,AnalystReports,CompanyforecastssuggestthatTextileCogrowthwillbelowerthanUKcompetitors,BackgroundandObjective,CompetitivePerformance(1996-2000E),17,TextileCoProposal,Thecurrentstrategyhasmultipleinitiativeswhichmayneedgreaterprioritisationtoensuresuccess,TextileCo,Lace&StretchFabrics,Lingerie&Hosiery,Casualwear&Underwear,Furnishings,Goal:,“TobethestrongestTextileCompany,thefirstchoiceforcustomers,investorsandemployees”-eachproductdivisiondevelopingaroundclearplans-havingonlyleadingmarketpositions,andeachwiththeopportunitytodevelop,ServecustomerinternationallybycooperatingacrossgeographicboundariesFocusonhighvalueaddedsegmentsMultiplebusinessunitplansEvaluatingsomedevelopmentprojectsLowgrowthforecastwithmarginpressure-“thewindisnotbehindus”,GrowsharewithRetailCoStepchangeinlingerieoverseassales(privatelabelandbranded)-doublebrandedsalesinFranceRestorehosieryprofitabilityTargetFrenchhypermarketsforhosieryAssessnewproductarea,SignificantgrowthwithRetailCoandoverseas(brandandPL)BuildleadingpositionwithlargeUSclothingretailerBeleadinglingeriesuppliertoAandBDevelopBrandAinEuropeandFarEastAcquisitionstodevelopleadingpositionsinRetailColadiestailoringRetailComenstailoringEuropeanbrandedcasualwear,FlatnetgrowthBuildsizeablebusiness(ordismantle)GrowthinA,B,CDeclinesfromD,E,F,BackgroundandObjective,CurrentStrategy,18,TextileCoProposal,TextileCoisaXXXMinternationalbusinesswithfourdivisions,comprisingofmorethan30businessunits,servingthefabrics,brandedandprivatelabelgarments(especiallylingerie,hosiery,casualwearandmensunderwear)andhomefurnishingsmarketsOverthelasttwoyearsthecompanyhasundertakenamajorrestructuringsellingorclosingXXbusinessesraisingitsROACEfrom10.6%in1996toaforecast14.6%in1998.However,improvingthefinancialperformanceofthegroupremainsamanagementchallenge.XXofthebusinessunits(accountingfor28%ofsales)stilldonotmeetthegroups17%ROACEtarget,including15%ofsalesfromloss-makingbusinessesManagementareforecastingfairlyaggressiveprofitabilityimprovementsoverthenextthreeyears,especiallyfromLingerie&HosieryandCasualwear&Underwear,toensureeachdivisionexceedstheROACEtargetby2001Bain&Companyresearchhasshownthatcompaniesthatdeliversustainedshareholdervaluehavenotonlytogrowprofitsbutalsorevenues,afactrecognisedbyTextileCoHowever,thecurrentstrategysuggeststhereislimitedprioritisationbetweenbusinessareas,witheachbusinessbeingdeveloped“onitsmerits”Theresultofthisapproachisshowninthebottomupgrowthforecastsshowingsomewhatpedestrianorganicgrowthof4.4%p.a.to2001-inlinewithCityexpectationsbutwellbelowthe6-8%p.a.expectedfrommajorcompetitorsItisnowtheappropriatetimetotakeafundamentalreviewoftheportfoliotofocusresourcesforgrowth,BackgroundandObjective,Summary,19,TextileCoProposal,ProjectObjective,TodevelopaCorporateStrategyforTextileCoidentifyingitskeygrowthandvaluecreationopportunities:,relativeattractivenessandgrowthpotentialofbusinessesinthecurrentportfolioopportunitiestoexploitoutsidethecurrentportfoliopotentialacquisitionopportunitieshowtoprioritiseresourcesacrosstheportfoliobusinessestoretainbusinessestosell(ifany)allocationofresourcestobusinesses/opportunities,BackgroundandObjective,20,TextileCoProposal,Agenda,ExecutiveSummaryBackgroundandObjectiveProjectApproachTimingandDeliverablesProjectStructureandResourcesAnticipatedBenefits,21,TextileCoProposal,TheBestValueCreationOpportunities,PriorityBusinessesinPortfolio,Theattractivenessofabusinessdependsontwokeydimensions:scaleofopportunityinthatbusinessabilityofTextileCotodeliverthatopportunity,TheBestParent,High,Low,TextileCoisbestparent,Anotherparentisbetter,ProjectApproach,Framework,22,TextileCoProposal,Positiontoexploitsignificantstructuralchange,Maximisepotentialinexistingactivities,Takeadvantageofattractivebusinessadjacencies,Towhatdegreeistherecost/customer/capabilitysharingwithexistingbusinessesorotherpotentialnewbusinesses?,Howarekeytrendschangingbusinessboundaries?customerbuyingpatternstechnologyindustryconsolidationetc.,Deliveringmaximumvaluecreationrequiresmaximisingperformanceincoreactivitiesandeithermovingintorelatedadjacenciesorexploitingstructuralchangesintheindustry,Growth,ProjectApproach,23,TextileCoProposal,1.Ensureappropriatescope,Weproposeafour-stagedapproach,(Outofcurrentscope),II.UnderstandValueCreationOpportunities,III.UnderstandTextileCoValue-added,IV.Implement,I.Scoping,2b.Identifycurrentbusinessesfullpotential,3.Identifypossibleadjacencies,6.Evaluatepotentialacquisitions,7.Developactionplans,4.Developpreliminarysetofoptions,5.Assessoptionsandconfirmprioritiesconfirmcorebusinessopportunitiesexploreadjacencies,ProjectApproach,2a.DevelopFactbase,StagedApproach,24,TextileCoProposal,ProjectApproach,StagedApproach,(Outofcurrentscope),1.Ensureappropriatescope,(Outofcurrentscope),II.UnderstandValueCreationOpportunities,III.UnderstandTextileCoValue-added,IV.Implement,I.Scoping,2b.Identifycurrentbusinessesfullpotential,3.Identifypossibleadjacencies,6.Evaluatepotentialacquisitions,7.Developactionplans,4.Developpreliminarysetofoptions,5.Assessoptionsandconfirmprioritiesconfirmcorebusinessopportunitiesexploreadjacencies,2a.DevelopFactbase,25,TextileCoProposal,Source:TextileCoManagementAccounts,Tocompletetheprojectinthegiventimeframe,weneedtofocusthescope.Therearefewobviousareastoomit,XXXM,XX.XM,ProjectApproach,Scoping,26,TextileCoProposal,AkeyelementoftheworkwillbetoidentifyclearlywhichbusinessesTextileCoisin,CustomerSharing,CostCapabilitySharing,High,Low,High,Low,Separatebusinessese.g.Microwaveandtelevision,Onebusinesswithpotentialfordifferentiationornichepositione.g.CrosspensandBicpens,Onebusinesse.g.Teeshirts&UnderwearChargecardsandcreditcards,Separatebusinesseswithpotentialforcostleadershipe.g.Oilandrefineryby-products,Source:BainExperienceCentre,Separatebusinesswithpotentialforbundlinge.g.Hardwareandsoftware,Onebusinesswithpotentialforsubstitutione.g.Sugarandcornsyrup,DimensionsofBusinesses,ProjectApproach,27,TextileCoProposal,Fabrics:,Lingerie&HosieryandCasualwear&Underwear:,Furnishings:,Towhatextentarelaceorstretchfabriccustomerssimilararoundtheworld?Dotheypurchase/selectsuppliersglobally?Dotheyhavethesamespecifiers?Towhatextentarelaceandstretchfabriccustomersthesameineachcountry?Towhatextentcancostsbesharedbetweenstretchfabricsbusinessesindifferentpartsoftheworld(design,procurement,manufacture,marketingandsales)?Towhatextentcancostsbesharedbetweenlaceandstretchfabrics?,Towhatextentare/cancostsbesharedbetweenprivatelabelandbrandedproducts?Betweenproductsfordifferentgeographies?Towhatextentarelingerieandhosiery(orcasualwearandunderwear)customersthesame,anddotheyhavethesamebuyers?Willprivatelabelcustomersallowsupplierstorealisethesynergies(e.g.byrestrictingmanufactureinthesamefactory)?Howsignificantarethesynergiesofowninglaceandlingeriemanufacturing(orjerseyfabricandunderwear)businessesthatcannotbeachievedfromanarms-lengthrelationship?,Towhatextentcan/arecostssharedbetweenthedifferentbusinessunits?DoesTextileCosstrongpositionwithcustomersinclothinginfluencetheirpurchasingoffurnishings?,BusinessDimensions:CriticalQuestions,ProjectApproach,28,TextileCoProposal,WhichbusinessesisTextileCoinandarethereclearprioritiesbetweenthem?howmanybusinessesarewereallytalkingabout?whichareglobal,regional,national?Whichgeographiesdowethereforeneedtostudy?areprivatelabelandbrandedgarmentsthesamebusiness?Aretherebusinesseswheremanagementiscomfortablethattheirfullpotentialisunderstoodandrealisticallyquantifiedandhencerequireslittlework?Aretherebusinessesthatmanagementhasalreadydecidedarehighlyunlikelytobefuturegrowthopportunitiesandcanbeomitted?,Thefirstphasewillinvolvemanagementinterviewsandinitialanalysistoagreetheappropriatescope,ProjectApproach,ScopingQuestions,29,TextileCoProposal,ReviewcompanyforecastsoutputbybusinessunitInterviewswithTextileCoExecutivestounderstandlikelygrowthopportunitiesanddegreeofcomfortwithfullpotentialofbusinessesCollatedatafrombusinessesandanalysetoquantifytheextentof:customersharingbetweengarmenttypes/fabrictypesacrossgeographiescost/capabilitysharingacrossgarmenttypes,acrossgeographiesWorkingsessionwithselectedExecutives,asappropriate,torefinescope,ProjectApproach,ScopingActivities,30,TextileCoProposal,ProjectApproach,ProposedApproach,1.Ensureappropriatescope,(Outofcurrentscope),II.UnderstandValueCreationOpportunities,III.UnderstandTextileCoValue-added,IV.Implement,I.Scoping,2b.Identifycurrentbusinessesfullpotential,3.Identifypossibleadjacencies,6.Evaluatepotentialacquisitions,7.Developactionplans,4.Developpreliminarysetofoptions,5.Assessoptionsandconfirmprioritiesconfirmcorebusinessopportunitiesexploreadjacencies,2a.DevelopFactbase,31,TextileCoProposal,Thefullpotentialofabusinessisthemaximumvalueitshouldbecapableofgeneratinggivenitscurrentcompetitivepositionbenefitofmarketgrowth(assumingshareheld)marketsharegainsbyincreasingcustomerbase/gainingpenetrationofcurrentcustomersgrowththroughnewproductintroductionsinsamebusinessoperationalimprovementtoenhancemarginscompetitivebenchmarkinginternalbestdemonstratedpracticesThisrequiresafundamentalunderstandingofthemarketattractiveness,TextileCocompetitivepositionandhencetheopportunitieswithinthatmarket,TocomparetheattractivenessofTextileCoindividualbusinesses,wemustunderstandthemaximumvalueupsidefromeach,independentofcurrentlyperceivedconstraints,ProjectApproach,FullPotentialConcept,32,TextileCoProposal,Source:Bainresearchintogrowthcompanies,ThebetterperformingyourbusinessthemorelikelyitisoperatingbelowfullpotentialMostcompaniessettlefor“satisfactoryunderperformance”,TheParadoxofLeadership.,ParadoxofLeadership,ProjectApproach,33,TextileCoProposal,TheBusinessassessmentwillidentifyTextileCoFullPotentialwithinthatmarket,SegmentationNeedsassessmentChannelusageLoyaltyCustomerpenetration,MarketpositionPricepositionCostpositionThreatofnewentrantsCustomerperceptions(strengths/weaknesses)StrategiesFinancialperformance/capacity,BusinessDimensionsglobal,regional,national?brandedvs.privatelabel?garmenttypes?MarketSize,GrowthProfitpoolValuechainBarrierstoentrySourcesofmarketcontrol/powerSubstitutionthreatsPotentialdiscontinuitiesPotentialadjacencies,OrganisationUniqueassetsCorecompetenciesCorecustomerstability/retention,FullPotentialElements,Business,IndustryStructureandEvolution,SourcesofCustomerValue,CompetitivePositions,CompanyCapabilities,Market,ProjectApproach,FullPotential-KeyElements,34,TextileCoProposal,Source:VerdictRetailDemand2000,MintelResearch,Foreachbusinesswewillidentifytheforecastgrowthbycategory,4.2%,4.2%,3.7%,3.6%,3.3%,3.2%,3.1%,2.0%,0.8%,ProjectApproach,ForecastClothingMarketGrowth,35,TextileCoProposal,Source:Verdict,CAGR1995-1999,6.1%,6.4%,5.0%,6.9%,5.4%,4.7%,Wewillalsoneedtounderstandthegrowthimplicationsbychannel,ProjectApproach,Example:GrowthinChannels,36,TextileCoProposal,Thisworkshouldthenbepulledtogethertogivetheoverallmarketpicture,Note:Marketsizefor36weeksending12thMay1996,FNFOGses6062870a,Supermarkets/,100%,80,60,40,20,0,6.4BN,Menswear,3.5BN,Childrenswear,1.4BN,Lingerie,0.9BN,Footwear,2.4BN,Hosiery,0.2BN,Total:,14.8BN,Percent,ofTotal,Ladieswear,ClothingMultiples,e.g.Next,Richards,TopShopetc,GeneralStores,M&S,BhS,Littlewoods,Woolworths,IndependentClothingShops,MailOrderCatalogue,DepartmentStores,e.g.Debenhams,JLP,Other,Supermarkets/Hypermarkets,ClothingMultiples,e.g.Burtons,TopManetc,GeneralStores,IndependentClothingShops,MailOrderCatalogue,DepartmentStores,Other,Supermarkets/Hypermarkets,ProjectApproach,Example:UKMarketbyChannel,37,TextileCoProposal,Source:CompetitiveAdvantage(1985)MichaelE.Porter,PortersclassicFiveForcesanalysisquicklysummarisesindustryattractiveness,IndustryCompetitors,IntensityofRivalry,NewEntrants,ThreatofSubstitutes,ThreatofNewEntrants,BargainingPowerofBuyers,BargainingPowerofSuppliers,ProjectApproach,IndustryAttractiveness,38,TextileCoProposal,Overallindustryattractivenessincludinglikelypressureonmarginslikelyimpact/opportunitiesfromdiscontinuitiesForecastmarketgrowth,bysegmentwhererelevantKeycustomersegmentsandtheirneedspotentialopportunitiestodifferentiateofferinginputtounderstandingadjacencies,Themarketassessmentswillprovidethecontextforassessingeachbusinessfullpotential,ProjectApproach,MarketAssessment:KeyOutputs,39,TextileCoProposal,TheBusinessassessmentwillidentifyTextileCoFullPotentialwithinthatmarket,SegmentationNeedsassessmentChannelusageLoyaltyCustomerpenetration,MarketpositionPricepositionCostpositionThreatofnewentrantsCustomerperceptions(strengths/weaknesses)StrategiesFinancialperformance/capacity,BusinessDimensionsglobal,regional,national?brandedvs.privatelabel?garmenttypes?MarketSize,GrowthProfitpoolValuechainBarrierstoentrySourcesofmarketcontrol/powerSubstitutionthreatsPotentialdiscontinuitiesPotentialadjacencies,OrganisationUniqueassetsCorecompetenciesCorecustomerstability/retention,FullPotentialElements,Business,IndustryStructureandEvolution,SourcesofCustomerValue,CompetitivePositions,CompanyCapabilities,Market,ProjectApproach,FullPotential-KeyElements,40,TextileCoProposal,IndividualTextileCounits(orcombinations)willbeassessedwithintheirrelevantmarkets.Thefirstissuetoexamineistheirrelativecompetitiveposition,ProductInnovation,Superiorsystemseconomics/model,Controlindustryprofitpool(or,establishgatekeeperstatus),Controlofakeycustomersegment,Relativemarketshareandthepowerofscale,Maintypesofmarketpowerandinfluence,ProjectApproach,MarketPowerandInfluenceModels,41,TextileCoProposal,Source:Basedon90companiesstudiedindividuallybyBainandCompany,Bain&CompanysanalysisdemonstratestheextraordinarypowerofrelativemarketshareinindustrieswhoseboundarieshavebeendefinedanalyticallybyBain,ProjectApproach,IncreasingReturntoLeadership,42,TextileCoProposal,Althoughtheydonotleadtheirindustriesintermsofmarketshare,strongfollowerstendtopursueoneoftheotherfourmodelsofmarketpowerandinfluence,RMSandthepowerofscale,MPIModel,CompanyExample,DiageoPhilipMorris,Controlofakeycustomersegment,LexusMBNA,Controlofindustryprofitpool(or.Establishgatekeeperstatus),IntuitAOL,Superiorsystemseconomics/model,AStaples,ProductInnovation,SonyAlcatelIntel,ProjectApproach,MarketInfluenceandPowerExamples,43,TextileCoProposal,Abilitytoincreasemarketsharegreatershareofbusinesswithexistingcustomers(e.g.improvingofferoncriticaldimensionsofneeds)opportunitiestocapturenewcustomers(e.g.withdifferentialserviceoffering)realisticthreatoflosingsharetocompetitorsProfitimprovementopportunitiesfromenhancingcostpositionfromexternalbenchmarksfromrollingoutinternalbestdemonstratedpracticesCorecapabilitiesthatcanbeutilizedinexploitingadjacencies,Thebusinessassessmentwillidentifythekeyleversfordeliveringthebusinessfullpotential,ProjectApproach,BusinessAssessment:KeyOutputs,44,TextileCoProposal,VKRGabc7101303,Statusquo2000operatingprofit,Marketsharegain,ImprovedRelativeCostPosition(e.g.reachnearestcompetitorscostpositionover3years),OperatingFullPotential2000,BestDemonstratedPracticeimplemented(e.g.rolloutkeyaccountmanagementandpricingpractices),CoreBusinessOperatingProfit(MM),Tounderstandfullpotential,allupsideopportunitiesmustbeidentifiedandtheirimpactquantified-allowingcomparisonofdifferentopportunitieswithin/acrossbusinesses,ProjectApproach,StandAloneFullPotentialCaseExample:ManufacturingCo,45,TextileCoProposal,Fabrics:,LingerieandHosiery:,Hastheeconomicsofnewtechnologychangedthedimensionsofcompetitionbyalteringbenefitsofscale?Towhatextentarecustomersglobal?Whatisthepotentialtogainsharewithexistingcustomers(eg.throughglobalaccountmanagement)?CanTextileCoinfluencespecifiersmoredirectly?IsaturnaroundoftheUSlacebusinesslikely?Cancostsbereducedthroughconsolidationofstretchfabricmanufacturing?,WhatistheturnaroundpotentialatDivisionA?WhatisthepotentialtoincreasesharewithRetailCo?WhatisthepotentialtoincreasesharewithBrand1?WhatotherprivatelabelopportunitiesexistofsufficientvolumeinEuropeorUSA?HowcanTextileCoincreaseitsshareofbrandedhosiery/lingerieinUKandFrance(eg.Newchannels,greatersharewithsupermarkets,hypermarkets,majormultiples)?,ProjectApproach,FullPotentialQuestions(1of2),46,TextileCoProposal,CasualwearandUnderwear:,Furnishings:,Isgrowthofbrandedcasualwearfinanciallyattractive?CantheBrandsAandBbeextended?CanTextileCogainshareofcasualwearatRetailCo?Atotherprivatelabelretailers?CanTextileCodevelopamensunderwearbusinessinFrance?,Whichproductareasdoes/canTextileCodevelopleadershippositions?HasTextileCogotsufficientscaletobuildastrongcorebusinessforfurtherexpansion?Whatcostreductionopportunitiesexist?Dotheprivatelabelcustomers(M&S,JohnLewis)seetheseproductareasascoregrowthopportunitiesandhowwellaretheypositionedintheretailmarkets?,ProjectApproach,FullPotentialQuestions(2of2),47,TextileCoProposal,Reviewexistingdata/externalresearchreportsTextileCoMarketAnalysisBusinessunitinfor