【行业分析（零售）RetailCo.（英文版）】（PPT32页）.ppt

bc Compiler Reviewer RetailCo Created August26 1999 Copyright 1998Bain Company Inc SevaRozanov ThomasShannon 2 RetailCo2 BackgroundApproachConclusionImplementationResults Agenda 3 RetailCo2 RetailCois 10 B specialityretail conglomeratewhosefinancialperformancehasdeterioratedsince1990 Background 来自中国最大的资料库下载 4 RetailCo2 Achievetopquartileperformancemarket bookvalue 2 8xreturnonequity 17 18 annualearningsgrowth 10 12 DivestbusinessesthatarepoorfitsPreparethecompanytoweatherchallengingindustryconditionsCreateacompellingvisionandgrowthstrategy FinancialObjectives StrategicObjectives Background RetailCoObjectives 5 RetailCo2 Agenda BackgroundApproachConclusionImplementationResults 6 RetailCo2 DefinethecharacteristicsofasuccessfulstrategyDeveloparangeofviablestrategicalternativesAssessandprioritisethestrategicalternativesBuildconsensusaroundthepreferredstrategyFullyquantifytheimpactofappropriateactionstepsGainfinalapprovalLaunchimplementation Approach 7 RetailCo2 ComponentsofSuccessfulStrategy Doable EvolvesfromcurrentbusinessmixFitsRetailCo scorecompetenciesIsfundableDevelopssignificantcompetitiveadvantagesCapitalizesonthevolatilityofretailcycles Understandable CommunicatesaclearandcompellingapproachtothebusinessWillbefullyvaluedbyanalystsandshareholders Desirable Createscleareconomicvalueandtop quartilefinancialresultsbuildsaportfolioofhigh potentialbusinessesmakesbusinessunitsmorevaluabletoRetailCothantoothersAvoidexcessivelayers overheads anddecisionprocessesIsattractivetokeymanagersintargetedbusinessesandfunctions Approach 8 RetailCo2 MarketsizeMarketgrowthSegmentreturnsSegmentprofitabilitytrends CompetitiveintensitySupplierpowerSegmentstability MarketAttractiveness MarketshareMarketsharetrendGeographiccoverageCurrentprofitability EVAEarningstrend ManagementteamRetailbrandequityInfrastructureandsystemsCustomervalueproposition StrategicPosition Corporateexperience skills andvaluesCorporatefunctionalsupport CorporateportfoliodevelopmentCross divisionalsharing Fit RetailCobusinesseswereevaluatedalongthreegroupsofcriteria Approach RevisingtheMixofBusinesses 9 RetailCo2 FactBase ThefivequestionsapproachwasusedtobuildfactbaseoneverybusinessofRetailCo Approach 10 RetailCo2 Agenda BackgroundApproachConclusionImplementationResults 11 RetailCo2 BusinessUnitEvaluations 1of2 Division Conclusion StrategicPosition MarketAttractiveness Fit North Largemarketreadyforconsolidation goodprofitability verystrongposition Holland Largepotentialmarketwithopportunitytoboostgrowthandprofitabilitythroughacquisitionsandimprovedoperatingefficiency Italy Rapidlygrowingchannelwithhighreturns Needtoinvesttocapturemarketshareandimproveoperatingefficiency HongKong Largeoverallmarketwithslowgrowth Cashprovidercapableoffundinggrowthbusinesses Luxembourg Reevaluategrowthplans Economiesofscalenotyetachievedbutsegmentextremelyprofitable Conclusion 来自中国最大的资料库下载 12 RetailCo2 BusinessUnitEvaluations 2of2 Britain Moderatesizesegmentwithgoodprofitabilitybutstrongcompetition decliningmarketshare lowrelativeoperatingmargins Ireland Decliningmarketsegment poorposition littleopportunityforsale potentialforsavingsbyfoldingintoHongKong France Overcapacityinsegment losingmarketshare belowaverageprofitability Sweden Largeoverallmarketbutrequiressubstantialinvestmenttodevelopnewproductsandachievescaletoimprovecostposition businesshaspoorfitwithRetailCoskills Spain Smallsegment lowgrowth highvolatility andseasonality Division Conclusion StrategicPosition MarketAttractiveness Fit Conclusion 13 RetailCo2 BusinessUnitRecommendations Division StrategicPosition MarketAttractiveness Fit Grow SpinOff North Holland Italy HongKong Luxembourg Hold Britain Divest Ireland France Sweden Spain SpinOff Conclusion 14 RetailCo2 StrategicAlternatives Long termvision Corporateprofile Theleaderinselectedbusinesslineschaindrugapparelfootwearhometoys Businesslinecompetencies Costandexperiencesharinginthegroups Acquisitionstoachievebusinesslinedominance Group basedorganisation Abalancedportfolioofspecialityretailers ResourceallocationcompetenciesLeancorporatestructure Decentralisedmanagement Growandkeepsuccessfulbusinesses Divesttheunsuccessful Aleadingdeveloperoftargetedgrowth stageretailers SelectionandexpansioncompetenciesCorporateexpertiseincriticalgrowthfunctionsbusinessdevelopment R Dandresearch realestatesystemslogistics Costandexperiencesharinginkeyactivitiesacrossallbusinesses Acquireandgrowpromisingconcepts Divestwhenvalue addedpeaks Conclusion GroupSpecialist RetailConglomerates Growth stagegreenhouse RetailCo Classic 15 RetailCo2 RevisethemixofbusinessesintheportfolioallowNorthtopursueanindependentstrategysellFrance SpainandSwedenattherightpriceandtimeEnsureremainingbusinessesaddressthemostimportantstrategicissuesestablishclearstrategiesforgrowthbusinesses Holland Luxembourg HongKong Italy finaliseturnaroundplansforbusinesseswhichcan tbesoldatreasonablepricestakewrite offsasrequiredConsideracquisitionsReducecorporateexpensesAddvaluetothebusinessesintheportfoliobuildR Dcapabilitiesleveragecostsupgradetheorganisation Conclusion ActionRecommendations 16 RetailCo2 Chaindrugindustryisconsolidatingeconomiesofscaleinsystemsinvestmentsrelationshipswiththird partypayersAnindependentNorthgeneratessignificantlymoreshareholdervalueasitparticipatesintheevolutionoftheindustryNorthmakesminimaluseofcorporatefunctions thereislittlecost sharingamongNorthandtheotherdivisionsMarkettimingisattractiveNorth svalueisnotbeingfullyrecognizedinthemarketplace Conclusion Example RationaleForanIndependentNorth 17 RetailCo2 Plannedcapacityadditionswillresultinindustry widenegativecompstoresalesthrough1998ConsolidationisessentialtoeliminateexcesscapacitylowerscostsallowscompstoresalesgrowthRetailCoisbettersuitedtobeasellerthanabuyersynergyisequalwhetherFrancechoosestoacquireorbeacquiredleadingcompetitor smarketvalueishighermanagementgroupatFrancehasseveralsignificantholes Conclusion Example RationalefortheSaleofFrance 18 RetailCo2 Continuetopursueopportunitiestoconsolidateandreduceover capacityFillkeyexecutiveopeningsRestorethehistoricalbargainedgewithcorecustomersincreasethemixofopportunistically purchasedgoodsdelivervaluesaveraging20 belowdepartmentstoresalepricesReducecoststosupportpricereductionsreduceoverheadcostsbyapproximately 60MMreduceinvestmentcostfornewstoresandremodelsCloseunprofitablelocationsandexitseveralmarketswhichFrancecannotdominate IfthesaleofFrancetakeslongerthananticipated severalactionswillbetakentoimproveFrance sperformance Conclusion Example France StrategicImperatives 19 RetailCo2 Vision Toconsolidateourpositionastheleadingwidgetretailertoourtargetcustomers high volumepurchasersoftrendywidgetsintheir20sand30s Toberecognizedbyourtargetcustomersastheleaderinproductassortmentandcustomerserviceforwidgetretail ouruniquepositioning Toreacha10 shareofthenationalwidgetretailmarketbytheyear2000 FinancialGoals ToreachandmaintainROIClevelsof20 Togrowsalesby5 peryearandnetearningsby10 peryear1998salesobjective 1 225MM1998netearningsobjective 47MM StrategySummary 1of2 Conclusion 20 RetailCo2 KeyImperatives Initiatives Developournewconcept WidgetFactory intothesecond largestnon mallbasedwidgetretailer RetailCoRealEstateauditofpotentialnewsitesWidgetFactoryrapiddeploymentinitiative openingof30newstoresperyear Closenon performingstores Closingofthe10worstperformingmaturestores bothXYZandWidgetFactory eachyear Improvemarginsbychangingmixandreducingcosts MixchangebasedonGMROIapproachImplementationof4 WallssystemRedesignoflogisticsflowbasedonRetailCostudyImprovedensityofmarketsbybackfilllingfivemarkets Modifyourimageintheeyesofthecustomer AssortmentredesignbasedondemandandprofitabilitySalesforcetraininginitiativeoncustomerserviceLaunchofanewadvertisingcampaign FocusnewstoresinSoutherngeographies AcquireandintegrateSouthernWidgetbyendof1996RetailCoRealEstateauditofpotentialnewsitesProposedpartnershipwithSouthernMalls Inc StrategySummary 2of2 Conclusion 来自中国最大的资料库下载 21 RetailCo2 FitwithRetailCoclearopportunityforvaluecreationpotentialtomaximizesharingwithrelateddivisionsMarketattractivenesssubstantialmarketpotentialdominantmarketpositionopportunityconceptinearlystagesofalonglifecycleFinancialopportunitiesaffordablewithintargetcapitalstructuremeetsminimumreturnandgrowthhurdlesLimitedriskfactorsexistingmanagementtalentorsupplementablelowtomoderatevolatility Conclusion CriteriaforAcquisition 22 RetailCo2 CorporateCostReductionOpportunities Excludinginterest Conclusion 23 RetailCo2 PrimaryLevers CorporateRoles KeepawareofmarketandcustomertrendsdrivingpotentialopportunitiesDevelopcriteriaforscreeningacquisitionsandpartnershipsoralliancesIdentifyandevaluatenewconceptsandconsolidationopportunitiesDevelopanetworkofdealcontactsStructure negotiateandclosedealsCoordinateeffectiveintegrationplanningEvaluateopportunitiestospin off exitbusinesses DefineprimarymeasuresoffinancialperformanceSetspecificfinancialreturnandearningsgrowthtargetsDevelopfinancialplanningandcontrolsystemsAllocatecapitalandotherresources Definemanagementdecision makingprocessesCoachdivisionalmanagementfocusmanagersonmeasurableresultsquestionassumptionsandchallengethinkingProvideleadershiponcriticalissues e g divisionstrategy valuedisciplines andpriorityandresourceconflicts Identifyopportunitiestoimproveoperationsandsetspecificimprovementgoals PrimaryLeversAvailabletoAddValue 1of2 Conclusion 24 RetailCo2 PrimaryLevers CorporateRoles InstillcompanywidecommitmenttospreadingbestpracticescoordinateregularexperiencesharingatalllevelsfacilitatecommunicationamongdivisionsandfunctionsDrivevaluedisciplinestoimproveoperationsacrossallprocesses functionsanddivisionsProvideleadershipandexpertisetosupportimprovementsinperformance Attract motivateandretainthebestmanagementrecruittoptiercandidatesrewardbasedonperformancepromotebasedonabilityProvidestrong profit relatedincentiveslinkedtocorporateobjectivesRotatemanagersacrossfunctionsanddivisionsDevelopformaltrainingprograms Performanalysistosupportstrategicdecision making corporateanddivisional DefinecorporatestrategicdirectionAssessmarketattractiveness performance positionandfitofdivisionsworkwithdivisionstobuildhigh quality fact basedstrategicplansIntegratedivisionplanswithcorporatestrategy ProvidescaleservicesandfunctionstoachievelowercostandhigherqualityLeverageinfrastructureacrossbusinesses PrimaryLeversAvailabletoAddValue 2of2 Conclusion 25 RetailCo2 ProjectedEarnings North NewRetailCo FromMonteCarloanalysisNote Earningsequalsnetincomeaftertaxesandinterest Conclusion 26 RetailCo2 With 300MMsharerepurchase Gapvs SBPProjections Gapvs Realistic ROEtarget ROE Gap surplus 11 1 12 0 10 8MM 15 9 19 2 35 6MM 17 0 21 6 61 3MM 11 1 9 4 22 4MM 15 9 13 4 28 6MM 17 0 14 9 30 2MM Conclusion GapAnalysis 27 RetailCo2 Agenda BackgroundApproachConclusionImplementationResults 28 RetailCo2 CorporateGovernance ThedecisionsoftheBoardwillbeevaluatedunderthetraditionalbusinessjudgementrulestandardThedistributionofNorthshouldnotrequireshareholderapprovalthedistributionisadividendwhichrequiresonlyboardapprovalAT TprecedentThepotentialdivestituresshouldnotbeconsideredasaleofsubstantiallyallofRetailCoremainingassetsNewRetailCowillbeasubstantialentitywithestimatedsalesof 4 2B netincomeofapproximately 119 andassetsof 2 1B Implementation 29 RetailCo2 Note DistributeNorthstockdividendatappropriatetime 3Q95 4Q95 1Q96 2Q96 3Q96 4Q96 1997 ApproveallcomponentsofStrategicReview CloseFrancetransaction CloseSpaintransaction CloseSwedentransaction ReorganizeCorporateoffice Closelossstores CloseNorthIPO CompletemergerofIreland HongKong CompleteMISandtelecommunicationsoutsourci