贝恩Bain-零售行业分析PPT课件.ppt

bc Compiler Reviewer RetailCo Created August26 1999 Copyright 1998Bain Company Inc SevaRozanov ThomasShannon RetailCo2 1 2 可编辑 BackgroundApproachConclusionImplementationResults Agenda 3 可编辑 RetailCois 10 B specialityretail conglomeratewhosefinancialperformancehasdeterioratedsince1990 Background 4 可编辑 Achievetopquartileperformancemarket bookvalue 2 8xreturnonequity 17 18 annualearningsgrowth 10 12 DivestbusinessesthatarepoorfitsPreparethecompanytoweatherchallengingindustryconditionsCreateacompellingvisionandgrowthstrategy FinancialObjectives StrategicObjectives Background RetailCoObjectives 5 可编辑 Agenda BackgroundApproachConclusionImplementationResults 6 可编辑 DefinethecharacteristicsofasuccessfulstrategyDeveloparangeofviablestrategicalternativesAssessandprioritisethestrategicalternativesBuildconsensusaroundthepreferredstrategyFullyquantifytheimpactofappropriateactionstepsGainfinalapprovalLaunchimplementation Approach 7 可编辑 ComponentsofSuccessfulStrategy Doable EvolvesfromcurrentbusinessmixFitsRetailCo scorecompetenciesIsfundableDevelopssignificantcompetitiveadvantagesCapitalizesonthevolatilityofretailcycles Understandable CommunicatesaclearandcompellingapproachtothebusinessWillbefullyvaluedbyanalystsandshareholders Desirable Createscleareconomicvalueandtop quartilefinancialresultsbuildsaportfolioofhigh potentialbusinessesmakesbusinessunitsmorevaluabletoRetailCothantoothersAvoidexcessivelayers overheads anddecisionprocessesIsattractivetokeymanagersintargetedbusinessesandfunctions Approach 8 可编辑 MarketsizeMarketgrowthSegmentreturnsSegmentprofitabilitytrends CompetitiveintensitySupplierpowerSegmentstability MarketAttractiveness MarketshareMarketsharetrendGeographiccoverageCurrentprofitability EVAEarningstrend ManagementteamRetailbrandequityInfrastructureandsystemsCustomervalueproposition StrategicPosition Corporateexperience skills andvaluesCorporatefunctionalsupport CorporateportfoliodevelopmentCross divisionalsharing Fit RetailCobusinesseswereevaluatedalongthreegroupsofcriteria Approach RevisingtheMixofBusinesses 9 可编辑 FactBase ThefivequestionsapproachwasusedtobuildfactbaseoneverybusinessofRetailCo Approach 10 可编辑 Agenda BackgroundApproachConclusionImplementationResults 11 可编辑 BusinessUnitEvaluations 1of2 Division Conclusion StrategicPosition MarketAttractiveness Fit North Largemarketreadyforconsolidation goodprofitability verystrongposition Holland Largepotentialmarketwithopportunitytoboostgrowthandprofitabilitythroughacquisitionsandimprovedoperatingefficiency Italy Rapidlygrowingchannelwithhighreturns Needtoinvesttocapturemarketshareandimproveoperatingefficiency HongKong Largeoverallmarketwithslowgrowth Cashprovidercapableoffundinggrowthbusinesses Luxembourg Reevaluategrowthplans Economiesofscalenotyetachievedbutsegmentextremelyprofitable Conclusion 12 可编辑 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 可编辑 BusinessUnitRecommendations Division StrategicPosition MarketAttractiveness Fit Grow SpinOff North Holland Italy HongKong Luxembourg Hold Britain Divest Ireland France Sweden Spain SpinOff Conclusion 14 可编辑 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 可编辑 RevisethemixofbusinessesintheportfolioallowNorthtopursueanindependentstrategysellFrance SpainandSwedenattherightpriceandtimeEnsureremainingbusinessesaddressthemostimportantstrategicissuesestablishclearstrategiesforgrowthbusinesses Holland Luxembourg HongKong Italy finaliseturnaroundplansforbusinesseswhichcan tbesoldatreasonablepricestakewrite offsasrequiredConsideracquisitionsReducecorporateexpensesAddvaluetothebusinessesintheportfoliobuildR Dcapabilitiesleveragecostsupgradetheorganisation Conclusion ActionRecommendations 16 可编辑 Chaindrugindustryisconsolidatingeconomiesofscaleinsystemsinvestmentsrelationshipswiththird partypayersAnindependentNorthgeneratessignificantlymoreshareholdervalueasitparticipatesintheevolutionoftheindustryNorthmakesminimaluseofcorporatefunctions thereislittlecost sharingamongNorthandtheotherdivisionsMarkettimingisattractiveNorth svalueisnotbeingfullyrecognizedinthemarketplace Conclusion Example RationaleForanIndependentNorth 17 可编辑 Plannedcapacityadditionswillresultinindustry widenegativecompstoresalesthrough1998ConsolidationisessentialtoeliminateexcesscapacitylowerscostsallowscompstoresalesgrowthRetailCoisbettersuitedtobeasellerthanabuyersynergyisequalwhetherFrancechoosestoacquireorbeacquiredleadingcompetitor smarketvalueishighermanagementgroupatFrancehasseveralsignificantholes Conclusion Example RationalefortheSaleofFrance 18 可编辑 Continuetopursueopportunitiestoconsolidateandreduceover capacityFillkeyexecutiveopeningsRestorethehistoricalbargainedgewithcorecustomersincreasethemixofopportunistically purchasedgoodsdelivervaluesaveraging20 belowdepartmentstoresalepricesReducecoststosupportpricereductionsreduceoverheadcostsbyapproximately 60MMreduceinvestmentcostfornewstoresandremodelsCloseunprofitablelocationsandexitseveralmarketswhichFrancecannotdominate IfthesaleofFrancetakeslongerthananticipated severalactionswillbetakentoimproveFrance sperformance Conclusion Example France StrategicImperatives 19 可编辑 Vision Toconsolidateourpositionastheleadingwidgetretailertoourtargetcustomers high volumepurchasersoftrendywidgetsintheir20sand30s Toberecognizedbyourtargetcustomersastheleaderinproductassortmentandcustomerserviceforwidgetretail ouruniquepositioning Toreacha10 shareofthenationalwidgetretailmarketbytheyear2000 FinancialGoals ToreachandmaintainROIClevelsof20 Togrowsalesby5 peryearandnetearningsby10 peryear1998salesobjective 1 225MM1998netearningsobjective 47MM StrategySummary 1of2 Conclusion 20 可编辑 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 21 可编辑 FitwithRetailCoclearopportunityforvaluecreationpotentialtomaximizesharingwithrelateddivisionsMarketattractivenesssubstantialmarketpotentialdominantmarketpositionopportunityconceptinearlystagesofalonglifecycleFinancialopportunitiesaffordablewithintargetcapitalstructuremeetsminimumreturnandgrowthhurdlesLimitedriskfactorsexistingmanagementtalentorsupplementablelowtomoderatevolatility Conclusion CriteriaforAcquisition 22 可编辑 CorporateCostReductionOpportunities Excludinginterest Conclusion 23 可编辑 PrimaryLevers CorporateRoles KeepawareofmarketandcustomertrendsdrivingpotentialopportunitiesDevelopcriteriaforscreeningacquisitionsandpartnershipsoralliancesIdentifyandevaluatenewconceptsandconsolidationopportunitiesDevelopanetworkofdealcontactsStructure negotiateandclosedealsCoordinateeffectiveintegrationplanningEvaluateopportunitiestospin off exitbusinesses DefineprimarymeasuresoffinancialperformanceSetspecificfinancialreturnandearningsgrowthtargetsDevelopfinancialplanningandcontrolsystemsAllocatecapitalandotherresources Definemanagementdecision makingprocessesCoachdivisionalmanagementfocusmanagersonmeasurableresultsquestionassumptionsandchallengethinkingProvideleadershiponcriticalissues e g divisionstrategy valuedisciplines andpriorityandresourceconflicts Identifyopportunitiestoimproveoperationsandsetspecificimprovementgoals PrimaryLeversAvailabletoAddValue 1of2 Conclusion 24 可编辑 PrimaryLevers CorporateRoles InstillcompanywidecommitmenttospreadingbestpracticescoordinateregularexperiencesharingatalllevelsfacilitatecommunicationamongdivisionsandfunctionsDrivevaluedisciplinestoimproveoperationsacrossallprocesses functionsanddivisionsProvideleadershipandexpertisetosupportimprovementsinperformance Attract motivateandretainthebestmanagementrecruittoptiercandidatesrewardbasedonperformancepromotebasedonabilityProvidestrong profit relatedincentiveslinkedtocorporateobjectivesRotatemanagersacrossfunctionsanddivisionsDevelopformaltrainingprograms Performanalysistosupportstrategicdecision making corporateanddivisional DefinecorporatestrategicdirectionAssessmarketattractiveness performance positionandfitofdivisionsworkwithdivisionstobuildhigh quality fact basedstrategicplansIntegratedivisionplanswithcorporatestrategy ProvidescaleservicesandfunctionstoachievelowercostandhigherqualityLeverageinfrastructureacrossbusinesses PrimaryLeversAvailabletoAddValue 2of2 Conclusion 25 可编辑 ProjectedEarnings North NewRetailCo FromMonteCarloanalysisNote Earningsequalsnetincomeaftertaxesandinterest Conclusion 26 可编辑 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 可编辑 Agenda BackgroundApproachConclusionImplementationResults 28 可编辑 CorporateGovernance ThedecisionsoftheBoardwillbeevaluatedunderthetraditionalbusinessjudgementrulestandardThedistributionofNorthshouldnotrequireshareholderapprovalthedistributionisadividendwhichrequiresonlyboardapprovalAT TprecedentThepotentialdivestituresshouldnotbeconsideredasaleofsubstantiallyallofRetailCoremainingassetsNewRetailCowillbeasubstantialentitywithestimatedsalesof 4 2B netincomeofapproximately 119 andassetsof 2 1B Implementation 29 可编辑 Note DistributeNorthstockdividendatappropriatetime 3Q95 4Q95 1Q96 2Q96 3Q96 4Q96 1997 ApproveallcomponentsofStrategicReview CloseFrancetransaction CloseSpaintransaction CloseSwedentransaction ReorganizeCorporateoffice Closelossstores CloseNorthIPO CompletemergerofIreland HongKong CompleteMISandtelecommunicationso