宝洁公司的战略实施与控制系统

IMPLEMENTINGSTRATEGY CONTROLSYSTEMSATP G GerryKinghamFinanceMgr P GNordic Agenda Re capofpreviouslectureFromglobaltolocalstrategy makingStrategyexample Yeshand dishManagementControlSystems ChoiceCascadetoDefinetheChoices WhatareourgoalsandAspirations WherewillwePlay WhatCapabilitiesmustbeinplacetowin HowwillweWininchosenmarket WhatManagementSystemsarerequired ChoiceCascadetoDefinetheChoices WhatareourgoalsandAspirations WherewillwePlay WhatCapabilitiesmustbeinplacetowin HowwillweWininchosenmarket WhatManagementSystemsarerequired Re caponlecture1 Wherewillweplay TotalShareholderReturncalculationsbyGlobalBusinessUnitHowwillwewin CommercialStrategyFocusoncorebrandsConsumerIsBossWinwithwinningcustomersCompetitiveretailmarginsstrongTailorInvestmentsByCustomerBeStrongWithGlobalCustomersGetthevalueequationrightKnowthecompetitorsWhatcapabilitiesmustbeinplace Globalmatrixstructure GlobalBusinessUnits GBUs andMarketDevelopmentOrganizations MDOs Individualaccountability Work DevelopmentPlans HOMEWORK WhatshareofshelfdoesYEShave Whatdoyouthinkithasinmarketshare Whatdoyoulearnfromthepricingandsizingyousee Whymightitbeso Whatinfluencestheshelfpositioning WhatwouldyourYESstrategybe HOMEWORK WhatshareofshelfdoesYEShave Ca 60 Whatdoyouthinkithasinmarketshare Sameasshelfshare 60 70 Whatdoyoulearnfromthepricingandsizingyousee Whymightitbeso Smallersizesoffer extrabenefits butaremoreexpensivepr mlWhatinfluencestheshelfpositioning LookslikethebigbottlesareatthebottomWhatwouldyourYESstrategybe ChoiceCascadetoDefinetheChoices WhatareourgoalsandAspirations WherewillwePlay WhatCapabilitiesmustbeinplacetowin HowwillweWininchosenmarket WhatManagementSystemsarerequired ImplementingstrategyFirst Understandingthecustomer HOWWILLWEWIN RetailisstillfragmentedShareoftop50publiccompanies 1998 Energy Automotive Pharmaceuticals diagnostics Electronics Telecom Packagedgoods Financialindustries Chemicals Retail Source GlobalVantage McKinsey Energy Financialinstitutions Automotive Retail Packagedgoods Electronics Averagenumberofcountriesofoperationforlargestcompanies 1998 Note LargestcompaniesdefinedbytotalrevenueSource Hoovers McKinsey Retailingisstilllocal HOWWILLWEWIN OnlydiscloseddealconsiderationsinexcessofUSD25millionSource Amdata ThomsonFinancialSecurities McKinseyanalysis Non Europeancross border Europeancross border Domestic GrowingEuropeanM AactivitiesinRetailUSDb dealvolume 2 9 9 3 12 0 0 7 1994 1995 1996 1997 1998 12 4 1999toSeptember 16 0 Thereisawaroutthere Demand Flat fallingshareofwalletFlat fallingpricesMoredemandingandcomplexconsumersShiftinglifestyleandworkpatterns Supply OvercapacityNewentrants e tailersandretailers SupplierconsolidationLowavailability risingcostoffrontlinelabourIncreasingrealestatecosts Powershiftingtoconsumers Internetisacceleratingtrends Source McKinsey HOWWILLWEWIN Sweden Mostconsolidatedretailmarketintheworld theBIGarealreadyBIGICAowned50 byAholdAholdhighlyfinanciallydrivencompany EVAMorepressureonICA morepressureonsuppliersWantshigherprofits higherturnover happierconsumers differentiatethemselvesvs Competition HOWWILLWEWIN Nowweknowthecustomer canwefindasweetspot Howwillwewin ConsumeristheBOSSCoreBrandsWinwithwinningcustomersCompetitiveretailmarginsstrongTailorInvestmentsByCustomerBeStrongWithGlobalCustomersHowwillwewin SweetSpot Launchaproduct withuniqueconsumerbenefits withhighercustomermargins thatdrivetotalTSRforP G Havingtherightcapabilities P GtriestomirrorhowthecustomerworksWeworkinmultifunctionalteams toaddresscomplexbusinessissuesInamatrixorganisationindividualaccountabilityisKEY 2020 04 06 17 GlobalAholdCustomerTeamOverview P G Ahold GlobalTeamTeamleader VP MultifunctionalBasedinRotterdam RegionalTeamsUSA Europe LatinAmerica andAsia RegionalCustomerHQ AholdManagementinZaandam LocalTeams ICA Hakon AholdNordic Teamleader multifunctionalteam LocalCustomersICA Hakon LocalNordicTeam Sales Teamleader KeyaccountmanagersFinanceMarketingLogisticsCustomermarketingOrdergroup backofficesupport EveryoneontheteamknowstheirroleintheGOAL whattheyareMEASUREDontoSUCCEED LocalNordicTeam accountability Sales Teamleader KeyaccountmanagersVolume Share CosttoserveFinanceCustomerprofit effecientspendingMarketingShare basketsize traffic categoryshareLogisticsShelfavailability perfectorders inventoriesOrdergroup backofficesupportPerfectOrders leadtimes nooverdues ControlSystems FinancialSalesFundamentalsIndividualPerformanceActionsteps Reminder OGSM What How P GMeasures e g YesAromaLaunch Objective Securemarketleadershipwithinhand dishbyofferingconsumersthebestvalueandbybeingthepreferredsupplierofhand dishtoleadingcustomersGoals note notactualnumbers Growvolumeby5 Deliver 1 433MofvaluecontributiontothecompanyReach90 distributionin3monthsonAromaReach80 shareofshelf P GMeasures e g YesAromaLaunch Strategieslaunchflankerswhich MatchunmetconsumerpreferencesGrowtotaltradeprofitabilityonYesbrandincreaseconsumerandcustomermarketingspendyear1tosecuretrialusedisplaystogetfastdistributionearlyinyeardonotincreasecurrentlevelanddepthofpromotionsMeasurementsVolume dailyshipmentreportsbycustomerSharesbyproductandcustomer Weekly MonthlyNielsendataMarketpricesbyproductandcustomer Weekly MonthlyNielsendataBudgets actualsversuscommitments unitValuecontribution Brand Product Country monthlyBrandProfitEstimates BPEs FINANCIALFIRM 3 59 10 0 NORDICCONTRIBUTION 1503 15 03 40 3 1433 13 65 38 0 AnnualGrowthrate 90 10 95 5 YesAromaLaunch MeasurementsVolume dailyshipmentreportsbycustomerSharesbyproductandcustomer Weekly MonthlyNielsendataSalesFundamentalsbyproductandcustomer Weekly MonthlyNielsendataBudgets actualsversuscommitmentsValuecontribution Brand Product Country monthlyBrandProfitEstimates BPEs VolumeTracking dailyreportbycustomer brandonintranetlookintodatabaseforshipmentsbyproduct TotalShipmentdays 23 Actshipmentsdaysgone 11 Acttimegone ofmonth 48 BRAND vs EST Todays Order AvgBalShip toFIRM EST ORDERED Ariel xx xx Bold xx xx TotalFabricCare xx xx Febreze xx xx Swiffer xx xx MrProper xx xx Yes FairyHD 7 9 13 0 3 9 30 0 3 Yes FairyADW xx xx TotalHomeCare xx xx F HCTotal xx xx NORDIC VolumeTracking 0 0 0 0 0 0 0 e g Aromadisplaysarenotsellingasforecasted why YesAromaLaunch MeasurementsVolume dailyshipmentreportsbycustomerSharesbyproductandcustomer Weekly MonthlyNielsendataSalesFundamentalsbyproductandcustomer Weekly MonthlyNielsendataBudgets actualsversuscommitmentsValuecontribution Brand Product Country monthlyBrandProfitEstimates BPEs SharesTracking 3 1 2 8 NOPA 3 3 3 7 3 3 3 0 3 3 3 2 3 0 2 9L e g Aromaiscannibalizingasexpected YesAromaLaunch MeasurementsVolume dailyshipmentreportsbycustomerSharesbyproductandcustomer Weekly MonthlyNielsendataSalesFundamentalsbyproductandcustomer Weekly MonthlyNielsendataBudgets actualsversuscommitmentsValuecontribution Brand Product Country monthlyBrandProfitEstimates BPEs SalesFundamentalsTracking andalsodisplayWD featureshare shelfshare etc YESAROMA APPLE PricePerUnitWithoutPromo SFT P12M P6M nov dec jan vs NGLAMARK TOTALSWEDEN 35 1 34 9 34 5 34 7 34 9 102 AXFOODTOTAL 35 6 34 4 34 3 33 5 33 9 98 AXFOODFRANCHISE 37 6 37 5 37 6 36 3 36 2 99 D DDISCOUNT 31 8 30 9 30 5 30 8 30 7 99 VIVOSTOCKHOLM 40 7 40 1 41 0 36 2 41 2 97 BERGENDAHLDETALJIST 32 7 32 7 32 3 31 2 33 4 105 YESAROMA APPLE Weighteddistribution SFT P12M P6M nov dec jan vs NGLAMARK TOTALSWEDEN 95 9 98 2 97 0 98 0 98 0 AXFOODTOTAL 87 7 97 8 98 0 98 0 100 0 100 AXFOODFRANCHISE 72 0 95 7 93 0 90 0 99 0 97 D DDISCOUNT 81 7 97 2 100 0 100 0 100 0 99 VIVOSTOCKHOLM 75 0 100 0 100 0 100 0 100 0 102 BERGENDAHLDETALJIST 100 0 100 0 100 0 100 0 100 0 102 e g Aromahashighshareswheredisplayed Anoteoncompetition CompetitiveResponseModelingExpectedcompetitiveresponseSequenceofactions theirNPVsdetermineoptimalstrategyWhichgameswillweplay E g alwaysmatchcompetition spromotiondepthE g neverdoin storecoupons PossibleExplanations Consumervalueequation Ispricepremiumtoohigh DidweoverestimatedemandforAromaproducts mostlikelyOK off takehighwheredistributed repurchaseratehighOrganizationalcapabilityDowehaveenoughsalesrepcoverage DoesYeshavepriorityinsalescycle yes butmanystoreownersarerejectingCommercialstrategyistrademarginrecommendedtoolow Isvalueforcustomernotclearlydefined Possibleexplanation storeownersnotclearonaddedvalue donotwishtoreplaceproducts donothavemorespaceinstoreformoreproducts anddonotwantcomplexityofmorecodesinsystem YesAromaLaunch MeasurementsVolume dailyshipmentreportsbycustomerSharesbyproductandcustomer Weekly MonthlyNielsendataSalesFundamentalsbyproductandcustomer Weekly MonthlyNielsendataBudgets actualsversuscommitmentsValuecontribution Brand Product Country monthlyBrandProfitEstimates BPEs howdowereflectnewforecastandwhatdowedo BudgetTracking PROCTER GAMBLENORDIC BudgetControl TotalMDA SPENT BUD ACT COM SPENT vsBUD MUSD MUSD MUSD MUSD Yes FairyHD 100 18 18 35 35 Yes FairyADW 100 28 28 55 55 Febreze 100 46 46 93 93 Swiffer 100 64 64 128 128 TotalHOME 400 156 156 311 45 Pringles 100 23 23 46 46 CriticalpartindecisionwhethertocontinuestrategyLaunchbasedontighteconomics ml dowecutbudgetsorincreasethemifvolumesarenotcomingin howsensitiveistheNPV Expectfrontspendingduringlaunch butpossibilitiesofcuttingQ4support FINANCIALTRACKINGBrandProfitEstimates Reconciliations explaindifferencevs estimatebyvolume mixeffect budgets exchangerates andtradetermsavailablebyproductandcountryconsolidatedacrossGBUsandMDOsinSAPR 3tomakeourquarterlyreporttoWallStreet M ml Delta 4000 40 00 Mixeffect 10 0 3 0 10 0 3 Volumeeffect 100 2 5 ExchangeRateeffect 10 0 3 0 10 0 2 4100 2 5 40 00 0 0 M ml Delta 3725 37 25 MixEffect 10 0 3 0 10 0 3 Volumeeffect 100 2 7 ExchangeRateeffect 10 0 3 0 10 0 3 Customerbudgeteffect 50 1 3 0 05 0 1 Consumerbudgeteffect 5 0 1 0 01 0 0 3770 1 2 37 31 0 2 NetRealReconciliation NOSReconciliation ACTIONSTEPS E g SeptemberBPE Wearebelowvolumetarget Salesfundamentalsshowthatwearelowondistribution priceandsharewhereinstoreontarget Repurchaserateishighamongconsumer theproductworks Only175ofestimated300displaysofAromahavebeensold storeownersreluctanttotakeinnewproduct BrandteammeetswithSalesteamstodiscusspossibleactions ACTIONSTEPS E g SeptemberBPE Wetakebackbudgetcommitmentswhollybasedonvolume thismoneycanbemadeavailableforre investment Decision distributionandyear 1volumeisvital Weneedtore deployfundsforadisplay drive Tryone timeirresistibleofferwithnewtradeleafletspecifyingrationalebehindYesAroma Effectoncontribution highercustomermarketingbudgets NOS butreachcriticalvolumeandtrialinyear1 NewfinancialsarecommunicatedtoGBUviaBrandProfitEstimate FullreconciliationsaresentbyFinance PERFORMANCETRACKINGAccountability Accountabilityexamples countryGM valuecontributionandflow externalrelations organizationGBUGM P L incl Production logisticscosts alloverheads inventorymarketplanner forecastaccuracy availabilitybrandteamleader contribution volume shares organizationcustomerteamleader volume salesfundamentals organization PERFORMANCETRACKINGWork DevelopmentPlans onceperyear feedbackfrommanagers directreports colleaguesHowhasworkplanbeendelivered Howhaspersondevelopedorganization Strengths weaknesses setdevelopmentplanwithmanagerBasisforpromotiontimings salarylevel PERFORMANCETRACKING FIRM FY99 00 FY00 01 FY01 02 FY02 03 ConsumerSatisfaction Reach SEK US ExchangeRate 0 1172 0 1025 0 0954 0 0943 NetSales P L MM XX XX XX XX Indexvs