现代企业文化的定义概述(ppt 60页)（英文版）.PPT

1、Gisele Garraway,Susan Caraviello, Paul DiPaola, and Todd Senturia,bc,Business Definition,March 1998,Author:,Contributors:,Todd Senturia,Reviewer:,Copyright 1998 Bain however, what customers perceive can often conflict with the economic boundaries.,Perceptual barriers,Low,High,Customers view :,Exampl

2、es:,Products are similar,Products serve different functions,Wooden canoes and aluminum canoes,Womens fragrances and mens aftershave,32,Business Definition,Business Definition Steps,Degree of emphasis,Does business definition pass the competitor acid tests? Do competitors offer similar products and s

3、erve similar customers and channels? Does profitability correlate with definition of market share? Do decisions a competitor makes in one business affect the decisions that a competitor makes in another business?,Less important,More important,Cost sharing,Customer sharing,Competitor acidtests,33,Bus

4、iness Definition,Competitor Acid Tests,Does business profitability correlate with market share as implied by the business definition hypothesis?,What impact do decisions made in one business have on another? pricing investment,What products do individual competitors offer? Which customers/channels d

5、o competitors service?,Consistency,Profit explanation,Independent actions,To validate our business definition hypothesis, we use three competitor acid tests.,34,Is there substantial customer sharing? How great is the degree of functional substitution? How great is the degree of customer base overlap

6、? How high are customers perceptual barriers?,Is there substantial cost sharing? Is there substantial direct cost sharing? Are there substantial opportunities for experience transfer?,Does business definition pass the competitor acid tests? Do competitors offer similar products and serve similar cus

7、tomer/channels? Does profitability correlate with the definition of market share? Do decisions a competitor makes in one business affect the decisions that a competitor makes in another business?,Degree of emphasis,Less important,More important,Cost sharing,Customer sharing,Competitor acidtests,Busi

8、ness Definition,Business Definition Steps - Summary,35,Business Definition,Agenda,The business definition concept Applications Business definition steps Client examples Bunker Hill Door Systems JJR Industrial Coatings Key takeaways,36,Business Definition,Bunker Hill Door Systems* - Background,Bain u

9、sed business definition to set a strategic foundation for Bunker Hill Door Systems. The team started with a hypothesis that there were three separate businesses.,Situation:,Complication:,Question:,Bunker Hill is a $400MM division of Hills Worldwide. This division manufactures entry doors, garage doo

10、rs (GDS), and garage door openers (GDOs). Hills Worldwide has set aggressive growth targets for all divisions,Bunker Hill has suffered a continued financial decline in recent years and performance varies widely across the product lines. Moreover, Bunker Hill faces a strong set of well-established, l

11、ow-cost competitors,How can Bunker Hill grow profitably?,Assertion 1,Assertion 2,Assertion 3,GD, GDO and entry doors are separate businesses and therefore require different strategies for profitable growth,*Disguised client case,37,Business Definition,Bunker Hill - Direct Cost Sharing (p.1),Source:

12、Bunker Hill Financials,The Bain team found that materials accounted for a substantial proportion of Bunker Hills costs in all three business segments.,Costs,Customers,Compet- itors,38,Business Definition,Bunker Hill - Direct Cost Sharing (p.2),*Includes gates and electronics Source: Purchase Price V

13、ariance Report,However, in peeling the onion, the team discovered very little material cost sharing, suggesting that on a cost basis there were 3 separate businesses.,Costs,Customers,Compet- itors,39,Business Definition,Bunker Hill - Experience Transfer,Using entry doors as a baseline, the Bain team

14、 found limited opportunities for experience transfer.,Garage Door,Garage Door Openers,Costs,Customers,Compet- itors,Low,Medium,High,Experience transfer potential with entry doors,Source: Management Manufacturing Interviews,40,Business Definition,Bunker Hill - Customer Base Overlap,Source: Bunker Hil

15、l Customer Database,The Bain team found limited customer base overlap between garage doors and entry doors, and between garage doors and garage door openers.,Costs,Customers,Compet- itors,41,Business Definition,Source: Door Systems Customer Interviews,Most Bunker Hill customers bought openers when t

16、hey bought Bunker Hill doors.,Costs,Customers,Compet- itors,Bunker Hill - GD and GDO Customer Sharing,42,Business Definition,Bunker Hill - Perceptual Barriers,Garage doors and entry doors Entry doors and garage door openers,Low,High,Perceptual Barriers,“Garage doors need to be made of steel and be s

17、trong. Entry doors should be well crafted and be attractive.” -Garage door customer “Garage door openers should be bought from a reputable electronics type company.” -Garage door opener customer,“I like to buy my garage door and the opener from the same manufacturer. Its the same as with TVs. I woul

18、dnt buy the remote control from one company and the TV from another.” -Garage door customer,Customer feedback revealed low barriers between garage doors and openers. However, customers viewed entry doors as separate from garage doors and openers.,Garage doors and garage door openers,Source: Customer

19、 Interviews,Costs,Customers,Compet- itors,43,Business Definition,Bunker Hill - Competitor Acid Test,Bunker Hill Chamberlain Overhead door Wayne-Dalton Clopay Castlegate/Premdor Peachtree Pease Therma-Tru,A competitor acid test validated the teams findings. Bunker Hill is the only player who particip

20、ates in all three segments. All other players make and sell only entry doors or only garage doors and garage door openers.,Company,Garage Door Openers,Garage Doors,Entry Doors,Costs,Customers,Compet- itors,Source: Competitor Annual Reports and Web Sites,44,Business Definition,Bunker Hill - Customer

21、and Cost Summary,High,Low,Cost Sharing,Low,High,Customer Sharing,One business with potential for differentiation or niche position,Separate businesses with potential for cost leadership,Entry doors and garage doors,One business,Entry doors and garage door openers,Separate businesses,Garage doors and

22、 garage door openers,Separate businesses with potential for bundling,One business with potential for substitution,Based on its analysis, the Bain team classified Bunker Hills businesses as follows:,45,Business Definition,Agenda,The business definition concept Applications Business definition steps C

23、lient examples Bunker Hill Door Systems JJR Industrial Coatings Key takeaways,46,Business Definition,JJR* - U.S. Industrial Coatings Market,*Disguised client case Source: Skeist, U.S. Census, Frost Frost Bain Analysis,$403,$206,$209,$149,$170,$52,$164,$42,$284,$91,$257,$36,$57,$201,$47,$193,$67,Tota

24、l sales = $2,578MM,JJR - Coatings Usage,The usage of the five coating types varies significantly across the end-use segments.,49,Business Definition,JJR - Direct Cost Sharing,Using SB as a baseline, the team used limited cost data along with qualitative assessments from manufacturing and industry ex

25、perts to determine that the only significant direct cost sharing was between solvent-based and water-based.,Costs,Customers,Competi- tors,Water-based,Powder,Ultra-violet,Electra-coat,Overlap with SB,High Medium Low,50,Business Definition,JJR - Experience Transfer,In analyzing the value chain steps,

26、the Bain team found that the opportunities for experience transfer between E-coat and non-E-coat were low.,Costs,Customers,Competi- tors,Solvent,Pigment,Resin,Additive,Resin R&D,Coating R&D,Raw matl QC,Raw matl handling,Resin prod,Pre-batch QC,Grinding,Blending/ mixing,Post-batch QC,Packing,Finished

27、 matl handling,Selling,Field,Application,E-coat vs. non e-coat leveragability,High Medium Low,51,Business Definition,JJR - Functional Substitution,The case team found that the only substitutability was among solvent-based, water-based and powder.,Costs,Customers,Competi- tors,Degree of current/ pote

28、ntial substitutability,Low Medium High,Solvent- based,Water-based,Powder,E-coat,EB/UV,Solvent- based,Water-based,Powder,E-coat,UV,52,Business Definition,JJR - Customer Sharing,The team found little customer sharing between E-coat and other technologies.,Customer overlap,53,Business Definition,JJR -

29、Competitor Acid Test,JJRs was the only competitor to compete in E-coat to a significant degree. This helped to explain its above average profitability.,Costs,Customers,Competi- tors,Percentage of revenue from E-coat:,55%,35%,10%,0%,5%,5%,0%,0%,54,Business Definition,JJR - Business Definition Summary

30、,Powder,Solvent-based,Water-based,UV,E-coat,A single business,A single business with some segment barriers,Separate business with opportunities to use as door opener for SB/WB/Powder business,The Bain teams analysis demonstrated that JJR was not in only one business.,55,Business Definition,JJR - Imp

31、lications,JJRs industrial coatings business consists of at least two separate businesses E-coat: technology business with distinct resins, R&D and field technical support pursued across multiple vertical industry segments non-E-coat: multiple technologies (solvent, water-based, powder, UV) with some

32、 unique R&D pursued on a vertical industry basis with unique field technical support and sales often required for large verticals JJRs competitive positions in the two businesses are very different very strong position in high margin, moderate growth E-coat business wide range of profit, growth and

33、competitive positions in non-E-coat businesses that require unique strategies The rules of competition for the two businesses are very different and distinct strategies are required E-coat: maintain position through technological innovation differentiate on technology and specific technical services

34、 expand broadly across new verticals non-E-coat: build scale position in individual industries differentiate on vertical expertise and product breadth in mature segments, focus on low cost position,56,Business Definition,JJR - Follow-On Work,In further work on industrial coatings, Bain identified tw

35、o distinct non-E-coat businesses.,Vertical industry-specific R&D Vertical industry-specific sales/services Specialized formulations without patents,General coatings R&D Distributed mixing/delivery site General sales/service,Large manufacturers in select vertical industries (e.g., appliances, furnitu

36、re, containers, construction, auto),Wide range of generally smaller coatings customers (i.e., coating job shops, machine shops, small parts manufacturers),Coatings manufacturers specialized by vertical industry,Regional and national coatings manufacturers with local distribution networks shared acro

37、ss industries and some architectural paints,Compete on vertical service and lowest systems cost to large customers,Compete on regional distribution service (e.g., economy deliveries, frequent deliveries, rapid turnaround),Technology-specific R&D Technology-specific sales/service Unique patented form

38、ulations,Specialized E-coaters Auto parts suppliers Large OEMs,Technology-focused coating manufacturers,Compete on technology innovation,Cost Drivers:,Customers:,Competitors:,Rules of competition:,57,Business Definition,Agenda,The business definition concept Applications Business definition steps Cl

39、ient examples Bunker Hill Door Systems JJR Industrial Coatings Key takeaways,58,Business Definition,Key Takeaways,The Basic Concept Business definition delineates the economic boundaries within which companies should compete If two segments have the same customers, the same cost structure, and the s

40、ame competitors, they are one business Business Definition Steps Bain uses the business definition matrix to delineate economic boundaries Cost sharing and customer sharing are the primary determinants of defining a business Business definition is not an exact science Cost sharing An assessment of c

41、ost sharing involves examining direct cost sharing and experience transfer Businesses can share costs in a variety of ways Customer Sharing Customer sharing analysis includes measuring the customer base overlap, functional substitution and, to a lesser degree, looking at perceptual barriers Generall

42、y, high customer base overlap, high functional substitution, and low perceptual barriers suggest one business Competitor Acid Tests To validate a business definition hypothesis, we use three competitor acid tests: consistency, profit explanation, and independent actions,59,Business Definition,Takeaw

43、ay Slides (p.1),Indicates whether two business segments should be operated as one business or as separate businesses Helps identify what drives superior profitability in an industry Serves as the foundation for strategic analysis and sound decision making,What is Business Definition?,Business Defini

44、tion Steps Summary,One Business vs. Separate Businesses,Same customers Same cost structure Same competitors,Different customers Different cost structure Different competitors,One business,Separate businesses,Compete in both segments to take advantage of synergies,Do not compete in both segments,High,Cost Sharing,Low,Low,High,Customer sharing,One business (charge cards and credit cards),One business with potential for differentiation or niche position(c