《战略管理》

1、12Chapter OutlineuIdentify Present Corporate StrategyuEvaluate Industry AttractivenessuEvaluate Competitive Strength of Business UnitsuStrategic Fit AnalysisuResource Fit AnalysisuRank Business Units Based on PerformanceuDecide on Resource Allocation Priorities and General Strategic DirectionuCrafti

2、ng a Corporate StrategyuGuidelines for Managing the Corporate Strategy Process3Building Shareholder Value: Questions to Ask About a Diversified Company1. How attractive is the group of businesses the company has diversified into?2. How good is the firms overall performance outlook in the years ahead

3、 with these businesses?3. If previous two answers arent satisfactory,what should the firm do to realign its business lineup?Divest unattractive businesses?Strengthen positions of remaining ones? Acquire new businesses?4How to Evaluate aDiversified Companys Strategy: Identify present corporate strate

4、gy: Evaluate long-term attractiveness of each industry firm is in: Evaluate competitive strength of firms business units: Apply strategic fit test: Apply resource fit test5 Rank business units based on historical performance and future prospects Rank business units in terms of priority for resource

5、allocation and decide on general strategic posture Craft new strategic moves to improve overall company performanceHow to Evaluate aDiversified Companys Strategy6Figure 10.1: Identifying a Diversified Companys StrategyCorporateStrategyApproach toallocating investment capital and resourcesNarrow or b

6、road-based diversificationScope ofgeographicoperationsMoves to addnew businessesMoves to build positionsin new industriesEfforts to capturecross-businessstrategic fitsMoves to divestweak business unitsIs diversificationrelated, unrelatedor a mix?7Step 1: Identify PresentCorporate StrategyuExtent to

7、which firm is diversified (broad versus narrow, % of sales contributed by each business)uIs portfolio keyed to related or unrelated diversification or both?uIs scope of operations mostly domestic, increasingly multinational, or global?uRecent moves to add new businesses8uRecent moves to divest weak

8、businessesuActions to boost performance of key business unitsuEfforts to capture cross-business strategic fit benefits and exploit value chain relationships to create competitive advantageuPercentage of capital expenditures allocated to each business unitStep 1: Identify PresentCorporate Strategy (c

9、ontinued)9Step 2: Evaluate Industry AttractivenessAttractiveness of eachindustry in portfolioEach industrys attractiveness relative to the othersAttractiveness of allindustries as a group10Industry Attractiveness FactorsuMarket size and projected growthuIntensity of competitionuEmerging opportunitie

10、s and threatsuSeasonal and cyclical factorsuResource requirementsuCross-industry strategic fits and resource fits with present businessesuIndustry profitabilityuSocial, political, regulatory, and environmental factorsuDegree of risk and uncertainty11Procedure: Rating the Relative Attractiveness of E

11、ach IndustryStep 1: Select industry attractiveness factors Step 2: Assign weights to each factor (sum of weights = 1.0)Step 3: Rate each industry on each factor (use scale of 1 to 10)Step 4: Calculate weighted ratings; sum to get an overall industry attractiveness rating for each industry12Example:

12、Rating Industry Attractiveness4250.200.200.505.800.050.100.101.005760.751.050.600.150.150.10AttractivenessRating58Weighted Industry Rating0.502.00Weight0.100.25Industry Attractiveness FactorMarket size and projected growthIntensity of competitionStrategic fits and resource fits with other industries

13、 in portfolioResource requirementsEmerging industry opportunities and threatsSeasonal and cyclical influencesSocial, political, regulatory, and environmental factorsIndustry uncertainty and business riskSum of weightsIndustry attractiveness ratingRating Scale: 1 = Very unattractive; 5 = Average; 10

14、= Very attractive13Attractiveness of Mix ofIndustries as a WholeuHow appealing is the whole group of industries in which the company is invested?Is the company in too many relatively unattractive industries?Does the portfolio of industries hold promise for attractive growth and profitability?Should

15、some form of portfolio restructuring be considered?14Step 3: Evaluate Each BusinessUnits Competitive StrengthuObjectivesDetermine how well each business is positioned in its industry relative to rivalsEvaluate whether it is or can be competitively strong enough to contend for market leadership# 1 !1

16、5Factors to Use inEvaluating Competitive StrengthuRelative market shareuCosts relative to competitorsuAbility to match/beat rivals on key product attributesuAbility to exercise bargaining leverage with key suppliers or customersuCaliber of alliances and collaborative partnershipsuAbility to benefit

17、from strategic fits with sister businessesuTechnology and innovation capabilitiesuHow well businesss competencies match industry KSFsuBrand name recognition and reputationuProfitability relative to competitors16Procedure: Rating the Competitive Strength of Each BusinessStep 1: Select competitive str

18、ength factorsStep 2: Assign weights to each factor (sum of weights = 1.0)Step 3: Rate each business on eachfactor (use scale of 1 to 10)Step 4: Calculate weighted ratings; sum to get an overall strength rating for each business17Example: Rating a Business Units Competitive Strength 475767StrengthRat

19、ing58Weighted Strength RatingWeightCompetitive Strength MeasureRelative market shareCosts relative to competitorsAbility to match rivals on key product attributesBargaining leverageStrategic fit relationshipsTechnology and innovation capabilitiesHow well resources match KSFsDegree of profit relative

20、 to rivalsSum of weights Competitive strength ratingRating Scale: 1 = Very weak ; 5 = Average; 10 = Very strong18Using a Matrix to Display Industry Attractiveness and Competitive StrengthuUse quantitative measures of industry attractiveness and business strength to plot location of each business in

21、matrixuEach business unit appears as a circleArea of circle is proportional to size of business as a percent of company revenuesOr area of circle can represent relative size of industry with pie slice showing the companys market share19Figure 10.2: Industry Attractiveness-Competitive Strength Matrix

22、LowHighMediumAverageStrongWeak6.73.310.01.01.03.36.7High priority for investmentMedium priority for investmentLow priority for investmentBusiness Unit Competitive StrengthIndustry Attractiveness20Strategy Implications of Attractiveness/Strength MatrixuBusinesses in upper left cornerAccorded top inve

23、stment priorityStrategic prescription - grow and builduBusinesses in three diagonal cellsGiven medium investment priorityInvest to maintain positionuBusinesses in lower right cornerCandidates for harvesting or divestitureMay, on occasion, be candidates for an overhaul and reposition strategy21 Appea

24、l of theAttractiveness/Strength MatrixuIncorporates a wide variety of strategically relevant variablesuStresses concentrating corporate resources in businesses that enjoy High degree of industry attractiveness and High degree of competitive strengthuThe lesson here is emphasize businesses that are m

25、arket leaders or that can contend for market leadership22Step 4: Strategic Fit AnalysisuObjectiveDetermine competitive advantage potential of value chain relationships and strategic fits among sister businessesuExamine strategic fit from two anglesWhether one or more businesses have valuable strateg

26、ic fits with other businesses in portfolioWhether each business meshes well with firms long-term strategic direction23Evaluate Portfolio for Competitively Valuable Cross-Business Strategic Fits uIdentify businesses which have value chain matchups offering opportunities toReduce costslPurchasinglE-co

27、mmerce systemslManufacturinglDistributionTransfer skills / technology / intellectual capitalLeverage use of a well-known and competitively powerful brand nameCreate valuable new competitive capabilities or to leverage existing resources24Figure 10.3: Identify Cross-Business Strategic FitsBusiness AV

28、alue Chain ActivitiesInbound LogisticsTechnologyOperationsSales and MarketingDistributionServiceBusiness BBusiness CBusiness DBusiness EOpportunity to combine purchasing activities to gain more leverage with suppliersOpportunity to share technology, transfer technical skills, combine R&DOpportun

29、ity to combine sales & marketing activities, use common distribution channels, leverage use of a common brand name, and/or combine after-sale serviceNo strategic fit opportunities25Step 5: Assess Resource FituObjectiveDetermine how well firms resources match business unit requirementsuGood resou

30、rce fit exists whenA business adds to a firms resource strengths, either financially or strategicallyFirm has resources to adequately support requirements of its businesses as a group26Checking for FinancialResource FituDetermine cash flow and investment requirements of the business unitsWhich are c

31、ash hogs and which are cash cows?uAssessing cash flow of each businessHighlights opportunities to shift financial resources between businesses Explains why priorities for resource allocation can differ from business to businessProvides rationalization for both invest-and-expand strategies and divest

32、iture27Characteristics of Cash HogsuInternal cash flows are inadequate to fully fund needs for working capital and new capital investmentParent company has to continually pump in capital to “feed the hog”uStrategic optionsAggressively invest in attractive cash hogsDivest cash hogs lacking long-term

33、potential28Characteristics of Cash CowsuGenerate cash surpluses over and above what is needed to sustain present market positionuSuch businesses are valuable because surplus cash can be used to Pay corporate dividendsFinance new acquisitionsInvest in promising cash hogsuStrategic objectivesFortify a

34、nd defend present market positionKeep the business healthy29Good vs. Poor Financial FituGood financial fit exists when a businessContributes to achievement of corporate objectivesEnhances shareholder valueuPoor financial fit exists when a businessSoaks up disproportionate share of financial resource

35、sIs an inconsistent bottom-line contributorIs too small to make a sizable contribution to total corporate earnings Experiences a profit downturn that could jeopardize entire company30Checking for Competitiveand Managerial Resource FitsuInvolves determining whetherResource strengths are well matched

36、to KSFs of industries firm is inAmple resource depth exists to support resource requirements of all the businessesAbility exists to transfer competitive capabilities from one business to anotherCompany must invest in upgrading its resources/capabilities to stay ahead of efforts of rivals 31Notes of

37、Caution: WhyDiversification Efforts Can FailuTransferring resource capabilities to new businesses can be far more arduous and expensive than expecteduTrying to replicate a firms success in one business and hitting a second home run in a new business is easier said than done uManagement can misjudge

38、difficulty of overcoming resource strengths of rivals it will face in a new business 32Step 6: Rank Business Units Basedon Financial Performance uYardsticks for comparing performance of different businessesSales growthProfit growthContribution to company earningsReturn on capital employed in busines

39、sCash flow generation33Step 7: Decide Resource Allocation Priorities and Strategic DirectionuObjective“Get the biggest bang for the buck”in allocating corporate resources uProcedureRank each business from highest to lowest priority for corporate resource support and new investment Decide on general

40、strategic direction for each business2356434Options: General Strategic DirectionuInvest and growAggressive expansionuFortify and defendProtect current positionuOverhaul and repositionMake major strategy changesuHarvest or divestGradual market retreat Spin off business as independent companySell busi

41、nessOur direction will be. .35Options for Allocating Financial ResourcesuStrategic purposesInvest in ways to strengthen or expand existing businessesMake acquisitions to establish positions in new industriesFund long-range R&D venturesuFinancial purposesPay off existing long-term debtIncrease di

42、videndsRepurchase companys stockStockcertificate36Step 8: Crafting a Corporate Strategy -Key IssuesuAre enough businesses in attractive industries?uIs the number of mature or declining businesses so great corporate growth will be sluggish?uAre businesses overly vulnerable to seasonal influences or r

43、ecession?uAre there too many average-to-weak businesses in the companys business make-up?uIs there ample strategic fit among the businesses?37uIs there ample resource fit among the businesses?uAre there enough cash cows to finance those cash hogs with potential to be star performers?uDo core busines

44、ses generate dependable profits and/or cash flow?uDoes makeup of business portfolio put firm in good future position?Step 8: Crafting a Corporate Strategy -Key Issues (continued)38The Performance TestuCan the companys performance targets be reached with the current businesses?If yes, no major corporate strategy changes are indicatedIf a performance gap is likely, actions can be taken to close the gap 39O