某公司的战略实施与控制系统课件

1、IMPLEMENTING STRATEGY & CONTROL SYSTEMS AT P&GGerry KinghamFinance Mgr. P&G NordicAgendaRe-cap of previous lectureFrom global to local strategy-makingStrategy example: Yes hand-dishManagement Control SystemsChoice Cascade to Define the ChoicesWhat are our goals and Aspirations?Where willwe Play?What

2、Capabilitiesmust be inplace to win?How will we Win inchosen market?WhatManagementSystems arerequired?Choice Cascade to Define the ChoicesWhat are our goals and Aspirations?Where willwe Play?WhatCapabilitiesmust be inplace to win?How will we Win inchosen market?WhatManagementSystems arerequired?Re-ca

3、p on lecture 1Where will we play?Total Shareholder Return calculations by Global Business UnitHow will we win? Commercial StrategyFocus on core brandsConsumer Is BossWin with winning customers Competitive retail margins strong Tailor Investments By Customer Be Strong With Global CustomersGet the val

4、ue equation rightKnow the competitorsWhat capabilities must be in place?Global matrix structure: Global Business Units (GBUs) and Market Development Organizations (MDOs)Individual accountability, Work & Development PlansHOMEWORK What share of shelf does YES have ? What do you think it has in market

5、share ? What do you learn from the pricing and sizing you see?Why might it be so ? What influences the shelf positioning ? What would your YES strategy be?HOMEWORK What share of shelf does YES have ?Ca. 60% What do you think it has in market share ?Same as shelf share (60-70%) What do you learn from

6、 the pricing and sizing you see? Why might it be so ?Smaller sizes offer “extra benefits, but are more expensive pr. ml What influences the shelf positioning ?Looks like the big bottles are at the bottom What would your YES strategy be?Choice Cascade to Define the ChoicesWhat are our goals and Aspir

7、ations?Where willwe Play?WhatCapabilitiesmust be inplace to win?How will we Win inchosen market?WhatManagementSystems arerequired?Implementing strategy First: Understanding the customerHOW WILL WE WIN?Retail is still fragmentedShare of top 50 public companies, 1998EnergyAutomotivePharmaceuticals; di

8、agnosticsElectronicsTelecomPackaged goodsFinancial industriesChemicalsRetailSource:Global Vantage; McKinseyEnergyFinancialinstitutionsAutomotiveRetailPackagedgoodsElectronicsAverage number of countries of operation for largest companies (1998)Note:Largest companies defined by total revenueSource:Hoo

9、vers; McKinseyNumber of countries of operation for most global companiesMobil140Royal Dutch Shell130Citigroup100HSBC79Siemens190Toshiba81Nestle80+Procter & Gamble120Fiat60General Motors52Carrefour26Ahold 28Retailing is still localHOW WILL WE WIN?*Only disclosed deal considerations in excess of USD 2

10、5 millionSource:Amdata; Thomson Financial Securities; McKinsey analysisNon-European cross-borderEuropean cross-borderDomesticGrowing European M&A activities in RetailUSD b, deal volume*2.99.312.00.71994199519961997199812.41999 to September16.0There is a war out thereDemandFlat/falling share of walle

11、tFlat/falling pricesMore demanding and complex consumersShifting lifestyle and work patternsSupplyOvercapacityNew entrants (e-tailers and retailers)Supplier consolidationLow availability/ rising cost of frontline labourIncreasing real estate costsPower shifting to consumersInternet is accelerating t

12、rendsSource:McKinseyHOW WILL WE WIN?SwedenMost consolidated retail market in the world the BIG are already BIGICA owned 50% by AholdAhold highly financially driven company EVAMore pressure on ICAmore pressure on suppliersWants higher profits, higher turnover, happier consumers (differentiate themsel

13、ves vs. Competition)HOW WILL WE WIN?Now we know the customercan we find a sweet spot?How will we win?Consumer is the BOSSCore BrandsWin with winning customers Competitive retail margins strong Tailor Investments By Customer Be Strong With Global CustomersHow will we win Sweet Spot?Launch a product,

14、with unique consumer benefits, with higher customer margins, that drive total TSR for P&GHaving the right capabilitiesP&G tries to mirror how the customer worksWe work in multifunctional teams, to address complex business issuesIn a matrix organisation individual accountability is KEYGlobal Ahold Cu

15、stomer Team OverviewP&GAholdGlobal TeamTeamleader (VP) & MultifunctionalBased in RotterdamRegional TeamsUSA, Europe, Latin America, andAsia Regional Customer HQAhold Managementin ZaandamLocal Teams-ICA/Hakon (Ahold Nordic)-Teamleader & multifunctional teamLocal CustomersICA/Hakon2022-07-2417Local No

16、rdic TeamSales: Teamleader, Key account managersFinanceMarketingLogisticsCustomer marketingOrder group, back office supportEveryone on the team knows their role in the GOAL & whatthey are MEASURED on to SUCCEEDLocal Nordic Team - accountabilitySales: Teamleader, Key account managersVolume, Share, Co

17、st to serveFinanceCustomer profit, effecient spendingMarketingShare, basket size, traffic, category shareLogisticsShelf availability, perfect orders, inventoriesOrder group, back office supportPerfect Orders, leadtimes, no overduesControl SystemsFinancialSales FundamentalsIndividual PerformanceActio

18、n stepsReminder: OGSMObjectiveGoalsStrategiesMeasuresWhat do we need to achieve ?Quantitative Target ofProgresstoward theObjective, withina specificallydefined timeframeHow we willachieve ourgoals.It must makea specificdecision orit is not astrategy.A really goodstrategy isa set of one ormore statem

19、ents,each of which only makesone specificdecision.Mechanism toprovide thenumericalanswer whichestablishes ourposition versusgoal(s)WordsNumbersWordsNumbersWhat?How?P&G Measures: e.g.Yes Aroma LaunchObjective:Secure market leadership within hand-dish by offering consumers the best value and by being

20、the preferred supplier of hand-dish to leading customersGoals (note: not actual numbers) :Grow volume by 5%Deliver $ 1,433 M of value contribution to the companyReach 90% distribution in 3 months on AromaReach 80% share of shelfP&G Measures: e.g.Yes Aroma LaunchStrategies launch flankers which:Match

21、 unmet consumer preferencesGrow total trade profitability on Yes brand increase consumer and customer marketing spend year 1 to secure trial use displays to get fast distribution early in year do not increase current level and depth of promotionsMeasurementsVolume: daily shipment reports by customer

22、Shares by product and customer: Weekly/Monthly Nielsen dataMarket prices by product and customer: Weekly/Monthly Nielsen data Budgets: actuals versus commitments; $/unitValue contribution (Brand/Product/Country): monthly Brand Profit Estimates (BPEs)FINANCIAL FIRMPROCTER & GAMBLE NORDICFinancial Ana

23、lysisHANDDISH - NORDIC VALUE CREATION PL RATENORDICActual FY01/02FIRM 02/03$M$ / ml% sales$M$ / ml% salesVolume100 105 Volume (Index vs. YA)101 105 Net Realization4 000 40.00 4 100 39.05 Price Reductions(25) 0.25 - (0.7%) (30) 0.29 - (0.8%) Customer Marketing(250) 2.50 - (6.7%) (300) 2.86 - (8.0%) N

24、ET OUTSIDE SALES3 725 37.25 3 770 35.90 (Index vs. YA)103.1 100.0 COST OF GOODS SOLD1 200 12.00 32.2% 1 260 12.00 33.4% GROSS MARGIN $2 525 25.25 67.8% 2 510 23.90 66.6% Marketing Expense(650) 6.50 - (17.4%) (700) 6.67 - (18.6%) Overheads(373) 3.73 - (10.0%) (377) 3.59 - (10.0%) NORDIC CONTRIBUTION1

25、 503 15.03 40.3% 1 433 13.65 38.0% Annual Growth rate90-10%95-5%Yes Aroma LaunchMeasurementsVolume: daily shipment reports by customerShares by product and customer: Weekly /Monthly Nielsen dataSales Fundamentals by product and customer: Weekly /Monthly Nielsen data Budgets: actuals versus commitmen

26、tsValue contribution (Brand/Product/Country): monthly Brand Profit Estimates (BPEs)Volume Tracking daily report by customer/brand on intranet look into database for shipments by productTotal Shipment days 23Act shipments days gone11Act time gone (of month)48%BRANDvs. ESTTodays OrderAvg Bal Ship to F

27、IRMESTORDEREDArielxx %xxBoldxx %xxTotal Fabric Carexx %xxFebrezexx %xxSwifferxx %xxMr Properxx %xxYes / Fairy HD7.913.03.930%0.3Yes / Fairy ADWxx %xxTotal Home Carexx %xxF&HC Totalxx %xxNORDICVolume TrackingNORDIC - DAILY SHIPMENTS IN SUMONTH UP TO 102-9-26 2:25 (NB! Year 100 = 2000 (program error)!

28、 To drill to customer details, double-click total Nordic layer!6/6 reyaLICA SWEDEN80996250 YES ADW TABLET2002441 YES ADW TABLETS2004818 YES ADW 3XACTIV26819 YES ADW REGULAR 26828 YES ADW REGULAR 80996249 YES ADW 3XACTI2004367 YES ADW RINSE AI80968642 YES EXTRA HYG.80968641 YES EXTRA HYGI80991878 YES

29、 EXTRA HYGI80968640 YES ULTRA LEMO80991882 YES ULTRA LEMO80968636 YES ULTRA LEMO80991874 YES ULTRA LEMONEW BUS SU (BU) SHIPMENTS SU (BU) PEND ORD SU (BU) DATED ORD SU (BU) TO BE INVOICEDSU (BU) SHIP PM SU (BU) NEW BUS NXT MTHS SU000.0781.33404.74000.0000.0000.0000.0000.0000.0710.18000.0000.403000.03

30、25.37000.0335.4068212.241212.4214000.0000.0710.0042315.0342631.846056.8703000.671000.24611000.0023.3388000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0781.33404.74000.0000.0000.0000.0000.0000.0710.18000.0000.403000.0325.37000.0027.7368616.981212.4214000.0000.0710.0042315.0

31、342631.846766.9513000.671000.64911000.0348.6098000.0976.5543000.0320.8222000.0000.0900.0821781.198631.846832.4311000.671000.1556000.0620.9774000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0e.g. Aroma displays are not selling as forecasted why?Yes Aroma LaunchMeasurementsVolume:

32、 daily shipment reports by customerShares by product and customer: Weekly /Monthly Nielsen dataSales Fundamentals by product and customer: Weekly /Monthly Nielsen data Budgets: actuals versus commitmentsValue contribution (Brand/Product/Country): monthly Brand Profit Estimates (BPEs)Shares TrackingH

33、AND DISH CLEANER.TOTAL SWEDENVOLUME SHAREJAN02FEB02MAR02APR02MAY02JUN02JUL02AUG02MARKET (MSU)7972958374957678Versus YrAgo %3-1-210-2-41-3PROCTER&GAMBLE.76.977.077.678.8H76.177.276.577.1YES.76.977.077.678.8H76.177.276.577.1YES LI CON APPLE.3.34.35.76.7H6.35.44.55.1YES LI CON FLORAL BREEZE.1.42.33.23.

34、8H3.23.02.72.5YES LI CON LEMON.29.529.128.629.228.5L29.329.228.8YES LI CON OTHER.42.741.340.139.038.0L39.640.240.6GRUMME.4.24.24.23.6L4.24.14.33.7VIPS.4.24.24.23.6L4.24.14.33.7ICA.8.17.37.66.88.07.98.6H8.0ALL OTHER BRAND.1.4H1.4H1.31.21.21.21.21.1LSKONA.6.75.96.35.66.76.87.4H6.9KF.4.44.43.9L4.64.94.

35、24.34.9ANGLAMARK.1.41.21.1L1.92.01.1L1.1L2.1HBLA VIT.3.03.2H2.82.72.93.13.12.8NOPA.3.33.73.33.03.33.23.02.9Le.g. Aroma is cannibalizing as expected.Yes Aroma LaunchMeasurementsVolume: daily shipment reports by customerShares by product and customer: Weekly /Monthly Nielsen dataSales Fundamentals by

36、product and customer: Weekly /Monthly Nielsen data Budgets: actuals versus commitmentsValue contribution (Brand/Product/Country): monthly Brand Profit Estimates (BPEs)Sales Fundamentals Tracking and also display WD, feature share, shelf share, etc.YES AROMA - APPLEPrice Per Unit Without Promo (SFT)P

37、12MP6Mnovdecjanvs NGLAMARKTOTAL SWEDEN35.134.934.534.734.9102%AXFOOD TOTAL35.634.434.333.533.998%AXFOOD FRANCHISE37.637.537.636.336.299%D&D DISCOUNT31.830.930.530.830.799%VIVO STOCKHOLM40.740.141.036.241.297%BERGENDAHL DETALJIST32.732.732.331.233.4105%YES AROMA - APPLEWeighted distribution (SFT)P12M

38、P6Mnovdecjanvs NGLAMARKTOTAL SWEDEN95.998.297.098.098.0AXFOOD TOTAL87.797.898.098.0100.0100%AXFOOD FRANCHISE72.095.793.090.099.097%D&D DISCOUNT81.797.2100.0100.0100.099%VIVO STOCKHOLM75.0100.0100.0100.0100.0102%BERGENDAHL DETALJIST100.0100.0100.0100.0100.0102%e.g. Aroma has high shares where display

39、edA note on competitionCompetitive Response ModelingExpected competitive responseSequence of actions + their NPVs determine optimal strategyWhich games will we play?E.g. always match competitions promotion depthE.g. never do in-store couponsPossible ExplanationsConsumer value equation? Is price prem

40、ium too high? Did we overestimate demand for Aroma products? most likely OK; off-take high where distributed + repurchase rate highOrganizational capability Do we have enough sales rep coverage? Does Yes have priority in sales cycle? yes, but many store owners are rejecting Commercial strategy is tr

41、ade margin recommended too low? Is value for customer not clearly defined?Possible explanation: store owners not clear on added value do not wish to replace products, do not have more space in store for more products, and do not want complexity of more codes in systemYes Aroma LaunchMeasurementsVolu

42、me: daily shipment reports by customerShares by product and customer: Weekly /Monthly Nielsen dataSales Fundamentals by product and customer: Weekly /Monthly Nielsen data Budgets: actuals versus commitmentsValue contribution (Brand/Product/Country): monthly Brand Profit Estimates (BPEs) how do we re

43、flect new forecast and what do we do?Budget TrackingPROCTER & GAMBLE NORDICBudget ControlTotal MDA*SPENTBUDACTCOMSPENTvs BUD(MUSD)(MUSD)(MUSD)(MUSD)(%)Yes/Fairy HD10018183535%Yes/Fairy ADW10028285555%Febreze10046469393%Swiffer1006464128128%Total HOME40015615631145%Pringles10023234646% Critical part

44、in decision whether to continue strategy Launch based on tight economics ($/ml) do we cut budgets or increase them if volumes are not coming in? how sensitive is the NPV? Expect front spending during launch, but possibilities of cutting Q4 supportFINANCIAL TRACKING Brand Profit Estimates & Reconcili

45、ations explain difference vs. estimate by volume, mix effect, budgets, exchange rates, and trade terms available by product and country consolidated across GBUs and MDOs in SAP R/3 to make our quarterly report to Wall Street$M$ / mlDelta %4 000 40.00Mix effect10 0.3%0.100.3%Volume effect100 2.5%Exch

46、ange Rate effect -10 -0.3%-0.10-0.2%4 100 2.5%40.000.0%$M$ / mlDelta %3 725 37.25Mix Effect10 0.3%0.100.3%Volume effect100 2.7%Exchange Rate effect-10 -0.3%-0.10-0.3%Customer budget effect-50 -1.3%-0.050.1%Consumer budget effect-5 -0.1%-0.010.0%3 770 1.2%37.310.2%Net Real ReconciliationNOS Reconcili

47、ationACTION STEPS: E.g. September BPEWe are below volume target.Sales fundamentals show that we are low on distribution (price and share where in store on target).Repurchase rate is high among consumer the product works.Only 175 of estimated 300 displays of Aroma have been sold store owners reluctan

48、t to take in new product.Brand team meets with Sales teams to discuss possible actions.ACTION STEPS: E.g. September BPEWe take back budget commitments wholly based on volume, this money can be made available for re-investment.Decision: distribution and year-1 volume is vital. We need to re-deploy fu

49、nds for a display-drive.Try one-time irresistible offer with new trade leaflet specifying rationale behind Yes Aroma.Effect on contribution: higher customer marketing budgets % NOS, but reach critical volume and trial in year 1.New financials are communicated to GBU via Brand Profit Estimate. Full r

50、econciliations are sent by Finance.PERFORMANCE TRACKINGAccountabilityAccountability examples: country GM value contribution and flow; external relations, organization GBU GM P/L (incl. Production + logistics costs, all overheads), inventory market planner forecast accuracy, % availability brand team leader contribution, volume, shares, organization customer team leader volume, sales fundamentals, organizationPERFORMANCE TRACKINGWork & Development Plansonce per year feedback from managers, direct reports, colleaguesHow has work plan been delivered? How has person devel