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IMPLEMENTING STRATEGY CONTROL SYSTEMS AT PG Agenda Re-cap of previous lecture From global to local strategy-making Strategy example: Yes hand-dish Management Control Systems Choice Cascade to Define the Choices Choice Cascade to Define the Choices Re-cap on lecture 1 Where will we play? Total Shareholder Return calculations by Global Business Unit How will we win? Commercial Strategy Focus on core brands Consumer Is Boss Win with winning customers Competitive retail margins strong Tailor Investments By Customer Be Strong With Global Customers Get the value equation right Know the competitors What capabilities must be in place? Global matrix structure: Global Business Units (GBUs) and Market Development Organizations (MDOs) Individual accountability, Work Development Plans Choice Cascade to Define the Choices Implementing strategy First: Understanding the customer Retail is still fragmentedShare of top 50 public companies, 1998 Retailing is still local Growing European MA activities in RetailUSD b, deal volume* There is a war out there Sweden Most consolidated retail market in the world – the BIG are already BIG ICA owned 50% by Ahold Ahold highly financially driven company – EVA More pressure on ICA……more pressure on suppliers Wants higher profits, higher turnover, happier consumers (differentiate themselves vs. Competition) Now we know the customer…can we find a sweet spot? How will we win? Consumer is the BOSS Core Brands Win with winning customers Competitive retail margins strong Tailor Investments By Customer Be Strong With Global Customers How will we win – Sweet Spot? Launch a product, with unique consumer benefits, with higher customer margins, that drive total TSR for PG Having the right capabilities PG tries to mirror how the customer works We work in multifunctional teams, to address complex business issues In a matrix organisation individual accountability is KEY Global Ahold Customer Team Overview Local Nordic Team Sales: Teamleader, Key ac
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