【行业分析（零售）RetailCo.】.pptxVIP

bcRetail Co.Compiler:Seva RozanovReviewer:Thomas ShannonCreated: August 26, 1999Copyright? 1998 Bain Company, Inc. AgendaBackgroundApproachConclusionImplementationResultsBackgroundRetail Co is $10+B “speciality retail” conglomerate whose financial performance has deteriorated since 1990 BackgroundRetail Co ObjectivesFinancial ObjectivesStrategic ObjectivesDivest businesses that are poor fitsPrepare the company to weather challenging industry conditionsCreate a compelling vision and growth strategyAchieve top quartile performancemarket/book value: 2.8xreturn on equity: 17-18%annual earnings growth: 10-12%AgendaBackgroundApproachConclusionImplementationResultsApproachDefine the characteristics of a successful strategy Develop a range of viable strategic alternativesAssess and prioritise the strategic alternativesBuild consensus around the preferred strategyFully quantify the impact of appropriate action stepsGain final approvalLaunch implementationApproachComponents of Successful StrategyDesirable:Creates clear economic value and top-quartile financial resultsbuilds a portfolio of high-potential businessesmakes business units more valuable to Retail Co than to othersAvoid excessive layers, overheads, and decision processesIs attractive to key managers in targeted businesses and functionsDoable:Evolves from current business mixFits Retail Co’s core competenciesIs fundableDevelops significant competitive advantagesCapitalizes on the volatility of retail cyclesUnderstandable:Communicates a clear and compelling approach to the businessWill be fully valued by analysts and shareholdersApproachRevising the Mix of BusinessesRetail Co businesses were evaluated along three groups of criteriaMarket AttractivenessMarket sizeMarket growthSegment returnsSegment profitability trendsCompetitive intensitySupplier powerSegment stabilityStrategic PositionMarket shareMarket share trendGeographic coverageCurrent profitability/EVAEarnings trendManagement teamRetail brand equityInfrast