某咨询战略分析工具分析方法businessdefinition.pptxVIP

Gisele GarrawaySusan Caraviello, Paul DiPaola, andTodd Senturia bcBusiness DefinitionMarch 1998Author:Contributors:Todd SenturiaReviewer:Copyright? 1998 Bain Company, Inc. 1 Business DefinitionAgenda The business definition conceptApplicationsBusiness definition stepsClient examplesBunker Hill Door SystemsJJR Industrial CoatingsKey takeaways2 Business DefinitionAgenda The business definition conceptApplicationsBusiness definition stepsClient examplesBunker Hill Door SystemsJJR Industrial CoatingsKey takeaways3 Business DefinitionWhat is Business Definition? Indicates whether two business segments should be operated as one business or as separate businessesHelps identify what drives superior profitability in an industryServes as the foundation for strategic analysis and sound decision makingBusiness definition delineates the economic boundaries within which companies should compete.4 Business DefinitionOne Business vs. Separate Businesses Same customersSame cost structureSame competitorsDifferent customersDifferent cost structureDifferent competitorsIf two business segments have the same customers, the same cost structure, and the same competitors, they are one business. If they are different on all of these dimensions, they are separate businesses.One businessSeparate businessesCompete in both segments to take advantage of synergiesDo not compete in both segments5 Business DefinitionWhy Bain Uses Business DefinitionStrategic insightsTactical insights with strategic importanceShould we buy or sell the restaurant business?Should we expand into China?Are we vulnerable to Japanese competitors?Should we vertically integrate into growing vegetables?Should we drop this product line?Should we cross-train our salesforce?How should we group purchases forVMRs (value managed relationships?How should we configure our manufacturing plants?The correct business definition can lead to case-cracking insights.6 Business DefinitionConsequences of Incorrect Business Definition Compan