某咨询行业分析RetailCo1.pptxVIP

bcCompiler:Reviewer:Retail Co.Created: August 26, 1999Copyright? 1998 Bain Company, Inc. Seva RozanovThomas Shannon1RetailCo2 BackgroundApproachConclusionImplementationResultsAgenda2RetailCo2 Retail Co is $10+B “speciality retail” conglomerate whose financial performance has deteriorated since 1990Background3RetailCo2 Achieve top quartile performancemarket/book value: 2.8xreturn on equity: 17-18%annual earnings growth: 10-12%Divest businesses that are poor fitsPrepare the company to weather challenging industry conditionsCreate a compelling vision and growth strategyFinancial ObjectivesStrategic ObjectivesBackgroundRetail Co Objectives4RetailCo2 AgendaBackgroundApproachConclusionImplementationResults5RetailCo2 Define 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 implementationApproach6RetailCo2 Components of Successful StrategyDoable: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 shareholdersDesirable: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 functionsApproach7RetailCo2 Market sizeMarket growthSegment returnsSegment profitability trendsCompetitive intensitySupplier powerSegment stabilityMarket AttractivenessMarket shareMarket share trendGeographic coverageCurrent profitability/EVAEarnings trendManagement teamRetail brand equityInfrastructure and systemsCustomer value propositio