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1、CORPORATE-LEVEL STRATEGYTHREE KEY ISSUES FACING THE CORPORATIONTHE FIRMS ORIENTATION TOWARD GROWTH, STABILITY, AND RETRENCHMENT (Directional Strategy)THE INDUSTRIES OR MARKETS IN WHICH THE FIRM COMPETES (Portfolio Strategy)THE MANNER IN WHICH MANAGEMENT COORDINATES ACTIVITIES AND TRANSFERS RESOURCES
2、 AND CULTIVATES CAPABILITIES AMONG PRODUCT LINES AND BUSINESS UNITS (Parenting Strategy)Corporate headquarters must play the “parent” as it deals with its various lines of business (children).1CORPORATE GROWTH STRATEGIESCONCENTRATION1.HORIZONTAL INTEGRATIONGEOGRAPHIC EXPANSIONLocal, Regional, Nation
3、al, GlobalINCREASING THE RANGE OF PRODUCTS and/or SERVICES2.VERTICAL INTEGRATIONBACKWARDLong-Term ContractsQuasi-integrationTapered IntegrationFull IntegrationFORWARDDIVERSIFICATION1.CONCENTRICRelated2.CONGLOMERATEUnrelated2GROWTH-ENTRY STRATEGIESDOMESTIC ENTRYINTERNAL DEVELOPMENT & EXPANSION EXTERN
4、AL ACQUISITIONS & MERGERSSTRATEGIC ALLIANCES & PARTNERSHIPSLicensing, Franchises, Joint VenturesINTERNATIONAL ENTRYEXPORTINGLICENSINGFRANCHISINGJOINT VENTURESACQUISITIONSGREEN-FIELD DEVELOPMENTPRODUCTION SHARINGTURNKEY OPERATIONSMANAGEMENT CONTRACTS3WHEN ARE GROWTH STRATEGIES LOGICAL? COMPETITIVE PO
5、SITIONWEAKSTRONG- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -RAPIDREFORMULATEHORIZONTAL HORIZ & VERTICALINTEGRATIONINTEGRATIONVERTICAL DIVERSIFICATIONINTEGRATION SELL-OUT/DIVESTCONCENTRICDIVERSIFICATIONMARKET- - - - - - - - - - - - - - - - - - - - - - - -
6、- - - - - - - - - - - - - - - - - - - - -GROWTH RATEDIVERSIFICATIONINTERNATIONALEXPANSIONCAPTIVE FIRM/MERGEDIVERSIFICATIONABANDONMENTSLOWJOINT VENTURE- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -4WHEN IS DIVERSIFICATION LOGICAL?DONT DIVERSIFY UNLESSSYNERGY IS ACHIEVED
7、SHAREHOLDER VALUE IS BUILT CONCENTRIC DIVERSIFICATION FINDING A SYNERGISTIC “FIT” Marketing Operations ManagementMERGING THE FUNCTIONSCONGLOMERATE DIVERSIFICATIONFIND FIRMS WHOSE ASSETS ARE UNDERVALUEDFIND FIRMS THAT ARE FINANCIALLY DISTRESSEDFIND FIRMS WITH BRIGHT PROSPECTS BUT ARE SHORT ON $5CONGL
8、OMERATE (UNRELATED) DIVERSIFICATIONPROS1-BUSINESS RISK IS SCATTERED OVER MANY INDUSTRIES2-CAN INVEST CAPITAL IN WHATEVER OFFERS THE BEST PROFIT PROSPECTS3-PROFITABILITY IS MORE STABLE BECAUSE HARD TIMES IN ONE INDUSTRY CAN BE PARTIALLY OFFSET BY GOOD TIMES IN ANOTHER4-IF CORPORATE MANAGERS ARE GOOD
9、AT SPOTTING BARGAIN-PRICED FIRMS WITH BIG UPSIDE PROFIT POTENTIAL, SHAREHOLDER WEALTH WILL BE ENHANCEDCONS1-TOP MANAGEMENT COMPETENCECan they tell a good acquisition from a bad one? Can they select good managers to run each business?Do they know what to do if a business unit stumbles?2-DIVERSIFICATI
10、ON DOES NOTHING TO ENHANCE THE COMPETITIVE STRENGTH OF INDIVIDUAL BUSINESS UNITSEach business unit is on it ownNo corporate synergy can be achieved3-ARE THE FIRMS PROFITS MORE STABLE?Do the “up and down” cycles cancel out?4-HOW MUCH DIVERSITY CAN THE FIRM MANAGE SUCCESSFULLY?How broad should our por
11、tfolio be?6COMBINATION DIVERSIFICATION STRATEGIESONE MAJOR CORE BUSINESSWith a modest diversified portfolio (1/3 or less)NARROWLY DIVERSIFIEDWith a few (2-5) related core business unitsWith a few (2-5) unrelated business unitsBROADLY DIVERSIFIEDWith many related business unitsWith many business unit
12、s in mostly unrelated industriesA MULTI-BUSINESS FIRMWith several unrelated groups of related businesses 7POST-DIVERSIFICATION STRATEGIESMAKE NEW ACQUISITIONSRelated or Unrelated?DIVEST SOME BUSINESS UNITSPoor Performers?Poor Strategic “Fit?”RESTRUCTURE THE WHOLE PORTFOLIONARROW THE DIVERSIFICATION
13、BASEBECOME A DIVERSIFIED MULTINATIONAL, MULTI-INDUSTRY COMPANY (DMNC)8CORPORATE STABILITY STRATEGIESPROFIT“Keep milking the cow, but dont feed it”Artificially supporting profits by cutting costsKeeping up appearances that everything is still OKA temporary strategy for a worsening environment PAUSECo
14、nsolidate after recent rapid growthA temporary strategy to “catch your breath”PROCEED WITH CAUTIONEnvironment looks scarywait to see what happensNO-CHANGEA very predictable environmentnothing uncertain ever happensWhy tamper with success? What firms did before WalMart came9CORPORATE RETRENCHMENT STR
15、ATEGIESOFTEN TRIGGERED BYDISAPPOINTING PERFORMANCEECONOMIC DOWNTURNEXCESSIVE DEBTILL-CHOSEN ACQUISITIONSTURNAROUNDHelp subsidiaries become profitable Belt-tightening and consolidationCAPTIVE COMPANYGive up independence for securitysell mostly to one large customer “angel” Can scale back on some func
16、tions, like marketingSELL-OUT/DIVESTSell the entire operation to someone as an ongoing businessDivest a healthy firm that doesnt fit our portfolioor a low-producing businessLIQUIDATIONThe last resortno one wants to buy the entire businessThe assets are worth more than the businessso theyre sold piec
17、e by piece10EVALUATING DIVERSIFIED PORTFOLIOSTHE BCG GROWTH-SHARE MATRIX (Boston Consulting Group)DIMENSIONSIndustry Growth RateCompared to GDPRelative Market Share Uses ratios instead of absolute market sharesCLASSIFICATIONSQuestion Marks (or Problem Children or Wildcats)StarsCowsDogsADVANTAGES & I
18、MPLICATIONSIt is quantifiable and easy to useEasy to remember terms and their meaning when referring to business unitsAssumes large market shares = economies of scale = cost leadership Each business unit moves across the matrix in predictable ways over timeFocuses attention on cash flows and needs11
19、WEAKNESSES IN THE BCG GROWTH-SHARE MATRIXTOO SIMPLISTICIT ONLY HAS A FOUR-CELL MATRIXWHERE DO “AVERAGE” BUSINESSES BELONG?PREJUDICIAL CLASSIFICATION SCHEMEDOGS & PROBLEM CHILDREN v. STARS & COWSVERY BIASED TERMSTHE TRENDS & MOVEMENTS OF THESE UNITS SEEM MORE IMPORTANTIS HIGH INDUSTRY GROWTH ALWAYS G
20、OOD?DOES HIGH MARKET SHARE ALWAYS MEAN HIGH PROFITABILITY?FIRMS CAN LOSE MONEY WHILE HOLDING A LARGE MARKET SHARELOW-SHARE BUSINESSES CAN ALSO BE PROFITABLE ONLY CONSIDERS RELATIONSHIP TO THE MARKET LEADERWHILE OTHERS ARE IGNOREDWHAT ABOUT SMALL COMPETITORS WITH FAST-GROWING MARKET SHARES?GROWTH RAT
21、E IS ONLY ONE ASPECT OF INDUSTRY ATTRACTIVENESSMARKET SHARE IS ONLY ONE ASPECT OF OVERALL COMPETITIVE POSITION12THE BCG GROWTH-SHARE MATRIX RELATIVE MARKET SHAREHIGH LOW- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -HIGHSTARSQUESTION MARKSINDUSTRY - - - - -
22、- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -GROWTH RATECOWSDOGSLOW- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -RELATIVE MARKET SHARE Your market share divided by largest rivals shareINDUSTRY GROWTH RATEIndustry growth per
23、centage compared to GDPSIZE OF CIRCLESThe significance (revenues) of each SBU to the firm13THE GE BUSINESS SCREENTHE INDUSTRY ATTRACTIVENESS / BUSINESS STRENGTH MATRIXTWO DIMENSIONS(McKinsey & Co)Industry AttractivenessMARKET SIZE & GROWTH RATEINDUSTRY PROFITABILITYINTENSITY OF COMPETITIONBARRIERS T
24、O ENTRY / EXITSEASONALITY / CYCLICALITYTECHNOLOGICAL & PRODUCT CONSIDERATIONSCAPITAL REQUIREMENTSEMERGING OPPORTUNITIES & THREATSSOCIAL, ENVIRONMENTAL, & POLITICAL FACTORSSTRATEGIC FIT WITH OTHER CURRENT LINES OF BUSINESSBusiness Strength / (Competitive Position) RELATIVE MARKET SHARERELATIVE PRICE,
25、 QUALITY, & SERVICE v. RIVALSPROFIT MARGINS and COST POSITION v. RIVALSKNOWLEDGE OF CUSTOMERS & MARKETSTECHNOLOGICAL CAPABILITY & LEADERSHIPFINANCIAL & PHYSICAL RESOURCESCALIBER OF MANAGEMENT & STAFFCOMPETENCIES MATCH KEY SUCCESS FACTORS14THE GE BUSINESS SCREENBUSINESS STRENGTH / COMPETITIVE POSITIO
26、NSTRONGAVERAGE WEAK- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -HIGHWINNERWINNERQUESTIONMARKLONG-TERM- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -INDUSTRY AVERAGEWINNERAVERAGELOSERATTRACTIVENESSBUSINESS- - - - - - - - - - - - - - -
27、- - - - - - - - - - - - - - - - - - - - - - - - -PROFITLOSERLOSERLOWPRODUCER- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -INDIVIDUAL PRODUCT LINESIdentified by letterSIZE OF EACH CIRCLERepresents the total revenues in the industryPIE SLICESRepresents your share of th
28、at market15PROS & CONS OF THE GE BUSINESS SCREENSTRENGTHSUSES MORE COMPREHENSIVE MEASURES / VARIABLES IN ASSESSING INDUSTRY ATTRACTIVENESS AND BUSINESS STRENGTH / COMPETITIVE POSITIONDOESNT LEAD TO AS SIMPLISTIC CONCLUSIONS AS THE BCG GRIDNINE CELL APPROACH ALLOWS FOR INTERMEDIATE RANKINGS BETWEEN H
29、IGH/LOW AND STRONG/WEAKSTRESSES CHANNELING OF RESOURCES TO AREAS WITH THE GREATEST PROBABILITY OF ACHIEVING COMPETITIVE ADVANTAGE AND SUPERIOR PERFORMANCEWEAKNESSESPROVIDES NO REAL GUIDANCE ON THE SPECIFICS OF WHAT STRATEGY TO FOLLOW ITS TOO GENERALCANT SPOT UNITS THAT ARE ABOUT TO BECOME WINNERS BE
30、CAUSE THEIR INDUSTRIES ARE ENTERING THE TAKEOFF STAGEUSE OF NUMERIC ESTIMATES SEEMS OBJECTIVE, BUT IS REALLY VERY SUBJECTIVESHOULD THE WEIGHTS & FACTORS USED TO ASSESS INDUSTRY ATTRACTIVENESS AND BUSINESS POSITION BE USED GENERICALLY, OR ADJUSTED DEPENDING ON THE INDUSTRY UNDER INVESTIGATION?16THE H
31、OFER LIFE-CYCLE MARKET EVOLUTION MATRIXTWO DIMENSIONS(Charles Hofer & A. D. Little, Co)Stage of Industry / Market EvolutionEARLY DEVELOPMENTRAPID GROWTH / TAKE-OFFSHAKE-OUTMATURITY / SATURATIONDECLINE / STAGNATIONBusiness Strength / (Competitive Position) SAME DIMENSIONS AS USED IN THE GE BUSINESS S
32、CREENADVANTAGESCan be used to identify and track developing winnersIllustrates how the firms businesses are distributed across the stages of industry evolution17THE HOFER LIFE-CYCLE MARKET EVOLUTION MATRIXBUSINESS STRENGTH / COMPETITIVE POSITIONSTRONG AVERAGE WEAKEARLY- - - - - - - - - - - - - - - -
33、 - - - - - - - - - - - - - -DEVELOPMENT- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -STAGE OFRAPID GROWTH / TAKE-OFFINDUSTRY / MARKET- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SHAKE-OUTEVOLUTION- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -MATURITY /SATURAT
34、ION- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -DECLINE /STAGNATION- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -ONLY ONE DIMENSION IS DIFFERENT FROM THE GE BUSINESS SCREENExcept for the Stage of Market Evolution, this model is identical to the GE Business Screen18IN SUMMA
35、RY: USING PORTFOLIO ANALYSISPROS AND CONSSTRENGTHSENCOURAGES TOP MANAGEMENT TO EVALUATE EACH LINE OF BUSINESS SEPARATELY, AND TO SET OBJECTIVES AND ALLOCATE RESOURCES TO EACH.IT STIMULATES THE USE OF EXTERNALLY-ORIENTED DATA TO SUPPLEMENT MANAGEMENTS JUDGMENTRAISES THE ISSUE OF CASH FLOW AVAILABILIT
36、Y FOR USE IN EXPANSION AND GROWTHGRAPHICALLY COMMUNICATES THE MIX OF BUSINESSES THE FIRM HAS INVESTED INWEAKNESSESDEFINING PRODUCT / MARKET SEGMENTS IS DIFFICULTIT SUGGESTS STANDARD STRATEGIES THAT CAN MISS OPPORTUNITIES OR BE IMPRACTICALPROVIDES AN ILLUSION OF SCIENTIFIC RIGOR, WHEN POSITIONS ARE R
37、EALLY BASED ON SUBJECTIVE JUDGMENTSVALUE-LADEN TERMS (cow, dog) LEAD TO SIMPLISTIC STRATEGIES AND SELF-FULFILLING PROPHESIESITS NOT ALWAYS CLEAR WHAT MAKES AN INDUSTRY ATTRACTIVE OR WHERE A PRODUCT IS IN ITS LIFE CYCLENAIVELY FOLLOWING PORTFOLIO PRESCRIPTIONS MAY REDUCE PROFITS DOGS CAN MAKE MONEY!1
38、9HOW TO APPLY PORTFOLIOS IN YOUR ANALYSISTHE NON-QUANTITATIVE APPROACHCOMPARING INDUSTRY ATTRACTIVENESSATTRACTIVENESS OF EACH INDUSTRY IN THE PORTFOLIOIs this a good industry for our organization to be in?EACH INDUSTRYS ATTRACTIVENESS RELATIVE TO THE OTHERSWhich industries are the most / least attra
39、ctive?ATTRACTIVENRSS OF ALL THE INDUSTRIES AS A GROUPHow appealing is the mix of industries? Is the portfolio a “good” one?TO DETERMINE INDUSTRY ATTRACTIVENESS 1-USE GE BUSINESS SCREEN METHODOLOGY2-SUBJECTIVELY CLASSIFY EACH INDUSTRY FACTOR INTO ONE OF THREE CATEGORIESHIGHLY ATTRACTIVEAVERAGENOT ATT
40、RACTIVE20EVALUATING INDUSTRY ATTRACTIVENESS(UNWEIGHTED)INDUSTRY FACTORCLASSIFIED ASMARKET SIZE & GROWTH RATEAVERAGEINDUSTRY PROFITABILITYATTRACTIVEINTENSITY OF COMPETITIONUNATTRACTIVEBARRIERS TO ENTRY/EXITUNATTRACTIVESEASONALITY/CYCLICALITYAVERAGETECHNOLOGY & PRODUCT CONSIDERATIONSAVERAGECAPITAL REQ
41、UIREMENTSUNATTRACTIVEEMERGING OPPORTUNITIES & THREATSAVERAGESOCIAL, REGULATORY, & POLITICAL FACTORSAVERAGESTRATEGIC FIT WITH OTHER CURRENT LINES OF BUSINESSATTRACTIVEOVERALL EVALUATION = AVERAGE21EVALUATING INDUSTRY ATTRACTIVENESS(NUMERIC, UNWEIGHTED)ASSIGN A NUMBER TO EACH INDUSTRY FACTOR USING THE
42、 FOLLOWING SCHEMEUNATTRACTIVE = 0, 1, 2, 3AVERAGE = 4, 5, 6 ATTRACTIVE = 7, 8, 9, 10- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -INDUSTRY FACTORASSIGNED NUMBERMARKET SIZE & GROWTH RATE6INDUSTRY PROFITABILITY9INTENSITY OF
43、 COMPETITION2BARRIERS TO ENTRY/EXIT3SEASONALITY/CYCLICALITY6TECHNOLOGY & PRODUCT CONSIDERATIONS5CAPITAL REQUIREMENTS1EMERGING OPPORTUNITIES & THREATS5SOCIAL, REGULATORY, & POLITICAL FACTORS4STRATEGIC FIT WITH OTHER LINES OF BUSINESS8OVERALL EVALUATION = 49/10 = 4.9 = AVERAGE22EVALUATING INDUSTRY ATT
44、RACTIVENESS(NUMERIC, WEIGHTED)1-ASSIGN WEIGHTS TO EACH INDUSTRY FACTOR (Must add up to 100%)2-THEN ASSIGN NUMBERS TO EACH FACTOR USING THE FOLLOWING SCHEMEUNATTRACTIVE = 0 - 3AVERAGE = 4 - 6ATTRACTIVE = 7 - 103-MULTIPLY WEIGHTS BY NUMBERS TO DETERMINE THE WEIGHTED SCORE- - - - - - - - - - - - - - -
45、- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - WEIGHTINDUSTRY FACTORASSIGNED NUMBER.10MARKET SIZE & GROWTH RATE6.10INDUSTRY PROFITABILITY9.15INTENSITY OF COMPETITION2 .05BARRIERS TO ENTRY/EXIT3 .05SEASONALITY/CYCLICALITY6 .08TECHNOLOGY & PRODUCT CONSIDERATI
46、ONS5 .12CAPITAL REQUIREMENTS1 .10EMERGING OPPORTUNITIES & THREATS5 .10SOCIAL, REGULATORY, & POLITICAL FACTORS4 .15STRATEGIC FIT WITH OTHER LINES OF BUSINESS8 OVERALL EVALUATION = 4.87 = AVERAGE23EVALUATING BUSINESS STRENGTH / COMPETITIVE POSITION(UNWEIGHTED)USE THE FOLLOWING SCHEME TO CLASSIFY EACH
47、BUSINESS STRENGTH FACTORSTRONGAVERAGEWEAK- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -BUSINESS STRENGTH FACTOR CLASSIFIED ASOUR RELATIVE MARKET SHARESTRONGOUR RELATIVE PRICE v. RIVALSAVERAGEOUR QUALITY & SERVICE v. RIVAL
48、SAVERAGEOUR RELATIVE COST POSITION v. RIVALSSTRONGOUR PROFIT MARGINS v. RIVALSSTRONGKNOWLEDGE OF CUSTOMERS & MARKETSAVERAGETECHNOLOGICAL CAPABILITY / LEADERSHIPWEAKFINANCIAL & PHYSICAL RESOURCESAVERAGECALIBER OF MANAGEMENT & STAFFSTRONGCOMPETENCIES MATCH KEY SUCCESS FACTORSAVERAGEOVERALL EVALUATION
49、= AVERAGE to STRONG24EVALUATING COMPETITIVE BUSINESS STRENGTH(NUMERIC, UNWEIGHTED)ASSIGN NUMBERS TO EACH BUSINESS STRENGTH FACTOR USE THE FOLLOWINGWEAK = 0, 1, 2, 3AVERAGE = 4, 5, 6 STRONG = 7, 8, 9, 10- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
50、- - - - - - - - - - - - - -INDUSTRY FACTORASSIGNED NUMBERRELATIVE MARKET SHARE7RELATIVE PRICE v. RIVALS5QUALITY & SERVICE v. RIVALS6RELATIVE COST POSITION v. RIVALS8PROFIT MARGINS v. RIVALS8KNOWLEDGE OF CUSTOMERS & MARKETS5TECHNOLOGICAL CAPABILITY & LEADERSHIP2FINANCIAL & PHYSICAL RESOURCES4CALIBER
51、OF MANAGEMENT & STAFF8COMPETENCIES MATCH KEY SUCCESS FACTORS6OVERALL EVALUATION = 59/10 = 5.9 = AVERAGE25EVALUATING COMPETITIVE BUSINESS STRENGTH(NUMERIC, WEIGHTED)1-ASSIGN WEIGHTS TO EACH COMPETITIVE FACTOR (Must add up to 100%)2-THEN ASSIGN NUMBERS TO EACH FACTOR USING THE FOLLOWING SCHEMEWEAK = (
52、0 3)AVERAGE = (4 6)STRONG = (7 10)3-MULTIPLY WEIGHTS BY NUMBERS TO DETERMINE THE WEIGHTED SCORE- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - WEIGHTCOMPETITIVE BUSINESS STRENGTHASSIGNED NUMBER.08RELATIVE MARKET SHARE7.08RELATIV
53、E PRICE v. RIVALS5.15QUALITY & SERVICE v. RIVALS6 .12RELATIVE COST POSTION v. RIVALS8 .06PROFIT MARGINS v. RIVALS8 .15KNOWLEDGE OF CUSTOMERS & MARKETS5 .05TECHNOLOGICAL CAPABILITY / LEADERSHIP2 .10FINANCIAL & PHYSICAL RESOURCES4 .06CALIBER OF MANAGEMENT & STAFF8 .15COMPETENCIES MATCH KEY SUCCESS FAC
54、TORS6 OVERALL EVALUATION = 5.93 = AVERAGE26COMPARING BUSINESS UNIT PERFORMANCEWHICH BUSINESS UNITS HAVE THE BEST/WORST PERFORMANCE?ASSESS THE TRENDS RE:Sales GrowthProfit GrowthContribution to Company EarningsReturn on Capital Invested in the Business (ROA)Cash Flow GeneratedSTRATEGIC FIT ANALYSISST
55、RATEGIC ATTRACTIVENESSDoes this business have cost-sharing or skills-transfer opportunities?FINANCIAL ATTRACTIVENESSDoes this business contribute to corporate performance objectives?RANK THE BUSINESS UNITS ON INVESTMENT PRIORITYWhich units should get the highest priority regarding financial support?
56、27COMPARING BUSINESS UNIT PERFORMANCEA SIMPLE EXAMPLEUNIT AUNIT BUNIT CUNIT DSALES GROWTH.018.068.102.071 GROWTH IN PROFITS.032.062.103.044CONTRIBUTION TO CORP EARNINGS (Omit 000s)$ 70$554$ 29$237RETURN ON ASSETS.072.124.088.096GENERATED CASH FLOWS $234$611$ 28$342 (Omit 000s)STRATEGICALLY ATTRACTIV
57、ENoYesYesNoFINANCIALLY ATTRACTIVEYesYesNoYesINVESTMENT PRIORITY412328CRAFTING A CORPORATE STRATEGYBY EVALUATING YOUR PORTFOLIO MATRIX1.DOES THE PORTFOLIO HAVE ENOUGH BUSINESSES IN ATTRACTIVE INDUSTRIES? 2.DOES THE PORTFOLIO CONTAIN TOO MANY MARGINAL BUSINESSES OR QUESTION MARKS? 3.DOES THE CORPORATI
58、ON HAVE ENOUGH CASH COWS TO FINANCE THE STARS AND EMERGING WINNERS? 4.DO THE CORE BUSINESSES GENERATE DEPENDABLE PROFITS OR CASH FLOWS? 5.IS THE PORTFOLIO VULNERABLE TO SEASONAL OR RECESSIONARY INFLUENCES? 6.DOES THE PORTFOLIO CONTAIN BUSINESSES THAT THE CORPORATION DOESNT NEED TO BE IN? 7.IS THE CO
59、RPORATION BURDENED WITH TOO MANY BUSINESSES IN AVERAGE-TO-WEAK COMPETITIVE POSITIONS? 8.DOES THE MAKEUP OF THE PORTFOLIO PUT THE CORPORATION IN A GOOD POSITION FOR THE FUTURE?29STEPS IN THE STRATEGIC ANALYSIS OF DIVERSIFIED FIRMSA SUMMARY1.IDENTIFY THE PRESENT CORPORATE STRATEGY2.CONSTRUCT BUSINESS
60、PORTFOLIO MATRICES3.PROFILE THE INDUSTRY AND COMPETITIVE ENVIRONMENT OF EACH BUSINESS UNIT4.EVALUATE THE COMPETITIVE STRENGTH OF EACH INDIVIDUAL BUSINESS5.COMPARE PERFORMANCE RECORDS OF EACH BUSINESS UNIT6.HOW WELL DOES EACH BUSINESS UNIT “FIT” WITH CURRENT CORPORATE STRATEGY?7.RANK THE UNITS FROM HIGHEST TO LOWEST IN INVESTMENT PRIORITY8.CRAFT A SERIES OF MOVES TO IMPROVE OVERALL CORPORATE PERFORMANCE30
