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1、Strategy Practitioner ToolsCore ToolsOctober 19990 1998, PricewaterhouseCoopers L.L.P.DRAFT: FOR DISCUSSION ONLY /Version: 660_w3/ppt/sfSC111898KR-Sydney1 1998, PricewaterhouseCoopers L.L.P.Table of Contents1ANALYSIS PLAN2BREAKTHROUGH MODEL3COMPETITIVE BENCHMARKING4COMPETITIVE POSITIONING5CORE COMPE
2、TENCTY ANALYSIS6CUSTOMER SEGMENTATION7EXPERIENCE CURVE8FINANCIAL MODELING9FIT VS. ATTRACTIVENESS MODEL10FIVE FORCES ANALYSIS11GANTT CHART12GAP ANALYSIS13GROWTH SHARE MATRIX14INDUSTRY VALUE CHAIN ANALYSIS15ISSUE TREE/ISSUE MAP16KEY PERFORMANCE INDICATORS17MARKET PROFITABILITY 18PORTFOLIO ANALYSIS19RE
3、AL OPTIONS/STRATEGIC OPTION20SCALE CURVE21SCENARIO ENVISIONING22SENSITIVITY ANALYSIS23SEVEN S FRAMEWORK24STAKEHOLDER ANALYSIS25SWOT26VALUE BASED MANAGEMENT27VALUE CHAIN ANALYSIS28VALUE TREE29 VOICE OF THE CUSTOMERSC111898KR-Sydney2 1998, PricewaterhouseCoopers L.L.P.Analysis Plan SummaryThe analysis
4、 plan details a problem-solving process and specific analysis which must be developed to assess a hypothesis. The analysis plan must be flexible and that the analyses to be conducted and the deliverables to be produced may change during the course of the project.Analysis PlanCLIENT EXAMPLE: HYPOTHES
5、IS/ANALYTICAL PLANHypothesisAnalysisInfo. RequiredInfo. SourceEnd ProductsOverall HypothesisOrganizational philosophy needs to be modifiedSupporting HypothesisExisting organization does not adequately support the business strategyDefine business system, operating environmentDefine CSFs, organization
6、al requirements along business systemDefine how existing organization supports business system, CSFsKey activities, processes by LOBCSFs along business system by LOBExisting organizational elements impacting business systemManagement interviewsSecondary researchHR documentsBusiness System DiagramsAc
7、tivityCSFEven after adjusting for asset write-up, financial performance has not met corporate expectations or competitive standards due to an inappropriate organization (and cost) structureFinancial performance vs. competitors, budget/plansOverview of cost structure (e.g., fixed vs. variable costs)R
8、OA, NI adjusted for asset write-upsHistoric and projected financial dataAsset write-up informationSummary cost, volume info for production unitsAnnual reports, 10Ks, 10Qs, etc.Company financial reportsFinancial department interviewsFinancial MetricsThe increasing complexity of business and the evolv
9、ing importance of, and coordination required between specialized expertise requires changes in the decision-making process and information flowsDefine actual vs. perceived vs. “real” organization chart, decision-making process/responsibilities; identify gapsDefine expertise, info required to make de
10、cision, organizational requirementsDefine evolving nature of organization and information flowsKey decisionsKey individuals involved in decision-making processInformation flowsManagement interviewsOrganization chartsMemos/documents on management processesSystem flow chartsData/Info FlowsOrg ChartsSC
11、111898KR-Sydney3 1998, PricewaterhouseCoopers L.L.P.ApproachAnalysis PlanWhen To ApplyWhen it is necessary to lay out problem-solving process in depth/detail and identify the analyses which need to be undertaken to validate the selected hypotheses Define an issue on which a specific action depends a
12、nd phrase it as a “yes” or no” question Establish a hypothesis: a statement of likely resolution of the issue including the reasons for answering “yes” or “no” Develop an analysis statement that outlines the “models” that will be explored in order to prove or disprove the hypothesis Identify the lik
13、ely location or means of obtaining data to accomplish the analysis Develop end products (presentations) to graphically represent the output of the analysisSC111898KR-Sydney4 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceAnalysis Plan Compaq/Technology/Vasu Krishnamurth
14、y Galileo/Travel/ Spencer Lin & Vasu Krishnamurthy Post Office Counters Ltd./Transportation Services/KIT database PwC MCS/Consulting/Vasu Krishnamurthy United Airlines/Travel/Vasu KrishnamurthyRobert M. Grant, “Contemporary Strategy Analysis”, 3rd EditionSource ListSC111898KR-Sydney5 1998, Pricewate
15、rhouseCoopers L.L.P.Breakthrough Model SummaryThe Breakthrough model focuses attention on most substantial opportunities for creating value for customers and shareholders.Breakthrough ModelExternalInternalIndustryCompanyTrends in theeconomicenvironment inwhich the marketsexistBest practicesacross th
16、is andsimilar industriesMarket/productstrategy and basisfor competitionCapabilities of the companyspeople, processes,technology, systems andstructure1234Market/ProductRepositioningIndustryTransformationEnterpriseAlignmentBest PracticePerformanceSC111898KR-Sydney6 1998, PricewaterhouseCoopers L.L.P.A
17、pproachBreakthrough ModelWhen To ApplyUtilize the Breakthrough model to identify and categorize all opportunities to create substantial incremental shareholder value.When creating a Breakthrough model, the following criteria should be considered: Summarize all opportunities to improve business perfo
18、rmance from other analyses Categorize them into four groups: Enterprise alignment Best practice performance Market/product repositioning Industry transformation Determine approximate economic value of each type of strategySC111898KR-Sydney7 1998, PricewaterhouseCoopers L.L.P.Citations - Client and I
19、ndustry ExperienceBreakthrough ModelNon-PwC:Toyota: the lean production system Frito-Lay: end-to-end supply chain management and the use of advanced technology Intel: high velocity product development A: Internet based channels of distribution on behalf of shareholders. Paul Elkin, “Mastering Busine
20、ss Planning and Strategy: The Power and Application of Strategic Thinking” Source ListSC111898KR-Sydney8 1998, PricewaterhouseCoopers L.L.P.Competitive Benchmarking SummaryCompetitive Benchmarking is used to identify and measure the factors that determine why a process has specific cost, quality or
21、timing attributes and incorporate the best practices into an actionable change plan. It does so in part, by comparing a companys performance in key areas with respect to its competitors performance. Examples of presenting Competitive Benchmarking findings:Competitive BenchmarkingMonthsHome GoodsPeri
22、shablesApparel Average = 6.7 = Maximum# = Average or Most Common = Minimum02468101214161820ABCDEFGIJKLMNNEW PRODUCT DEVELOPMENT CYCLE TIMEBest Practices3.55.04.56.513.55.06.09.07.06.010.56.04.5SC111898KR-Sydney9 1998, PricewaterhouseCoopers L.L.P.ApproachCompetitive BenchmarkingWhen To ApplyWhile no
23、t a comprehensive comparison, Competitive Benchmarking illustrates the efficiency of specific processes in comparison to a companys competitors. Select companies to benchmark against carefully - remember that companies outside the clients industry may be the best candidates. Ensure that data collect
24、ed are comparable and the the right processes are benchmarked; those which have the biggest impact on customer service/satisfaction/value. Examine the issues most important to the companys situation to determine whether roles, processes, or strategic issues should by benchmarked Identify key perform
25、ance variables and determine which companies to use for comparison (both within companys industry and outside the industry) For process benchmarking, determine the metrics to be measured; these can be key performance indicators (KPIs), or other measurements Establish data collection methodology (ind
26、ustry sources, on-line databases, on-site visits, phone interviews, survey questionnaires, competitors, etc.) Measure client company performance Measure performance of competitors and best practice leaders Illustrate the spectrum of performances on an appropriate graph Determine gaps and reasoning D
27、evelop action plans/recommendation to address gaps Implement actions and monitor progressSC111898KR-Sydney10 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceCompetitive Benchmarking Ball Corporation/Packaging /Vasu Krishnamurthy & Mike Weiss Motorola/Technology/Vasu Kris
28、hnamurthy PwC MCS/Consulting/Vasu Krishnamurthy United Airlines/Travel/Vasu Krishnamurthy Paul Elkin, “Mastering Business Planning and Strategy: The Power and Application of Strategic Thinking” Liam Fahey, Robert M. Randall, “The Portable MBA in Strategy” Robert M. Grant, “Contemporary Strategy Anal
29、ysis”, 3rd Edition Michael Gould, Andrew Campbell, Marcus Alexander, “Corporate-Level Strategy: Creating Value in the Multibusiness Company” Source ListSC111898KR-Sydney11 1998, PricewaterhouseCoopers L.L.P.Competitive Positioning SummaryCompetitive Positioning analysis shows how a company is positi
30、oned in its industry relative to its competitorsPositioning MapExample: EntertainmentHighLowLowHighChannel StrengthContent StrengthIntellectual property strengthProduct strengthLowMediumHighMarket StrengthCompetitive PositioningSC111898KR-Sydney12 1998, PricewaterhouseCoopers L.L.P.ApproachCompetiti
31、ve PositioningWhen To ApplyTo show clients that you understand their market and position. Can also be used to develop strategic recommendations.STEPDATA REQUIREDSOURCE(S)1. Choose axes that are relevant to customer decision-making (first) and those which differentiate suppliers (second)2. Illustrate
32、 where competitors lie on map(s)3. Interpret map for strategic implications (e.g., clusters or open spaces)Information on industry as a wholeInformation on competing companies strategies and positioningTrade associationsTrade periodicals and publicationsInformation servicesAnalyst reportsVarious com
33、panies annual reports and other public informationInterviews with competitor management Industry expertsSC111898KR-Sydney13 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceCompetitive Positioning Barclays Global Investors (BGI)/Banking/KIT database Blue Cross/Insurance/M
34、ike Weiss Boots/Retail/KIT database Galileo/Travel/ Spencer Lin & Vasu Krishnamurthy Giddings & Lewis/Machine Tool/Vasu Krishnamurthy Osh Kosh B Gosh?SP/Retail/Mike Weiss PwC MCS/Consulting/Vasu Krishnamurthy Save & Prosper/Banking/KIT databasePaul Elkin, “Mastering Business Planning and Strategy: T
35、he Power and Application of Strategic Thinking”Robert M. Grant, “Contemporary Strategy Analysis”Henry Mintzberg, James Brian Quinn, Sumantra Ghoshal, “The Strategy Process” Henry Mintzberg, James Brian Quinn, “The Strategy Process: Concepts, Contexts, Cases”Source ListSC111898KR-Sydney14 1998, Price
36、waterhouseCoopers L.L.P.Core Competency Analysis SummaryCore Competency Analysis provides a practical and systematic process to identify a companys core competencies and assess key competitive advantages.Examples of Core Competency Models:Core Competency AnalysisMarketingExample: McDonaldsCustomerRe
37、fill SupportSales/DistributionOtherCustomer ServiceCritical Strategic Capabilities (SC) - The capabilities in which a company is a leader. These capabilities are the source of competitive advantage.Critical Enabling Capabilities (EC) - The capabilities in which a company is competitively equivalent
38、to other market leaders. These capabilities are often the source of a barrier to entry.Strategic/Financial PlanningTechnologyDevelopmentProductDevelopmentMfg/JointVentureCore Competence (CC) - A competence which delivers a sustainable competitive advantage in current markets, provides access to a wi
39、de variety of markets, and makes a significant contribution to the perceived customer benefits of the end product.Primary Capabilities (PC) - Minimum functional and technical requirements necessary to participate.COMPETENCIES MODEL - FRAMEWORKFast, affordable, fun, family dining experienceMarketing
40、and brand mgmt.TrainingFranchise mgmt.Product innovationBigMac recipeHigh quality, low price product sourcingEfficient operationHamburger preparationMenu selectionSC111898KR-Sydney15 1998, PricewaterhouseCoopers L.L.P.ApproachCore Competency AnalysisWhen To ApplyEmploy Core Competency analysis to ev
41、aluate a companys capabilities in each function of the value chain with a hierarchical model which identifies capabilities and the degree to which they provide competitive advantage and can be leveraged. Please note that there is a risk of defining too narrowly the market in which the client compete
42、s, thus focusing on the wrong competency requirements or a subset of the competencies required to effectively compete. It is key that those projects and programs that aim at developing core competencies should not be open to re-prioritization at a later stage. Adhere to the following guidelines when
43、 analyzing core competencies and developing a Competencies Model - Framework: Interview company senior management and business line management as well as competitor management Define companys business system and activities performed within each function - Based on the total range of capabilities ide
44、ntified, ask the questions: Which ones do we have to be “good at”? Which ones do we have to be “market/world leading at”? Determine whether each activity is a primary capability, a critical enabling capability, a critical strategic capability, or a core competence, based on the degree to which the a
45、ctivity provides competitive advantage and can be leveraged Note that while all the identified capabilities will be critical to achieve the vision and strategy, the questions will help distinguish core from non-core by invoking management attention and reflection in a systematic and structured manne
46、rSC111898KR-Sydney16 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceCore Competency Analysis Galileo/Travel/ Spencer Lin & Vasu Krishnamurthy Giddings & Lewis/Machine Tool/Vasu Krishnamurthy MetLife/Insurance/KIT database PwC MCS/Consulting/Vasu Krishnamurthy Save & Pro
47、sper/Banking/KIT database David A. Aaker, “Developing Business Strategies”, 5th Edition Robert M. Grant, “Contemporary Strategy Analysis”, 3rd Edition Michael Gould, Andrew Campbell, Marcus Alexander, “Corporate-Level Strategy: Creating Value in the Multibusiness Company” Henry Mintzberg, Bruce Ahls
48、trand, Joseph Lampel, “Strategy Safari: A Guided Tour Through the Wilds of Strategic Management” Henry Mintzberg, James Brian Quinn, Sumantra Ghoshal, “The Strategy Process” Henry Mintzberg, James Brian Quinn, “The Strategy Process: Concepts, Contexts, CasesSource ListSC111898KR-Sydney17 1998, Price
49、waterhouseCoopers L.L.P.EstablishEstablishSegmentation Segmentation ObjectivesObjectivesData Data AssessmentAssessmentModel Model ConstructionConstruction Build Closed Loop Build Closed Loop Performance Performance Tool ToolWhat are the objectives of the segmentation? Better ROI, redistribute spendi
50、ng, change sales efforts?What data is needed to meet the objectives?How much of that data can be obtained internally? externally?What data is essential to the segmentation?What data can be a focus for further improvement in the future?Define the variables of the model with accessible data?Develop an
51、 analytical tool that utilizes the variables to determine a customer ranking or grouping (ie most ideal partner to most inefficient partner).Refocus internal efforts based on segmentation outcome.Establish a way to capture the key data needed to segment customer base.Utilize the data on an ongoing b
52、asis to improve performance and continually reward the better performing customers.Customer Segmentation MethodologyHigh level work flow for a customer segmentationCustomer Segmentation Methodology SummarySC111898KR-Sydney18 1998, PricewaterhouseCoopers L.L.P.Customer Segmentation SummaryCustomer se
53、gmentation is a division of a market into distinct groups of buyers who might require separate products and/or marketing mixes.THE CONVERTER MARKET CAN BE SEGMENTED USING TWO VARIABLES: ECONOMIC RISK AND FABRIC INNOVATIONHold inventoryCredit problemBasic fabrics“Opportunistic” StrategySpecialty prod
54、uctsNarrow customer baseNiche Strategy (specialized product to narrow customer base)Sell to manufacturers before fabric purchaseEstablished creditBroad customer baseBasic fabricsLow-Cost StrategySell to manufacturers before fabric purchaseEstablished creditFocused customer baseNovel fabrics (“fashio
55、n forward”)Differentiation Strategy (specialized product to broad customer base)Economic RiskInventory positionCredit statusProduct mixCustomer baseFabric InnovationPercent noveltiesOrder sizeNumber of collectionsHighLowHighLowCustomer SegmentationSC111898KR-Sydney19 1998, PricewaterhouseCoopers L.L
56、.P.ApproachSTEPDATA REQUIREDSOURCE(S)1. Identify segmentation variables and segment the marketa) Survey Stage: Conduct interviews/focus groups with consumers to gain insight into motivations, attitudes, and behaviorb) Analysis Stage: Apply factor analysis to data to remove highly correlated variable
57、s; apply cluster analysis to create a number of maximally different segments2. Form segments by looking at consumer characteristics as well as consumer responsesa) Geographic Segmentationb) Demographic Segmentationc) Psychographic Segmentationd) Behavioral SegmentationResults from focus groups, inte
58、rviews, and surveysCustomer characteristics: demographics, statistics, etc.Focus groups, interviews, surveysCompany dataWhen To ApplyApplicable when it is useful to better identify marketing opportunities, to develop the right offering for each target market, or to be able to reach the target market
59、 in the most efficient manner possible.Customer SegmentationSC111898KR-Sydney20 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceCustomer Segmentation Galileo/Travel/ Spencer Lin & Vasu Krishnamurthy General Mills/CIP/Johan Sauer Giddings & Lewis/Machine Tool/Vasu Krishna
60、murthy The Littlewoods Organization/Retail/KIT database PwC MCS/Consulting/Vasu Krishnamurthy Paul Elkin, “Mastering Business Planning and Strategy: The Power and Application of Strategic Thinking”Robert M. Grant, “Contemporary Strategy Analysis”Henry Mintzberg, James Brian Quinn, Sumantra Ghoshal,
61、“The Strategy Process”Source ListSC111898KR-Sydney21 1998, PricewaterhouseCoopers L.L.P.The Experience Curve forecasts future trends in cost/labor and determines the relative cost position of various competitors. The tool quantifies cost savings, theoretically achieved through experience gained in c
62、onducting a process.Experience Curve SummaryThe Experience CurveEXPERIENCE CURVE FOR WIDGETS - PROJECTIONS5040302010200400600800100020004000Unit Volume (Thousands)Unit Cost($)197419751976 1977 1978197919801981 1982 19831984Slope 20%SC111898KR-Sydney22 1998, PricewaterhouseCoopers L.L.P.ApproachExper
63、ience CurveCreating the Experience Curve requires yearly accumulated production volume for the entire indicative and individual competitors, and the unit cost for the entire industry and competitors (use price data if cost data is not available.) Data can be secured from government agencies, trade a
64、ssociations, and from internal company data.Step 1Plot accumulated volume for different years against unit cost on a log/log scale (unit cost should be deflated by using a general index such as the GNP deflator, or specific indices for the various pars of cost such as materials and labor.)Step 2Add
65、a standard regression line to the graph.CAVEATS: Cost figures must be defined in the same manner by all sources of data. If company cost-accounting data is used, it may need to be adjusted for overhead allocations and other costs not considered to be part of the activity, process, or product under s
66、tudy. If price data is used pricing behavior of participants needs to be consideredInnovation within any functional area (e.g., product, process, distribution) can render the current experience curve useless as a strategy tool. Therefore, it is important to understand the environmental and customer
67、trends in order not to rely too heavily on this analysisThe experience curve is only an analytical concept, and there is no guarantee that costs will actually decrease according to it. The company must actively manage costs downWhen to ApplyThe Growth Share Matrix may be overly simplistic, market sh
68、are does not always correlate with profitability and not all businesses have the same asset intensity. Conclusions are sensitive to business and market definitions; where lines are drawn. Practitioners must be creative, careful and consistent with market data. SC111898KR-Sydney23 1998, Pricewaterhou
69、seCoopers L.L.P.Citations - Client and Industry ExperienceExperience Curve Source List David A. Aaker, “Developing Business Strategies”, 5th Edition The Boston Consulting Group, “Perspectives on Strategy” Robert M. Grant, “Contemporary Strategy Analysis”, 3rd Edition Henry Mintzberg, Bruce Ahlstrand
70、, Joseph Lampel, “Strategy Safari: A Guided Tour Through the Wilds of Strategic ManagementSC111898KR-Sydney24 1998, PricewaterhouseCoopers L.L.P.Financial Modeling SummaryFinancial ModelingThe financial model will allow us to test management assumptions and understand how different actions may affec
71、t performance on some key competitive dimensions.SC111898KR-Sydney25 1998, PricewaterhouseCoopers L.L.P.ApproachWhen To ApplyFinancial Modeling is effective in analyzing how a companys performance, in core areas of business, will be affected by pursuing different courses of action. This tool facilit
72、ates an understanding of various cause-effect and provides a model by which to test various what if statements.Financial ModelingFollow these steps to successfully create a Financial ModelStep 1Gather information on key drivers ie. From the cash flow analysis performed as part of the SVA Data and in
73、sight from Voice of the Customer is another source of insightStep 2Map the relationships and identify factors which reinforce one another vs. those that have a negative relationship (e.g. increase in price may have a negative effect on demand)Step 3Build the financial model based on the cause-effect
74、 relationships identifiedStep 4Gather data from industry analysis or internal corporate dataStep 5Test the quality of the model by doing manual calculations on some what if” Step 6Perform what if to assess the completeness of the modelSC111898KR-Sydney26 1998, PricewaterhouseCoopers L.L.P.Citations
75、- Client and Industry ExperienceFinancial Modeling Flemings Fund Management Ltd (FFML)/Banking/KIT database Galileo/Travel/ Spencer Lin & Vasu Krishnamurthy Osh Kosh B Gosh?SP/Retail/Mike Weiss PwC MCS/Consulting/Vasu Krishnamurthy United Airlines/Travel/Vasu KrishnamurthyRobert M. Grant, “Contempor
76、ary Strategy Analysis”, 3rd EditionSource ListSC111898KR-Sydney27 1998, PricewaterhouseCoopers L.L.P.The Fit vs. Attractiveness Model optimizes strategy by developing a sense of the realistic state of the market and company affairs. The Model compares product fit with a market to product fit with a
77、companys objectives.Fit vs. Attractiveness Model SummaryThe Fit vs. Attractiveness ModelBaked GoodsBulbsCheeseFruitKitchenwareMeat/SeafoodNursery StockSnacks/CandyStationeryDecorative AccessoriesIndoor PlantsNutsSeedsTrees/ShrubsGourmet FoodBed/BathPool/Patio/GardeningCraftsPersonal Care/GroomingSpe
78、cialty ApparelCamping EquipmentChildrens ApparelDrug/Vitamins/Health FoodHardware/ToolsHosiery/LingerieWomens ApparelMens ApparelWomens Large Size ApparelAthletic EquipmentFishing EquipmentHunting EquipmentSporting Good ApparelCategoryFit WithCompanyHighMediumLowLowMediumHighCategory AttractivenessC
79、ATEGORY EVALUATION - SPECIALTY/SPIN-OFFCategories included in existing or planned specialty booksRecommended additional specialty book ventureEXAMPLESC111898KR-Sydney28 1998, PricewaterhouseCoopers L.L.P.ApproachFit vs. Attractiveness ModelStep 1Identify product, category or market overall attractiv
80、eness as being low, medium, or high. Plot along x-axis.Step 2Identify product category, or market fit with company objectives as being low, medium, or high. Plot along y-axis.Step 3Evaluate newly created matrix; aim to reveal products, categories, or markets that fall under high overall attractivene
81、ss and high fit with company objectives.When to ApplyThe Fit Vs. Attractiveness Model is used to analyze a new product or service offerings fit within a company, in comparison to the overall attractiveness of the product or offering. This particular model requires judgements which are subjective in
82、nature; one should be aware that this model may oversimplify the market situation.SC111898KR-Sydney29 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceFit vs. Attractiveness ModelSource List Galileo/Travel/ Spencer Lin & Vasu Krishnamurthy PwC MCS/Consulting/Vasu Krishnam
83、urthyPaul Elkin, “Mastering Business Planning and Strategy: The Power and Application of Strategic Thinking”Henry Mintzberg, James Brian Quinn, Sumantra Ghoshal, “The Strategy Process”SC111898KR-Sydney30 1998, PricewaterhouseCoopers L.L.P.Five Forces Analysis SummaryThe Five Forces Analysis evaluate
84、s the attractiveness of an industry.Five Forces AnalysisDRIVERS OF MARKET ATTRACTIVENESSPOTENTIAL ENTRANTSEntry barriers are high if there are:Economies of scaleProduct differentiationCapital requirementsLimited access to distribution channelsRestrictive government policiesPotential retaliatory reac
85、tion of incumbentsINDUSTRY COMPETITORSRivalry is intense if:Competitors are numerous or roughly equal in power or sizeIndustry growth is slowThere are high fixed costs or the product is perishableThe product lacks differentiation or switching costsCapacity is augmented in large increments Exit barri
86、ers are highRivals are diverse in strategies, origins, and personalitiesSUBSTITUTESThreat of substitutes is high if:There is an abundance of products or services that serve the same functionThe price-performance tradeoff of substitutes is attractiveSUPPLIERSBargaining power of suppliers is greater i
87、f:The supply industry is dominated by a few companies or is more concentrated than the buying industryThe supply product is differentiated or there are high switching costsThere are few substitutesThe buying industry is not an important customer of the supply industryThe supply industry poses a cred
88、ible threat of forward integrationBUYERSBargaining power of customers is greater if:The customer group is concentrated or buys in large volumeProducts purchased are undifferentiatedProducts purchased represent a significant portion of the customers costCustomers earn low profits, creating incentive
89、to lower purchasing costsThe product purchased is unimportant to the quality of the customers productSwitching costs are lowCustomer group poses a credible threat of backward integrationSC111898KR-Sydney31 1998, PricewaterhouseCoopers L.L.P.ApproachWhen To ApplyUse the Five Force analysis to evaluat
90、e a markets structure and the trends affecting a markets profitability. Please note that the structural conditions alone do not provide a quantification of total future market profitability or the viability of a company. Therefore, it is important to integrate company specific insights and confirm t
91、hat the model accurately reflects what is happening in the market. Five Forces AnalysisFive Forces analysis utilizes a four step approach and is applied as a starting point for understanding a markets attractiveness:Step 1:Collect dataStep 2:Evaluate strength of key forces, including: (What about te
92、chnology?) Buyers Suppliers Substitutes Competitors Potential entrantsStep 3:Qualitatively assign a high, medium or low score to each key forceStep 4:Assess the overall effect of the forces on industry attractiveness and strategic implicationsSC111898KR-Sydney32 1998, PricewaterhouseCoopers L.L.P.Ci
93、tations - Client and Industry ExperienceFive Forces Analysis Aerospace & Electronics Alliance/Multi-Industry/KIT database Galileo/Travel/ Spencer Lin & Vasu Krishnamurthy Iberdrola and Johnson & Johnson/TC-Utilities/KIT database la Caixa/FM-Banking/KIT database Levi Straus, Merk and Motorola/Multi-I
94、ndustry/KIT database PwC MCS/Consulting/Vasu Krishnamurthy Source List David P Baron, “The Nonmarket Strategy System”, Sloan Management Review, Fall 1995 Liam Fahey, Robert M. Randall, “The Portable MBA in Strategy” Robert M. Grant, “Contemporary Strategy Analysis”, 3rd EditionSC111898KR-Sydney33 19
95、98, PricewaterhouseCoopers L.L.P.GANTT ChartA GANTT chart gives the expected timeline for the engagement based on the clients needs and our experience and expertise.GANTT ChartIDNameScheduledFinish3/143/213/284/44/114/184/25MarApr1234567891011123/26/933/26/934/23/934/12/933/30/934/1/934/5/934/7/934/
96、8/934/9/934/12/934/19/93MobilizationPwC MobilizationSCM MobilizationDesign customerservice processMap communicationModel economicdecisionsIdentify costdriversIdentify valuedriversSpecify CSactivitiesSpecify CS informationneedsSpecify CSresourcePrepare trainingmaterialsSC111898KR-Sydney34 1998, Price
97、waterhouseCoopers L.L.P.ApproachGANTT ChartWhen To ApplyWhen it is necessary to Illustrate for the client a rough timeline for the proposed engagement.Determine the approximate duration for each task.Understand the prospective clients time constraints.Using a project management software tool such as
98、 Microsoft Project, determine the specific timeline for the projectWork either forward from an anticipated start date to determine the approximate time of completion, or backward from a clients must-complete-by date to determine the necessary duration of tasks, or bothSC111898KR-Sydney35 1998, Price
99、waterhouseCoopers L.L.P.Citations - Client and Industry ExperienceGANTT Chart Chrysler/Automotive/Vasu Krishnamurthy E.B.Eddy - Forestry & Wood Products Division/Agriculture, Forestry & Fisheries/KIT database Giddings & Lewis/Machine Tool/Vasu Krishnamurthy RBMG/Mortgage Banking/Vasu Krishnamurthy U
100、nited Airlines/Travel/Vasu KrishnamurthyHenry Mintzberg, James Brian Quinn, Sumantra Ghoshal, “The Strategy Process” Source ListSC111898KR-Sydney36 1998, PricewaterhouseCoopers L.L.P.Gap Analysis SummaryAn analysis ranking critical success factors against a companys ability to attain them and their
101、criticality to succeeding with a particular product or service.Gap AnalysisCall center adaptation(e.g. 7x24)Source software/agreementEnsure software quality and securitySoftware vendor contactsNegotiate contracts with software vendors and distribution channelsDevelop product offering mix and marketi
102、ng expertise (e.g. non-traditional distribution; CD-ROM)Appropriate Internet interfaceModify software as neededObtain strong patentsEvaluate Atlas softwareMarket and feasibility assessmentsFinancial projections (marketing)Technical supportDongle capability and manufacturing sourcePayment methodHigh
103、PriorityCore ChallengeQuick HitLowest PrioritySource CD-ROM and disks manufacturersDIFFICULTY FOR COMPANY TO ATTAINLowHighHighCRITICALITYTOPRODUCTSUCCESSSource: PW analysis, industry interviewsEXAMPLE:SC111898KR-Sydney37 1998, PricewaterhouseCoopers L.L.P.ApproachGap AnalysisWhen To ApplyWhen you mu
104、st understand which critical success factors present the greatest challenge in order to focus efforts.STEPDATA REQUIREDSOURCE(S)1. Determine the trademark axes for the matrix2. Determine the companys existing strategy against the industry3. Generate alternative strategic options for the company and
105、plot them on the matrixAn understanding of the clients current positioning, vis-a-vis competitorsUnderstanding of strategic options availableInterviews with senior managementAnalyst reportsIndustry expertsInterviews with competitorsTrade publicationsIs this the correct text?SC111898KR-Sydney38 1998,
106、 PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceGap Analysis Flemings Fund Management Ltd (FFML)/Banking/KIT database Galileo/Travel/ Spencer Lin & Vasu Krishnamurthy General Motors/Automotive/KIT database Philips/Multi-Industry/KIT database PwC MCS/Consulting/Vasu Krishnamur
107、thy David A. Aaker, “Developing Business Strategies”, 5th Edition Robert M. Grant, “Contemporary Strategy Analysis” 3rd Edition Michael Gould, Andrew Campbell, Marcus Alexander, “Corporate-Level Strategy: Creating Value in the Multibusiness Company” Source ListSC111898KR-Sydney39 1998, Pricewaterhou
108、seCoopers L.L.P.Growth Share Matrix SummaryGrowth Share Matrix STARSQUESTION MARKSCASH COWSDOGSNOMANSLAND30%0%MarketGrowthRateExpected Growth if Available; Otherwise 3-Year Historical Growth Rates4x2x1.5x1x.5x.25xCompanys Sales or ShareLargest Competitors Sales or Share?The Growth Share Matrix is ex
109、amines a companys portfolio of businesses, depicting the companys cash flow position by plottingeach business relative market share against industry growth. This tool assists companies in determining which business units should be a focal point for growth strategies. Two examples of Growth Share Mat
110、rices appear below:Market Growth RatePPO Natl AccountLocal Group Cost Plus and ASODental Stand-AloneNational Account ControlNational Account ParTraditional/ Comp Local Group MetroTraditional/ Comp Local Group OutstatePPO OutstateDirect Pay CompMedicareLifeHMOPPO5.03.02.01.51.00.70.50.30.2Each circle
111、 represents a different businessCircle size represents proportional salesData needed for each business unit:1.Sales2.Market growth3.Sales of largest competitor(or market share data)4.0SC111898KR-Sydney40 1998, PricewaterhouseCoopers L.L.P.ApproachGrowth Share MatrixWhen To ApplyThis tool aims to eli
112、minate management distraction in small unprofitable business and guides management to access the appropriate resource levels needed for allocation to promising new businesses/core businesses. Although a useful tool, it has been criticized as being overly simplistic. Market share does not always corr
113、elate with profitability and not all businesses have the same asset intensity. Conclusions are sensitive to business and market definitions; where lines are drawn. When using this tool, practitioners should be creative, careful and consistent with market data.Creating the Growth Share Matrix require
114、s sales data, market growth information and market share data. This information canbe found in the following sources: company data/financial statements, trade publications, interviews with senior management andindustry expert/analyst opinions. The following steps will assist in creating a Growth Sha
115、re Matrix:Step 1Plot relative market share on x-axisStep 2Plot market growth rate on y-axis Use expected growth if available, otherwise use 3 year historical growth ratesStep 3Each circle (plot) should represent a different business The size of the circle should be proportionate to salesSC111898KR-S
116、ydney41 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceGrowth Share Matrix Galileo/Travel/ Spencer Lin & Vasu Krishnamurthy PwC MCS/Consulting/Vasu Krishnamurthy David A. Aaker, “Developing Business Strategies”, 5th Edition Robert M. Grant, “Contemporary Strategy Analys
117、is”, 3rd Edition John Micklethwait & Adrian Wooldridge, “The Witch Doctors: Making Sense of the Management Gurus”Source ListSC111898KR-Sydney42 1998, PricewaterhouseCoopers L.L.P.Growth Share Matrix SupplementLosing Market ShareHolding Market ShareGaining Market ShareMarket Growth RateBusiness Growt
118、h Rate30%0%30%Use 3-year historical growth rates (use 5-year if business is highly cyclical)Data needed for each business unit:1. Sales2. Market Growth3. Sales of largest competitor(or market share data)Each circle represents a different businessCircle size represents proportional salesIt is useful
119、to accompany the Growth/Share Matrix with a Growth/Growth Matrix, which shows those businesses that are gaining share and those that are losing share. This matrix will often suggest additional analyses, examining the strategy of those businesses losing share.SC111898KR-Sydney43 1998, Pricewaterhouse
120、Coopers L.L.P.Industry Value Chain Analysis SummaryThe Value Chain Analysis can operate on two levels: as a strategic tool to facilitate an understanding of where the key strengths and weaknesses lie within an organization and as a more operational tool to look at supply chain management issues. Lim
121、itations include: difficult to estimate where value is created (or destroyed) without more detailed analysis, e.g. ABM, relatively static model, should not be applied in nonmanufacturing or non process oriented companiesIndustry Value Chain AnalysisSC111898KR-Sydney44 1998, PricewaterhouseCoopers L.
122、L.P.ApproachIndustry Value Chain AnalysisWhen To ApplyUnderstand opportunities for adding value by improving the various elements of the value chainStep 1Identify the key primary and support activitiesStep 2Identify value added at each stageStep 3Assess the contribution of each stage to the organiza
123、tions competitive advantageStep 4Identify the key cost driversStep 5Assess potential for increasing value and decreasing costsThe value chain analysis is at its simplest a high level diagnostic to see where the organization needs to improve or maintain value creation.SC111898KR-Sydney45 1998, Pricew
124、aterhouseCoopers L.L.P.Citations - Client and Industry ExperienceIndustry Value Chain Analysis Galileo/Travel/ Spencer Lin & Vasu Krishnamurthy Paul Elkin, “Mastering Business Planning and Strategy: The Power and Application of Strategic Thinking” Liam Fahey, Robert M. Randall, “The Portable MBA in
125、Strategy” Robert Grant, “Contemporary Strategy Analysis” Henry Mintzberg, James Brian Quinn, Sumantra Ghoshal, “The Strategy Process” Henry Mintzberg, Bruce Ahlstrand, Joseph Lampel, “Strategic Safari: A Guided Tour Through the Wilds of Strategic Management” Source ListSC111898KR-Sydney46 1998, Pric
126、ewaterhouseCoopers L.L.P.Issue Tree/Issue Map SummaryAn Issue Tree/Issue Map typically begins with a broad question and defines the sequence of key issues (phrased as yes or no choices) that will support a specific answer. A practitioner would use issue maps to frame options, usually later in the pr
127、oject.A more detailed example is included as a supplement. However, a basic representation can be found below.Issue Tree/Issue MapIssue Map(Yes/No Tree)?YesNoSC111898KR-Sydney47 1998, PricewaterhouseCoopers L.L.P.ApproachIssue Tree/Issue MapWhen To ApplyThis tool is most effective when considering d
128、iscrete or well-defined alternatives and is extremely practical for communication related issues. A practitioner should be recognize that an Issue Tree/Issue Map requires strong knowledge of problem or issue, client and industry. It can be frustrating to push decision branches to yes/no questions an
129、d difficult (time consuming) to create MECE options.An Issue Tree/Issue Map ensures logical integrity of the problem solving framework and reduces potential for oversights ormissed opportunities. Follow these 5 steps to successfully create an Issue Tree/Issue Map:Step 1Identify the key issuesStep 2D
130、efine the starting points (i.e. what factors drive these issues?)Step 3Identify all possible outcomesStep 4Develop the logic flow connections among these optionsStep 5Start overSC111898KR-Sydney48 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceIssue Tree/Issue Map BCBSF
131、/ /Chuck Stern Galileo/Travel/ Spencer Lin & Vasu Krishnamurthy United Airlines/Travel/Vasu KrishnamurthyStrategic Change MBA Training Source ListSC111898KR-Sydney49 1998, PricewaterhouseCoopers L.L.P.Issue Tree/Issue Map SupplementWill likely movements in prices and demand allow Client to achieve r
132、easonable profitability if it carries on as presently?Is client prepared to wait for this?Can client achieve reasonable profitability by better sales and marketing efforts?Carry on as presentlyImprove sales and marketing effective-ness by selecting target segments and refocusing effortsDefine and im
133、plement profit improvement programsDefine and implement reinvestment programAnalysisAnalysisAnalysisAnalysisAnalysisAnalysisActionDress up for saleDevelop harvest strategyYesNoIs client worth more to others than to its parents?YesNoWould major investment provide client with reasonable profitability?
134、YesNoCan client achieve reasonable profitability by reducing its costs?Go to AYesNoYesNoYesNoA213456Note that this issue map for evaluating an SBUs strategy sets up six analyses in order.SC111898KR-Sydney50 1998, PricewaterhouseCoopers L.L.P.Answers to EachFind another basis for competing, i.e., val
135、ue not cost14“The modernized Client Name”10Can Client Name economically develop and lead the introduction of this S3 technology7Will current state-of-the-art technology be replaced, putting Client Name at a disadvantage with a modern plant?6Will modernization be forced on Client Name as a “ticket to
136、 play the game”?5Can Client Name economically “leapfrog” competition in production technology?2Would further integration economically develop a sustainable low-cost position?1Over the next 12-18 months, can Client economically become the low-cost producer through optimization of the current plant?13
137、“Build strength through capacity”12“Niche/milk”11“Change the game”15“Aggressive leadership in technology”16“Leadership exploitation” 17“Build strength through integration”18“The excellent manufacturing company”Find the market segments that are not cost-sensitiveModernize all plants as quickly as pos
138、sibleExpand capacity to a point that maximizes profitMinimize any current modernization; participate in S3 development; lead introductionMinimize current modernization; be aware and flexible to convert when appropriateIntegrate backward and forward to an extremeMake cost management/ productivity a “
139、way of life”9Can Client Name “change the game” (i.e., compete on something other than cost?)8Will capacity expansion be required to economically develop the cost leadership position?4Are external factors likely to foreclose on this cost position?3Is this position sustainable?YesNoNoNoNoNoNoNoNoNoNoY
140、esYesYesYesYesYesYesYesYesIssue Tree/Issue Map SupplementEXAMPLEThis study was to assist management at a diversified parent co. develop a “vision” for the future of its “heritage” business - a paperboard subsidiary. While returns had been attractive in this subsidiary, management was questioning whe
141、ther further investment was advisable.SC111898KR-Sydney51 1998, PricewaterhouseCoopers L.L.P.Key Performance Indicators SummaryAlthough there are many approaches to performance management and various types of KPIs: Strategic KPIs, Financial KPIs, Organizational KPIs and City KPIs, this particular ex
142、ample focuses on Strategic KPIs (SKPIs). Founded on the concept of a Balanced Scorecard, the Strategic KPI management technique highlights those factors that are critical to maintaining the strategic direction of a business. The Balanced Scorecard is a measurement framework which focuses on the four
143、 primary perspectives of corporate performance. Each perspective focuses on a particular question fundamental to the future prosperity of the overall business.Key Performance Indicators - KPIBUSINESS DEVELOPMENTPERSPECTIVEhow do we look to our owners?FINAL PERSPECTIVEhow can we further develop?CUSTO
144、MER PERSPECTIVEhow do our customerssee us?INTERNAL PERSPECTIVEwhat must we excel at?The Balanced ScorecardSC111898KR-Sydney52 1998, PricewaterhouseCoopers L.L.P.Key Performance Indicators Summary - continued.The Balanced Scorecard drives performance throughout the organization. There is a direct lin
145、e of integration between the Vision of the organization and the Strategy that is being pursued. It also provides the top level “scoring” mechanism to ensure each aspect of the business is on-track. The link between objectives, SKPIs, targets and initiatives is illustrated below.Key Performance Indic
146、ators - KPIFINANCIAL PERSPECTIVEThe Balanced Scorecard ApproachOBJECTIVES SKPI TARGETS INITIATIVESAAA AAA AAA AAABBB BBB BBB BBBCCC CCC CCC CCCDDD DDD DDD DDDBUSINESS DEVELOPMENT PERSPECTIVEOBJECTIVES SKPI TARGETS INITIATIVESAAA AAA AAA AAABBB BBB BBB BBBCCC CCC CCC CCCDDD DDD DDD DDDCUSTOMER PERSPE
147、CTIVEOBJECTIVES SKPI TARGETS INITIATIVESAAA AAA AAA AAABBB BBB BBB BBBCCC CCC CCC CCCDDD DDD DDD DDDINTERNAL PERSPECTIVEOBJECTIVES SKPI TARGETS INITIATIVESAAA AAA AAA AAABBB BBB BBB BBBCCC CCC CCC CCCDDD DDD DDD DDDTHE VISION“to achieve sustainableoutstanding results through a continuous focus on br
148、and valuesand customer service”THE VISION deliver customer satisfaction continuous improvement develop quality people meet shareholder expectationsSC111898KR-Sydney53 1998, PricewaterhouseCoopers L.L.P.ApproachKey Performance IndicatorsWhen To ApplyUse the Strategic KPI approach to determine what fa
149、ctors will be the foundation for ensuring a culture of continuous performance improvement and preparing the overall business for both the boom and recessionary periods which typify the economic cycles in which corporations operate. It is particularly effective to visualize the direct correlation bet
150、ween an organizations vision and the strategy which is being pursued to satisfy that vision.Step 1Assign each of the organizations Business Objectives to the appropriate Strategic KPI; these SKPIs will represent measurement tools used to track progress. Examples regarding the Financial Perspective a
151、re as follows:ProfitabilityNet profit Margin (%)Return on Total Funds (%) Shareholder IncomeDividend Level ($)Dividend Cover (times)GrowthSales Trend (year on year growth)StabilityGearing (Debt: Equity) RatioInterest Cover (times)Step 2Set and clearly communicate a stretching yet achievable target l
152、evel of performance to each SKPI Step 3Identify, implement and continually review specific initiatives which will enable the organization to achieve the aforementioned targetsSC111898KR-Sydney54 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceKey Performance Indicators D
153、uPont/Chemicals/Vasu Krishnamurthy Ericsson/Technology/KIT database Flemings Fund Management Ltd (FFML)/Banking/KIT database International Paper Company/Multi-Industry/KIT database SAP/CIP/KIT database Sega of America/Technology/KIT database Valco/Chemicals/Vasu Krishnamurthy Paul Elkin, “Mastering
154、Business Planning and Strategy: The Power and Application of Strategic Thinking” Robert M. Grant, “Contemporary Strategy Analysis”, 3rd Edition Source ListSC111898KR-Sydney55 1998, PricewaterhouseCoopers L.L.P.Market Profitability Modeling SummaryMeasures current and predicts future market profitabi
155、lity by company profit margins.Market ProfitabilityTOTAL MARGINS OF HMOs CONTROLLED BY NETWORK MANAGERSMargins($ Billions)SC111898KR-Sydney56 1998, PricewaterhouseCoopers L.L.P.ApproachMarket ProfitabilityWhen To ApplyWhen you would like to forecast industry profitability.STEPDATA REQUIREDSOURCE(S)1
156、. Collect margin data in dollars for industry competitors for the current year and aggregate2. Predict the same margins for a determined future year and aggregate3. Graph current and future aggregate marginsCompetitor margin dataCompany financial statementsMoodys company data BloombergIndustry Assoc
157、iations/PublicationsSC111898KR-Sydney57 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceMarket Profitability Braun/CIP/KIT database PwC MCS/Consulting/Vasu Krishnamurthy David A. Aaker, “Developing Business Strategies”, 5th Edition Robert M. Grant, “Contemporary Strategy
158、 Analysis”, 3rd Edition Source ListSC111898KR-Sydney58 1998, PricewaterhouseCoopers L.L.P.Portfolio Analysis/Product Portfolio Analysis SummaryThis analysis illustrates product performance and suggests product strategies; for example: high competitive position coupled with high market attractiveness
159、 suggests investing to grow at the maximum digestible rate.Portfolio Analysis/Product Portfolio AnalysisSC111898KR-Sydney59 1998, PricewaterhouseCoopers L.L.P.ApproachPortfolio Analysis/Product Portfolio AnalysisWhen To ApplyBest utilized to consider the relative strengths of a companys array of pro
160、ducts and determine appropriate strategies for each.When presenting portfolio analysis/product portfolio analysis findings, use the following guidelines: Use available internal and external sources to collect data on indicators of market attractiveness and competitive position such as market share,
161、% revenue growth, and revenue in absolute dollars for each of the companys product lines For each product: graph growth rate vs. relative market share scale the data points to reflect product revenue in absolute dollars Divide each axis into three sections - low, medium, and high - to form nine subd
162、ivisions on the graphSC111898KR-Sydney60 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperiencePortfolio Analysis/Product Portfolio Analysis Allstate Insurance Company/Banking/KIT database Vanguard/Banking/KIT database David A. Aaker, “Developing Business Strategies”, 5th Edit
163、ion The Boston Consulting Group, “Perspectives on Strategy” Source ListSC111898KR-Sydney61 1998, PricewaterhouseCoopers L.L.P.Real Options/Strategic Options SummaryProduces positioning maps to assess various strategic options.Traditionally, the financial tool most widely relied on to estimate the va
164、lue of strategy, discounted cash flow (DCF) valuation, assumes that management will follow a predetermined strategic plan, regardless of how events unfold or what new information is obtained. Ideally, executives would like to address flexibility and uncertainty in their strategies when assuring them
165、. Option pricing is a tool which enables executives to do just that, improving decision making about the sequence and timing of a portfolio of strategic investments. Option space is a way to visualize the various options for an executive; it gives them a way to “draw” a strategy in terms that are ne
166、ither wholly strategic nor wholly financial but some of both. Real Options/Strategic OptionsDiscountStoresClientGeneralStoreSpecialtyStoresNon-CostCostGeneralMerchandiseSpecialtyMerchandiseWHERE TOCOMPETEEXISTING STRATEGYHOW TO COMPETEOption Space Divided into Regions “The Tomato Garden”higherlowerV
167、olatilityValue-to-cost1.00.0Region 6: Never. Rotten tomatoes, InvestRegion 1: Now. Ripe tomatoes, InvestRegion 5: Probablynever. Late blossoms and small greentomatoes Less promising green tomatoesRegion 4: Maybe laterInedible, but very promising tomatoesRegion 3: Probably laterRegion 2: Maybe now. I
168、mperfect but edible tomatoesSC111898KR-Sydney62 1998, PricewaterhouseCoopers L.L.P.ApproachReal Options/Strategic OptionsWhen To ApplyWhen you wish to identify various strategic options (positioning), which outline where and how to compete.STEPDATA REQUIREDSOURCE(S)1. Determine the trademark axes fo
169、r the matrix2. Determine the companys existing strategy against the industry3. Generate alternative strategic options for the company and plot them on the matrixAn understanding of the clients current positioning, vis-a-vis competitorsUnderstanding of strategic options availableInterviews with senio
170、r managementAnalyst reportsIndustry expertsInterviews with competitorsTrade publicationsSC111898KR-Sydney63 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceReal Options/Strategic Options GTE CyberTrust/Banking/KIT database Kellogg Company/Food & Beverage/KIT database Rob
171、eco Bank SA/Banking/KIT database Star System Inc. - E-Commerce Workshop/Banking/KIT databaseRobert M. Grant, “Contemporary Strategy Analysis”Timothy Luehrman, “Investment Opportunities as RealOptions:Getting Started on the Numbers”, HBR, July 1998Timothy Luehrman, “Strategy as a Portfolio of Real Op
172、tions”, HBR, September 1998 Source ListSC111898KR-Sydney64 1998, PricewaterhouseCoopers L.L.P.Scale Curve SummaryThe Scale Curve identifies the benefits derived from economies of scale.Scale Curve10.05.01.00.50.112345678910n1An1An1An1An1At1An1An1An1An1A1An1At1A1AClient AClient BCompetitor CCompetito
173、r BKeySUPPORT LABOR SCALE EFFECT - CONVENTIONAL FIGHTER AIRCRAFTEXAMPLERatio of Support Labor Hours to Touch Labor HoursTotal Annual Program Touch Labor Hours (000)Client Plane base hoursSLOPE = 67%SC111898KR-Sydney65 1998, PricewaterhouseCoopers L.L.P.ApproachScale CurveWhen To ApplyWhen it is nece
174、ssary to determine if there is a benefit to derived from economies of scale.Gather cost information of producing a service or a product at various volumesDisplay information in scale curve for relevant products or functionsSC111898KR-Sydney66 1998, PricewaterhouseCoopers L.L.P.Citations - Client and
175、 Industry ExperienceScale Curve BCBSF/ /Chuck Stern Robert Grant, “Contemporary Strategy Analysis” Source ListSC111898KR-Sydney67 1998, PricewaterhouseCoopers L.L.P.The Scenario Envisioning concept is an inductive, “top-down” approach to developing future industry/market scenarios. The approach hypo
176、thesizes future scenarios independent of the past and present upfront and then links them to past and current trends. The scenarios are then used in simulating business outcomes such as consumer preferences, business systems and competitive actions, which in turn are used to identify value added opp
177、ortunities and future strategies. PricewaterhouseCoopers Scenario Envisioning has been developed to assist companies in mapping the possible future of an industry in transition. Decision makers are using Scenario Envisioning to rethink how the driving forces of their industry might combine in surpri
178、sing ways. In these new models of the future, they test current strategy, develop and explore other options. Executives practice operating and understanding their business in states that current rivals dont expect, making decisions today that will enhance their organizations chances of succeeding to
179、morrow.Most managers expect Scenario Envisioning to begin with prefabricated world visions of economic and geopolitical trends. In contrast, Scenario Envisioning develops customized pictures of a companys future markets that are distinctly different from the present and yet quite possible. Hence, ma
180、nagers experience what it would be like to operate in new markets and serve customers with new needs.Scenario Envisioning SummaryScenario EnvisioningSC111898KR-Sydney68 1998, PricewaterhouseCoopers L.L.P.Scenario Envisioning is a powerful approach for companies in industries that are experiencing ra
181、pid discontinuous change where the future cannot be extrapolated from the past and present. Scenario Envisioning fulfills the key needs for formulating strategy in a rapid discontinuous change environment. The central conflict in economics .is the battle between past and future, the war between the
182、existing configuration of industries and the industries that will soon replace them,” observed the Wall Street Journal recently. A few years ago, planners labeled such industry transformation “discontinuity,” or a break in established trends. A more descriptive word is “convergence,” one type of dis
183、continuity that creates a new set of customer values and products when two or more industries or technologies collide. This phenomenon has already redefined many markets and is even transforming whole industries. Executives today tasked with formulating strategic plans face the uncertain future of t
184、hese converging industries.Scenario Envisioning can be employed, but not limited to the following situations: Organization leaders who seek to understand the emerging future and its implications for making immediate decisions. Management beginning corporate repositioning, strategic visioning, or re-
185、invention initiatives Managers of such functions as mergers and acquisitions, research and development, marketing and sales who need to test the consequences of current and potential decisions in different competitive futures Staff units needing to depict, assess and communicate the implications of
186、the alternative futures facing their organizations as part of the planning cycle Corporate development managers who want to monitor emerging technologies and potential competitive conditions Product and service marketers who track the rapid evolution of customer needs Senior executives who integrate
187、 and coordinate mergers and acquisitions, joint ventures and strategic alliances and who need a clear vision of the outcomes and benefits of these ventures.Scenario EnvisioningWhen to ApplySC111898KR-Sydney69 1998, PricewaterhouseCoopers L.L.P.Scenario EnvisioningApproachThrough PricewaterhouseCoope
188、rs work with companies in evolving industries, a ten-step approach has been developed that previews innovative and nontraditional industry and market capabilities.Innovative hypothesis about the future, based on extensive expert industry knowledge and research are formulated for study and review. Th
189、e scenario team converts these theories of logical futures - ones that diverge from the past and present trends - into a set of distinctly different scenarios.Develop Future Industry ScenariosStep 1Define the broad future industry and market context within which the scenarios will be developed. For
190、example, the banking industry, the broader context may be financial services or even personal information services.Step 2Identify the paramount forces that will shape this industry and market context. For example, what consumer, regulatory, social, legal and technological changes can or could exert
191、the most powerful influence on your industry? How do these interact on a global basis? Which of these is the most uncertain?Step 3Identify the boundary parameters - the full range of uncertainty - of the paramount forces. For example, if regulation is one of the paramount forces, could the industry
192、be intensively regulated or completely deregulated?Step 4Develop logical but innovative hypotheses that explain how the most powerful and uncertain forces could interact. For example, will a major segment of the banking industry evolve into an on-line personal with building industry, fostered by der
193、egulation and increasing consumer technological capability?Step 5Create a set of scenarios that show how a few key unpredictable forces with the highest impact could interact. Using a matrix model, the interaction of two or more unpredictable conditions results in a number of distinct possibilities.
194、 The goal is to cover a comprehensive spectrum of market conditions.SC111898KR-Sydney70 1998, PricewaterhouseCoopers L.L.P.Scenario EnvisioningApproach cont.Key business outcomes of the scenarios such as value chains and competitive dynamics are simulated. By viewing the potential evolutionary paths
195、 of markets , decision makers can anticipate what moves will put a company into the most advantageous position. Assess Economic Potential and Define Strategy OptionsStep 8Simulate business outcomes and such as new value chains and new competitor dynamics created by the evolutionary paths of the scen
196、arios. This will identify which segments of your industry may have increased profit potential and which types of market participants are likely to reap the benefits.Step 9Assess your companys capabilities and compare them to capabilities needed to compete in the various scenarios. Identify the compa
197、nys capability gaps and develop potential solutions to overcome them.Step 10Develop, prioritize, and select a portfolio of optimal strategic options to compete successfully in each of the scenarios, and compare them with the present direction. This will allow the company to rehearse its potential fu
198、ture.Step 7Plot the evolutionary paths of the scenarios. For example, the delivery of broadband TV to the home by fiber optics cable may not occur for many years. In the meantime, a variety of “compromise” technologies such as direct broadcast satellite TV, ISDN phone lines, and ultra-fast modems, m
199、ay flourish.Step 6Test the credibility of the scenarios by assessing the viability of enabling events required to make them happen. For example, as todays youngsters quickly adapt to interactive games, will the market for this type of entertainment continue to grow as they mature?SC111898KR-Sydney71
200、 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceScenario Envisioning Hollywood Studio/EntertainmentAt a major Hollywood Studio, PwC was employed to lead studio executives through the Scenario Envisioning ten step approach. Please refer to Sample Deliverables. Galileo/Tr
201、avel/Spencer Lin & Vasu KrishnamurthyAt Galileo, PwC used the Scenario Envisioning tool to develop potential diversification strategies.Deliverables are available for review. Tetra-pack/?/E-Business/Susan? Saul J. Berman and Steve Redwood, “Developing Strategy in Changing Markets: A Case Study in Sc
202、enario Envisioning” Strategic Change: Scenario Envisioning Approach to Strategy Development Source ListSC111898KR-Sydney72 1998, PricewaterhouseCoopers L.L.P.Industry Driver ImpactNew entrantsNew/substitute productsNew marketsM&A activityShifting business models and economicsTechnologyRegulationCons
203、umer DispositionHIGHLOWLOWHIGHEnvironment Driver ImpactStatic IndustrySlow Incremental ChangeTransforming IndustrySteady Evolutionary ChangeDynamic IndustryRapid Discontinuous ChangeScenario EnvisioningTraditional StrategyDevelopmentBudgetary PlanningIdeal StrategyDevelopmentScenario Envisioning Sup
204、plementSC111898KR-Sydney73 1998, PricewaterhouseCoopers L.L.P.High- Level ApproachScenario Envisioning SupplementStep 1:Step 2:Step 3:Step 4:Step 5:Step 6:Define future industry/market contextIdentify paramount forces that will shape this contextIdentify boundary parameters of the paramount forcesCr
205、eate a set of scenarios within these boundary parametersTest credibility of scenarios by assessing viability of enabling eventsModify and select scenarios for further analyses based on Step 5Step 7:Step 8:Step 9:Step 10:Simulate business outcomes such as consumer preferences, business systems and co
206、mpetitive actionsAssess clients capabilities in context of scenarios and business outcomesIdentify clients capability gaps and develop potential solutionsDevelop portfolio of optimal strategiesSimulate Business Outcomes and Develop StrategyDevelop Future Industry ScenariosSC111898KR-Sydney74 1998, P
207、ricewaterhouseCoopers L.L.P.Sensitivity Analysis SummarySensitivity analysis assesses the effects on profits and cash flow when changes are made in key variables. The reliability of a sensitivity analysis is only as good as the reliability of the estimated key variables for each case. Ensure that th
208、e variables changed in each case are the variables with the most impact on the end result (revenues, profit, etc.)Sensitivity AnalysisAnnual Project Cash FlowSC111898KR-Sydney75 1998, PricewaterhouseCoopers L.L.P.ApproachSensitivity AnalysisWhen To ApplySensitivity analysis should be used to determi
209、ne the range of profit/loss and cash flow possibilities for a potential project by changing key revenue and cost variables.When creating a sensitivity analysis model, there are three key steps.Step 1:Create a pro forma base case for the project in questionStep 2:Determine range of low to high number
210、s for each of the established variablesStep 3:Replace base case numbers with low and, then high case numbers separately to determine the overall outcome range SC111898KR-Sydney76 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceSensitivity Analysis Braun/Multi-Industry/KI
211、T database Compaq/Technology/Vasu Krishnamurthy Motorola/Technology/Vasu Krishnamurthy National Brands Limited/Food & Beverage/KIT database Top European Brewery/Food & Beverage/KIT database David Matheson and Jim Matheson, “The Smart Organization: Creating Value through Strategic R&D” Source ListSC1
212、11898KR-Sydney77 1998, PricewaterhouseCoopers L.L.P.Seven S Tool SummaryThe 7-S Framework StrategyCritical Success Factors (CSFs)Capabilities/SkillsProcesses/SystemsStaffCulture/StyleStructureKey factors needed by the company to effectively implement the strategyA coherent statement of actions aimed
213、 at gaining a sustainable advantage over competitionCapabilities possessed by the organization as a whole as distinct from those of individuals; some companies perform extraordinary feats with ordinary peopleThe process and procedures through which things get done from day-to-day and the systems tha
214、t facilitate themThe people in the organization considered in terms of corporate demographics, not individual personalitiesThe way managers collectively behave with respect to use of time, attention and symbolic actionsThe organization chart and accompanying baggage that show who reports to whom and
215、 how tasks are divided up and integratedThe 7-S framework provides a means to analyze the building blocks of an organization that ultimately serves to support its strategy. The bottom level of the pyramid represents the more tangible components of the company which provide the foundationfor achievin
216、g the companys goals.SC111898KR-Sydney78 1998, PricewaterhouseCoopers L.L.P.Seven S Tool SummaryThe 7-S FrameworkStrategyProcesses/ SystemsStaffCulture/ StyleStructureWhat is current strategy?What is future strategyHow well is it communicated?Does it vary by region?What must be done well to achieve
217、strategy?How well are these currently being done?Do people have the right skills?Is the level of staffing appropriate?How does the culture impact effectiveness and change readiness?How well do performance measures support goals?Does structure make sense?What are the best practices?Do the administrat
218、ive functions adequately support customer and region needs?Can this be done more effectively?What are the best practices across regions?How effective are systems and processes at supporting customer and strategic goals?Critical Success Factors(CSFs)Capabilities/SkillsWhat skills are needed to suppor
219、t CSFs?Do these capabilities currently exist?What are the current core capabilities?Are they supporting CSFs and Strategy?When performing a 7-S assessment, a practitioner must address several key questions along each of the models dimensions.Organizational strengths and weaknesses must be identified
220、 and the gap between the organizational requirements must bedetermined.SC111898KR-Sydney79 1998, PricewaterhouseCoopers L.L.P.ApproachThe 7-S FrameworkSTEPDATA REQUIREDSOURCE(S)1. Document mission/shared vision2. Document strategy3. Evaluate key skills and capabilities4. Evaluate support levers, dec
221、ision processes/systems, staff, culture/style and structureMission StatementBusiness plansAnnual strategic plansOrganization chartsTraining manualsPosition descriptionsBudgeting process documentationPerformance measuresCompany documentsInterviews with key executives and staffWhen To ApplyWhen it is
222、necessary to evaluate the building blocks of an organization that serve to support its mission and allow it to execute its strategies. Information for this analysis is difficult to obtain in some areas without extensively interviewing company personnel. The model as a simple description of the statu
223、s quo; it should move the analysis forward to identify areas in which the organizational building blocks are not supporting the strategy.SC111898KR-Sydney80 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry Experience7- S Framework DuPont/Chemicals/Vasu Krishnamurthy MCS Market Stra
224、tegy/FIP/Steve Malloy Rover/Automotive & Transportation/KIT database United Airlines/Travel/Vasu Krishnamurthy Paul Elkin, “Mastering Business Planning and Strategy: The Power and Application of Strategic Thinking” Liam Fahey, Robert M. Randall, “The Portable MBA in Strategy” Henry Mintzberg, Bruce
225、Ahlstrand, Joseph Lampel, “Strategy Safari: A Guided Tour Through the Wilds of Strategic Management” Source ListSC111898KR-Sydney81 1998, PricewaterhouseCoopers L.L.P.Stakeholder Analysis SummaryThis tool reveals stakeholder expectations, identifies potential conflicting objectives, and allows manag
226、ement to make conscious choices on which stakeholders to prioritize, and how to deal effectively with those that are not prioritized.Stakeholder AnalysisSC111898KR-Sydney82 1998, PricewaterhouseCoopers L.L.P.ApproachStakeholder AnalysisWhen To ApplyStakeholder analysis is used to understand the obje
227、ctives and interests of various stakeholders in order to identify potential conflicts of interest. While some conflicts are not readily resolvable, discussing them will raise awareness of their existence.Adhere to the following criteria when performing an analysis of stakeholder interests: Identify
228、potential stakeholders at the client organization Identify potential objectives through discussions with management, key owners, union representatives, etc. Support the objectives by available secondary information (e.g., union purpose statements) Identify potential areas of conflict and discuss wit
229、h management potential actions to resolve the conflictsSC111898KR-Sydney83 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceStakeholder Analysis All State/Insurance/Julia Stamberger Crown Life Insurance Company/Insurance/KIT database Dana/Automotive/Mike Weiss Frito Lay/C
230、IP/Mike Weiss la Caixa/Banking/KIT database Pillsbury/CIP/Julia Stamberger Shell Italia/Energy (Petroleum)/KIT database Paul Elkin, “Mastering Business Planning and Strategy: The Power and Application of Strategic Thinking” Liam Fahey, Robert M. Randall, “The Portable MBA in Strategy” Michael Gould,
231、 Andrew Campbell, Marcus Alexander, “Corporate-Level Strategy: Creating Value in the Multibusiness Company” Henry Mintzberg, Bruce Ahlstrand, Joseph Lampel, “Strategy Safari: A Guided Tour Through the Wilds of Strategic Management Source ListSC111898KR-Sydney84 1998, PricewaterhouseCoopers L.L.P.SWO
232、T Ana;ysis is a framework used to identify the Strengths, Weaknesses, Opportunities, and Threats an organization is facing. SWOT provides a high-level understanding of the internal challenges and direction of a company, and the external environments developing forces. SWOT can be simultaneously simp
233、le and powerful, providing an overall assessment of a business.SWOT Analysis SummarySWOT AnalysisOpportunities to Increase RevenueLeverage existing client relationships New areas of business Content managementDigital asset managementInternet applicationsIncreased demand for current servicesCost redu
234、ctionChange managementrevenue enhancementnew business opportunitiesinfrastructure developmentGrowth through acquisition or allianceIncreased consultancy needs due to regulatory changesThreatsCompetition aggressively targeting EMC industry clientsBuilding of resources slower than market growthLimited
235、 ability to quickly recruit and effectively deploy qualified consultants with deep industry experiencePotential conflicts of interest as client list growsShrinking client base due to industry consolidation StrengthsEntertainment industry expertise and thought leadership EMC 2000Technology ForecastET
236、CPublicationsFunctional experienceFinancial systemsStrategy developmentLarge, existing client base in entertainmentConcentrated focus through EMC practice, marketing and PR effortsBroad range of consulting servicesInternational network of partners and consultantsStrong vendor relationships (e.g., Or
237、acle, SAP) to leverageHigh visibility with CFOs gained through financial systems projectsWeaknessesNot enough consultants with industry expertise and functional experience to meet demandMinimum media client experienceInternal competition for industry vs. functional resourcesLimited visibility in the
238、 “business issues” market on the CEO and COO level Inconsistent client management and consulting skillsLimited ability to respond quicklyNo software package to leverageSC111898KR-Sydney85 1998, PricewaterhouseCoopers L.L.P.ApproachSWOT AnalysisSWOT Analysis involves a 4 step approach, requiring inpu
239、t from both internal and external sources, including, interviews with senior and business line management, as well as, expert opinions from industry analysts and trade publications. Step 1Interview company managementStep 2Perform competitive analysisStep 3List strengths and weaknesses of companyStep
240、 4Determine opportunities and threats the company facesWhen to ApplySWOT is tool, used to identify market opportunities facing a company, competitor issues, and key success factors to leverage. It can be effective in combining various issues identified through other forms of analysis. SC111898KR-Syd
241、ney86 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceSWOT Analysis Paul Elkin, “Mastering Business Planning and Strategy: The Power and Application of Strategic Thinking” Liam Fahey, Robert M. Randall, “The Portable MBA in Strategy” Robert M. Grant, “Contemporary Strate
242、gy Analysis”, 3rd Edition Henry Mintzberg, Bruce Ahlstrand, Joseph Lampel, “Strategy Safari: A Guided Tour Through the Wilds of Strategic ManagementSource List Galileo/Travel/Spencer Lin & Vasu Krishnamurthy Philips/Multi-Industry/KIT database PwC MCS/Consulting/Vasu Krishnamurthy PwC Specialty Chem
243、icals Point of View/Energy Practice & Strategic Change/KIT database Ralston Purina Company/CIP/KIT database US Postal Service/Multi-Industry/KIT databaseSC111898KR-Sydney87 1998, PricewaterhouseCoopers L.L.P.Value Based Management SummaryVBM advocates the use of strong management processes in tandem
244、 with value-based performance metrics to make strategic decisions for a company. Value-based performance metrics for making better decisions. Value-based management is an integrative process designed to improve strategic and operational decision making throughout an organization by focusing on the k
245、ey drivers of corporate value. VBM can be a key component in improving organizational effectiveness, because it provides an unambiguous and precise performance metric, namely value, upon which to build an organization. Previously, some management theories have not been based upon the bottom-line imp
246、act on the business. For example, in total quality management (TQM), the lack of value-oriented performance targets and measures contributed to failure. Value Based Management2015105005101520Value CreationValue DestructionReturnonEquityCost of EquityFRAMEWORK FOR SBU ANALYSISEXAMPLESC111898KR-Sydney
247、88 1998, PricewaterhouseCoopers L.L.P.ApproachValue Based ManagementWhen To ApplyTo evaluate whether a companys financial results have created or destroyed shareholder value. Can be applied in business unit analysis or to the organization as a whole.Properly allocate overhead to business area, and c
248、alculate profitability*Determine measure of business risk and required returns through extensive external analysis of similar public companiesAllocating equity or assets among the business unitsDetermine cost of equity and return on equity*For Business Unit AnalysisSC111898KR-Sydney89 1998, Pricewat
249、erhouseCoopers L.L.P.Value Based ManagementAppendixBusiness Valuation5.Calculate and interpret results4.Estimate continuing value3.Estimate cost of capital2.Forecast performance1.Analyze historical performanceCalculate NOPLAT and invested capitalCalculate value driversDevelop an integrated historica
250、l perspectiveAnalyze financial healthUnderstand strategic positionDevelop performance scenariosForecast individual line itemsCheck overall forecast for reasonablenessDevelop target market value weightsEstimate cost of non-equity financingEstimate cost of equity financingSelect appropriate techniqueS
251、elect forecast horizonEstimate the parametersDiscount continuing value to presentCalculate and test resultsInterpret results within decision contextSC111898KR-Sydney90 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceValue Based Management Amoco/Energy (Petroleum)/KIT dat
252、abase Compaq/Technology/Vasu Krishnamurthy Delta/Transportation/Dave Morgan Motorola/Technology/Vasu Krishnamurthy Union Pacific/Transportation/Dave Morgan Copeland, Kaller and Murrin, “Valuation: Measuring and Managing the Value of Companies Robert M. Grant, “Contemporary Strategy Analysis”, 3rd Ed
253、ition Michael Gould, Andrew Campbell, Marcus Alexander, “Corporate-Level Strategy: Creating Value in the Multibusiness Company” Source ListSC111898KR-Sydney91 1998, PricewaterhouseCoopers L.L.P.Value Chain Analysis SummaryThe Value Chain Analysis is functional on two levels: as a strategic tool to f
254、acilitate an understanding of where the key strengths and weaknesses lie within an organization and as a more operational tool to evaluate supply chain management issues. Value Chain AnalysisSC111898KR-Sydney92 1998, PricewaterhouseCoopers L.L.P.ApproachWhen To ApplyEmploy Value Chain analysis as a
255、high level diagnostic used to determine where an organization needs to improve or maintain value creation. It is most effective when applied to manufacturing or process oriented companies and is not a substitute for more detailed analysis such as AMB or the Relatively Static Model.Value Chain Analys
256、isListed below are key features to consider when creating a Value Chain Analysis model: Separate the companys business into primary and support activities and list the primary activities performed in each component Identify the critical success factors for each component and evaluate the companys st
257、rengths/weaknesses for each Identify the key cost drivers Assess potential for increasing value and decreasing costsSC111898KR-Sydney93 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceValue Chain Analysis Amoco/Energy (Petroleum)/KIT database Crown Life Insurance Company
258、/Insurance/KIT database Galileo/Travel/Spencer Lin & Vasu Krishnamurthy MetLife/Insurance/KIT database Rhone Poulenc/Chemicals/KIT database Save & Prosper/Banking/KIT database The New Zealand Refining Company Ltd(NZRC)/Energy (Petroleum)/KIT database Source List David A. Aaker, “Developing Business
259、Strategies”, 5th Edition David P Baron, “The Nonmarket Strategy System”, Sloan Management Review, Fall 1995 Liam Fahey, Robert M. Randall, “The Portable MBA in Strategy” Robert M. Grant, “Contemporary Strategy Analysis”, 3rd Edition Henry Mintzberg, Bruce Ahlstrand, Joseph Lampel, “Strategy Safari:
260、A Guided Tour Through the Wilds of Strategic ManagementSC111898KR-Sydney94 1998, PricewaterhouseCoopers L.L.P.Value Tree SummaryThis tool is useful to develop a comprehensive list of potential value creation driversValue TreeSC111898KR-Sydney95 1998, PricewaterhouseCoopers L.L.P.ApproachValue TreeWh
261、en To ApplyWhen it is necessary to develop a comprehensive list of potential value creation drivers Begin with a standard value tree consisting of benefit type, first-order drivers, and second-order drivers Determine third-order drivers, i.e., those specific activities which constitute the second-or
262、der drivers, based on ones industry knowledge and any company-specific information Use the available information and insights from other tools (e.g. Dupont Analysis, Enterprise Diagnostic, and Lean Producer Chart) to determine which benefit drivers might be the specific areas of company concern “Run
263、 the numbers” to model potential profit improvementSC111898KR-Sydney96 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceValue Tree Compaq/Technology/Vasu KrishnamurthyStrategic Change MBA Training Source ListSC111898KR-Sydney97 1998, PricewaterhouseCoopers L.L.P.Provide T
264、echnical SupportDeliverGoodsRelation ManagementVaried performance in 1996Not flexible due to campaign structureStart-up problems with NNSome problems with labelingSome problems with wrappingOverall, strong on delivery performanceGood on urgent deliveryConsignment stocks are well receivedStrong techn
265、ical competenceSpeed of response - reactiveJoint R&D with few selected companiesSome positive signs towards closer co-operationVery good with selected clientsVery good when going gets toughReactive, not proactiveDo not bring technical staff to meetings/not structuredTechnical issues not always dealt
266、 with by technical staffAttitude to pricing is short-termLack of initiative/not spontaneousNot open about market information and strategyToo dependent on one key personUnclear about strategic directionNo unity of approachConfusing account handlingEasy to get hold ofTech. competenceContinuity of repr
267、esentativesFrequency of visitsOpenness, sharing informationHonesty, integrity, trustAvailabilityComplaints handlingTechnical knowledgeProcess knowledgeSpeed of responseSolution orientatedProactiveUndamaged deliveryUrgency deliveryFlexibilityTimed delivery (JIT)Delivery reliability/securityUnderstand
268、ing clients businessAbility to listenOrder winningGivenCrucialWeaknessesStrengthsPerformanceProcess7.27.76.78.187.57.37.87.47.9Timed delivery (OW)Delivery reliable.(OW)Urgency delivery (C)Flexibility (C)Undamaged del. (G)56789XXXCompetitor7.67.78.377.87.68.17.58.37.67.86.9Speed of resp. (OW)Solution
269、 orient.(OW)Technical know. (C)Knowl. of cust. (C)Availability (G)Complaints handle.(G)56789XXXCompetitor7.87.87.37.57.47.96.87.987.57.47.47.68.17.67.8Honesty/integr. (OW)Ability to listen(C)Underst. client (C)Relationship (C)Easy to get hold (G)Technical comp. (G)Continuity of rep(G)Freq. of visits
270、 (G)56789XXXCompetitorsVoice of the Customer SummaryVoice of the CustomerThe Voice of the Customer is a framework for understanding what are critical factors from the customers point of view and how well the corporation performs compared to its competitors.SC111898KR-Sydney98 1998, PricewaterhouseCo
271、opers L.L.P.ApproachVoice of the CustomerWhen To ApplyThe Voice of the Customer is used to determine which analysis will yield the relative importance of each value driver to the customers. By associating each value driver with business processes and capabilities, one can use the result to make stra
272、tegic choices on where to focus and how good the corporation should aspire to be on the criteria. A practitioner should note that this technique does have a few limitations/points of concerns: Voice of the Customer survey provides an assessment of what customers currently believe to be the case, not
273、 future needs, requirements, etc. It is therefore important to include non-customers and a discussion with management about what might become the requirements of the future It might be a good idea to have a selection of managers and employees answer the same questions. Often, you will find a gap bet
274、ween what is internally perceived to be important and what the customers says. In itself a disturbing and revealing fact that should raise some interesting discussions.Step 1Preparation Look through existing corporate material on customer surveys Perform a focus group workshop to raise the various d
275、imensions that might concern customers (intern and with a selection of customers)Step 2Develop the questionnaire and test it. Make sure to have customers focus: Criteria: order winning, crucial, given Comparison: Better than competitors, equal, competitors better Ranking: on a scale from 1 to 5 Step
276、 3Perform the survey. NOTE: Make sure to include the voice of non-customersStep 4Assemble the results according the the VoC presentation outline.SC111898KR-Sydney99 1998, PricewaterhouseCoopers L.L.P.Citations - Client and Industry ExperienceVoice of the Customer Baxter/Pharmaceuticals/KIT database
277、Coach Leather/Retail/KIT database Hormel/CIP/Johan Sauer Polaroid/CIP/KIT databaseJon Anton, Debra Perkins, “Listening to the Voice of the Customer: 16 Steps to a Successful Customer Satisfaction Management Program” William Barnard, Thomas F. Wallace, The Innovative Edge: Creating Strategic Breakthroughs Using the Voice of the Customer”Price Waterhouse, “Better Change” Voices into Choices : Acting on the Voice of the Customer Source List
