某公司战略管理知识分析工具方案(英文版)

Company suffered severe losses due to inability to transfer experience, lack of focus, and tainted image
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BOS CU7121997ECA 8
Copyright© 1998 Bain & Company, Inc.
Agenda
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BOS CU7121997ECA 3 Copyright© 1998 Bain & Company, Inc.
Business Definition
What is Business Definition?
Business definition delineates the economic boundaries within which companies should compete.
• Miscalculate “market
share”
• Set inappropriate
performance targets
• Overlook relevant
capacity changes
• Misjudge true cost
position
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BOS CU7121997ECA 7
Copyright© 1998 Bain & Company, Inc.
• The business definition concept • Applications • Business definition steps • Client examples
– Bunker Hill Door Systems – JJR Industrial Coatings
• Key takeaways
Companies that define their businesses incorrectly make poor strategic decisions.
Costs
• Incur unnecessary
costs
• Forgo opportunities
to capture synergies
• Should we drop this
product line?
• Should we cross-train
our salesforce?
• How should we group
purchases for VMRs (value managed relationships?
• How should we
Real Estate
2
1
0.5
RMS
10%
0.2
0.1
0%
10
5
Growth/Share
Commercial
• A business
may look
deceptively
Residential
attractive or
2
1
0.5
RMS
0.2
0.1
unattractive
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BOS CU7121997ECA 9 Copyright© 1998 Bain & Company, Inc.
• Forgo opportunities to
capture synergies
• Misjudge relevant
market trends
• Overlook relevant
geographies
Competitors
• Overlook relevant
competitive threats
Business Definition
Examples of Incorrect Business Definition
Some respected companies have missed profit opportunities or suffered unnecessary losses because they did not define their businesses correctly.
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Business Definition
Author: Contributors:
Reviewer:
Gisele Garraway
Susan Caraviello, Paul DiPaola, and Todd Senturia
Todd Senturia
March 1998 CU7121997ECA 1
• Same customers • Same cost structure • Same competitors
• Different customers • Different cost structure • Different competitors
One business
Compete in both segments to take advantage of synergies
Business Definition
Analytic Consequences of Incorrect Business Definition (p.2)
Defining a business incorrectly can lead to problems in conducting E-Curve and RCP analysis.
Copyright© 1998 Bain & Company, Inc.
Business Definition
• The business definition concept • Applications • Business definition steps • Client examples
– Bunker Hill Door Systems – JJR Industrial Coatings
• Key takeaways
Agenda
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BOS CU7121997ECA 2 Copyright© 1998 Bain & Company, Inc.
Business Definition
Separate businesses
Do not compete in both segments
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BOS CU7121997ECA 5 Copyright© 1998 Bain & Company, Inc.
Business Definition
Why Bain Uses Business Definition
normative band will not emerge
0%
0.1
0.2
Fizz Drinks Red Ale
0.5
1
2
Beer and Distilled Spirits
0%
5
10
0.1
0.2
0.5
1
2
Beert Growth
20%
10%
0%
10
5
20%
Market Growth
• Serves as the foundation for strategic analysis and sound decision
making
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BOS CU7121997ECA 4 Copyright© 1998 Bain & Company, Inc.
Business Definition
The correct business definition can lead to case-cracking insights.
Strategic insights
• Should we buy or
sell the restaurant business?
• Should we expand
Consequences of incorrect business
definition
Charge card division lost money due to poor cost position and misguided marketing efforts
The combination provided little value to customers: Allegis was split up
• Do not transfer
experience
• Underinvest in
important R&D initiatives
Customers
• Neglect profitable
customer segments
• Over-invest in
unprofitable customers
into China?
• Are we vulnerable to
Japanese competitors?
• Should we vertically
integrate into growing vegetables?
Tactical insights with strategic importance
configure our manufacturing plants?
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BOS CU7121997ECA 6
Copyright© 1998 Bain & Company, Inc.
Business Definition
Consequences of Incorrect Business Definition
One Business vs. Separate Businesses
If two business segments have the same customers, the same cost structure, and the same competitors, they are one business. If they are different on all of these dimensions, they are separate businesses.
Incorrect Business Definition
Correct Business Definition
6%
4%
Drinks
If we define a business incorrectly...
ROS
4%
Cider
2%
ROS
Red Ale 3%
2%
Fizz
Cider
1%
ROS/RMS
• The underlying
Company
• American Express
• Allegis
How management defined the business
Charge cards and credit cards are separate
Airlines, hotels and rental cars are one business - caring for travelers worldwide
• Indicates whether two business segments should be operated as
one business or as separate businesses
• Helps identify what drives superior profitability in an industry
Business Definition
Analytic Consequences of Incorrect Business Definition (p.1)
Business definition must be the starting point of any Bain case because defining a business incorrectly can adversely affect strategic analysis and decision making.
A better business definition
Charge cards and credit cards are one business - plastic money
Airlines, rental cars and hotels are three separate businesses
Incorrect Business Definition
• Saatchi & Saatchi
Advertising and consulting are one business --service to global business executives
Advertising and consulting are separate businesses