【正文】 ew businesses Under siege * * * * * * * * ** ** *** *** *** *** *** *** *** *** Three key concepts Balancing growth across 3 Horizons Building businesses through a staircase of initiatives A pany as a portfolio of staircases Growth staircase dynamics Each step on staircase ? Captures an opportunity ? Builds new capabilities ? Creates new options for the next step Capability platform Businessspecific petences, growthenabling petences, privileged assets, special relationships New capabilities Required future capabilities Existing capabilities Existing capabilities capabilities New New capabilities Required future capabilities Required future capabilities Required future capabilities Aspiration CocaCola Amatil’s European staircase Relationship and credibility with The CocaCola Company Capabilities development Strong brands Regional economies of scale and distribution Manufacturing expertise ‘I have a vision that by the year 2023, CCA’s output in Europe will go from 400 million unit cases at the moment to 1 billion’ Muhtar Kent, CCA European Managing Director Limited platform of beverage capabilities 196472 1982 199193 198791 199496 Acquires 4 Australian CocaCola franchises Acquires Austrian franchises ? Graz ? Vienna Acquires further Austrian franchises ? Hungary ? Czech Republic ? Slovakia Acquires franchises in ? Belarus ? Ukraine ? Slovenia ? Poland (66%) ? Romania (50%) ? Croatia ? Switzerland Acquires franchises in ? M246。dling ? St Polten ? Landegg ? Steyr ? Gmunden ? Klangenfurt ? Dombirn ? Salzburg Seed growth options Test business model Replicate proven business model Manage for profitability Source and secure options for future growth Test mercial viability of business concept Realise growth potential through businessbuilding initiatives Maximise growth potential by unlocking incremental growth, then manage value in decline Generic growth staircase ? Hungary ? Czech Republic ? Slovakia Acquires franchises in Seed growth options Test business model Replicate proven business model Manage for profitability CocaCola Amatil’s European staircase 196472 1982 199193 198791 199496 Acquires 4 Australian CocaCola franchises Acquires Austrian franchises Acquires further Austrian franchises ? Belarus ? Ukraine ? Slovenia ? Poland ? Romania ? Croatia ? Switzerland Acquires franchises in ? M246。dling ? St Polten ? Landegg ? Steyr ? Gmunden ? Klangenfurt ? Dombirn ? Salzburg ? Graz ? Vienna Sources of value creation: CocaCola Amatil Superior frontline execution Positional advantage Insight/foresight Seed growth options Replicate proven business model Manage for profitability Test business model ‘Although the current level of soft drink consumption is low…the local soft drink market is expected to grow dramatically in the 1990s’ Dean Wills, Chairman 1991 annual report Example: In 1991, CCA started a new staircase in Indonesia, where per capita soft drink consumption was ~2% of Australia’s consumption ‘The advantages of operating in two territories adjoining one another, versus two in isolation, are tangible’ Dean Wills, Chairman 1994 annual report Example: In Europe, CCA’s growth formula is based on securing contiguous franchises and driving out cost via rationalisation ‘The CocaCola Company measures the performance of its bottlers against 3 simple criteria (expanding sales of CocaCola products, boosting per capita consumption, investing in CocaCola brands). CocaCola Amatil is a star performer on all three counts. The Australian pany is the current darling of the Coke system’ BRW, 13 September, 1991 Example: CCA’s frontline marketing skills are among the best in the world Three key concepts Balancing growth across 3 Horizons Building businesses through a staircase of initiatives A pany as a portfolio of staircases Mapping staircases to Horizons Time frame Profit Horizon 1 Horizon 2 Horizon 3 Create viable options Seed growth options Replicate proven business model Manage for profitability Test business model Build emerging businesses Extend and defend core businesses 3 Horizons as a portfolio of staircases Horizon 1 Extend and defend core businesses Horizon 2 Build emerging businesses Horizon 3 Create viable options Time f