【正文】 d glass milk bottles) 13 ROS/RMS BOS Correct Market Share Measure *Statistical market areas 0%5%10%15%20%25%30% 1 2 5S am M artC a in sA c m eZ Ma r tOperating return on assetsNat io na l RM S0%5%10%15%20%25%30% 1 2 5Sa m Ma r tC a i n sA c m eZ Ma r tOperating return on assetsW e ig ht e d Av era ge RM S of T o p 50 S M S A s *Determining whether a business is local, regional, or national is also important. Incorrectly defined business National discount department store Correctly defined business Regional discount department stores Rsquared: When business definition is correct, there is a meaningful predictive relationship 14 ROS/RMS BOS Relevant Competitors Incorrect Business Definition 0%3%5%8%10%13% 1 2 5H C CK erbyD unlo pG i b bReturn on SalesR M S$1 , 2 50 M MR e v e nu eAn incorrect business definition may exclude relevant petitors from ROS/RMS analysis. National Textile Laundering It appears Gibb has three major petitors and is underperforming 15 ROS/RMS BOS Relevant Competitors Correct Business Definition 0%2%4%6%8%10% 1 2 5 10Bu r nesG i b bK erb yROSR M S0%2%4%6%8%10% 1 2 5 10D r.Kl eenH C CG i b bROSR M S0%3%5%8%10%13% 1 2 5 10G i b bS o ut he rnT ex t i l eD unlo pROSR M SRegional healthcare laundering Regional industrial laundering Gibb has six petitors. Gibb is in three separate businesses, all of which are regional. The correct business definition will ensure that all relevant petitors are considered. Regional linen laundering 16 ROS/RMS BOS ROS/RMS Steps Define the business Calculate profitability Calculate relative market shares Draw normative band Determine action implications Key Success Factors ?Achieve parability across petitors 17 ROS/RMS BOS Net ine after tax Sales After tax operating profit Average assets Net ine after taxes Average equity Net ine after taxes Capital employed *Pretax profitability measures are preferable because they exclude any firmspecific tax issues ROCE (Return on capital employed) ROE (Return on equity) Disadvantages: Difficult to make parable across panies Difficult to make parable across panies Not always clear which asset measures to use (Book value? Before depreciation or after?) ROA (Return on assets) Advantages: Best proxy for return on investments Best proxy for return on shareholders’ investments Easy to collect parable measures across petitors Bain example: Drug store chains Retail department stores Beverage industry Calculation:* ROS (Return on sales) The profitability measure used varies from case to case. The key is to use a measure that will allow for an applestoapples parison across relevant petitors. Eliminates the effects of how assets are financed Results are sometimes unclear when some petitors mand a large price premium Building products Calculating Profitability 18 ROS/RMS BOS ROS/RMS Steps Define the business Calculate profitability Calculate relative market shares Draw normative band Determine action implications Key Success Factors ?Include any shared experience ?If business is local or regional, weight market shares 19 ROS/RMS BOS Calculating Relative Market Share *Revenues or points of share can be used when units are not available. The relative market share for the market leader is calculated in relation to the 2 player。 the RMS for all other players is calculated in relation to the market leader. Leader’s RMS: Any other player’s RMS: Market leader’s units sold 2 player’s units sold Other player’s units sold Market leader’s units sold It is preferable to use units* instead of revenue since we believe accumulated units of experience drive the potential for higher relative profitability 20 ROS/RMS BOS Shared Experience (1 of 2) When potential shared experience is ignored, the predictive power of ROS/RMS is limited. In this example, market share in outboard motors does not explain profitability. W o r l d w i d e R e l a t i v e M a r k e t S h a r e o f O u t b o a r d sPretax Return on Capital6x54321 . 510 . 70 . 50 . 40 . 30 . 20 . 18 0 %6 0 %4 0 %2 0 %0%( 2 0 % )( 4 0 % )Y a m a h aO M CM e r c u r yC h r y s l e rM o t o r sO u t b o a r dv o l u m e21 ROS/RMS BOS Shared Experience (2 of 2) When the benefits of shared experience with lawnmowers and motorcycles is included, a positive correlation appears. Worldwide Relative Market Share of Outboards, Including Shared Experience With Motorcycles and Lawnmowers Pretax Return on Capital 6x 5 4 3 2 1 80% 60% 40% 20% 0% (20%) (40%) Yamaha OMC Mercury Chrysler Outboard Motors volume 22 ROS/RMS BOS ROS/RMS Steps Define the business Calculate profitability Calculate relative market shares Draw normative band Determine action implications Key Success Factors ?Calculate the normative normative band using regression analysis 23 ROS/RMS BOS Drawing the Normative Band (1 of 2) *The Bain Graphics Wizard draws the normative band automatically when the RMS and ROS data points are given. It will not however, calculate an R2 The first step in drawing the normative band is to run a regression on ROS and the log of RMS. We then calculate the best fit, or regr