【正文】 n ? Diversity of producers ? Fixed/variable cost structure ? Capacity utilization ? Entry/exit barriers Industry chain economics ? Bargaining power of input suppliers ? Bargaining power of customers Marketing ? Pricing ? Volume ? Advertising/promotion ? New products/RD ? Distribution Capacity change ? Expansion/contraction ? Entry/exit ? Acquisition/merger/ divestiture Vertical integration ? Forward/backward integration ? Vertical joint ventures ? Longterm contracts Internal efficiency ? Cost control ? Logistics ? Process RD ? Organization effectiveness Finance ? Profitability ? Value creation Technological progress Employment objectives External shocks Feedback tructure C onduct P erformance STRUCTURECONDUCTPERFORMANCE (SCP) MODEL Exhibit 2 41 Exhibit 3 1. Determinants of supplier power ? Differentiation of inputs ? Switching costs of suppliers and firms in the industry ? Presence of substitute inputs ? Supplier concentration ? Importance of volume to supplier ? Cost relative to total purchases in the industry ? Impact of inputs on cost or differentiation ? Threat of forward integration relative to threat of backward integration by firms in the industry 2. Determinants of barriers to entry ? Economies of scale ? Proprietary product differences ? Brand identity ? Switching costs ? Capital requirements ? Access to distribution ? Absolute cost advantages – Proprietary learning curve – Access to necessary inputs – Proprietary, lowcost product design ? Government policy ? Expected retaliation 5. Rivalry determinants ? Industry growth ? Fixed (or storage) cost/value added ? Intermittent overcapacity ? Product differences ? Brand identity ? Switching costs ? Concentration and balance ? Informational plexity ? Diversity of petitors ? Corporate stakes ? Exit barriers 3. Determinants of buying power ? Bargaining leverage –Buyer concentration vs. firm concentration –Buyer volume –Buyer switching costs relative to firm switching costs –Buyer information –Ability to backward integrate –Substitute products –Pullthrough 4. Determinants of substitution threat ? Relative price performance of substitutes ? Switching costs ? Buyer propensity to substitute 2. New entrants 3. Buyers 4. Substitutes Intensity of rivalry 1. Suppliers ? Price sensitivity –Price/total purchases –Product differences –Brand Identity –Impact on quality perception –Buyer profits –Decision makers39。9 7 39。9 6 39。0 0020040060039。9 9 39。9 8 39。9 7 39。9 6 39。0 005101539。9 9 39。9 8 39。9 7 39。9 6 39。0 03132333439。9 9 39。9 8 39。9 7 39。9 6 39。0 0020406039。9 9 39。9 7 39。9 8 39。9 9 39。0 0020406039。9 6 39。9 7 39。9 8 39。9 9 39。0 0Exhibit 10 49 TREND ANALYSIS – CASH NOT EXHAUSTIVE The cash flow tree can be disaggregated to show the other relevant KPIs of a BU Exhibit 11 Cash flow generated PhP million Operating cash flow PhP million Investing cash flow PhP million + Net ine PhP million Noncash expenses PhP million + Change in working capital PhP million + 020406039。9 6 39。9 7 39。9 8 39。9 9 39。0 012141639。9 6 39。9 7 39。9 8 39。9 9 39。 Revenue PhP million Operating margin Percent x (1 tax rate) Percent x Market share Percent Industry sales PhP million x 0102039。CONFIDENTIAL BU Strategic Plan Template Book Training materials 8 June 2023 This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client anization without prior written approval from McKinsey Company. This material was used by McKinsey Company during an oral presentation。 incentives 5. Industry petitors FORCES AT WORK FRAMEWORK 42 Opportunities/Threats ? How are demand and supply expected to evolve? ? How do you expect the industry chain economics to evolve? ? What are the potential major industry discontinuities? ? What petitor actions do you expect? YOUR BU SWOT ANALYSIS Exhibit 4 CONVERT OPPORTUNITIES BUILD ON STRENGTHS NEUTRALIZE THREATS ADDRESS WEAKNESSES Strengths/ Weaknesses ?What are your BU’s assets/petencies that solidify your petitive position? ?What are your BU’s assets/petencies that weaken your petitive position? Can be used as a thought starter for petitive analysis and internal assessment Surfaces potential opportunities/threats arising from factors external to the BU 43 Physical asset Location/space Distribution/sales work Brand/reputation Patent Relationship with license allocator ? BHP’s lowcost mines ? Telem/media pany with rights radio spectrum ? Avon’s representatives ? CocaCola ? Pharmaceutical pany with a wonder drug” ? Favored nation status with a key minister in liberalizing economy Innovation Crossfunctional coordination Market positioning Cost/efficiency management Talent development ? 3M with new products ? McDonald’s with QSCV ? JJ with branded consumer health products ? Emerson Electric’s Best Cost Producer program ? PG brand management program Privileged assets Distinctive petencies Necessary capabilities in order to succeed in the industry Example CAPABILITY PLATFORM: ASSESSMENT OF SOURCES OF COMPETITIVE ADVANTAGE (1/2) Exhibit 5 44 CAPABILITY PLATFORM: ASSESSMENT OF SOURCES OF COMPETITIVE ADVANTAGE (2/2) ILLUSTRATIVE Step 1: Ensure that these are the capabilities required to succeed in the industry. Use this list as a thought starter, add and delete as you see appropriate BU Overall Segments A B C Step 2: Assess your overall position relative t