【正文】 trategy 17 TextileCoProposal bc Textile Co Corporate Strategy Toolkit ?Textile Co is a 163。 XXXM 163。 XXXM 163。for ecasts )Li ng er i e Hosie r yFu r ni s h ing sTe x t ile Cof o re c asts( con t i nu i ngsal es)1996 1997 1 998 E 1 999 E 2 000 ER e v e n u e s ( 163。 sO u te r w e a rG irls w e a r F o o t w e a r Me n 39。 B )Source: Verdict CAGR 1995 1999 % % % % % % We will also need to understand the growth implications by channel Project Approach Example: Growth in Channels 35 TextileCoProposal bc Textile Co Corporate Strategy Toolkit This work should then be pulled together to give the overall market picture Note: Market size for 36 weeks ending 12th May 1996 F NFO G ses 60628 70a Supermarkets/ 100% 80 60 40 20 0 163。discontinuities39。 Footwear 163。 sW e a rMe n 39。 Project Approach Scoping 25 TextileCoProposal bc Textile Co Corporate Strategy Toolkit A key element of the work will be to identify clearly which businesses Textile Co is in Customer Sharing Cost Capability Sharing High Low High Low Separate businesses . Microwave and television One business with potential for differentiation or niche position . Cross pens and Bic pens One business . Tee shirts Underwear Charge cards and credit cards Separate businesses with potential for cost leadership . Oil and refinery byproducts Source: Bain Experience Centre Separate business with potential for bundling . Hardware and software One business with potential for substitution . Sugar and corn syrup Dimensions of Businesses Project Approach 26 TextileCoProposal bc Textile Co Corporate Strategy Toolkit Fabrics: Lingerie Hosiery and Casualwear Underwear : Furnishings: ?To what extent are lace or stretch fabric customers similar around the world? Do they purchase/select suppliers globally? Do they have the same specifiers? ?To what extent are lace and stretch fabric customers the same in each country? ?To what extent can costs be shared between stretch fabrics businesses in different parts of the world (design, procurement, manufacture, marketing and sales)? ?To what extent can costs be shared between lace and stretch fabrics? ?To what extent are/can costs be shared between private label and branded products? Between products for different geographies? ?To what extent are lingerie and hosiery (or casualwear and underwear) customers the same, and do they have the same buyers? ?Will private label customers allow suppliers to realise the synergies (. by restricting manufacture in the same factory)? ?How significant are the synergies of owning lace and lingerie manufacturing (or jersey fabric and underwear) businesses that cannot be achieved from an armslength relationship? ?To what extent can/are costs shared between the different business units? ?Does Textile Co?s strong position with customers in clothing influence their purchasing of furnishings? Business Dimensions: Critical Questions Project Approach 27 TextileCoProposal bc Textile Co Corporate Strategy Toolkit ?Which businesses is Textile Co in and are there clear priorities between them? how many businesses are we really talking about? which are global, regional, national? Which geographies do we therefore need to study? are private label and branded garments the same business? ?Are there businesses where management is fortable that their full potential is understood and realistically quantified and hence requires little work? ?Are there businesses that management has already decided are highly unlikely to be future growth opportunities and can be omitted? The first phase will involve management interviews and initial analysis to agree the appropriate scope Project Approach Scoping Questions 28 TextileCoProposal bc Textile Co Corporate Strategy Toolkit ?Review pany forecasts output by business unit ?Interviews with Textile Co Executives to understand likely growth opportunities and degree of fort with full potential of businesses ?Collate data from businesses and analyse to quantify the extent of: customer sharing between garment types/fabric types across geographies cost/capability sharing across garment types, across geographies ?Working session with selected Executives, as appropriate, to refine scope Project Approach Scoping Activities 29 TextileCoProposal bc Textile Co Corporate Strategy Toolkit Project Approach Proposed Approach 1. Ensure appropriate scope (Out of current scope) II. Understand Value Creation Opportunities III. Understand Textile Co Valueadded IV. Implement I. Scoping current businesses full potential 3. Identify possible adjacencies 6. Evaluate potential acquisitions 7. Develop action plans preliminary set of options 5. Assess options and confirm priorities – confirm core business opportunities – explore adjacencies Factbase 30 TextileCoProposal bc Textile Co Corporate Strategy Toolkit ?The full potential of a business is the maximum value it should be capable of generating given its current petitive position benefit of market growth (assuming share held) market share gains by increasing customer base / gaining peration of current customers growth through new product introductions in same business operational improvement to enhance margins ? petitive benchmarking ? internal best demonstrated practices ?This requires a fundamental understanding of the market attractiveness, Textile Co? petitive position and hence the opportunities within that market To pare the attractiveness of Textile C