【文章內(nèi)容簡介】 s in the portfolioallow North to pursue an independent strategysell France, Spain and Sweden at the right price and time?Ensure remaining businesses address the most important strategic issuesestablish clear strategies for growth businesses (Holland, Luxembourg, Hong Kong, Italy)finalise turnaround plans for businesses which can39。t be sold at reasonable pricestake writeoffs as required?Consider acquisitions?Reduce corporate expenses?Add value to the businesses in the portfoliobuild RD capabilitiesleverage costsupgrade the anisationConclusionAction Remendations15RetailCo2bcRetail CoCorporate Strategy Toolkit?Chain drug industry is consolidating–economies of scale in systems investments–relationships with thirdparty payers?An independent North generates significantly more shareholder value as it participates in the evolution of the industry?North makes minimal use of corporate functions。 there is little costsharing among North and the other divisions?Market timing is attractive?North39。s value is not being fully recognized in the marketplaceConclusionExample: Rationale For an Independent North16RetailCo2bcRetail CoCorporate Strategy Toolkit?Planned capacity additions will result in industrywide negative p store sales through 1998?Consolidation is essential to eliminate excess capacity–lowers costs–allows p store sales growth?Retail Co is better suited to be a seller than a buyer–synergy is equal whether France chooses to acquire or be acquired–leading petitor39。s market value is higher–management group at France has several significant holesConclusionExample: Rationale for the Sale of France17RetailCo2bcRetail CoCorporate Strategy Toolkit?Continue to pursue opportunities to consolidate and reduce overcapacity?Fill key executive openings?Restore the historical bargain edge with core customers–increase the mix of opportunisticallypurchased goods–deliver values averaging 20% below department store sale prices?Reduce costs to support price reductions–reduce overhead costs by approximately $60MM–reduce investment cost for new stores and remodels?Close unprofitable locations and exit several markets which France cannot dominateIf the sale of France takes longer than anticipated, several actions will be taken to improve France39。s performance:ConclusionExample: France Strategic Imperatives18RetailCo2bcRetail CoCorporate Strategy ToolkitVision: ? To consolidate our position as the leading widget retailer to our target customers (highvolume purchasers of trendy widgets in their 20s and 30s) ? To be recognized by our target customers as the leader in product assortment and customer service for widget retail (our unique positioning)? To reach a 10% share of the national widget retail market by the year 2023Financial Goals:? To reach and maintain ROIC levels of 20%? To grow sales by 5% per year and earnings by 10% per year8 1998 sales objective: $1,225MM8 1998 earnings objective: $47MMStrategy Summary (1 of 2)Conclusion19RetailCo2bcRetail CoCorporate Strategy ToolkitKey Imperatives Initiatives? Develop our new concept, Widget Factory, into the secondlargest nonmall based widget retailer? Retail Co Real Estate audit of potential new sites? Widget Factory rapid deployment initiative (opening of 30 new stores per year? Close nonperforming stores ? Closing of the 10 worst performing mature stores (both XYZ and Widget Factory) each year