【文章內(nèi)容簡介】 E, F Background and Objective Current Strategy 17 TextileCoProposal ?Textile Co is a 163。XXXM international business with four divisions, prising of more than 30 business units, serving the fabrics, branded and private label garments (especially lingerie, hosiery, casualwear and mens underwear) and home furnishings markets ?Over the last two years the pany has undertaken a major restructuring selling or closing XX businesses raising its ROACE from % in 1996 to a forecast % in 1998. However, improving the financial performance of the group remains a management challenge. XX of the business units (accounting for 28% of sales) still do not meet the group?s 17% ROACE target, including 15% of sales from lossmaking businesses ?Management are forecasting fairly aggressive profitability improvements over the next three years, especially from Lingerie Hosiery and Casualwear Underwear, to ensure each division exceeds the ROACE target by 2023 ?Bain Company research has shown that panies that deliver sustained shareholder value have not only to grow profits but also revenues, a fact recognised by Textile Co However, the current strategy suggests there is limited prioritisation between business areas, with each business being developed “on its merits” ?The result of this approach is shown in the bottom up growth forecasts showing somewhat pedestrian anic growth of % . to 2023 in line with City expectations but well below the 68%. expected from major petitors ?It is now the appropriate time to take a fundamental review of the portfolio to focus resources for growth Background and Objective Summary 18 TextileCoProposal Project Objective ?To develop a Corporate Strategy for Textile Co identifying its key growth and value creation opportunities: relative attractiveness and growth potential of businesses in the current portfolio opportunities to exploit outside the current portfolio potential acquisition opportunities how to prioritise resources across the portfolio ? businesses to retain ? businesses to sell (if any) ? allocation of resources to businesses/opportunities Background and Objective 19 TextileCoProposal Agenda ? Executive Summary ? Background and Objective ? Project Approach ? Timing and Deliverables ? Project Structure and Resources ? Anticipated Benefits 20 TextileCoProposal The Best Value Creation Opportunities Priority Businesses in Portfolio The attractiveness of a business depends on two key dimensions: scale of opportunity in that business ability of Textile Co to deliver that opportunity The Best Parent High Low Textile Co is best parent Another parent is better Project Approach Framework 21 TextileCoProposal Position to exploit significant structural change Maximise potential in existing activities Take advantage of attractive business adjacencies ?To what degree is there cost/customer/capability sharing with existing businesses or other potential new businesses? ?How are key trends changing business boundaries? –customer buying patterns –technology –industry consolidation –etc. Delivering maximum value creation requires maximising performance in core activities and either moving into related adjacencies or exploiting structural changes in the industry Growth Project Approach 22 TextileCoProposal 1. Ensure appropriate scope We propose a fourstaged approach (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 Project Approach Factbase Staged Approach 23 TextileCoProposal Project Approach Staged Approach (Out of current scope) 1. Ensure appropriate 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 24 TextileCoProposal Source: TextileCo Management Accounts Jersey F a br icsFu r n ish in g sL a ce Fa b r icsCa sua lw e a r B r a n d e dCa su a lw e a r Un d e r w e a r P r i v a te La b e lS tre tc h Fab r icsL in g e r ie Hosie r y P r i v a te La b e lL in g e ri e Ho sie r y B r a n d e dS a l e s O p e r a t i n g P r o f i t0204060801 0 0 %P r o p o r t i o n o f1 9 9 7 S a l e s /O p e r a t i n g P r o f i tTo plete the project in the given timeframe, we need to focus the scope. There are few obvious areas to omit 163。XXXM 163。 Project Approach Scoping 25 TextileCoProposal 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