【正文】 Step 1: Identify the relevant segments Step 2: Provide a segment analysis based on the following minimum financial metrics: revenue, gross profit and margin, operating profit and margin Step 3: To the extent assets and people can be disaggregated by segment, deployment of assets against returns can be analyzed % PhP % of total Segment 1 PhP % of total Segment 2 PhP % of total Segment 3 PhP % of total Segment 4 PhP % of total Total % % % % Segment 1 Segment 2 Segment 3 Segment 4 Total 24 ? SEGMENT ANALYSIS APPLIED TO LEXMARK Printers and suppliers Other office imaging Keyboards and other 59347Rest of world Europe US Product Percent Geography Percent of total revenues, 1995 100% = USD 3,807 million 100%= $2494 m 100%=$895 m 11 41 48 6 48 46 100%= $3021 m 100%= $1024 m 14 35 51 8 46 46 100%= $3452 m 100%= $1031 m 14 28 58 40 60 100%= $3807 m 100%= $1164 m 9 23 68 32 67 1 Gross profit Rev 1992 Gross profit Rev 1993 Gross profit Rev 1994 Gross profit Rev 1995 0 25 ? TREND ANALYSIS – RETURN ON CAPITAL EMPLOYED (ROCE) The ROCE tree can be disaggregated to show the other relevant KPIs of a BU ROCE Percent Operating ine x (1 tax rate) PhP million Capital employed PhP million 247。 incentives 5. Industry petitors FORCES AT WORK FRAMEWORK 11 ? 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 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 12 ? SCP APPLIED TO LEXMARK ? Rapidly changing technology, ., birth of portable, handheld, wireless puters ?Rapidly changing customer preferences ?Possibility of a paperless society given increasing environmental concern and rise of the inter Economics of demand ?Inkjet printers replacing laser in nonwork environment ?High price sensitivity。CONFIDENTIAL BU Strategic Plan Basics Training materials 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。 it is not a plete record of the discussion. Jim Ayala – PHO Melissa Gil – PHO Regina Manzano – PHO Suresh Mustapha – PHO Steve Shaw – HKO Shelly Yeh – PHO ChoonGin Tan – SIO ? DESCRIPTION OF MATERIALS ? This document was developed as a training presentation for the newly appointed Business Unit CEOs of an Asian Familyowned conglomerate. ? The purpose of this document is to guide new CEOs through the basic elements of developing a BUlevel strategic plan. ? This presentation is plemented by a panion document the “BU Strategic Plan Template Book” which provides pleteness and consistency of BU strategic plan submissions. These templates are not intended to replace or constrain BU strategic thinking and should be adapted to reflect a particular BU’s sectoral context as required 2 ? WHAT IS A BU STRATEGY? A strong business concept that drives an integrated set of actions that creates value by: ?Creating products/services whose value exceeds the cost of providing them ?Capturing value from petitors, customers, distributors, suppliers, and producers of substitute products and services 3 ? RATIONALE FOR PROPOSED DEFINITION A strong business concept that drives an integrated set of actions that creates value by: ?Creating products/services whose value exceeds the cost of providing them ?Capturing value from petitors, customers, distributors, suppliers, and producers of substitute products and services 1. Recognize dual role of creating and capturing value in all elements of business system 2. Forces choices 6. Competitive 7. Externally oriented, customer driven 4. Recognizes importance of cost as petitive tool 5. Considers tradeoffs between benefit provided to customers and costs they incur 3. Gives consideration to all elements of the business system 4 ? COMMON ELEMENTS OF REALLIFE STRATEGIES Vision Where? Strong business concept consisting of How to pete? Integrated set of actions ? Developed high quality standards and excellent operational procedures ? Focus on developing critical mass of stores and establishing market dominance ? McDonald’s experienced phenomenal success in globalization due to: – Successfully screening franchisees and a dedication to intense initial and ongoing training – Consistent delivery of highquality food and service around the world – Huge economies of scale and powerful supplier leverage –Capitalized on “American” appeal of McDonald’s – Success in tailoring assortment mix to meet local needs ? “We want to be the world’s best quickservice restaurant experience” ? We will offer identical excellent quality acros