【正文】 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。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。 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 ? STRATEGY PLANNING INSTRUCTIONS ? The objective of these templates is to provide 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 ? Each section begins with a summary that is based on a synthesis of questions and analyses that follow. The suggested approach would be to first plete the relevant backup analyses and then work towards the overall synthesis 2 ? TABLE OF CONTENTS I. Executive summary II. Environmental and internal assessment A. Industry dynamics and its implications B. Competitive assessment C. Internal assessment III. Strategic definition and implications A. Strategy articulation B. Strategic initiatives C. Financial projection D. Risks/contingencies and strategic alternatives IV. Exhibits 3 ? BU STRATEGIC PLAN DEVELOPMENT Industry dynamics and implications Environmental and internal assessment Competitive assessment Internal assessment ? What are the major changes in industry dynamics and resulting opportunities and risks? ? What are your petitive strengths and weaknesses? ? How does your current business emphasis fit with industry opportunity and petitive landscape? Strategy articulation Strategic definition and implications Strategic initiatives Financial projections ? What strategy will your BU pursue over the next 3 years? ? What will be the impact of major strategic initiatives? ? What are the expected financial returns of your strategy? + + + + Risk/contingencies strategic alternatives ? What strategic alternatives have you considered? + 4 ? I. EXECUTIVE SUMMARY 5 ? II. ENVIRONMENTAL AND INTERNAL ASSESSMENT 6 ? IIA. INDUSTRY DYNAMICS AND IMPLICATIONS – SUMMARY A. What are the major changes in industry dynamics and the resulting opportunities and risks? How is industry structure changing (demand, supply, and industry chain economics)? What are the resulting opportunities and risks? What is the expected petitor conduct? What are the resulting opportunities and risks? What are the present and future external factors that could present new opportunities and risks? What industry are you peting in? What are the various segments in the industry? 7 ? IIA. INDUSTRY DYNAMICS AND IMPLICATIONS – BACKUP 1 What industry are you peting in? What are the various segments in the industry? ? Industry definition ? Industry segmentation – Definition – Sizing Industry definition: Industry segmentation: 8 ? IIA. INDUSTRY DYNAMICS AND IMPLICATIONS – BACKUP 2 How is industry structure changing with respect to demand, supply, and industry chain economics? What are the resulting opportunities and risks? ? Economics of demand – By segment – Substitutes, ability to differentiate – Volatility, cyclicality ? Economics of supply – Producer concentration and diversity – Import petition – Capacity utilization – Entry/exit barriers – Cost structure (fixed and variable) ? Industry chain economics – Customer and supplier bargaining power 9 ? IIA. INDUSTRY DYNAMICS AND IMPLICATIONS – BACKUP 3 What is the expected petitor conduct? What are the resulting opportunities and risks? ? Major industry petitor moves – Marketing initiatives – Industry capacity changes – MAs, divestitures – Vertical integration/disaggregation – Alliances and partnerships – Cost control and efficiency improvements 10 ? IIA. INDUSTRY DYNAMICS AND IMPLICATIONS – BACKUP 4 What are the present and future external factors that could present new opportunities and risks? ? Impact and likeli