【正文】 – Changes in regulation/government policy – Technological breakthroughs 11 IIB. COMPETITIVE ASSESSMENT – SUMMARY B. What are your petitive strengths and weaknesses? What are the capabilities required to succeed in this industry? How do you pare against these necessary capabilities? 12 IIB. COMPETITIVE ASSESSMENT – BACKUP 1 What are the capabilities required to succeed in this industry? ? Privileged assets that create petitive advantage, . physical assets, location/”space”, distribution/sales work, intangible assets (intellectual capital, work, brands, talents) ? Distinctive skills/petencies that create petitive advantage, , talent development 13 IIB. COMPETITIVE ASSESSMENT – BACKUP 2 How do you pare against these necessary capabilities? ? Strengths and weaknesses of your petitive position vs. necessary capabilities ? Benchmark performance against the industry’s relevant key performance indicators (KPIs)*, with margin and market share as the required minimum Strengths and weaknesses of your petitive position vs. necessary capabilities: Benchmark performance against the relevant industry’s KPIs: * KPIs are a handful of levers that drive the value of the industry/business 14 IIC. INTERNAL ASSESSMENT – SUMMARY C. How does your current business emphasis fit with the industry opportunities and the petitive landscape? Which segments of the business are providing the highest returns? What have been the performance trends along major BU KPIs? Which intangible assets* could be nearterm potential sources of value? * Please refer to Exhibit 12 for further description 15 IIC. INTERNAL ASSESSMENT – BACKUP 1 Which segments of the business are providing the highest returns?* ? Relevant BU segments (based on customer, product, geography, channel) ? Operating contribution estimates for each segment * Based on latest available, 12 year historical financial statements 16 IIC. INTERNAL ASSESSMENT – BACKUP 2 What have been performance trends along major BU KPIs? ? KPI performance trends over the last 35 years, . return on capital employed (ROCE), operating ine, margins, capital employed ? Assessment of underlying trend drivers ? Expected evolution ROCE = Operating ine x (1 tax rate) All interest bearing debt (short and long) + minority interest + stockholders’ equity 17 IIC. INTERNAL ASSESSMENT – BACKUP 3 Which intangible assets could be nearterm potential sources of value? ? Identification of inhouse intellectual property, talent, works, brand/image ? Conversion into sources of value 18 III. STRATEGIC DEFINITION AND IMPLICATIONS 19 IIIA. STRATEGY ARTICULATION – SUMMARY A. What strategy will your BU pursue over the next 3 years? Where to pete? What is your customer value proposition for the different segments you are going to serve? What is your business model? How does your chosen strategy exploit industry opportunities and address industry/petitive threats? 20 IIIA. STRATEGY ARTICULATION – BACKUP 1 Where to pete? ? Where are you going to pete along these dimensions and why: – Target market – Distribution channels – Product (breadth and depth) – Geographic scope 21 IIIA. STRATEGY ARTICULATION – BACKUP 2 What is your customer value proposition for the different segments you are going to serve? ? Target customer definition ? Benefits that you will offer the customers ? Product pricing ? Position against petition vis224。 incentives 5. Industry petitors FORCES AT WORK FRAMEWORK 42 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 Exhibit 4 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 43 Physical asset Location/space Distribution/sales work Brand/reputation Patent Relationship with license allocator ? BHP’s lowcost mines ? Telem/media pany with rights radio spectrum ? Avon’s representatives ? CocaCola ? Pharmaceutical pany with a wonder drug” ? Favored nation status with a key minister in liberalizing economy Innovation Crossfunctional coordination Market positioning Cost/efficiency management Talent development ? 3M with new products ? McDonald’s with QSCV ? JJ with branded consumer health products ? Emerson Electric’s Best Cost Producer program ? PG brand management program Privileged assets Distinctive petencies Necessary capabilities in order to succeed in the industry Example CAPABILITY PLATFORM: ASSESSMENT OF SOURCES OF COMPETITIVE ADVANTAGE (1/2) Exhibit 5 44 CAPABILITY PLATFORM: ASSESSMENT OF SOURCES OF COMPETITIVE ADVANTAGE (2/2) ILLUSTRATIVE Step 1: Ensure that these are the capabilities required to succeed in the industry. Use this list as a thought starter, add and delete as you see appropriate BU Overall Segments A B C Step 2: Assess your overall position relative to the capabilities required to succeed in the industry. Also, determine if these capabilities are relevant to the segments you serve Physical asset Location/space Distribution/sales work Brand/reputation Patent Relation