貝恩行業(yè)分析-RetailCo1.ppt

bc,Compiler:,Reviewer:,RetailCo.,Created:August26,1999,Copyright1998Baindecliningmarketshare,lowrelativeoperatingmargins,Ireland,Decliningmarketsegment,poorposition,littleopportunityforsale,potentialforsavingsbyfoldingintoHongKong,France,Overcapacityinsegment,losingmarketshare,belowaverageprofitability,Sweden,Largeoverallmarketbutrequiressubstantialinvestmenttodevelopnewproductsandachievescaletoimprovecostposition;businesshaspoorfitwithRetailCoskills,Spain,Smallsegment,lowgrowth,highvolatility,andseasonality,Division,Conclusion,StrategicPosition,MarketAttractiveness,Fit,Conclusion,13,RetailCo2,BusinessUnitRecommendations,Division,StrategicPosition,MarketAttractiveness,Fit,Grow(SpinOff),North*,Holland,Italy,HongKong,Luxembourg,Hold,Britain,Divest,Ireland,France,Sweden,Spain,*SpinOff,Conclusion,14,RetailCo2,StrategicAlternatives,Long-termvision:,Corporateprofile:,Theleaderinselectedbusinesslineschaindrugapparelfootwearhometoys,Businesslinecompetencies,Costandexperiencesharinginthegroups,Acquisitionstoachievebusinesslinedominance,Group-basedorganisation,Abalancedportfolioofspecialityretailers,ResourceallocationcompetenciesLeancorporatestructure,Decentralisedmanagement,Growandkeepsuccessfulbusinesses.Divesttheunsuccessful,Aleadingdeveloperoftargetedgrowth-stageretailers,SelectionandexpansioncompetenciesCorporateexpertiseincriticalgrowthfunctionsbusinessdevelopment(Rthereislittlecost-sharingamongNorthandtheotherdivisionsMarkettimingisattractiveNorthsvalueisnotbeingfullyrecognizedinthemarketplace,Conclusion,Example:RationaleForanIndependentNorth,17,RetailCo2,Plannedcapacityadditionswillresultinindustry-widenegativecompstoresalesthrough1998ConsolidationisessentialtoeliminateexcesscapacitylowerscostsallowscompstoresalesgrowthRetailCoisbettersuitedtobeasellerthanabuyersynergyisequalwhetherFrancechoosestoacquireorbeacquiredleadingcompetitorsmarketvalueishighermanagementgroupatFrancehasseveralsignificantholes,Conclusion,Example:RationalefortheSaleofFrance,18,RetailCo2,Continuetopursueopportunitiestoconsolidateandreduceover-capacityFillkeyexecutiveopeningsRestorethehistoricalbargainedgewithcorecustomersincreasethemixofopportunistically-purchasedgoodsdelivervaluesaveraging20%belowdepartmentstoresalepricesReducecoststosupportpricereductionsreduceoverheadcostsbyapproximately$60MMreduceinvestmentcostfornewstoresandremodelsCloseunprofitablelocationsandexitseveralmarketswhichFrancecannotdominate,IfthesaleofFrancetakeslongerthananticipated,severalactionswillbetakentoimproveFrancesperformance:,Conclusion,Example:France-StrategicImperatives,19,RetailCo2,Vision:,Toconsolidateourpositionastheleadingwidgetretailertoourtargetcustomers(high-volumepurchasersoftrendywidgetsintheir20sand30s)Toberecognizedbyourtargetcustomersastheleaderinproductassortmentandcustomerserviceforwidgetretail(ouruniquepositioning)Toreacha10%shareofthenationalwidgetretailmarketbytheyear2000,FinancialGoals:,ToreachandmaintainROIClevelsof20%Togrowsalesby5%peryearandnetearningsby10%peryear1998salesobjective:$1,225MM1998netearningsobjective:$47MM,StrategySummary(1of2),Conclusion,20,RetailCo2,KeyImperatives,Initiatives,Developournewconcept,WidgetFactory,intothesecond-largestnon-mallbasedwidgetretailer,RetailCoRealEstateauditofpotentialnewsitesWidgetFactoryrapiddeploymentinitiative(openingof30newstoresperyear,Closenon-performingstores,Closingofthe10worstperformingmaturestores(bothXYZandWidgetFactory)eachyear,Improvemarginsbychangingmixandreducingcosts,MixchangebasedonGMROIapproachImplementationof4-WallssystemRedesignoflogisticsflowbasedonRetailCostudyImprovedensityofmarketsbybackfilllingfivemarkets,Modifyourimageintheeyesofthecustomer,AssortmentredesignbasedondemandandprofitabilitySalesforcetraininginitiativeoncustomerserviceLaunchofanewadvertisingcampaign,FocusnewstoresinSoutherngeographies,AcquireandintegrateSouthernWidgetbyendof1996RetailCoRealEstateauditofpotentialnewsitesProposedpartnershipwithSouthernMalls,Inc.,StrategySummary(2of2),Conclusion,21,RetailCo2,FitwithRetailCoclearopportunityforvaluecreationpotentialtomaximizesharingwithrelateddivisionsMarketattractivenesssubstantialmarketpotentialdominantmarketpositionopportunityconceptinearlystagesofalonglifecycleFinancialopportunitiesaffordablewithintargetcapitalstructuremeetsminimumreturnandgrowthhurdlesLimitedriskfactorsexistingmanagementtalentorsupplementablelowtomoderatevolatility,Conclusion,CriteriaforAcquisition,22,RetailCo2,CorporateCostReductionOpportunities,*Excludinginterest,Conclusion,23,RetailCo2,PrimaryLevers:,CorporateRoles:,KeepawareofmarketandcustomertrendsdrivingpotentialopportunitiesDevelopcriteriaforscreeningacquisitionsandpartnershipsoralliancesIdentifyandevaluatenewconceptsandconsolidationopportunitiesDevelopanetworkofdealcontactsStructure,negotiateandclosedealsCoordinateeffectiveintegrationplanningEvaluateopportunitiestospin-off/exitbusinesses,DefineprimarymeasuresoffinancialperformanceSetspecificfinancialreturnandearningsgrowthtargetsDevelopfinancialplanningandcontrolsystemsAllocatecapitalandotherresources,Definemanagementdecision-makingprocessesCoachdivisionalmanagementfocusmanagersonmeasurableresultsquestionassumptionsandchallengethinkingProvideleadershiponcriticalissues(e.g.,divisionstrategy,valuedisciplines,andpriorityandresourceconflicts)Identifyopportunitiestoimproveoperationsandsetspecificimprovementgoals,PrimaryLeversAvailabletoAddValue(1of2),Conclusion,24,RetailCo2,PrimaryLevers:,CorporateRoles:,InstillcompanywidecommitmenttospreadingbestpracticescoordinateregularexperiencesharingatalllevelsfacilitatecommunicationamongdivisionsandfunctionsDrivevaluedisciplinestoimproveoperationsacrossallprocesses,functionsanddivisionsProvideleadershipandexpertisetosupportimprovementsinperformance,Attract,motivateandretainthebestmanagementrecruittoptiercandidatesrewardbasedonperformancepromotebasedonabilityProvidestrong,profit-relatedincentiveslinkedtocorporateobjectivesRotatemanagersacrossfunctionsanddivisionsDevelopformaltrainingprograms,Performanalysistosupportstrategicdecision-making(corporateanddivisional)DefinecorporatestrategicdirectionAssessmarketattractiveness,performance,positionandfitofdivisionsworkwithdivisionstobuildhigh-quality,fact-basedstrategicplansIntegratedivisionplanswithcorporatestrategy,ProvidescaleservicesandfunctionstoachievelowercostandhigherqualityLeverageinfrastructureacrossbusinesses,PrimaryLeversAvailabletoAddValue(2of2),Conclusion,25,RetailCo2,ProjectedEarnings,North,NewRetailCo,*FromMonteCarloanalysisNote:Earningsequalsnetincomeaftertaxesandinterest,Conclusion,26,RetailCo2,*With$300MMsharerepurchase,Gapvs.SBPProjections,Gapvs.Realistic,ROEtarget:ROE*:(Gap)/surplus:,11.1%12.0%$10.8MM,15.9%19.2%$35.6MM,17.0%21.6%$61.3MM,11.1%9.4%($22.4MM),15.9%13.4%($28.6MM),17.0%14.9%($30.2MM),Conclusion,GapAnalysis,27,RetailCo2,Agenda,BackgroundApproachConclusionImplementationResults,28,RetailCo2,CorporateGovernance,ThedecisionsoftheBoardwillbeevaluatedunderthetraditionalbusinessjudgementrulestandardThedistributionofNorthshouldnotrequireshareholderapprovalthedistributionisadividendwhichrequiresonlyboardapprovalAT&TprecedentThepotentialdivestituresshouldnotbeconsideredasaleofsubstantiallyallofRetailCoremainingassetsNewRetailCowillbeasubstantialentitywithestimatedsalesof$4.2B,netincomeofapproximately$119,andassetsof$2.1B,Implementation,29,RetailCo2,Note:DistributeNorthstockdividendatappropriatetime,3Q95,4Q95,1Q96,2Q96,3Q96,4Q96,1997,ApproveallcomponentsofStrategicReview,CloseFrancetransaction,CloseSpaintransaction,CloseSwedentransaction,ReorganizeCorporateoffice,Closelossstores,CloseNorthIPO,CompletemergerofIreland/HongKong,CompleteMISandtelecommunicationsoutsourcingprojects,PilotcentralizationofAccountsPayable,GeneralAccounting,andSalesAudit,Spin-offNorth,InitiatemergerofIrelandandHongKong,Implementation,Timing,30,RetailCo2,Strategy,CorporatemanagementCorporateemployeesDivisionpresidentsDivisionemployeesMediaFinancialcommunityRetailindustryconsultantsIndividualshareholdersLandlordsVendors/factorsLocalofficials,Initiateallcommunicationsfr