赢利经营和领导能力英文课件

Profit Pools:A Fresh Look at StrategyOrit Gadiesh and James L.GilbertHarvard Business ReviewMay-June 19982024/7/251Darral G.Clarke for BM 499THE PC INDUSTRYS PROFIT POOLvValue chain focusvAxesVerticaloperating marginHorizontalshare of industry data40%30201000100%share of industry revenuemicroprocessorsother componentspersonal computerssoftwareperipheralsservicesThe value chain for the PC industry includes six key activities;the profitability of the activities varies widely.Manufacturers compete in the largest but least-profitable segment of the chain.2024/7/252The Profit Pool LensvThe profit pool is the total profit earned in an industry at all points along the industrys value chainSegment profitability may vary by customer group,product category,geographic market,or distribution channelProfit concentration may be very different than revenue concentrationShape of the profit pool reflects the competitive dynamics of a businessvInteractions of companies and customersvCompetitive strategies of competitorsvProduct pools are not stagnant2024/7/253THE U.S.AUTO INDUSTRYS PROFIT POOL100%operating marginsource:Harvard Business Review,May-June 1998auto rental25%1510500share of industry revenueauto manufacturingnew car dealersused car dealersauto loansauto insuranceaftermarket parts20leasingwarrantygasolineservice repairThe automotive industry encompasses many value-chain activities.The way that profits and revenues are distributed among these activities varies greatly.The most profitable areas of the car business are not the ones that generate the biggest revenues.2024/7/254Profit Pools:Company ExamplesCompaniesAutomakersU-HaulElevators(OTIS)Harley DavidsonPolaroidCore BusinessAuto manufacturingTruck RentalElevator ManufacturingMotorcyclesInstant Photography CamerasSources of Highest ROIAuto leasing,insurancePacking materials,storageServiceAccessories(consumer products),leasing,service,restaurantsFilm2024/7/255Managerial ImplicationsvFocus on growth and market share can lead a company to focus on unprofitable segments of an industryTodays deep revenue revenue pool may be tomorrows dry hole.vThe goal should be to focus on profitable opportunitiesvIndustry should be considered more broadly than traditional definitionAutomobile industry includesvComponent manufacture and supplyvNew car assembly and deliveryvNew car warrantee and servicevNew car financing and insurancevUsed car sales and service2024/7/256Turbulent industriesvProfit pools are especially important and useful in industries undergoing deregulation and/or technological changeSuch changes can open new profit pool opportunities and drain old onesChoke points may change or be eliminatedvOpportunities for either forward or vertical integration may emergevCurrent vertical integration may be disintermediated2024/7/257Creating and managing a profit poolvProfit pool analysis may indicate new opportunities or threatsvImperativesBe open to a new perspective on your business and industryDeveloping new strategy may require overturning elements of the current strategyBe open to reevaluate the role played by current competitorsBe vigilant to identify possibility that new entrants may seek to enter your industry with radical strategies 2024/7/258Looking Ahead:Profit Pools and the Five ForcesvProfit pools are computed by multiplying the size of the revenue by the unit profit marginEssentially an accounting process-no theoryMost valuable in situations in which external conditions are essential stable and/or unimportant(Often dominated by internal data alone)vThe five forces tells us(which will study next)the underlying determinants that determine both the revenue size and the unit profit marginThe profit drivers which allow us to forecast the direction of change2024/7/259Marakon RunnersThomas A.StewartFortuneSept.28,19982024/7/2510Darral G.Clarke for BM 499Marakon Associatess Approach to Corporate StrategyvConsultants to many large corporationsCoca Cola,HP,GM,CitiCorp,etc.Clients have returns 3.1%higher than industry peer groupvGoal is to increase shareholder value through analysis of economic profitDeep drilling in business data to measure value creationvProduct segmentsvCustomer segments2024/7/2511How Strategy HappensvLearning where value is createdWaterfall charts by product and customer segmentsvEvaluating strategyIndustry average profit per unitCompanys profit vs industry averagevManaging valueCurrent strategyChange product focusChange customer focus2024/7/2512Learning where value is createdProduct segmentsCustomer segmentsProfit/loss($per unit)Volume(units)Volume(units)02024/7/2513Evaluating StrategyCompany profit per unitIndustry-average profit per unit2024/7/2514Managing for valueCurrentstrategyChangeproductfocusChange CustomerfocusValue2024/7/2515Application to our casesvRetail industry(Wal*Mart)vSoft drink industry(Coca-Cola and PepsiCo)vSteel(Nucor)and aluminum cans(CC&S)vHi tech(Intel,Cisco,and Dell)vVideo games(Nintendo)vWeb businesses(eBay and Yahoo!)2024/7/2516The Core Competence of the CorporationPrahalad,C.K.and Gary HamelHarvard Business Review,May-June 19902024/7/2517Darral G.Clarke for BM 499Core CompetencevA Firm is made up of resourcespeople,patents,brand names,plant&equipment,processes,etcvA competence is the ability to employ diverse skills and resources to perform tasks and activities.vA core competence is a broadly based and/or a broadly applied fundamental capability.2024/7/2518Competence and TechnologyvCompetence is not the same as technologyvCompetence requirestechnologiessocial organizationcollective learning2024/7/2519Core competence questions:vWhat are we really good at?vHow can we build upon it?vWhat do we need to be good at?2024/7/2520Characteristics of Effective CompetenciesvDurability:Technical equipment can be short lived.Reputation or knowledge may depreciate more slowly.vTransparency:The more complex the source of competence,the harder it is to imitate it.vTransferability:The availability of resources to competitors.vReplicability:A competitors internal ability to replicate a competence using available resources.2024/7/2521Choosing CompetenciesvHow central is this competence to our success in the market?vHow long could we preserve our competitiveness in this business without this particular competence?vWhat future opportunities would be foreclosed if we were to lose this particular competence?2024/7/2522Core Competence and Core Products2024/7/2523A Hierarchy of Competencies2024/7/2524Building Strategy from CapabilitiesStrategyCapabilitiesResources1.Identify resources,appraiserelative strengths and weaknesses.Leverage use of resources2.Identify capabilities.What do we domore effectively than competitors?Identify resource inputs to capabilities.3.Appraise rent-generating potential resources and capabilities in terms of:sustainable advantage,inappropriability4.Select strategy that best exploits the firms resources and capabilities rela-tive to external opportunities.5.Identify resourcegaps that need to befilled.Invest in replenishing,augmenting,and up-grading the firmsresource base.CompetitiveAdvantageSource:Robert M.Grant,“The Resource-Based Theory of Competitive Advantage,”California Management Review,Spring,1991,page 151.2024/7/2525How to map your industrys profit poolOrit Gadiesh and James L.GilbertHarvard Business ReviewMay-June 19982024/7/2526Darral G.Clarke for BM 499A straight forward exercise with complicationsvConcept is straight forwardDefine value chain activitiesDetermine their size and profitabilityvApplication of concept is complicatedFinancial data doesnt correspond to value chain activitiesCompany data is aggregated across businessesProducts,customer purchases,channel volumes rarely match up with boundaries of an activityConsiderable creativity is required2024/7/2527Four step processvDefine the poolvDetermine the size of the poolvDetermine the distribution of profitsvReconcile the estimates2024/7/2528Four step process2024/7/2529What is“profit”anyway?vCan be thought of in three ways(all of which may be relevant for profit pool analysis)Accounting profitReturn on investmentvEconomic value added=after-tax operating profits cost of all invested capitalCash-flowvEarnings before taking fixed-asset and capital costs into account2024/7/2530Example:Credit cards at RegionBank2024/7/2531RegionBanks Profit Pool Map100%acquisition funding servicingShare of industry revenue20%Operating margin2024/7/2532RegionBanks Profit Pool MosaicBanksShare of industry profitsacquisition funding servicingShare of activity profits100%100%BanksBanks2024/7/2533