企业股份单分析btiz

Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,Business Portfolio Analysis,Outline,Introduction,BCG(Boston Consulting Group)Matrix,PIMS(Profit Impact of Market Strategy),GE(General Electric)/McKinsey Multi-Factor Matrix,Introduction,The creation of SBUs enables the setting of SBUs mission and objectives and the allocation of resources across SBUs in the organization,Senior management need to have a framework to evaluate SBUs and to assign limited resources among them;hence portfolio analysis,Many models but only 3 are covered here:BCG,PIMS,&GE models,BCG(Boston Consulting Group)Matrix,Provides a framework for senior management in allocating resources across business units in a diversified firm by,Balancing cash flows among business units,and,Balancing stages in the product life-cycle(PLC),BCG Product Portfolio Matrix Dimensions,Relative Market Share(Log Scale),Product Sales Growth Rate,BCG Matrix(contd),The horizontal axis is the Relative Market Share shown in a log scale,Vertical line is,usually,set as 1.0 Relative Market Share,An SBU to the left of this line means it is the market leader in the industry or segment in which it operates,Conversely,an SBU to the right of this line(1.o RMS)means it is not the leader,BCG Matrix(contd),The vertical axis is the growth rate,5 levels may be used:product,product lines,market segment,SBU and business growth rate,Horizontal line is,usually,set as 10%Growth Rate,SBUs above the set value(10%line)represents high growth rates,Conversely,SBUs below this value depicts slower growth rate,Matrix Quadrants,High,Low,High,Low,Product Sales Growth Rate,Relative Market Share,Key Assumptions of BCG Matrix,Stable cost/price relationship,Not valid if the firm is pricing on projected lower average unit costs in the future,Market leader influences the average costs,Profit margin is a function of market share,This ignores profitable niches,Strategic Perspectives of Products in Different Quadrants,Four different strategic perspectives,Investment,Earnings,Cash-flow,and,Strategy Implications,Question Marks,(Problem Children),Investmenth,eavy initial capacity expenditures and high R&D costs,Earnings,negative to low,Cash-flown,egative(net cash user),Strategy Implications,If possible to dominate segment,go after share.If not,redefine the business or withdraw,Stars,Investment,continue to invest for capacity expansion,Earnings,Low to high earnings,Cash-flow,Negative(net cash user),Strategy Implications,Continue to increase market shareeven at the expense of short-term earnings,Cows,Investment,Capacity maintenance,Earnings,High,Cash-flow,Positive(net cash contributor),Strategy Implications,Maintain market share and cost leadership until further investment becomes marginal,Dogs,Investment,Gradually reduce capacity,Earnings,High to low,Cash-flow,Positive(net cash contributor)if deliberately reducing capacity,Strategy Implications,Plan an orderly withdrawal to maximize cash flow,Example of a BCG Matrix for a Fastener Supplier in South East Asia,High,Low,High,Low,Product Sales Growth Rate,Relative Market Share,Anchoring Systems,Powder Actuated Tools,Cable Tray Systems,Electric Power Tools,Concrete Lifting Systems,Note that the Anchoring System SBU is forecasted to move to new position,BCG Matrix(,Three Paths to Success),Continuously generate cash cows and use the cash throw-up by the,cash cows,to invest in the question marks that are not self-sustaining,Stars,need a lot of reinvestments and as the market matures,stars will degenerate into cash cows and the process will be repeated.,As for,dogs,segment the markets and nurse the dogs to health or manage for cash,Three Paths to Success(contd),High,Low,High,Low,Market Growth Rate,Relative Market Share,BCG Matrix(,Three Paths to Failure),Over invest in cash cows and under invest in question marks,Trade further opportunities for present cash flow,Under invest in the stars,Allow competitors to gain share in a high growth market,Over milked the cash cows,Three Paths to Failure(contd),High,Low,High,Low,Market Growth Rate,Relative Market Share,PIMS(Profit Impact of Marketing Strategy)Program,Database of nearly 3,800 SBUs Representing more than 500 firms,Member firms have been in the program from 2 to 12 years,The program provides,Par ROI(Return of Investment),Prediction of how ROI would change if policy change is made,Important Strategic Principles Derived From PIMS,In the long run,product quality is the single most important factor affecting performance,Market share and profitability closely correlated,High-investment intensity reduces profitability,Cash implications of growth rate and relative market share are affected by many factors,Vertical integration is profitable for some business only,Most factors that boost ROI also contribute to value,Examples of Application of some of the Principles of PIMS in ASPAC,Pursue of product quality,Australian Quality Council,Hong Kong Awards for Indu