• Save
150 Business Models for your management presentation
Upcoming SlideShare
Loading in...5
×
 

150 Business Models for your management presentation

on

  • 14,493 views

150 Business models and graphics for your business presentations. ...

150 Business models and graphics for your business presentations.

Content:
Powerpoint, presentations, business, slides, diagrams, charts, Break-even, Financing Life Cycle, Economies of Scale, Elasticity, Sales Cycles Market Potential, Portfolio Matrix, Product Model, Four P's, Push/Pull Strategy, Marketing Mix, PDCA Cycle, SWOT, Value Chain, Ansoff Matrix, BCG Matrix, 7-S Modell, Core Competencies, GE Business Screen, Nine Cell Industry Risk/Reward Diagram, Porter's Five Forces, Industry Competition, Generic Strategies, Geobusiness Modell, Porter's Diamond, Matrix Design, PIMS, Leavitt's Diamond, Belbin's Team Roles, Theory X/Y, Maslow's Hierarchy, Herberg's Theory, Cultural Web, Pareto Curve, CIM Concept, Value Drivers

Download these diagrams on
http://www.drawpack.com
(try our free membership offer)

Statistics

Views

Total Views
14,493
Views on SlideShare
14,214
Embed Views
279

Actions

Likes
139
Downloads
46
Comments
52

26 Embeds 279

http://filsuf-kampung.blogspot.com 86
http://suranjanmktg.blogspot.com 45
http://suranjanmktg.blogspot.com 45
http://potretkelamu.blogspot.com 21
http://terlenadiri.blogspot.com 17
http://layarpelangii.blogspot.com 14
http://www.wh4it.com 8
http://kendamnafsu.blogspot.com 8
http://bawele.blogspot.com 5
http://suranjanmktg.blogspot.co.uk 5
http://trubusbersemi.blogspot.com 3
http://suranjanmktg.blogspot.de 3
http://www.facebook.com 3
http://trubusbersemi.blogspot.hk 2
http://www.linkedin.com 2
http://suranjanmktg.blogspot.in 2
http://terlenadiri.blogspot.ca 1
http://www.terlenadiri.blogspot.com 1
http://filsuf-kampung.blogspot.sg 1
http://layarpelangii.blogspot.ca 1
http://bawele.blogspot.ru 1
http://kendamnafsu.blogspot.ru 1
http://mytutor.tut.ac.za 1
https://bb.oc.edu 1
https://www.facebook.com 1
http://suranjanmktg.blogspot.it 1
More...

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel

110 of 52 Post a comment

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • Thank you for very good Slides.
    Please send to me if possible.
    htaemouri@gmail.com
    thanks
    Are you sure you want to
    Your message goes here
    Processing…
  • I would greatly appreciate it of you could send to me at anwardarwadi@yahoo.com Thank you
    Are you sure you want to
    Your message goes here
    Processing…
  • Dear All,

    If any one has this PPT could you please send me
    rkarthi157@gmail.com
    Thanks in advance

    Regards,
    Karthi.R
    Are you sure you want to
    Your message goes here
    Processing…
  • If possible, can you send a power point copy to me on aungwin1964@gmail.com.
    Thanks.
    Are you sure you want to
    Your message goes here
    Processing…
  • great slides please send me kumards@yahoo.in
    Are you sure you want to
    Your message goes here
    Processing…

110 of 52

Post Comment
Edit your comment
  • Source: Marketing Management, Kotler, 1994
  • Source: Competing Today While Preparing for Tomorrow, Sloan Management Review 40, 1999
  • Source: Finance for the Non-Financial Manager, Harrison/Lucas/Collins, 1989
  • Source: Marketing Management, Kotler, 1994
  • Source: Market – Based Management, Best, 2000
  • Source: Technological Entrepreneurism, Cardullo, 1999
  • Source: Finance for Executives, Hawawinin/Viallet, 1999
  • Source: Economics, Begg/Fischer/Dornbusch, 1991
  • Source: Economics, Begg/Fischer/Dornbusch, 1991
  • Source: Economics, Begg/Fischer/Dornbusch, 1991
  • Source: Marketing Management, Kotler, 1994
  • Source: Managementorientierte Betriebswirtschaftslehre, Thommen, 1993
  • Source: Managementorientierte Betriebswirtschaftslehre, Thommen, 1993
  • Source: Marketing Management, Kotler, 1994
  • Source: Strategic Management of Organizations and Stakeholders, Harrison/John, 1994
  • Source: Conceptual Constructs for Formulating Corporate Business Strategies, Hofer, 1977
  • Source: Exploring Corporate Strategy, Johnson/Scholes, 1989
  • Source: Crossing the Chasm, Moore, 1999
  • Source: Marketing Management, Kotler, 1994
  • Source: McCarthy, 1990
  • Source: Marketing Management, Kotler, 1994
  • Source: Marketing Management, Kotler, 1994
  • Source: Marketing Management, Cranfield, 2000
  • Source: MoT, Marketing and Sales, Cestre, 2001
  • Source: Marketing Management, Kotler, 1994
  • Source: Technological Entrepreneurism, Cardullo, 1999
  • Source: Changing Patterns of International Competition, Porter, 1986
  • Source: MBA Management Models, Harding/Long, 1998
  • Source: MoT, Marketing and Sales, Cestre, 2001
  • Source: MoT, Marketing and Sales, Cestre, 2001
  • Source: Competitive Advantage : Creating and Sustaining Superior Performance, Porter, 1985
  • Source: Competitive Advantage: Creating and Sustaining Superior Performance, Porter, 1985
  • Source: Competitive Advantage: Creating and Sustaining Superior Performance, Porter, 1985
  • Source: Corporate Strategy , Ansoff, 1987
  • Source: The Customer Centred Strategy, Jenkins, 1997
  • Source: The Customer Centred Strategy, Jenkins, 1997
  • Source: Market – Based Management, Best, 2000
  • Source: Marketing Management, Kotler, 1994
  • Source: Selecting among Alternative Grand Strategies, Pearce, 1982
  • Source: Management Strategy and Tactics, Hutchinson, 1971
  • Source: Marketing Management, Kotler, 1994
  • Source: Marketing Management, Kotler, 1994
  • Source: Selecting among Alternative Grand Strategies, Pearce, 1982
  • Source: Marketing Management, Kotler, 1994
  • Source: Hypercompetitive Ravalries, D‘Aveni, 1995
  • Source: Competing for the Future, Hamel/Prahalad, 1994
  • Source: Success through innovative products, Boutellier/Völker, 1997
  • Source: From Technology to Products, MoT, Voit, 2001
  • Source: Strategy Formulation; Analytical Concepts, Hofer/Schendel, 1978
  • Source: Successful Strategic Management, Hofer/Davoust, 1977
  • Source: Making strategy work , Hamermesh, 1986
  • Source: Competitive Advantage, Porter, 1985
  • Source: The Practice of Marketing Management, William, 1991
  • Source: Market – Based Management, Best, 2000
  • Source: Marketing Management, Kotler, 1994
  • Source: Technology to Products, MoT, Voit, 2001
  • Source: Strategy Implementation – Structure, Systems and Process, Galbraith/Kazanjian , 1994
  • Source: Competitive Advantage: Creating and Sustaining Superior Performance, Porter, 1985
  • Source: How Competitive Forces Shape Strategy, Porter, 1979
  • Source: Strategic Management, Pearce/Robinson, 1994
  • Source: Competitive Strategy: Techniques for Analyzing Industries and Competitors, Porter , 1980
  • Source: The Mind of the Strategist (The Art of Japanese Business), Ohmae, 1982
  • Source: Competitive Strategy: Techniques for Analyzing Industries and Competitors, Porter , 1980
  • Source: Competitive Advantage: Creating and Sustaining Superior Performance, Porter, 1985
  • Source: Competitive Advantage:Creating and Sustaining Superior Performance, Porter, 1985
  • Source: Marketing Management, Kotler, 1994
  • Source: International Business and Multinational Enterprise , Robock/Simmonds, 1989
  • Source: The Competitive Advantage of Nations , Porter, 1990
  • Source: Exploring Corporate Strategy, Johnson/Scholes, 1993
  • Source: The Pims Principle : Linking strategy to Performance, Buzzell/Gale, 1995
  • Source: Changing Patterns of International Competition, Porter, 1986
  • Source: Competitive Strategy, Porter, 1980
  • Source: Competitive Strategy, Techniques for Analyzing Industries and Competitors , Porter, 1980
  • Source: The Mind of the Strategist (The Art of Japanese Business), Ohmae, 1982
  • Source: Strategic Marketing Management, Wilson/Gilligan, 1997
  • Source: The Mind of the Strategist (The Art of Japanese Business), Ohmae, 1982
  • Source: HEC-Management Studies, Rüling, 2001
  • Source: The Structuring of Organizations, Mintzberg, 1979
  • Source: HEC-Management Studies, Rüling, 2001
  • Source: Organizational Bahavior, Moorhead/Griffin, 1989
  • Source: Knowledge Management and Virtual Organizations, Malhorta, 2000
  • Source: Organizational Bahavior, Moorhead/Griffin, 1989
  • Source: Effective Leadership, Adair/Gower/Aldershot, 1983
  • Source: Management Teams: Why they succeed or fail, Belbin, 1984
  • Source: Group and organization Studies: Stages of Small Group Development Revisited, Tuckman/Jensep, 1977
  • Source: Managementorientierte Betriebswirtschaftslehre (Thommen), Ulich/Baitsch/Alioth, 1983
  • Source: A Theory of Human Motivation, Maslow, 1943
  • Source: A Theory of Human Motivation, Maslow, 1943
  • Source: Factors Affecting Job Attitudes as Reported in 12 Investigations, Harvard Business Review, 1987
  • Source: Organizational Bahavior, Moorhead/Griffin, 1989
  • Source: Leadership Dilemmas – Grid Solutions, Blake/Adams, 1984
  • Source: MBA Management Models, Harding/Long, 1998
  • Source: Exploring Corporate Strategy, Johnson/Scholes, 1993
  • Source: Turnabout: Managerial Recipes for Strategic Success, Grinyer/Spender, 1995
  • Source: Understanding Organisations, Handy/Penguin/Harmondsworth, 1976
  • Source: MBA Management Models, Harding/Long, 1998
  • Source: MBA Management Models, Harding/Long, 1998
  • Source: MBA Management Models, Harding/Long, 1998
  • Source: Evolution and Revolution as Organizations grow, Greiner, 1998
  • Source: MoT, Schwartz, 2001
  • Source: Marketing Management, Kotler, 1994
  • Source: Marketing Management, Kotler, 1994
  • Source: Marketing Management, Kotler, 1994
  • Source: Marketing Management, Kotler, 1994
  • Source: Marketing Management, Kotler, 1994
  • Source: Marketing Management, Kotler, 1994
  • Source: Marketing Management, Kotler, 1994
  • Source: Finance for the Non-Financial Manager, Harrison, 1989
  • Source: Finance for the Non-Financial Manager, Harrison, 1989
  • Source: The Mind of the Strategist (The Art of Japanese Business), Ohmae, 1982
  • Source: Finance for Executives, Hawawinin/Viallet, 1999
  • Source: Marketing Management, Kotler, 1994
  • Source: Technological Entrepreneurism, Davenport/Cardullo, 1999
  • Source: Technological Entrepreneurism, Davenport/Cardullo, 1999
  • Source: Finance for Executives, Hawawinin/Viallet, 1999
  • Source: Finance for Executives, Hawawinin/Viallet, 1999
  • Source: Value Migration, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Profit Zone, Slywotzky, 1994
  • Source: Marketing Management, Kotler, 1994

150 Business Models for your management presentation 150 Business Models for your management presentation Presentation Transcript

  • 150 Business Diagrams... Powered by www.drawpack.com . All rights reserved.
  • 150 Business Diagrams Drawpack.com offers these premium Business Diagrams for students and professionals around the globe for their personal use for free. Please enjoy these Business Diagrams. You can send these slides to your personal contacts who might be interested in Business Diagrams. For further information about our service please contact us: [email_address] Please find our membership offer on www.drawpack.com
  • Key Words ... Break-even – Financing Life Cycle – Economies of Scale – Elasticity – Sales Cycles – Market Potential – Portfolio Matrix – Product Model – Four P’s – Push/Pull Strategy – Marketing Mix – PDCA Cycle – SWOT – Value Chain – Ansoff Matrix – BCG Matrix – 7-S Model – Core Competencies – GE Business Screen – Nine Cell Industry – Risk/Reward Diagram – Porter’s Five Forces – Industry Competition – Generic Strategies – Geobusiness Model – Porter’s Diamond – Matrix Design – PIMS – Leavitt’s Diamond – Belbin’s Team Roles – Theory X/Y – Maslow’s Hierarchy – Herzberg’s Theory – Cultural Web – Pareto Curve – CIM Concept – Value Drivers Powered by www.drawpack.com ; All rights reserved.
  • Markets and Structure of Flow Powered by www.drawpack.com ; All rights reserved. Government markets Middlemen markets Resource markets Manufacturer markets Services, money Resources Money Taxes, goods Goods and services Services, money Taxes, goods Money Consumer markets Services Resources Money Taxes Money Goods and services Taxes, goods Services, money
  • A Company‘s Macroenvironment Powered by www.drawpack.com ; All rights reserved. COMPANY Substitute Buyers New Entrants Rival Firms Suppliers IMMEDIATE INDUSTRY & COMPETITVE ENVIRONMENT MACROENVIRONMENT The Economy at large Social Values and Lifestyles Population demographics Technology Legislation and regulations
  • Break-even Point Powered by www.drawpack.com ; All rights reserved. Value $ Units sold Break-even Point Variable costs Fixed costs Profit Total costs Sales 0 0 Current sales level
  • Break-even Chart Powered by www.drawpack.com ; All rights reserved. Sales Volume in Units (in thousands) Total cost Total revenue Target profit Fixed cost Dollars (in thousands) 10 30 20 50 40 0 200 800 600 400 1200 1000
  • Break-even Volume Powered by www.drawpack.com ; All rights reserved. Total Revenue Total Costs Fixed Expenses* * Fixed Expenses = Marketing Expenses and Other Direct Expenses $ Millions 15 30 35 20 10 25 5 0 50 150 100 Break-even Volume (90,000) 200 Units Sold (‘000) Profit Loss
  • Break-even Regions Powered by www.drawpack.com ; All rights reserved. P&L break-even Cash flow breakeven Returned capital break-even Cash flow Cumulative revenue EVA break-even Opportunity cost based on capital risk assumed $
  • Financing Life Cycle Powered by www.drawpack.com ; All rights reserved. Valley of Death Enterprise Cash Flow Enterprise Financing Time Break-even point Emerging Growth FFF & Angels Venture Capitalist Investment Banks & Banks Seed Capital & Early Stage Early Growth Later Growth Public Market Initial Public Offering Mezzanine 1st 2nd 3rd
  • Demand and Supply Powered by www.drawpack.com ; All rights reserved. Price Quantity 0 G B E D F S A D S
  • Economies of Scale Powered by www.drawpack.com ; All rights reserved. *Long-run average costs (LACs) Increasing returns to scale, or economies of scale Average cost Output LACs*
  • Elasticity Powered by www.drawpack.com ; All rights reserved. Demand is elastic and expenditure increases when price falls from P1 to P2 (-) (+) Price P 1 P 2 0 Quantity Demand is inelastic and expenditure increases when price falls from P1 to P2 (+) (-) Price P 2 P 1 0 Quantity e = 0 Quantity Price e = 0 e = - (total inelastic demand) (total elastic demand) 8 Quantity Price e = - 8 e > - 1 e = - 1 e < - 1
  • Inelastic and Elastic Demand Powered by www.drawpack.com ; All rights reserved. Price Quantity Demanded per Period (a) Inelastic demand Quantity Demanded per Period (b) Elastic demand P 1 P’ 1 P’ 2 Q’ 2 Q 2 Q’ 1 Q 1 P 2
  • Sales and Profit Life Cycles Powered by www.drawpack.com ; All rights reserved. Sales and Profits ($) Time Profit Sales Maturity Growth Introduction Decline
  • Market Potential, Market Volume, Market Share Powered by www.drawpack.com ; All rights reserved. Volume or value Time Market potential Market volume Market share
  • The Product Life Cycle I Powered by www.drawpack.com ; All rights reserved. Sales over profits Stages over Time Introduction Growth Maturiy Shake-out Decline Sales Profits
  • The Product Life Cycle II Introduction Growth Maturity Commodity or Decline Time Unit Sales Volume Note: A = Moderate Growth, B = Commodity, C = Decline A B C Powered by www.drawpack.com ; All rights reserved.
  • The Life Cycle Portfolio Matrix Powered by www.drawpack.com ; All rights reserved. C A Strong Average Weak Development Growth Competitive shakeout Maturity Decline Saturation THE BUSINESS UNIT‘S COMPETITIVE POSITION THE INDUSTRY‘S STAGE IN THE EVOLUTIONARY LIFE CYCLE E F D B H G
  • Patterns of Strategic Change Powered by www.drawpack.com ; All rights reserved. Continuity Incremental Flux Global
  • The Whole Product Model Powered by www.drawpack.com ; All rights reserved. Generic Product Expected Product Augmented Product Potential Product
  • The Product-Positioning Map Powered by www.drawpack.com ; All rights reserved. High price Low quality High quality Low price C D E A B
  • The Four P‘s of McCarthy I Powered by www.drawpack.com ; All rights reserved. Product Place Promotion Price Environment Environment Environment Environment
  • The Four P‘s of McCarthy II Powered by www.drawpack.com ; All rights reserved. Low quality High quality Target Market Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns Product Channels Coverage Assortments Locations Inventory Transport Promotion Sales promotion Advertising Salesforce Public relations Direct marketing Place Price List price Discounts Allowances Payment period Credit terms Marketing Mix
  • Push versus Pull Strategy Powered by www.drawpack.com ; All rights reserved. Push Strategy Manufacturer Intermediaries Demand Marketing activities Demand End users Pull Strategy Manufacturer Intermediaries Demand Marketing activities Demand End users
  • The Expanded Marketing Mix Powered by www.drawpack.com ; All rights reserved. Product Price People Processes Place Promotion Customer Service
  • The 6 – Step Marketing Plan Powered by www.drawpack.com ; All rights reserved. 1 2 3 budget allocation product promotion price distribution 4 5 6 Action plan Forecasts Control quantify: costs sales profits market share organization structure measurement tools check frequency => Corrective actions firm market industry competition environment Situation (SWOT) Objectives Strategy sales market share market expansion leadership satisfaction segment – target price / quality product positioning differentiation diversification Marketing Plan
  • The PDCA Cycle Powered by www.drawpack.com ; All rights reserved. Performance Time Path of continous improvement Check Do Act Plan
  • Enterprise Management Process Powered by www.drawpack.com ; All rights reserved. Decision Process Enterprise Structure Mission & Strategy Enterprise Learning Value Improvement Customer Satisfaction Benchmarking
  • SWOT Analysis Diagram Powered by www.drawpack.com ; All rights reserved. Substantial internal strengths Critical internal weaknesses Numerous environmental opportunities Major environmental threats Cell 1: Supports an aggressive strategy Cell 2: Supports an diversification strategy Cell 3: Supports a turnaround- oriented strategy Cell 4: Supports a defensive strategy
  • SWOT Analysis I Powered by www.drawpack.com ; All rights reserved. Strengths Opportunities Threats Weaknesses
  • SWOT Analysis II Powered by www.drawpack.com ; All rights reserved.
    • Market share
    • Key account share
    • Growth rate
    • Supply diversity
    • Influence
    • On market
    • Purchasing / selling deadline
    • New products cycles
    • Negotiation power
    • - firm suppliers
    • - customers
    STRENGTHS / WEAKNESSES Firm, Organization OPPORTUNITIES / THREATS Environment, Market, Industry
    • Market size
    • Key account size
    • Annual growth rate
    • Market diversity
    • Price sensitivity
    • Seasonality
    • Cycles
    • Negotiation power
    • - suppliers
    • - consumers
    • Competitor types
    • Concentration level
    • Intrants / extrants
    • Market share evolution
    • Vertical / horizontal integration
    • Technology substitution
    • Firm competitivity
    • - Product, service
    • - Profitability, H.R., …
    • Segments invested in
    • Firm’s integration level
    • High-tech vulnerability
    MARKET COMPETITION
  • SWOT Analysis III Powered by www.drawpack.com ; All rights reserved.
    • Firm margins
    • Economies of scale
    • Barriers
    • Production capacity level
    STRENGTHS / WEAKNESSES Firm, Organization OPPORTUNITIES / THREATS Environment, Market, Industry FINANCE / BUSINESS TECHNOLOGY SOCIO - POLITICAL
    • Reactivity / Flexibility level
    • Adaptability
    • Agressiveness
    • Working relationships
    • Attitudes / Social trends
    • Laws and regulations
    • Pressure groups
    • Trade union activities
    • Adaptability to change
    • Expertise / Know-How
    • Patent ownership
    • Production technology
    • Maturity / volatility
    • Complexity
    • Differentiation
    • Patents and copyrights
    • Production technology
    • Global benefits
    • Economies of scale
    • Barriers
    • Production capacity level
  • The Generic Value Chain I Powered by www.drawpack.com ; All rights reserved. Support activities Service Margin Margin Firm infrastructure Human resource management Technology development Procurement Primary activities Inbound logistics Operations Outbound logistics Marketing and sales
  • The Generic Value Chain II Powered by www.drawpack.com ; All rights reserved. Marketing Management Advertising Sales Force Administration Sales Force Operations Technical Literature Promotion INBOUND LOGISTICS OPERATIONS OUTBOUND LOGISTICS MARKETING & SALES SERVICE TECHNOLOGY DEVELOPMENT PROCUREMENT HUMAN RESOURCES MANAGEMENT FIRM INFRASTRUCTURE MARGIN
  • The Generic Value Chain III Powered by www.drawpack.com ; All rights reserved. Inbound logistics Outbound logistics Operations Marketing and sales Service Primary Activities Procurement Technology development Human resources management Firm infrastructure Margin Margin
  • The Ansoff Matrix I Powered by www.drawpack.com ; All rights reserved. Current Markets New Markets New Products Current Products Market penetration Market development Diversification Product development
  • The Ansoff Matrix II Powered by www.drawpack.com ; All rights reserved. Existing New Existing New New product development Market development Market penetration Diversification PRODUCTS AND/OR SERVICES MARKETS
  • The Customer Growth Matrix Powered by www.drawpack.com ; All rights reserved. Existing New Existing New Customer extension Customer acquisition Customer loyalty Customer diversification PRODUCTS AND/OR SERVICES CUSTOMERS
  • Product-Market Diversification Powered by www.drawpack.com ; All rights reserved. Market Diversification Broad Product Diversification Narrow Moderate Moderate Broad Narrow
  • BCG’s Growth-Share Matrix I Powered by www.drawpack.com ; All rights reserved. High Low Low High MARKET GROWTH RATE RELATIVE MARKET SHARE Star Cash Cow Dog Question Mark
  • BCG’s Growth-Share Matrix II Powered by www.drawpack.com ; All rights reserved. High Low High Low RELATIVE MARKET SHARE MARKET GROWTH RATE A B C E D F G Divest Divest Dog Cash Cows Question Mark Star Targeted future position in the corporate portfolio Present position in the corporate portfolio
  • BCG’s Growth-Share Matrix III Powered by www.drawpack.com ; All rights reserved. Low High High Low Question marks Cash generating businesses Star businesses Dog businesses RELATIVE MARKET SHARE MARKET GROWTH RATE 10x 1.0x 0.1x 10%
  • BCG‘s Growth-Share Matrix IV Powered by www.drawpack.com ; All rights reserved. 7 3 2 1 4 6 Market Growth Rate Relative Market Share Dogs Stars Question Marks Cash Cows 0.1 x 1 x 10 x 8 2% 8% 6% 4% 12% 10% 20% 18% 16% 14% 22% 5
  • The New BCG Matrix Powered by www.drawpack.com ; All rights reserved. SIZE OF ADVANTAGES Many Fragmented Stalemate Volume Specialization Small Large Few NUMBER OF APPROACHES TO ACHIEVE ADVANTAGE
  • Underlying Relationship Between ROI and Market Share in the New BCG Matrix Powered by www.drawpack.com ; All rights reserved. Few Many Small Large SIZE OF THE ADVANTAGE NUMBER OF WAYS TO ACHIEVE COMPETITVE ADVANTAGE Market share Market share Volume Stalemate Specialization Fragmented Market share Market share ROI ROI ROI ROI
  • McKinsey‘s Seven ‚S‘s Framework Powered by www.drawpack.com ; All rights reserved. Superordinate Goals Structure Staff Strategy Systems Style Skills
  • Disruption and the New 7-S’s Powered by www.drawpack.com ; All rights reserved.
    • Vision for Disruption
    • Identifying and creating
    • opportunities for
    • temporary advantage
    • through understanding
    • Stakeholder Satisfaction
    • Strategic Soothsaying
    • directed at identifying new ways to serve
    • existing customers better or new
    • customers that no one else
    • serves now.
    • Tactics for Disruption
    • Seizing the initiative to gain
    • advantage by
    • Shifting the Rules
    • Signaling
    • Simultaneous and
    • Sequential Strategic
    • Thrusts
    • with actions that shape, mold, or
    • influence the direction or nature of
    • the competitors‘ responses.
    • Capability for Disruption
    • Sustaining for momentum by
    • developing flexible capacities for
    • Speed
    • Surprise
    • that can be applied across
    • many actions to build a series
    • of temporary advantages
    Market Disruption VISION PLANNING RESOURCE PLANNING PUNCH-COUNTERPUNCH PLANNING
  • Core Competencies I Powered by www.drawpack.com ; All rights reserved. Banner Brand Business Units Core Products (Platforms) Core Competencies
  • Core Competencies II Powered by www.drawpack.com ; All rights reserved. Processes Capabilities Technologies Core Competencies
  • Core Competencies III Powered by www.drawpack.com ; All rights reserved. Low Company View High Low Market View High Competency 5 Competency 3 Competency 4 Competency 1 Competency 6 Competency 2
  • The General Electric Business Screen Powered by www.drawpack.com ; All rights reserved. Low High Medium Strong Average Weak COMPETITIVE POSITION INDUSTRY ATTRACITVENESS
  • Attractiveness/Competitive Position Strategies Powered by www.drawpack.com ; All rights reserved. High
    • Grow
    • Seek dominance
    • Maximize
    • investment
    • Evaluate
    • potential for
    • leadership via
    • Segmentation
    • Identify
    • weaknesses
    • Build strengths
    • Specialize
    • Seek niches
    • Consider acquisitions
    • Identify growth segments
    • Invest strongly
    • Maintain position elsewhere
    • Identify growth segments
    • Specialize
    • Invest selectively
    • Specialize
    • Seek niches
    • Consider exit
    • Maintain overall position
    • Seek cash flow
    • Invest at maintenance levels
    • Prune lines
    • Minimize investment
    • Position to divest
    • Trust leader‘s statesmanship
    • Sic on competitor‘s cash generators
    • Time exit and divest
    Medium Low Strong Average Weak COMPETITIVE POSITION INDUSTRY ATTRACTIVENESS
  • Company Position/Industry Attractiveness Screen Powered by www.drawpack.com ; All rights reserved. HOLD HARVEST HARVEST BUILD BUILD HARVEST HOLD HOLD BUILD Industry attractiveness Medium Low High Low Medium High Business unit strengths
  • A Representative Nine-Cell Industry Attractiveness-Competitive Strength Matrix Powered by www.drawpack.com ; All rights reserved. Business C Business E Strong Average High Low Business F Business A Business B Business D Weak Medium Low priority for investment Medium priority for investment High priority for investment COMPETITIVE STRENGTHS/BUSINESS POSITION LONG-TERM INDUSTRY ATTRACTIVENESS
  • GE / McKinsey Multifactor Portfolio Matrix Powered by www.drawpack.com ; All rights reserved. INDUSTRY ATTRACTIVENESS BUSINESS STRENGTH Invest Manage Selectively for Earnings Invest Invest Manage Selectively for Earnings Manage Selectively for Earnings Harvest or Divest Harvest or Divest Harvest or Divest
  • Portfolio Positions and Defensive Strategic Market Plans Powered by www.drawpack.com ; All rights reserved. Very Attractive Market Attractiveness Very Unattractive Very Strong Very Weak Competitive Advantage Harvest or Divest Protect Protect or Harvest Harvest or Divest Protect or Harvest Protect or Focus Protect or Focus Protect
  • Market Attractiveness – Portfolio Classification and Strategies Powered by www.drawpack.com ; All rights reserved. MARKET ATTRACTIVENESS Medium Weak 5.00 3.67 2.33 1.00 Strong Joints Hydraulic Pumps Clutches BUSINESS STRENGHT Low Medium High (a) Classification Aerospace Fittings Relief Valves Fuel Pumps Flexible Diaphragms 2.33 3.67 5.00 1.00 Invest / grow Harvest / divest Selectivity / earnings
  • The Risk-Reward Diagrams Powered by www.drawpack.com ; All rights reserved. High Low Low High REWARD (NPV) RISK
  • Contrasting Characteristics of Upstream and Downstream Companies Powered by www.drawpack.com ; All rights reserved. Raw Primary Product Consumer materials manufacturer Fabricator producer marketer Retail Supply flow UPSTREAM ORGANIZATIONS DOWNSTREAM ORGANIZATIONS Centre of gravity of a manufacturing industry Consumer Contrasting characteristics of upstream and downstream companies Upstream Commodity Standardize Maximize end users Low-cost producers Sales push Line-driven organization Process innovation Capital budget Capital-intensive Technological know-how Supply and trading/manufacturing and engineering Downstream Proprietary Customize Target end users High margins Marketing pull Line/staff Product innovation R & D/advertising budget People-intensive Marketing skills Product development/marketing Supply stages in a manufaturing industry (supply chain)
  • Porter‘s Five Forces I Powered by www.drawpack.com ; All rights reserved. Potential Entrants Substitutes Buyers Suppliers Industry competitors Rivalry among existing firms Threat of substitute products Threat new entrants Bargaining power of suppliers Bargaining power of buyers
  • Porter‘s Five Forces II Powered by www.drawpack.com ; All rights reserved. RIVALRY AMONG COMPETING SELLERS Potential New Entrants Buyers Suppliers of raw materials, parts, components or other resource inputs Firms in other industries offering Substitute Products
  • Forces Driving Industry Competition Powered by www.drawpack.com ; All rights reserved. Potential Entrants Industry competitors Rivalry among existing firms Substitutes Buyers Suppliers Threat of substitute products or services Bargaining power of suppliers Bargaining power of buyers Threat of new entrants
  • Barriers and Profitability Powered by www.drawpack.com ; All rights reserved. Low High High Low ENTRY BARRIERS EXIT BARRIERS PROFITS=LOW RETURNS=STABLE PROFITS=HIGH RETURNS=STABLE PROFITS=HIGH RETURNS=RISKY PROFITS=LOW RETURNS=RISKY
  • Four Routes to Strategic Advantage Powered by www.drawpack.com ; All rights reserved. KFS Intensify funtional differentiation Relative superiority Exploit competitor‘s weakness Strategic degrees of Freedom Maximize user benefit Aggressive initiatives Ask „why-why‘s“ Compete (wisely) Route 1 Avoid head-on competition Route 2 Route 4 Route 3 Business/Product Offered Old/Existing New/Creative
  • The Generic Strategies I Powered by www.drawpack.com ; All rights reserved. D ifferentiation C ost L eadership F ocus
  • The Generic Strategies II Powered by www.drawpack.com ; All rights reserved. Cost Leadership Differentiation Cost Focus Differentiation Focus Broad Target Narrow Target Lower Cost Differentiation COMPETITIVE ADVANTAGE COMPETITIVE SCOPE
  • Five Modified Competitive Strategies Powered by www.drawpack.com ; All rights reserved. Overall Low-Cost Leadership Strategy Broad Differentiation Strategy Focused Low-Cost Strategy Focused Differentiation Strategy Best-Cost Provider Strategy A Narrow Buyer-Segment (or Market Niche) A Broad Cross-Section of Buyers Lower Cost Differentiation TYPE OF COMPETITVE ADVANTAGE BEING PURSUED MARKET TARGET
  • Sweeney‘s Generic Strategies Powered by www.drawpack.com ; All rights reserved.
    • Marketer
    • Emphasizes
    • Quality
    • Dependability
    • Range
    • Innovator
    • Emphasizes
    • Quality
    • Product/service
    • Performance
    • Speed
    • New product/service
    • Development
    • Caretaker
    • Emphasizes
    • Price/ cost
    • Dependability
    • Quality
    • Innovator
    • Emphasizes
    • Quality
    • Product/service
    • Performance
    • Flexibility
    • Speed
    Traditional Enhanced Enhanced Basic Customer service criteria Strategic change involves enhancing the operation‘s infrastructure Strategic change involves enhancing The operation‘s structure
  • Geobusiness Model Powered by www.drawpack.com ; All rights reserved. CONDITIONING VARIABLES CONTROL VARIABLES MOTIVATION VARIABLES
  • Porter‘s Diamond Powered by www.drawpack.com ; All rights reserved. RELATED AND SUPPORTING INDUSTRIES FIRM STRATEGY, STRUCTURE AND RIVALRY FACTOR CONDITIONS DEMAND CONDITIONS
  • Resource Allocation at Corporate Level Powered by www.drawpack.com ; All rights reserved. Low High High Low EXTENT OF CENTRAL DIRECTION PERCEIVED NEED FOR CHANGE Free bargaining Open competition Imposed priorities „ Formula“
  • PIMS Competitive Strategy Paradigm Powered by www.drawpack.com ; All rights reserved.
    • Market
    • differentiation
    • Market growth rate
    • Entry conditions
    • Unionization
    • Capital intensity
    • Purchase amount
    • Relative perceived
    • quality
    • Relative market
    • share
    • Relative capital
    • intensity
    • Relative cost
    • Pricing
    • R & D spending
    • New product
    • introduction
    • Change in relative
    • quality and variety
    • of products/services
    • Marketing expenses
    • Distribution
    • channels
    • Relative vertical
    • integration
    • Workforce
    • productivity
    • Profitability (ROS,
    • ROI, etc.)
    • Growth
    • Cash flow
    • Value enhancement
    • Stock (share) price
    Market structure Strategy and tactics Performance Competitive position
  • International Strategy Options Powered by www.drawpack.com ; All rights reserved. Export Licensing/ Foreign subsidiary Joint venture Licensing/ Joint venture Foreign branch Joint venture Foreign branch High Low Low High PRODUCT DIVERSITY MARKET COMPLEXITY
  • The Wheel of Competitive Strategy Powered by www.drawpack.com ; All rights reserved. Product Line Target Market Marketing Sales Distribution Manufacturing Labor Purchasing R & D Finance and Control GOALS Definition of how the business is going to compete Objectives for profitability, growth, market share, social responsiveness etc.
  • Generic Competitive Strategies Powered by www.drawpack.com ; All rights reserved. Return on Investment Market Share
  • The Strategic Triangle I Powered by www.drawpack.com ; All rights reserved. Customers Competitors Corporation Multiple market segments Target segments Value Value Cost Product/service differentiation
  • The Strategic Triangle II Powered by www.drawpack.com ; All rights reserved. Needs seeking benefits at acceptable prices Customers Competitor Company Value Value Cost differentials Assets and utilization Assets and utilization
  • Trilogy Strategy - Culture - Structure Powered by www.drawpack.com ; All rights reserved. Strategy Culture Structure Environment Environment Environment Environment
  • Optimum Degree of Formal Organization Powered by www.drawpack.com ; All rights reserved. Degree of formal organization Organizational effectiveness
  • The Flow of Formal Authority Powered by www.drawpack.com ; All rights reserved.
  • Functional, Divisional, Multidivisional Structures Powered by www.drawpack.com ; All rights reserved. Logistics Manufacturing Sales Finance CEO CEO Cement Concrete Chemicals R&D Controlling CEO Europe Asia Motor Marine North America Motor Marine Fire Motor Marine Fire CEO Europe North America Asia Cement Concrete Chemicals
  • A Matrix Design Powered by www.drawpack.com ; All rights reserved. Marketing Department Manager Research and Development Department Manager Purchasing Department Manager Production Department Manager FUNCTIONAL DEPARTMENTALIZATION PROJECT DEPARTMENTALIZATION Alpha Project Project Leader Beta Project Project Leader Gamma Project Project Leader E E E E E E E E E E E E
  • Models of Virtuality Powered by www.drawpack.com ; All rights reserved. The Virtual Face Co-alliance Model Star-alliance Model Value-alliance Model
  • Leavitt‘s Diamond: The Interaction of Social Forces in an Organization Powered by www.drawpack.com ; All rights reserved. Task Technology People Structure
  • Action-centred Leadership Powered by www.drawpack.com ; All rights reserved. GROUP NEEDS INDIVIDUAL NEEDS TASK NEEDS
  • Belbin‘s Team Roles Powered by www.drawpack.com ; All rights reserved. Company Worker Plant Shaper Finisher Resource-Investigator Team Worker Monitor-Evaluator Chairman TEAM
  • Group Development Powered by www.drawpack.com ; All rights reserved. Stage V Adjourning Stage IV Performing Stage III Norming Stage II Storming Stage I Forming Group effectiveness Time
  • Theory X and Theory Y Powered by www.drawpack.com ; All rights reserved. Theory X no responsability, no Initiative passive work attitude strong rules and control confirms following leads to leads to V icious circle of theory X Theory Y no responsability, no Initiative passive work attitude strong rules and control strenghten following allow leads to Strenghten effect of Theory Y
  • Maslow‘s Hierarchy of Human Needs I Powered by www.drawpack.com ; All rights reserved. Esteem Needs (self-esteem, recognition, status) Self-Actualization Needs (self-development and realization) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst)
  • Maslow‘s Hierarchy of Human Needs II Powered by www.drawpack.com ; All rights reserved. Self- Actualization Needs Esteem Needs Belongingness Needs Security Needs Physiological Needs GENERAL EXAMPLES ORGANIZATIONAL EXAMPLES Challenging Job Job Title Friends in Work Group Pension Plan Base Salary Achievement Status Friendship Stability Shelter
  • Herzberg‘s Motivator-Hygiene Theory Powered by www.drawpack.com ; All rights reserved.
    • SALARY
    • ADMINISTRATION
    • SUPEVISION
    • COMPANY POLICY
    • STATUS
    • WORKING
    • CONDITIONS
    • ACHIEVEMENT
    • RECOGNITION
    • RESPONSIBILITY
    • ADVANCEMENT
    • NATURE OF WORK
    HYGIENE FACTORS MOTIVATORS
  • Parallels Among Need Theories of Motivation Powered by www.drawpack.com ; All rights reserved. Achievement Work Itself Responsibility Advancement and Growth Recognition Supervision Interpersonal Relations Security Company Policies Pay Working Conditions Self-Actualization Needs Self-Esteem Esteem Needs Respect of Others Belongingness Needs Interpersonal Security Security Needs Physical Security Physiological Needs Growth Needs Relatedness Needs Existence Needs Need for Affiliation Need for Power Need for Achievement Herzberg‘s Two-Factor Theory Maslow‘s Hierarchy of Needs Alderfer‘s ERG Theory Other Key Needs Motivation Factors Hygiene Factors
  • Managerial Grid Powered by www.drawpack.com ; All rights reserved. 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 Concern for production Concern for people Country Club Management (1,9) Production is incidental to lack of conflict and „ good fellowship“ Team management (9,9) Production is from integration of task and human requirements Dampened Pendulum (5,5) (Middle of the road.) Push for production but don‘t go „all out“. Give some but not all all: „be fair but firm“ Task Management (9,1) Men are a commodity just as machines. A manager‘s responsibility is to plan, direct and control the work of those subordinate to him Impoverished Management (1,1) Effective production is unobtainable becaus people are lazy, apathetic and indifferent. Sound and mature relationships are difficult to achieve because, (human nature being what it is) conflict is inevitable
  • Situational Leadership Powered by www.drawpack.com ; All rights reserved. R4 Able and Willing or Confident R3 Able but Unwilling or Insecure R2 Unable but Willing or Confident R1 Unable and Unwilling or Insecure FOLLOWER READINESS MODERATE LOW HIGH FOLLOWER DIRECTED LEADER DIRECTED Share ideas and facilitate in decision- making Explain decisions and provide opportunity for clarification Turn over responsibility for decisions and implementation Provide specific instructions and closely supervise performance S3 S2 S4 S1 LEADER BEHAVIOUR TASK BEHAVIOUR (Guidance) (HIGH) (LOW) (Supportive Behaviour) RELATIONSHIP BEHAVIOUR PARTICIPATING SELLING TELLING DELEGATING
  • Cultural Web Powered by www.drawpack.com ; All rights reserved. THE PARADIGM Power structures Control systems Rituals and routines Symbols Stories Organizational structures
  • Dynamics of Paradigm Change Powered by www.drawpack.com ; All rights reserved. The paradigm Development of strategy Corporate Performance Implementation Step 1 Tighter controls Step 2 Reconstruct or develop new strategy Step 3 Abandon paradigm and adopt new one if unsatisfactory
  • Four Organizational Cultures Powered by www.drawpack.com ; All rights reserved. Power Culture Task Culture Role Culture Person Culture
  • Integrated Model of Strategic Management Powered by www.drawpack.com ; All rights reserved. Vision, values, and expectations Mission Goals, objectives
    • Strategy
    • formulation
    • Alternatives
    • Evaluation
    • and choice
    Policies and procedures
    • Situation analysis
    • Enviromental
    • opportunities/
    • threats
    • Organizational
    • resources and
    • competences
    Strategy implementation and planning Strategic control Why? What? How? Guidelines
  • M-O-S-T Powered by www.drawpack.com ; All rights reserved. Mission Objectives Strategy Tactics WHAT an organization is seeking to do HOW an organization will achieve it
  • Network Analysis, PERT, CPA Powered by www.drawpack.com ; All rights reserved. 1 0 0 3 4 4 5 9 9 6 12 12 2 5 6 4 7 8 A 5 C 2 G 4 E 5 H 3 F 5 D 1 B 4 KEY: Activity Critical path Event Event number Earliest event time Latest event time
  • The Five Phases of Growth Powered by www.drawpack.com ; All rights reserved. Large Small SIZE OF ORGANIZATION AGE OF ORGANIZATION Young Mature creativity direction delegation coordination collaboration leadership autonomy control red tape &quot;?&quot; evolution: stages of growth revolution: stages of crisis
  • The Chasm Powered by www.drawpack.com ; All rights reserved. Technology Enthusiasts Visionaries Pragmatists Conservatives Skeptics The Chasm The Mainstream Market The Early Market
  • Inventory Profile Powered by www.drawpack.com ; All rights reserved. Order quantity Q Time Inventory level Steady and predictable demand (D) Slope = demand rate Average inventory = Q / 2 Instantaneous deliveries at rate of D / Q per period Q / D
  • Economic Order Quantity Powered by www.drawpack.com ; All rights reserved. Costs Order quantity Order costs Economic order quantity (EOQ) Total costs Holding costs
  • Pareto Curve for ABC-Products Powered by www.drawpack.com ; All rights reserved. Cumulative % of total value % of total number of items Class C items Class A items Class B items
  • CIM-Concept Powered by www.drawpack.com ; All rights reserved. CAD/CAM CAD CAP CAM C A D PPS Production Programm Planning Quantity Planning Time and Capacity Planning Place Order Control Order CIM
  • The Business Process Re-engineering Approach Powered by www.drawpack.com ; All rights reserved. Function 1 Function 2 Function 3 Function 4 Micro operations Customer needs fulfilled Business processes Customer needs Business processes Customer needs fulfilled Customer needs Micro operations Activity 1 Activity 2 Activity 3 Activity 4
  • Total Quality Management Powered by www.drawpack.com ; All rights reserved.
    • Whole operation involved
    • Quality srategy
    • Teamwork
    • Staff empowerment
    • Involves customers and suppliers
    • Quality systems
    • Quality costing
    • Problem solving
    • Quality planning
    • Statistical methods
    • Process performance
    • Quality standards
    • Error detection
    • Rectification
    Inspection Total quality management Quality control Quality assurance
  • Supply Chain Management Powered by www.drawpack.com ; All rights reserved. The Operation Second-tier suppliers First-tier suppliers First-tier customers Second-tier customers Supply side Demand side Purchasing and supply management Physical distribution management Logistics Materials management Supply chain management
  • Internal Rate of Return (IRR) Powered by www.drawpack.com ; All rights reserved. R eturn on I nvestment ROI P ay B ack D iscounted C ash F low (DCF) Main methods of capital expenditure appraisal Net Present Value (NPV) Internal Rate of Return (IRR)
  • Net Present Value (NPV) Powered by www.drawpack.com ; All rights reserved. R eturn on I nvestment (ROI) P ay B ack I nternal R ate of R eturn (IRR) N et P resent V alue (NPV) D iscounted C as h F low (DCF) Main methods of capital expenditure appraisal
  • Variance Analysis Powered by www.drawpack.com ; All rights reserved. Materials Usage Variance Wage Rate Variance Labour Efficiency Variance Materials Price Variance Materials Price Variance Labour Variance Variable Overhead Variance Fixed Overhead Variance Total Cost Variance Sales Volume Variance Sales Price Variance Total Sales Variance Profit Variance
  • The Link Between the Balance Sheets and the Income Statement Powered by www.drawpack.com ; All rights reserved. Assets $170 Liabilities $100 Owner‘s equity $70 Revenues $480 Expenses $469.8 Net Profit $10.2 Assets $190 Liabilities $113 Owner‘s equity $77 Retained earnings $7 Dividends $3.2 Balance Sheet December 31, 2002 Income Statement Year 2002 Balance Sheet December 31, 2001
  • Working Capital Powered by www.drawpack.com ; All rights reserved. Simple cycle of operations Cash Finished goods inventory Receivables Raw materials inventory
  • Financial Strategy Framework Powered by www.drawpack.com ; All rights reserved. Due dilligence process Investor Investment strategy Alternative Investments Time to close deal Risk/Reward Space Financial Strategy Opportunity Time to out of cash Entrepreneurial concerns Future alternatives Sources and Deal Structure Debt Equity Other Business Strategy Technological Strategy Market Strategy Financial Requirements Asset Requirement Burn Rate Operating Requirements Working Capital
  • Investor Perceived Risk-Return Space Powered by www.drawpack.com ; All rights reserved. High Moderate Low Low Moderate High PERCEIVED RETURN PERCEIVED RISK Banks FFF Entrepreneur Angels VCs Realistic Investors
  • Du Pont Scheme Powered by www.drawpack.com ; All rights reserved. Return on equity ROE = Earnings after tax Owner‘s equity Financial leverage mul ti plier Tax effects Return on invested capital ROIC = Earnings before interest and tax Invested capital Operating profit margin Earnings before interest and tax Sales Capital turnover Sales Invested capital Financial structure ratio Invested capital Owner‘s equity Financial cost ratio Earnings before tax Earnings before interest and tax Tax effect ratio Earnings after tax Earnings before tax Sales Operating costs Invested capital Owner‘s equity Cost of debt Tax rate Cash Working Capital requirement Fixed assets
  • The Drivers of Value Creation Powered by www.drawpack.com ; All rights reserved. Operating margin = EBIT Sales Capital turnover = Sales Invested capital Tax effect = (1 – Taxe rate) Aftertax cost of debt Estimated cost of equity Economic, political, and social environments Market structure Competitive advantages and core competencies EBIT Invested capital (pretax ROIC) Expected after tax ROIC Return spread (ROIC – WACC) Percent of debt financing Percent of equity financing Weighted average cost of capital WACC Sustainability of growth Market Value Added (MVA) If the present value of the future stream of expected return spreads is positive, MVA is positive and the higher the growth, the more value created. If the present value of the future stream of expected return spreads is negative, MVA is negative and the higher the growth, the more value destroyed.
  • Business Design Process Powered by www.drawpack.com ; All rights reserved. What are my choices now? In the future? What are the key assumptions About customers and economics? What‘s important to customers? How can profit be made? What dimensions matter the most? How can I prepare for ongoing redesign? Which ones are best? Are the best choices internally consistens integratable? What‘s my best business design? How long will this design be valid? Economics Changing Customer Priorities Technology
  • The Company Center of Gravity Powered by www.drawpack.com ; All rights reserved. The Company The Customers The center of gravity The Company The Customers The Center of Gravity The Company The Customers The Center of Gravity The Entrepreneurial Phase The Growth Phase The Success Phase
  • The Traditional Value Chain Powered by www.drawpack.com ; All rights reserved. The Traditional Value Chain Start with Assets, Core Competencies Assets/ Core Competencies Inputs, Raw Material The Customer Channels Product/ Service Offering The Modern Value Chain Start with the Customer The Customer Channels Assets/ Core Competencies Inputs, Raw Material Offering
  • The Modern Value Chain Powered by www.drawpack.com ; All rights reserved. Truly Understanding the Customer Customer Priorities Channels Assets/ Core Competencies Inputs, Raw Material Offering Purchase Criteria Customer Anger Preferences Power Decision-Making Process Buyer Behavior Functional Needs Systems Economics Purchase Occasion
  • Customer Solutions Profit Powered by www.drawpack.com ; All rights reserved. Profit 0
  • Product Pyramid Profit Powered by www.drawpack.com ; All rights reserved. Volume Price
  • Multicomponent Profit Powered by www.drawpack.com ; All rights reserved. Base Business Other Components
  • Switchboard Profit Powered by www.drawpack.com ; All rights reserved. Buyers Sellers
  • Time Profit Powered by www.drawpack.com ; All rights reserved. Cost Price $/Unit Time
  • Blockbuster Profit Powered by www.drawpack.com ; All rights reserved. Cost Revenue $/Project Project Type
  • Profit Multiplier Model Powered by www.drawpack.com ; All rights reserved. Key Asset Other Forms
  • Entrepreneurial Profit Powered by www.drawpack.com ; All rights reserved. Base Business Spin-Outs
  • Specialization Profit Powered by www.drawpack.com ; All rights reserved. Return on Sales Generalist Specialist
  • Installed Base Profit Powered by www.drawpack.com ; All rights reserved. Profit Margin Hardware/Base Product Consumables/ Follow-on Product
  • De Facto Standard Profit Powered by www.drawpack.com ; All rights reserved. Market Share Profit Margin
  • Brand Profit Powered by www.drawpack.com ; All rights reserved. Price/Unit Market Price Brand Price
  • Specialty Product Profit Powered by www.drawpack.com ; All rights reserved. Revenue Five Years Ago Today S C S C 100 %
  • Local Leadership Profit Powered by www.drawpack.com ; All rights reserved. Profitability by Region Local Market Share 0
  • Transaction Scale Profit Powered by www.drawpack.com ; All rights reserved. Cost Revenue $/Unit Size of Transaction
  • Value Chain Position Profit Powered by www.drawpack.com ; All rights reserved.
  • Cycle Profit Powered by www.drawpack.com ; All rights reserved. $/Unit Utilization Cost Price
  • After-Sale Profit Powered by www.drawpack.com ; All rights reserved. Follow-on Products/Services Base Product
  • New Product Profit Powered by www.drawpack.com ; All rights reserved. Time
  • Relative Market Share Profit Powered by www.drawpack.com ; All rights reserved. Relative Market Share Return on Sales
  • Experience Curve Profit Powered by www.drawpack.com ; All rights reserved. Cumulative Experience Cost/Unit
  • Low-Cost Business Design Profit Powered by www.drawpack.com ; All rights reserved. $/Unit Conventional Business Design Low Cost Business Design
  • GE's Business Design: „Sell the Solution, Not Just the Box“ Powered by www.drawpack.com ; All rights reserved. The Profit Zone Sell the Box, or ... Product ... Sell the Whole Solution Product Options Accessories Services Financing
  • The SMH Product Pyramid Powered by www.drawpack.com ; All rights reserved. The Profit Zone Omega, Longines, Rado Tissot, Certina, Mido, Pierre Balmain, Hamilton, Calvin Klein Swatch, Flik Flak Endura Lanco Blancpain
  • Coca-Cola's Business Design: Manage the Value Chain Powered by www.drawpack.com ; All rights reserved. Consumer Syrup Vending Fountain Bottling Logistics Grocery Distribution Coca-Cola Brand 1980 The Profit Zone Consumer Syrup Vending Fountain Bottling Logistics Grocery Distribution Coca-Cola Mega Brand Coca-Cola, diet Coca- Cola, Caff. Free, diet Caff. Free, Cherry, Diet Cherry 1996 Coca-Cola‘s participation, influence no participation
  • The Charles Schwab &quot;Switchboard&quot; Powered by www.drawpack.com ; All rights reserved. The Profit Zone Investors Mutual Fund Companies Schwab One Source Investors Mutual Fund Companies
  • Intel's Business Design: „Two Steps Ahead“ Powered by www.drawpack.com ; All rights reserved. The Profit Zone Cost Price $/Unit Quarters Post-Launch Q2 Q4 Q6 Q8 Q10 Intel AMD
  • Disney‘s Business Design Reinvention Powered by www.drawpack.com ; All rights reserved. The Profit Zone The Value Capture Cruises Publishing Videocassette Merchandise Hotels Retail Television Music Theme Parks Animated and Live-Action Films
  • The Thermo-Electron &quot;Spin-Out“ Business Design Powered by www.drawpack.com ; All rights reserved. The Profit Zone Thermo-Electron Thermo Trex Thermo Instrument Systems Thermedics Thermo Optek Thermo Spectra Thermo Voltek Thermo Sentron Thermolase Trex Medical
  • Microsoft's Business Design: Create-the-Standard Powered by www.drawpack.com ; All rights reserved. OEMs Windows Microsoft Applications Applications Developers Customers The Profit Zone
  • Usage rights 1. Drawpack.com allows the customer an unlimited but not exclusive right to use the provided services, products and diagrams. 2. The services, products and diagrams that the customer has received can be copied, edited, saved and used by the customer for their personal and commercial use. 3. The customer is prohibited from providing the service, products and diagrams on professional download levels in the area of audio, video and software transmission. This includes providing the services, products and diagrams via download against payment or free of charge. The customer is prohibited providing the services, products and diagrams on internet servers or on websites with public access. 4. The customer is prohibited providing identical or similar services to those provided on www.drawpack.com with the services, products and diagrams. 5. Any infringements against the above usage rights will lead to legal action. All rights are reserved to www.drawpack.com Powered by www.drawpack.com ; All rights reserved.