Anda di halaman 1dari 19

learnppt.

com
PowerPoint Diagram Pack

Growth Strategy Toolkit


This toolkit includes instructional slides and templates covering the following areas: -Growth challenges -Traditional strategy thinking (e.g. Porters Five Forces) -Modern strategy thinking (e.g. Blue Ocean Strategy) -A growth strategy project initiative (project approach, design, frameworks & analytics, deliverables) -Case examples
Competitive Scope
Broad Narrow

Competitive Advantage Lower Cost Cost Leadership Differentiation Differentiation

Cost Focus

Differentiation Focus

Check out our site for all your PowerPoint needs! http://learnppt.com Find our ebook on creating effective and professional presentations. Covers basic to advanced concepts, including storyboarding, diagramming, and the Consulting Presentation Framework. http://learnppt.com/powerpoint -- Shop our catalog of Diagram Packs. We try to add more Packs monthly. All of our diagrams are professionally designed by ex-management consultants from top firms.

Contents

Growth Challenge Traditional Strategy Thinking - Porters Five Forces Modern Strategy Thinking - Blue Ocean Strategy - Blue Ocean Examples Growth Strategy Project - Project Approach - Project Design - Analytics & Frameworks - Deliverables learnppt.com

4 10 15

26

Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

Contents

Growth Challenge Traditional Strategy Thinking - Porters Five Forces Modern Strategy Thinking - Blue Ocean Strategy - Blue Ocean Examples Growth Strategy Project - Project Approach - Project Design - Analytics & Frameworks - Deliverables learnppt.com
Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

All companies are faced with the challenge of achieving sustainable growth
The Challenge Sustainable Growth
Not many companies achieve significant growth Fortune 500 median revenue growth rate between 1963 and 2003 is 6.3% in real terms and 10.2% in nominal terms Real revenue growth fluctuates more than Return on Invested Capital (ROIC) ranging from 1 to 11%

Most difficult for large companies

Large companies struggle to grow Excluding the first year, companies entering the Fortune 50 grow at an average of 1% above inflation over a 15 year timeframe Only 1/3 of the Fortune 500 are able to sustain top-line growth above GDP and generate returns above the S&P500 90% of them concentrated in 4 sectors (FSI, HC, Tech, Retail)

THISHigh-growth rates decay very rapidly IS A PARTIAL PREVIEW


Those that do, find it You can difficult to sustain

preview the full above 20% salesdocument and down to 8% Companies PowerPoint growth typically slide within 5 years, and down to 5% by the 10 year download it at http://learnppt.com/powerpoint/ marker

Source: The do-or-die struggle for growth, McKinsey Quarterly, 2005 November 3

learnppt.com

Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

Growth is commonly inhibited by a lack of breakthrough ideas, balancing cost-out and margin trade-offs, and execution challenges
Growth Challenges
Current Situation Few breakthrough growth offerings identified Growth at the expense of profitability Lack of execution followthrough for growth initiatives

Focus is on existing markets and demand (e.g., line extensions, substitutes) Strategic Issues Consumers are increasingly sophisticated and hard to please Opportunities are defined by internal/operational capabilities

Benefit trade-offs are not made (e.g., the right mix of attributes) Pricing and cost structure are driven by competition Organizational structure is not in line with new business

Lack of committed financial resources Metrics and rewards based on current operations Structure and processes to develop and manage growth do not exist

THIS IS A PARTIAL PREVIEW


The Resolution Create customer value Align value proposition Effectively execute You(Value Innovation) the full operations/organization can preview with PowerPoint document and strategy download it at http://learnppt.com/powerpoint/

learnppt.com

Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

Successful companies balance the competing demands of optimizing existing core businesses while building new ones
Framing the Growth Challenge
Horizon 2 Profit Horizon 1 Extend and defend the core business Core business of the company Critical to near-term performance, cashflow and profits Some growth potential, but typically will flatten over time Lay foundation for future growth Manage for profitability Stage Objectives Continuing innovation Build emerging businesses Time Build new business and streams of revenue Extend current business or move in new directions After a few years, these businesses should be accelerated to replicate success like the core Drive ventures to take root Replicate the PREVIEW IS A PARTIAL business model Seeds of the future businesses that will transform the industry New ideas backed by investments Could take form of research, alliances, pilots, minority stakes Eventually take hold (10 year horizon) Seed growth options Test business model Create viable options for future growth Horizon 3

Description

THIS Efficiency optimization

Managing for Growth requires

You can preview the full PowerPoint document and download it at Strong Operational Managers / http://learnppt.com/powerpoint/ Business Builders / Visionaries /
Leaders Entrepreneurial Value Creators

Unconventional Thinkers

Source: The Alchemy of Growth, Baghai, Coley and White, 1999.

learnppt.com

Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

managing short and long-term thinking and investment to create growth-enabled organizations
Barriers to Growth
Horizons Under siege 1 2 3 Common Barriers Core business underperforming, lack ideas in the pipeline Need to earn the right to grow by putting the core business back on track

Losing the right to grow Running out of steam

Obsessive focus on new business without developing the core, spreading the organization and management thin Basic performance improvement in core required Strong focus on core business, but no focus on next big idea; businesses could mature, position could be threatened Start journey toward growth

Inventing a new future Generating ideas but not new businesses Failing to seed for the future

Due to external triggers (regulatory change, technology), company must transition out of core business to new space

Good core business THIS IS A PARTIAL PREVIEW with a lot of new ideas, but lack

initiatives to translating ideas into real businesses (Dot.com)

You can preview the full PowerPoint document and Have strong core and new businesses to drive returns download it at http://learnppt.com/powerpoint/ for several years, but lack institutional capabilities for
innovation

Source: The Alchemy of Growth, Baghai, Coley and White, 1999.

learnppt.com

Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

Faced with challenges to grow profitably, we work clients to identify their path to value creation and innovation
Paths to Growth
Expand Into New Segments / Categories

Develop New Products/Brands Expanding Business Scope

Develop New Formats/ Channels

Expand Geographically Growth Opportunities Build, Buy, Ally

Improve/Change Value Proposition Solidify Customer Relationships Increasing Value from Current Business

THIS IS A Improve Pricing PREVIEW PARTIAL

You can preview the Penetrate markets with existing products and full PowerPoint document download it at http://learnppt.com/powerpoint/
Optimize Product Mix

learnppt.com

Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

Contents

Growth Challenge Traditional Strategy Thinking - Porters Five Forces Modern Strategy Thinking - Blue Ocean Strategy - Blue Ocean Examples Growth Strategy Project - Project Approach - Project Design - Analytics & Frameworks - Deliverables learnppt.com
Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

Traditional concepts of growth strategy are based on internal analysis and interpretation of the marketplace
Common Growth Concepts
Competitive Advantage
Prote Build Protect ct selectively Position and refoc Competitive us Position Manage Invest Manage Medium to Build for for earnings earnings Build Weak Divest Harvest selectively

Strong

Low Cost Broad Target

Differentiation

Competitive Scope
Narrow Target

Cost Leadersh Differenti ation ip

Focus

Focus on current business and capabilities Define opportunities by relative competitor position

McKinsey, General Electric, Shell

Low Medium High Attractiveness

M. Porter, Competitive Strategy

Dominant

Natural Development

Harvest

+ 50 %

Strong

Competitive Position

Stars
Favorable Selective Development Reorientation Reorientation Marginal

Question Marks

Growth

+5%

Unfavorable

Cash THIS IS A PARTIAL PREVIEW Dogs Cows

Look internally and to competitors, as opposed to customers, for growth options

Infancy

Arthur D. Little

- 10 % You can preview the full PowerPoint document and 10 1 0.1 Relative Market Share download it at http://learnppt.com/powerpoint/ Maturity
Divestment
Growth Maturity Ageing

Boston Consulting Group

learnppt.com

Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

10

Traditional approach to growth strategy is based on the teachings of Michael Porternamely Porters Five Forces framework
Traditional Strategy Thinking Porters Five Forces
1. Potential new competitors Threat by new competitors

4. Suppliers Suppliers negotiation power

2. Competitors in the industry Rivalry among existing companies

5. Customers Buyers negotiation power

THIS IS A PARTIAL PREVIEW 3. Substitution You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/ Threat by
substitution products products

learnppt.com

Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

11

Porters Five Forces assesses the attractiveness of an industry along each competitive force to determine the correct competitive strategy
Porters Five Forces
Threat of New Entrants
Barriers to entry: Economies of scale (including shared resources) Product differentiation (proprietary) Capital requirements Switching costs Access to distribution channels Cost disadvantages independent of scale Government policy Expected reaction of incumbent

Competitive Advantage Lower Cost Cost Leadership Cost Focus Differentiation Differentiation Differentiation Focus

Competitive Scope

Broad Narrow

Bargaining Power of Suppliers A supplier group is powerful when: It is dominated by a few companies and is more concentrated than the industry it sells to. There are no substitute products. The industry is not an important customer. Its products are important to the industry. Products are differentiated or suppliers have built up switching costs. It poses a credible threat of forward integration.

Intensity of Rivalry
Intense rivalry results from: Numerous or equally balanced competitors Slow industry growth High fixed or storage costs Lack of differentiation or switching costs Capacity augmented in large increments Diverse competitors High strategic stakes High exit barriers

Bargaining Power of Buyers A buyer group is powerful when: It is concentrated or purchases large volumes relative to seller sales. The products represent a significant fraction of the buyers costs or purchases. The products are standard or undifferentiated. It faces few switching costs. It earns low profits. It poses a credible threat of backward integration. The bought product is unimportant. It has full information.

Exit Barriers L H

Pressure from Substitute Products THIS IS A PARTIAL PREVIEW Search for products that can perform the same function. Assess buyers propensity to substitute. Focus on those that: Are improving their price performance trade-off compared with the industries products. Require low switching costs. Are produced by industries earning high profits.

Entry Barriers

L H

Low, stable returns High, stable returns

YouLow, risky preview the full PowerPoint document and can returns download it at http://learnppt.com/powerpoint/
High, risky returns

Take offensive or defensive actions to create a defensible position against the forces: Positioning the firm so its capabilities provide the best defence Influencing the balance of forces through strategic moves Anticipating shifts in the factors underlying the forces and responding to them

learnppt.com

Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

12

Headline message
Porters Five Forces Template
INDUSTRY COMPETITIVE ASSESSMENT COMPETITIVE STRATEGY

New Entrants
Bullet point 1 Bullet point 2 Bullet point 3 Bullet point 4

Competitive Advantage Lower Cost Differentiation Differentiation

Suppliers
Bullet point 1 Bullet point 2 Bullet point 3 Bullet point 4

Internal Rivalry
Bullet point 1 Bullet point 2 Bullet point 3 Bullet point 4

Buyers
Bullet point 1 Bullet point 2 Bullet point 3 Bullet point 4
Competitive Scope
Broad

Cost Leadership

Narrow

Cost Focus

Differentiation Focus

You can preview the full PowerPoint document and Bullet point 1 Bullet point 2 download it at http://learnppt.com/powerpoint/
Bullet point 3 Bullet point 4

Substitutes

THIS IS A PARTIAL PREVIEW

learnppt.com

Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

13

Contents

Growth Challenge Traditional Strategy Thinking - Porters Five Forces Modern Strategy Thinking - Blue Ocean Strategy - Blue Ocean Examples Growth Strategy Project - Project Approach - Project Design - Analytics & Frameworks - Deliverables learnppt.com
Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

14

The modern strategy thinking of Blue Ocean Strategy focuses on enabling innovation, value creation, and effective execution
Modern Strategy Thinking
Growth Focus
Start with customer needs Look beyond traditional markets, industries and competitors Create multi-horizon portfolio Develop growth platforms for market mining
Consumer Need Market Trends

Value Identification
Understand what the customer values Prioritize initiatives
Value

Value Creation
Select and develop growth option Align operating model to deliver value and fair value
Costs

Effective Execution
Concept Execution
Venture Launch Organizational alignment Funding / Resource Allocation Measurements Accountability

Growth Platform

Eliminate Reduce

Raise

Create

THIS IS A PARTIALValue PREVIEW Innovation You can preview the full PowerPoint document Value download it at http://learnppt.com/powerpoint/
Source: C. Kim, R. Mauborgne, Harvard Business Review (1997).

Sustainable Growth and Structure


Infrastructure Culture Alliance Management M&A

learnppt.com

Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

15

Modern thinking moves away from a traditional focus on competition to blue oceans of opportunity
Shift to Make Competition Irrelevant
Traditional Thinking Industry Modern Thinking Industry conditions are given compete Industry conditions can be shaped in existing market space create uncontested market space

Strategy

Companies must build competitive advantages to beat competition Exploit existing demand

Make competition irrelevant

Market

Create and capture new demand

Resources

Make the value-cost trade-off

Break the value-cost trade-off

Organization

Align the whole system of a firms activities with its strategic choice of THIS IS A PARTIAL differentiation or low cost

Align the whole system of a firms activities PREVIEWin pursuit of differentiation and low cost

Offerings

You can preview the full PowerPoint document and solution that Maximizing the offerings value within Offering buyers the total industry boundaries transcends the industry download it at http://learnppt.com/powerpoint/

Source: C. Kim, R. Mauborgne, Harvard Business Review (1997)

learnppt.com

Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

16

Value is created from more than just meeting customer needs


Portfolio Positioning

Pioneers
(Need beyond buyers cognition)

14% of launches 38% of sales 61% of profits

Migrators
(Need known but not articulated by the buyer) 86% of launches 62% of sales 39% of profits

Settlers
(Need identified)

THIS IS A PARTIAL PREVIEW

(Company sampling)

You can preview the full PowerPoint document and Deliver Product Service Platform Platform Platform download it at http://learnppt.com/powerpoint/
Source: C. Kim, R. Mauborgne, Harvard Business Review (1997)

learnppt.com

Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

17

END OF PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/

learnppt.com

Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only.

18

Read our eBook How to Become a PowerPoint Guru http://learnppt.com/ Browse our catalog of PowerPoint Diagram Packs http://learnppt.com/powerpoint

Join our mailing list and receive the Basic Toolkit for free! http://learnppt.com/mailinglist
learnppt.com
Questions & feedback? Email me dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 19