Diversification "out of the box" - Roland Berger

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1.2 EXAMPLEThe analysis of properly segmented portfolios can be based on"market attractiveness" and "competitive position"Project exampleSTRATEGIC IMPERATIVESMarketattractiveness> Market size> Market growth> Marketprofitability54321DalcombankTS-RetailBinnofarmMBRDSitronicsSistema-HalsMedsi/Medsi-2MTTMTSDetskiy Mir/DM CenterSky LinkRussian World StudiosIntouristConcern RTI SystemsSistema mass-mediaComstar OTC/MGTS> Top position: Furtherinvest in businesses (andgrow in related areas)> Borderliner: Bring tostrategic and/or operational"target performance" andmove to top pp position (e.g.increase market share tosustainable size by M&A,restructure operations)00 1 2 3 4 5> Weak position: Divest (orperform "leap frog")Top positionBorderlinerWeak position> Relative market shareCompetitive position> Relative performance (e.g. ROCE/ROS vs. competitors)> Performance vs. key purchasing factorsSource: Roland Berger Project example12
1.3 EXAMPLEThe definition of core business and "satellites" should bebased on a sharing analysis (and size/ financial performance)Project example (Related Diversification)RELATEDNESS ANALYSISCORE DEFINITIONCapability sharingCost sharingCustomer sharingABCDA B CA 100% 8% 5%BA 8% B 100% C 13%DA C100% 5% 8% 13% 5% 100% 10%B A D 8% B 10% 100% C 60% 13% D 80% 50%C100% 5% 8% 13% 5% 100% 10% 80%D8% 10% 100% 60% 13% 80% 50%100%5% 13% 100% 80%10% 60% 80% 100%D10%50%80%100%"UnrelatedBusinesses"PackagingProcessingConsumerBusinessProjectBusinessPro-fessionalRelatedBusinessesCoreBusinesses> Assessment of relatedness of businessesby using three main criteria (andrespective sub-criteria)> Calculation of "economic relatedness" asweighted average of criteriaMROAutomotiveElectronicsDetailed input for concrete synergies measuresPortfolio logic with indication for "role of the center"Source: Project example13
Page 1 and 2: Diversification "out of the box"Mun
Page 3 and 4: A. OUR APPROACH -A structured conce
Page 5 and 6: Our modular approach consists of fo
Page 9 and 10: 1.1A proper bottom-up portfolio seg
Page 11: 1.1BACKUPWrong business definition
Page 15 and 16: 1.4ILLUSTRATIVEPortfolio options sh
Page 17 and 18: 1.4ILLUSTRATIVETop-down targets for
Page 21 and 22: 2.1BACKUPThe portfolio logic need t
Page 23 and 24: 2.2ILLUSTRATIVEThe arithmetic for v
Page 25 and 26: 2.2EXAMPLE"Underperformer" business
Page 27 and 28: 2.3RELATED DIVERSIFICATIONIdentifyi
Page 29 and 30: 2.3RELATED DIVERSIFICATIONOdds of s
Page 31 and 32: 2.3RELATED DIVERSIFICATIONIdentifie
Page 33 and 34: 2.3RELATED DIVERSIFICATIONIndicator
Page 35 and 36: 2.3UNRELATED DIVERSIFICATIONConglom
Page 37 and 38: The ability of the holding to contr
Page 39 and 40: Successful organizations design a c
Page 41 and 42: … that vary by the adopted modelO
Page 43 and 44: BACKUPResources needed at the cente
Page 45 and 46: ILLUSTRATIVEThe role of the corpora
Page 47 and 48: EXAMPLEAustralian conglomerate Wesf
Page 49 and 50: E. ROLAND BERGER - Our experienceRo
Page 51 and 52: Excellence in strategy consultancy
Page 53 and 54: Our expertsHauke MojePartnerFlorian

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