Diversification "out of the box" - Roland Berger

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In most companies, the organization of business units doesn'tfollow a "true market logic"Illustrative examplesConstructionCoUtilityCoHighTechCoDoors> Entry doors> Garage doorsGarageDoor openers…PowerPowerPower retailgeneration transmission &distributionTouring qualitymicrophones &speakers…> Are entry andgarage doorsreally onebusiness?> Shouldn'tgarage doorsopenersmanagedtogether withgarage doors?> Is transmission & distribution anown business?> What is the right regional marketdefinition for generation? (does itmake sense to expandgeographically?)> Is it possible tosell electricitywithout owngenerationcapacities?> Are speakers &microphonesreally onbusiness, onlybecause ofsimilardistributionchannels? ca esA bottom-up portfolio segmentation is needed to understand businesscompetitive position and to derive right strategic insights8
1.1A proper bottom-up portfolio segmentation is the first step toachieve portfolio transparencyHighCostSharingLowOne portfolio element(synergies might allowfor outpacing strategy)Related, but separate portfolioelements (synergies can lead tocost leadership)LowUnrelated portfolio elementsCustomer SharingOne portfolio elementRelated, butseparateportfolioelements(might bebundled)One portfolioelement(products mightsubstitute eachother)HighIn additionREGIONALSCOPE OFBUSINESS tobe analyzedPortfolio segmentation should mirror boundaries of thebattlefield within which companies compete at the market9
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 7: Our modular approach consists of fo
Page 11 and 12: 1.1BACKUPWrong business definition
Page 13 and 14: 1.3 EXAMPLEThe definition of core b
Page 15 and 16: 1.4ILLUSTRATIVEPortfolio options sh
Page 17 and 18: 1.4ILLUSTRATIVETop-down targets for
Page 19 and 20: Our modular approach consists of fo
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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