Blackmores
Australian School of Business ACCT5910 Business Analysis and Valuation
Lesson Plan
• • • • • • Dot Com case study Why do we need to undertake strategy analysis? Industry I d t analysis l i Competitive strategy analysis Corporate strategy analysis SWOT analysis
Australian School of Business B i
Class 2: Strategy Analysis gy y
Dot Com – NASDQ index from 1 Jan 1996-30 Dec 2002 School of
Business B i
Australian
A. Why Strategy Analysis
• • Strategy drives the actions of an organisation Studying a firm’s strategy provides: – An understanding of what drives risks, profitability, and competitive advantages – A basis for future performance to be forecasted – An idea of how to measure the success of a firm’s actions
Australian School of Business B i
Key issue: How should a firm’s strategy be reflected in the financial statements? firm s
Value chain analysis
Australian School of Business B i
Value chain analysis – An illustration
Australian School of Business B i
1. Always start by asking – “What is the product being delivered to the end customer?” d t ?” 2. Then identify all stages needed to deliver the product 3. Then identify who is best endowed to deliver each part of the chain y p Best means that entity; a. a that has got the expertise for the production and b. can best manage the risk of that part of production and c. is naturally endowed with economic assets to deliver better than others.
Value Chain Analysis – another example after Stickney Brown and Wahlen 6th ed Thompson Stickney, ed.,
Australian School of Business B i
Value Chain Analysis
• BY PEPSICO: – New beverage product development – Manufacture of concentrate BY BOTTLERS – Mixing to produce beverage or syrup – Containerizing – Distribution to retail outlets
Australian School of Business B i
•
Bottlers PepsiCo
Value Chain Analysis
• Illustration – Health Care (Primary Health Corporation) 1. What product(s) does health care deliver? 2. What
Lesson Plan
• • • • • • Dot Com case study Why do we need to undertake strategy analysis? Industry I d t analysis l i Competitive strategy analysis Corporate strategy analysis SWOT analysis
Australian School of Business B i
Class 2: Strategy Analysis gy y
Dot Com – NASDQ index from 1 Jan 1996-30 Dec 2002 School of
Business B i
Australian
A. Why Strategy Analysis
• • Strategy drives the actions of an organisation Studying a firm’s strategy provides: – An understanding of what drives risks, profitability, and competitive advantages – A basis for future performance to be forecasted – An idea of how to measure the success of a firm’s actions
Australian School of Business B i
Key issue: How should a firm’s strategy be reflected in the financial statements? firm s
Value chain analysis
Australian School of Business B i
Value chain analysis – An illustration
Australian School of Business B i
1. Always start by asking – “What is the product being delivered to the end customer?” d t ?” 2. Then identify all stages needed to deliver the product 3. Then identify who is best endowed to deliver each part of the chain y p Best means that entity; a. a that has got the expertise for the production and b. can best manage the risk of that part of production and c. is naturally endowed with economic assets to deliver better than others.
Value Chain Analysis – another example after Stickney Brown and Wahlen 6th ed Thompson Stickney, ed.,
Australian School of Business B i
Value Chain Analysis
• BY PEPSICO: – New beverage product development – Manufacture of concentrate BY BOTTLERS – Mixing to produce beverage or syrup – Containerizing – Distribution to retail outlets
Australian School of Business B i
•
Bottlers PepsiCo
Value Chain Analysis
• Illustration – Health Care (Primary Health Corporation) 1. What product(s) does health care deliver? 2. What