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)

1. 150 Business Diagrams... Powered by www.drawpack.com . All rights reserved.

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3. 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.

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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 $

10. 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

11. Demand and Supply Powered by www.drawpack.com ; All rights reserved. Price Quantity 0 G B E D F S A D S

12. 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*

13. 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

14. 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

15. Sales and Profit Life Cycles Powered by www.drawpack.com ; All rights reserved. Sales and Profits ($) Time Profit Sales Maturity Growth Introduction Decline

16. Market Potential, Market Volume, Market Share Powered by www.drawpack.com ; All rights reserved. Volume or value Time Market potential Market volume Market share

17. 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

18. 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.

19. 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

20. Patterns of Strategic Change Powered by www.drawpack.com ; All rights reserved. Continuity Incremental Flux Global

21. The Whole Product Model Powered by www.drawpack.com ; All rights reserved. Generic Product Expected Product Augmented Product Potential Product

22. 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

23. The Four P‘s of McCarthy I Powered by www.drawpack.com ; All rights reserved. Product Place Promotion Price Environment Environment Environment Environment

24. 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

25. 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

26. The Expanded Marketing Mix Powered by www.drawpack.com ; All rights reserved. Product Price People Processes Place Promotion Customer Service

27. 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

28. The PDCA Cycle Powered by www.drawpack.com ; All rights reserved. Performance Time Path of continous improvement Check Do Act Plan

29. Enterprise Management Process Powered by www.drawpack.com ; All rights reserved. Decision Process Enterprise Structure Mission & Strategy Enterprise Learning Value Improvement Customer Satisfaction Benchmarking

30. 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

31. SWOT Analysis I Powered by www.drawpack.com ; All rights reserved. Strengths Opportunities Threats Weaknesses

34. 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

35. 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

36. 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

37. 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

38. 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

39. 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

40. Product-Market Diversification Powered by www.drawpack.com ; All rights reserved. Market Diversification Broad Product Diversification Narrow Moderate Moderate Broad Narrow

41. 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

42. 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

43. 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%

44. 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

45. 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

46. 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

47. McKinsey‘s Seven ‚S‘s Framework Powered by www.drawpack.com ; All rights reserved. Superordinate Goals Structure Staff Strategy Systems Style Skills

49. Core Competencies I Powered by www.drawpack.com ; All rights reserved. Banner Brand Business Units Core Products (Platforms) Core Competencies

50. Core Competencies II Powered by www.drawpack.com ; All rights reserved. Processes Capabilities Technologies Core Competencies

51. 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

52. The General Electric Business Screen Powered by www.drawpack.com ; All rights reserved. Low High Medium Strong Average Weak COMPETITIVE POSITION INDUSTRY ATTRACITVENESS

54. 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

55. 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

56. 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

57. 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

58. 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

59. The Risk-Reward Diagrams Powered by www.drawpack.com ; All rights reserved. High Low Low High REWARD (NPV) RISK

60. 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)

61. 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

62. 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

63. 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

64. 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

65. 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

66. The Generic Strategies I Powered by www.drawpack.com ; All rights reserved. D ifferentiation C ost L eadership F ocus

67. 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

68. 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

70. Geobusiness Model Powered by www.drawpack.com ; All rights reserved. CONDITIONING VARIABLES CONTROL VARIABLES MOTIVATION VARIABLES

71. Porter‘s Diamond Powered by www.drawpack.com ; All rights reserved. RELATED AND SUPPORTING INDUSTRIES FIRM STRATEGY, STRUCTURE AND RIVALRY FACTOR CONDITIONS DEMAND CONDITIONS

72. 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“

74. 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

75. 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.

76. Generic Competitive Strategies Powered by www.drawpack.com ; All rights reserved. Return on Investment Market Share

77. 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

78. 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

79. Trilogy Strategy - Culture - Structure Powered by www.drawpack.com ; All rights reserved. Strategy Culture Structure Environment Environment Environment Environment

80. Optimum Degree of Formal Organization Powered by www.drawpack.com ; All rights reserved. Degree of formal organization Organizational effectiveness

81. The Flow of Formal Authority Powered by www.drawpack.com ; All rights reserved.

82. 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

83. 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

84. Models of Virtuality Powered by www.drawpack.com ; All rights reserved. The Virtual Face Co-alliance Model Star-alliance Model Value-alliance Model

85. Leavitt‘s Diamond: The Interaction of Social Forces in an Organization Powered by www.drawpack.com ; All rights reserved. Task Technology People Structure

86. Action-centred Leadership Powered by www.drawpack.com ; All rights reserved. GROUP NEEDS INDIVIDUAL NEEDS TASK NEEDS

87. 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

88. 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

89. 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

90. 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)

91. 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

93. 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

94. 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

95. 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

96. Cultural Web Powered by www.drawpack.com ; All rights reserved. THE PARADIGM Power structures Control systems Rituals and routines Symbols Stories Organizational structures

97. 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

98. Four Organizational Cultures Powered by www.drawpack.com ; All rights reserved. Power Culture Task Culture Role Culture Person Culture

100. 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

101. 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

102. 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

103. The Chasm Powered by www.drawpack.com ; All rights reserved. Technology Enthusiasts Visionaries Pragmatists Conservatives Skeptics The Chasm The Mainstream Market The Early Market

104. 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

105. Economic Order Quantity Powered by www.drawpack.com ; All rights reserved. Costs Order quantity Order costs Economic order quantity (EOQ) Total costs Holding costs

106. 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

107. 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

108. 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

110. 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

111. 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)

112. 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

113. 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

114. 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

115. Working Capital Powered by www.drawpack.com ; All rights reserved. Simple cycle of operations Cash Finished goods inventory Receivables Raw materials inventory

116. 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

117. 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

118. 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

119. 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.

120. 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

121. 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

122. 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

123. 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

124. Customer Solutions Profit Powered by www.drawpack.com ; All rights reserved. Profit 0

125. Product Pyramid Profit Powered by www.drawpack.com ; All rights reserved. Volume Price

126. Multicomponent Profit Powered by www.drawpack.com ; All rights reserved. Base Business Other Components

127. Switchboard Profit Powered by www.drawpack.com ; All rights reserved. Buyers Sellers

128. Time Profit Powered by www.drawpack.com ; All rights reserved. Cost Price $/Unit Time

129. Blockbuster Profit Powered by www.drawpack.com ; All rights reserved. Cost Revenue $/Project Project Type

130. Profit Multiplier Model Powered by www.drawpack.com ; All rights reserved. Key Asset Other Forms

131. Entrepreneurial Profit Powered by www.drawpack.com ; All rights reserved. Base Business Spin-Outs

132. Specialization Profit Powered by www.drawpack.com ; All rights reserved. Return on Sales Generalist Specialist

133. Installed Base Profit Powered by www.drawpack.com ; All rights reserved. Profit Margin Hardware/Base Product Consumables/ Follow-on Product

134. De Facto Standard Profit Powered by www.drawpack.com ; All rights reserved. Market Share Profit Margin

135. Brand Profit Powered by www.drawpack.com ; All rights reserved. Price/Unit Market Price Brand Price

136. Specialty Product Profit Powered by www.drawpack.com ; All rights reserved. Revenue Five Years Ago Today S C S C 100 %

137. Local Leadership Profit Powered by www.drawpack.com ; All rights reserved. Profitability by Region Local Market Share 0

138. Transaction Scale Profit Powered by www.drawpack.com ; All rights reserved. Cost Revenue $/Unit Size of Transaction

139. Value Chain Position Profit Powered by www.drawpack.com ; All rights reserved.

140. Cycle Profit Powered by www.drawpack.com ; All rights reserved. $/Unit Utilization Cost Price

141. After-Sale Profit Powered by www.drawpack.com ; All rights reserved. Follow-on Products/Services Base Product

142. New Product Profit Powered by www.drawpack.com ; All rights reserved. Time

143. Relative Market Share Profit Powered by www.drawpack.com ; All rights reserved. Relative Market Share Return on Sales

144. Experience Curve Profit Powered by www.drawpack.com ; All rights reserved. Cumulative Experience Cost/Unit

145. Low-Cost Business Design Profit Powered by www.drawpack.com ; All rights reserved. $/Unit Conventional Business Design Low Cost Business Design

146. 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

147. 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

148. 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

149. 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

150. 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

151. 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

152. 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

153. 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

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