This PPT slide, part of the 148-slide Strategic Review Approach PowerPoint presentation, outlines key drivers of business value creation, focusing on elements that are primarily within XYZ's control. It emphasizes the importance of bridging the performance gap through strategic management of these drivers. The central concept is value creation, which is depicted as a process influenced by various operational and financial factors.
The first section highlights revenue as a critical driver, detailing components such as market growth, market share, volume, and pricing strategies. This suggests a proactive approach to enhancing revenue streams, indicating that these factors can be manipulated to achieve better outcomes.
Costs are presented as a counterbalance to revenue, with specific categories outlined, including production costs, sales force costs, and trade and marketing expenses. This duality of revenue and costs illustrates the need for a balanced strategy that maximizes revenue while controlling expenses.
The slide further breaks down the financing aspect, mentioning finance charges and net assets. This indicates that effective management of financial resources is crucial for sustaining value creation. The inclusion of WABCC (Weighted Average Cost of Capital) suggests a focus on optimizing capital structure to enhance returns.
Fixed assets and working capital are also addressed, with management strategies highlighted for both areas. The emphasis on inventory, debtor, and creditor management under working capital indicates a comprehensive approach to operational efficiency.
The degree of control over each driver is visually represented, allowing for quick assessment of which areas offer the most leverage. The performance impact is categorized into trading contribution and total business return, providing a clear framework for evaluating the effectiveness of various strategies. This slide serves as a roadmap for executives aiming to enhance performance through targeted management of controllable factors.
This slide is part of the Strategic Review Approach PowerPoint presentation.
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Strategy Development Example Restaurant Industry Value Creation Capital Structure Sales Force Sales Production
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