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BU Strategic Plan Basics DESCRIPTION OF MATERIALS WHAT IS A BU STRATEGY? RATIONALE FOR PROPOSED DEFINITION COMMON ELEMENTS OF REAL-LIFE STRATEGIES BU STRATEGY REVIEW INTERACTIONS BU STRATEGIC PLAN DEVELOPMENT INDUSTRY DYNAMICS AND IMPLICATIONS SEGMENT ANALYSIS STRUCTURE-CONDUCT-PERFORMANCE (SCP) MODEL SWOT ANALYSIS SCP APPLIED TO LEXMARK RESULTING OPPORTUNITIES AND RISKS FOR LEXMARK COMPETITIVE ASSESSMENT CAPABILITY PLATFORM: ASSESSMENT OF SOURCES OF COMPETITIVE ADVANTAGE (1/2) CAPABILITY PLATFORM: ASSESSMENT OF SOURCES OF COMPETITIVE ADVANTAGE BY SEGMENT (2/2) COMPETITOR CAPABILITY COMPARISON CAPABILITY PLATFORM APPLIED TO LEXMARK COMPETITOR CAPABILITY COMPARISON APPLIED TO LEXMARK BENCHMARK PERFORMANCE AGAINST RELEVANT INDUSTRY KPIs BENCHMARKING APPLIED TO LEXMARK INTERNAL ASSESSMENT SEGMENT ANALYSIS SEGMENT ANALYSIS APPLIED TO LEXMARK TREND ANALYSIS – RETURN ON CAPITAL EMPLOYED (ROCE) TREND ANALYSIS – CASH INTANGIBLE ASSET CHECKLIST INTANGIBLE ASSET ASSESSMENT APPLIED TO LEXMARK STRATEGY ARTICULATION WHERE TO COMPETE? WHERE TO COMPETE? VALUE PROPOSITION LEXMARKS VALUE PROPOSITION FOR LASER PRINTERS TAILOR VALUE PROPOSITION TO VARIOUS CUSTOMER SEGMENTS Flash memory allowing instantaneous printing and updating of forms in multiple locations Duplex printing – ability to print on both sides of paper Paper trays to handle three or more sizes of paper and forms Technical service support to help with systems design and product problems BUSINESS MODEL LEXMARK LINKED VALUE PROPOSITION TO CHANGES IN BUSINESS SYSTEM STRATEGIC INITIATIVES STRATEGIC INITIATIVES: SOURCES OF VALUE STRATEGIC INITIATIVES: VALUE QUANTIFICATION STRATEGIC INITIATIVES: RESOURCING REQUIREMENTS FINANCIAL PROJECTIONS FINANCIAL PROJECTIONS (1/4) FINANCIAL PROJECTIONS (2/4) FINANCIAL PROJECTIONS (3/4) FINANCIAL PROJECTIONS (4/4) RISK/CONTINGENCIES AND STRATEGIC ALTERNATIVES DEFINITION OF RISKS STRATEGY PLANNING INSTRUCTIONS TABLE OF CONTENTS BU STRATEGIC PLAN DEVELOPMENT I. EXECUTIVE SUMMARY IIA.