bcTextileCoProposalCreated:October11,1999Copyright©1998Bain&Company,Inc.2TextileCoProposalbcTextileCoCorporateStrategyToolkitConfidentiality•ThecontentsofthisproposalarebasedonthecombinationofpreliminarydiscussionswithTextileCoandconfidentialinformationsuppliedbyBain&Company•Bain&CompanywilltreatallinformationreceivedfromTextileCoasstrictlyconfidential•Bain&Companyhasincludedinthisandotherdocuments,backgroundandmethodologiesbasedonitsworld-wideexperienceinthetextilesandothersectors.ThesecopyrightdocumentsareonlyforusewithinTextileCoandmaynotbecopiedorotherwisereleasedtoanyonenotdirectlyemployedbyTextileCoorBain&Company3TextileCoProposalbcTextileCoCorporateStrategyToolkitAgenda•ExecutiveSummary•BackgroundandObjective•ProjectApproach•TimingandDeliverables•ProjectStructureandResources•AnticipatedBenefits4TextileCoProposalbcTextileCoCorporateStrategyToolkitOverview(1of4)Background:•TextileCoisaleadinginternationalclothingandfabricssupplierwithsalesof£XXXMfromfourdivisions,consistingofmorethan30businessunits,servingthelaceandstretchfabrics,brandedandprivatelabelgarments(especiallylingerie,hosiery,casualwearandmen’sunderwear)andhomefurnishingmarkets•TwoyearsofsuccessfulrestructuringhasraisedROACEfrom10%in1996toaforecast14.6%in1998.Continuingmanagementattentionisrequiredtoturnaroundtheloss-makingbusinessesthataccountfor15%ofsales•Todeliversustainedgrowthinshareholdervalue,TextileComustnowgrowthetoplineatthesametimeasimprovingmargins.Thecurrentcompanyforecastsindicateorganicgrowthofonly4.5%p.a.to2001.Prioritisedinvestmentinthemostattractivebusinessesisexpectedtoimproveitsgrowthpotential•TextileCoisnowseekingconsultingsupporttotakeafundamentallookatitsportfoliotodetermineinvestmentprioritiesthatwilldeliversuccessfulgrowth•TodevelopaCorporateStrategyforTextileCoidentifyingandprioritizingitskeygrowthandvaluecreationopportunities-relativeattractivenessandgrowthpotentialofbusinessesinthecurrentportfolio-opportunitiestoexploitoutsidethecurrentportfolio-potentialacquisitionopportunities-howtoprioritiseresourcesacrosstheportfolioObjective:ExecutiveSummary5TextileCoProposalbcTextileCoCorporateStrategyToolkitApproach:•Weproposeathreephaseprocesstodeterminetheinvestmentpriorities:-arapidscopingphasetofocustheworkonthemostlikelycorebusinessesandonareaswhereTextileCoislesscertainonthefullpotential-identificationofthekeyvaluecreationopportunitiesopentoTextileCo,fromthecurrentbusinessesplusgrowthopportunitiesintoadjacentareas-prioritisationofopportunitiesbasedonthevalueTextileCoaddstoeach,evaluationofadjacentopportunitiesandagreementtothecorporatestrategy•Thiswouldbefollowedbydetailedacquisitionassessmentsandimplementationplanningactivities,ifappropriateExecutiveSummaryOverview(2of4)6TextileCoProposalbcTextileCoCorporateStrategyToolkit•Weproposetocompletetheprojectwithin12weeks.DeliverableswillbephasedtomeetTextileCobudgetinputrequirements-EndOctober:Thefullpotentialofeachbusinessandinitialnewgrowthopportunitiesidentified-EndNovember:Thefinalportfoliostrategyandprioritizationofopportunitiescomplete•WesuggesttheworkisdirectedbyaSteeringGroupconsistingofthemainTextileCoexecutives.InadditionwewouldaskforaseniormanagertobeappointedasProjectLeadertobetheday-to-daycontact,reviewfindingsandprovideaccesstotheTextileCobusinesses•TheBainteamwillbeledbySeniorPartnerandSeniorManager...
