SSP Templates
Setup: Business Name: Business Name Last completed fiscal year: 2011
Guide: Input cells:
4/30/2012
Portfolio Acquisitions & Divestitures
Business Name
CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL
Issues, comments, etc. on templates 1. Portfolio missing Capital/Investment data for ROA/ROI calculations by category
4/30/2012
Measures of Success - Historical
Business Name
Financial Volume Volume Growth Net Sales $ Net Sales Growth Gross Profit $ Gross Margin Gross Margin Growth SG&A $ (enter negative) SG&A % of Sales Equity in Earnings $ SG&A % of Sales Segment Profit $ Segment Profit Margin Segment Margin Growth EBITDA $ EBITDA Margin Working Capital Fixed Capital Total Assets Asset Growth ROA Depreciation & Amortization $ D&A % of Fixed Capital CapEx $ CapEx % of Fixed Capital Customer Invoice Fill Rate % on Time Delivery Penalty dollars paid ($000) Consumer Consumer complaint count Internal Capacity Utilization Net Sales per Employee Innovation / Learning Training hours/emp./yr Net Sales from 2011 New Net Sales from 2010 New Net Sales from 2009 New Net Sales from 2008 New Net Sales from 2007 New Products Products Products Products Products Products Products Products Products Products 100 107 116 117 123 125 107 97 125 98 86 32 29 38 29 26 95.3% 100 95.8% 107 97.1% 116 96.8% 117 97.3% 123 97.5% 125 256 335 294 358 435 488 95.3% 98.1% 256 95.8% 97.6% 335 97.1% 98.3% 294 96.8% 97.9% 358 97.3% 97.5% 435 97.5% 98.6% 488 1,000 2,000 600 30.0% (480) -24.0% 10 1.7% 130 6.5% 330 16.5% 960 480 1,440 13.5% 200 41.7% 180 37.5% 1,234 23.4% 2,140 7.0% 657 30.7% 2.3% (533) -24.9% 11 1.7% 135 6.3% -2.9% 349 16.3% 936 468 1,404 2.5% 14.4% 214 45.7% 243 51.9% 1,542 25.0% 2,320 8.4% 687 29.6% -3.6% (545) -23.5% 9 1.3% 151 6.5% 2.8% 383 16.5% 936 468 1,404 0.0% 16.1% 232 49.6% 210 44.9% 1,555 0.8% 2,340 0.9% 709 30.3% 2.4% (564) -24.1% 10 1.4% 155 6.6% 2.1% 389 16.6% 948 474 1,422 -1.3% 16.4% 234 49.4% 260 54.9% 1,703 9.5% 2,460 5.1% 758 30.8% 1.7% (603) -24.5% 14 1.8% 169 6.9% 3.6% 415 16.9% 912 456 1,368 3.8% 18.5% 246 53.9% 286 62.7% 1,876 10.2% 2,500 1.6% 780 31.2% 1.3% (630) -25.2% 13 1.7% 163 6.5% -5.1% 413 16.5% 876 438 1,314 3.9% 18.6% 250 57.1% 300 68.5% 2006 2007 2008 2009 2010 2011 5 yr CAGR 13.4% 4.6% 5.4% 0.8% 5.6% 1.0% 5.4% 0.0% 4.6% 0.1% 4.6% 0.0% 1.8% 1.8% 1.8% 6.6% 4.6% 10.8% Average 96.6% 98.0% 361 Average 361 Average 96.6% 115 Average 115 % of 2011 4.3% 3.9% 5.0% 3.9% 3.4% 20.5% 4.1% 3.7% 4.8% 3.8% 3.3%
107
75 116
105 93 117
88 112 123 114
Gross Profit from 2011 New Gross Profit from 2010 New Gross Profit from 2009 New Gross Profit from 2008 New Gross Profit from 2007 New CONFIDENTIAL
32 CONFIDENTIAL
23 35
32 28 35
26 34 37 34
CONFIDENTIAL
4/30/2012
Measures of Success - Historical
Business Name
2006 2007 2008 2009 2010 2011 19.7% 3 Key drivers for past performance: (add more if relevent) Volume 1 2 3 4 5 Net Sales 1 2 3 4 5 Segment Profit 1 2 3 4 5
CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL
4/30/2012
Measures of Success - 3 year Forecast
Business Name
Financial Volume Volume Growth Net Sales $ Net Sales Growth Gross Profit $ Gross Margin Gross Margin Growth SG&A $ (enter negative) SG&A % of Sales Equity in Earnings $ SG&A % of Sales Segment Profit $ Segment Profit Margin Segment Margin Growth EBITDA $ EBITDA Margin Working Capital Fixed Capital Total Assets Asset Growth ROA Depreciation & Amortization $ D&A % of Fixed Capital CapEx CapEx % of Fixed Capital Customer Invoice Fill Rate % on Time Delivery Penalty dollars paid ($000) Consumer Consumer complaint count Internal Capacity Utilization Net Sales per Employee Innovation / Learning Training hours/emp./yr Net Sales from 2014 New Net Sales from 2013 New Net Sales from 2012 New Net Sales from 2011 New Net Sales from 2010 New Products Products Products Products Products Products Products Products Products Products 117 123 125 117 123 125 107 97 125 98 86 32 29 38 29 26 96.8% 117 97.3% 123 97.5% 125 96.8% 117 97.3% 123 97.5% 125 358 435 488 358 435 488 96.8% 97.9% 358 97.3% 97.5% 435 97.5% 98.6% 488 96.8% 97.9% 358 97.3% 97.5% 435 97.5% 98.6% 488 2009 1,555 2,340 709 30.3% (564) -24.1% 10 1.4% 155 6.6% 389 16.6% 948 474 1,422 16.4% 234 49.4% 260 54.9% 2010 1,703 9.5% 2,460 5.1% 758 30.8% 1.7% (603) -24.5% 14 1.8% 169 6.9% 3.6% 415 16.9% 912 456 1,368 3.8% 18.5% 246 53.9% 286 62.7% 2011 1,876 10.2% 2,500 1.6% 780 31.2% 1.3% (630) -25.2% 13 1.7% 163 6.5% -5.1% 413 16.5% 876 438 1,314 3.9% 18.6% 250 57.1% 300 68.5% 2012 1,555 -17.1% 2,340 -6.4% 709 30.3% -2.9% (564) -24.1% 10 1.4% 155 6.6% 1.6% 389 16.6% 948 474 1,422 -8.2% 16.4% 234 49.4% 260 54.9% 2013 1,703 9.5% 2,460 5.1% 758 30.8% 1.7% (603) -24.5% 14 1.8% 169 6.9% 3.6% 415 16.9% 912 456 1,368 3.8% 18.5% 246 53.9% 286 62.7% 2014 1,876 10.2% 2,500 1.6% 780 31.2% 1.3% (630) -25.2% 13 1.7% 163 6.5% -5.1% 413 16.5% 876 438 1,314 3.9% 18.6% 250 57.1% 300 68.5% 3 yr CAGR 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Average 97.2% 98.0% 427 Average 427 Average 97.2% 122 Average 122 % of 2014 4.3% 3.9% 5.0% 3.9% 3.4% 20.5% 4.1% 3.7% 4.8% 3.8% 3.3%
107
75 116
105 93 117
88 112 123 114
Gross Profit from 2014 New Gross Profit from 2013 New Gross Profit from 2012 New Gross Profit from 2011 New Gross Profit from 2010 New CONFIDENTIAL
32 CONFIDENTIAL
23 35
32 28 35
26 34 37 34
CONFIDENTIAL
4/30/2012
Measures of Success - 3 year Forecast
Business Name
19.7% 3 Key drivers for future performance: (add more if relevent) Volume 1 2 3 4 5 Net Sales 1 2 3 4 5 Segment Profit 1 2 3 4 5
CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL
4/30/2012
Product Portfolio - Historical
Business Name
Category
(Market Segment)
Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7 Category 8 Category 9 Category 10 Category 11 Category 12 Category 13 Category 14 Category 15 Category Internal Data All Channels Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7 Category 8 Category 9 Category 10 Category 11 Category 12 Category 13 Category 14 Category 15 Total
Size Growth Hormel - Share & Position '07 - '11 Top 3 Competitors $ million 3 Yr 2007 2008 2009 2010 2011 Shr Chg '11 Shr Diff PPT +/(-) to Hormel 2011 CAGR Shr Pos Shr Pos Shr Pos Shr Pos Shr Pos PPT +/(-) Comp 1 PPT Comp 2 PPT Comp3 PPT 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CAGR CAGR Net Sales $ million 2007 2008 2009 2010 2011 Gross Profit $ million 2007 2008 2009 2010 2011
Gross Margin % '07 ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### '08 ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### '09 #### #### #### #### #### #### #### #### #### #### #### #### #### #### #### #### '10 ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### '11 ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### ###
### ### ### ### ### ### ### ### ### ### ### ### ### ### ### ###
### ### ### ### ### ### ### ### ### ### ### ### ### ### ### ###
CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL
by Category
Competitor
4/30/2012
Product Portfolio - Historical
Business Name
Customer Internal Data All Channels Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7 Category 8 Category 9 Category 10 Category 11 Category 12 Category 13 Category 14 Category 15 Total Channel Internal Data All Customers Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7 Category 8 Category 9 Category 10 Category 11 Category 12 Category 13 Category 14 Category 15 Total Hormel 2011 Sales Grs Prft Sls GM Cust 1 % % Sls GM Cust 2 % % Customers Sls GM Cust 3 % % Cust 4 Sls GM % % Cust 5 Sls GM % %
Top 5 Customers
Hormel 2011 Sales Grs Prft Sls GM Chnl 1 % % Sls GM Chnl 2 % % Channel Sls GM Chnl 3 % % Chnl 4 Sls GM % % Chnl 5 Sls GM % % CONFIDENTIAL CONFIDENTIAL
CONFIDENTIAL
Top 5 Channels
by Category
4/30/2012
Product Portfolio - Forecast
Business Name
Category
(Market Segment)
Size Growth Hormel - Share & Position '10 - '14 Top 3 Competitors $ million 3 Yr 2010 2011 2012 2013 2014 Shr Chg '14 Shr Diff PPT +/(-) to Hormel 2014 CAGR Shr Pos Shr Pos Shr Pos Shr Pos Shr Pos PPT +/(-) Comp 1 PPT Comp 2 PPT Comp3 PPT
Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7 Category 8 Category 9 Category 10 Category 11 Category 12 Category 13 Category 14 Category 15 Category Internal Data All Channels Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7 Category 8 Category 9 Category 10 Category 11 Category 12 Category 13 Category 14 Category 15 Total CAGR CAGR Net Sales $ million 2010 2011 2012 2013 2014 Gross Profit $ million 2010 2011 2012 2013 2014
Gross Margin % '11 ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### '12 #### #### #### #### #### #### #### #### #### #### #### #### #### #### #### #### '13 ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### '14 ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### ###
###
'10 ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### ###
CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL
by Category
Competitor
4/30/2012
Product Portfolio - Forecast
Business Name
Customer Internal Data All Channels Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7 Category 8 Category 9 Category 10 Category 11 Category 12 Category 13 Category 14 Category 15 Total Channel Internal Data All Customers Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7 Category 8 Category 9 Category 10 Category 11 Category 12 Category 13 Category 14 Category 15 Total Hormel 2014 Sales Grs Prft Sls GM Cust 1 % % Sls GM Cust 2 % % Customers Sls GM Cust 3 % % Cust 4 Sls GM % % Cust 5 Sls GM % %
Top 5 Customers
Hormel 2014 Sales Grs Prft Sls GM Chnl 1 % % Sls GM Chnl 2 % % Channel Sls GM Chnl 3 % % Chnl 4 Sls GM % % Chnl 5 Sls GM % % CONFIDENTIAL CONFIDENTIAL
CONFIDENTIAL
Top 5 Channels
by Category
4/30/2012
Portfolio Growth Strategic Bets Matrix
Business Name
Category All Channels Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7 Category 8 Category 9 Category 10 Category 11 Category 12 Category 13 Category 14 Category 15 Total Category All Channels Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7 Category 8 Category 9 Category 10 Category 11 Category 12 Category 13 Category 14 Category 15 Total CONFIDENTIAL Growth Exploiting the Core $ million Geo Exp NPD H&W Line Ext 2014 $ % $ % $ % $ % 0 ### 0 ### 0 ### 0 ### Reinventing the Business Existing Unfamiliar $ % Space Business System $ % Building Adjacencies Unfamiliar Leveraged Space Strength #DIV/0!
#DIV/0!
0 ### Exploring New Businesses Unfamiliar Unfamiliar Space Business System #DIV/0!
#DIV/0!
0 ###
0 ### CONFIDENTIAL CONFIDENTIAL
4/30/2012 Risks to Current Industry Space Is the industry structurally maturing and are noncyclical growth rates declining? Is the industry's total profit pool structurally declining? Are my current customers shifting their spending to new goods and services? Are my customers consolidating to the point that a few customers will make up the majority of industry sales? Is the industry's regulatory, legal, or political environment becoming so brutal that it severly limits profit potential? Do adjacent industries posess greater total revenues or greater revenue growth rates then my current industry? Does my company possess proprietary a physical assets (product, Mfg capacity, distribution channel) that an adjacent market would Does my company possess proprietary intangible assets (brand, patents, technology, processes) that an adjacent market would Are we seeing fewer opportunities to invest in the core that promise greater returns than my recent average returns? Do the opportunities in "adjacent" markets offer higher risk-adjusted returns than those in my core business? Industry Risk Score Yes No Risks to current Business System Is my companys share of the total industry's profit pool shrinking? Is my company's profitability worse than my best performing competitor? Do I share a similar business model with my major competitors? Do my best competitors receive a higher stock market multiple? Are new competitors entering my industry? Are customer's needs, tastes, or behaviors dramatically changing? Is the purchasing decision maker changing? Are suppliers and/or customers backwardly or forwardly integrating into my market? Is the fundamental technology of my business system undergoing or about to undergo disruptive change? Does my company possess underutilized intellectual assets? 0 Business system Risk Score 0 Yes No
Recommended Resource Allocation
Reinventing the Business 5%
Exploring New Business 5%
Exploiting the Core 75%
Building Adjacencies 15%
CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL
4/30/2012
Portfolio Acquisitions & Divestitures
Business Name
Basis of Interest Acquisition Target Target 1 Target 2 Target 3 Target 4 Target 5 Target 6 Target 7 Primary Benefit Secondary Benefit Comments Incremental Sales Incremental Profit
Basis for Divestiture Divestiture Segment Segment 1 Segment 2 Segment 3 Segment 4 Segment 5 Segment 6 Segment 7 Primary Reason Benefit Lost Comments Lost Sales Profit Change
CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL
PESTLE Analysis
Business Name
Potential Implact: H High M Med L Low U ??? Impact Type: Positive Negative Unknown Impact: Increasing Unchanged Decreasing Unkown Relative Importance: Critical Important Not important Unknown Time Frame: 0 - 6 months 6 - 12 months 12 - 24 months 24 + months Notes
PESTLE Analysis factors Political Trading policies Funding, grants and initiatives Home market lobbying/pressure groups International pressure groups Wars and conflict Government policies Government term and change Elections Inter-country relationships/attitudes Terrorism Political trends Governmental leadership Government structures Internal political issues Shareholder/ stakeholder needs/ demands ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________
Confidential
Confidential
Confidential
PESTLE Analysis
Business Name
Potential Implact: H High M Med L Low U ??? Impact Type: Positive Negative Unknown Impact: Increasing Unchanged Decreasing Unkown Relative Importance: Critical Important Not important Unknown Time Frame: 0 - 6 months 6 - 12 months 12 - 24 months 24 + months Notes
PESTLE Analysis factors Economic Home economy situation Home economy trends Overseas economies and trends General taxation issues Taxation changes to product/services Seasonality/weather issues Market and trade cycles Specific industry factors Market routes and distribution trends Customer/end-user drivers International trade/monetary issues Disposable income Job growth/unemployment Exchange rates Tariffs Inflation Interest and exchange rates Consumer confidence index Import/export ratios Production level Internal finance Internal cash flow ___________________ ___________________ ___________________
Confidential
Confidential
Confidential
PESTLE Analysis
Business Name
Potential Implact: H High M Med L Low U ??? Impact Type: Positive Negative Unknown Impact: Increasing Unchanged Decreasing Unkown Relative Importance: Critical Important Not important Unknown Time Frame: 0 - 6 months 6 - 12 months 12 - 24 months 24 + months Notes
PESTLE Analysis factors Social Consumer attitudes and opinions Media views Law changes affecting social factors Brand, company, technology image Consumer buying patterns Major events and influences Buying access and trends Ethnic/religious factors Advertising and publicity Ethical issues Demographics (age, gender, race, etc) Lifestyle changes Population geographic shifts Education & education system Trends & Fads Diversity Immigration/emigration Health Living standards / Earning capacity Housing trends Fashion & role models Attitudes toward work Leisure activities ___________________ ___________________ ___________________ ___________________
Confidential
Confidential
Confidential
PESTLE Analysis
Business Name
Potential Implact: H High M Med L Low U ??? Impact Type: Positive Negative Unknown Impact: Increasing Unchanged Decreasing Unkown Relative Importance: Critical Important Not important Unknown Time Frame: 0 - 6 months 6 - 12 months 12 - 24 months 24 + months Notes
PESTLE Analysis factors Technological Competing technology development Research funding Associated/dependent technologies Replacement technology/solutions Manufacturing maturity and capacity Information and communications Consumer buying mechanisms/technology Technology legislation Innovation / Innovation potential Technology access, licensing, patents Intellectual property issues Inventions & New discoveries Energy uses/sources/fuels Rate of obsolescence Health (pharmaceutical, equipment, etc.) Manufacturing advances Information technology Internet Transportation Bio-tech & Genetics Waste removal/recycling Collaboration tools Software changes RSI ___________________ ___________________ ___________________
Confidential
Confidential
Confidential
PESTLE Analysis
Business Name
Potential Implact: H High M Med L Low U ??? Impact Type: Positive Negative Unknown Impact: Increasing Unchanged Decreasing Unkown Relative Importance: Critical Important Not important Unknown Time Frame: 0 - 6 months 6 - 12 months 12 - 24 months 24 + months Notes
PESTLE Analysis factors Legal Recent / Future legislation Regulatory bodies and processes Environmental regulations Employment law Consumer protection Industry-specific regulations Competitive regulations ___________________ ___________________ Environmental Environmental issues / regulation International National Local Customer values Market values Stakeholder/ investor values Staff attitudes / morale / engagement Management style Organizational culture ___________________ ___________________
Confidential
Confidential
Confidential
SWOT Positive Strengths Internal Negative Weaknesses
Opportunities External
Threats
We will leverage strength by
We will exploit opportunities by
Actions
We will mitigate weaknesses and threats by
Significant Business Capabilities
Value to Customer
Differs from Competitive Competition Advantage
Difficulty to Copy
Capabilities
Unique Competencies
Strategic Capabilities that need building
Confidential
Confidential
Confidential
SWOT Assessment Strengths Internal
Importance Performance
Opportunities External
Percieved Value
Probability of Success
Required Effort
Risk Exposure
Weaknesses Internal
Importance
Performance
Threats External
Percieved Value
Probability of Success
Required Effort
Risk Exposure
Confidential
Confidential
Confidential
4/30/2012
Operations Review
Business Name
Product Line Capacity Utilization 2009 2010 2011 2011 Capacity Bottle Neck Un-necked
Total
96.8%
97.3%
97.5%
CapEx Depreciation/Amortization CapEx - D&A
Depreciation, Amortization & CapEx 2007 2008 2009 2010 2011 243 210 260 286 300 214 232 234 246 250 29 -22 26 40 50 Major Projects - 3 year history & 3 year projection Start Finish Annual Year Year Amount Savings
2012 260 234 26
2013 286 246 40
2014 300 250 50
Description
Comments
CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL
4/30/2012
Competitive Analysis
Business Name
SWOT S S S W W W DO DO DO DT DT DT Comp 1
Category: All
Comp 2 Comp 3 Comp 4
Key Competitive Variable Product performance Market acceptance Reputation/image Public Relations Manufacturing capability Technological skills Distribution network Merchandising Promotion Marketing/advert. quality Packaging Relative cost position Price Customer service Financial strength Probability of future threat Sales team Overall strength rating
Wgt
Competitive Strength Assessment Rating scale: 1= Very weak; 10 = Very strong Hormel Comp 1 Comp 2 Comp 3
Comp 4
Err
Conclusions Concerning Hormel's Competitive Position
Major Strategic Competitive Issues/Problems the Company Must Address
CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL
