Laying down the structure Pretty straightforward profitability case, main focus is: It looks like the best solution to our problems is simply convincing our current customers to spend. We can reasonably expect different customers to bring different levels of profitability, but it could also be that some customers are actually draining profit.
This is equivalent to say that for every leisure traveller we lose 2. Number of bookings Costs are grouped into fixed and variable, as usual. All we know is that the latter more than compensate for the former. Segmentation can be extremely revealing and disclose the only solution that can be really effective.
Profit is the product of: How to price segmentation as a tool to see profitability differently Segmentation is one of the most successful ways consultants actually add value to their clients. The key to solving this problem is evaluating the profit contribution of one additional product or customer in each segment.
The key is understanding how much each business line or product line contributes to profitability. Hence our revenues are higher than those of our competitors. This means companies incur extra costs just by keeping them afloat and that their profitability can be boosted by a significant amount just by axing loss-making business lines.
However this is not the core of the problem. Competitors are doing exactly the same. Total booking value Total booking value can be further broken down in: You can perform the same segmentation by product or segment of products.
Why are they making less than the industry average? Figures per se are not that important, what matters is really how costs grow with volume Profit should be broken in revenues and cost, as usual.
Industry looks pretty commoditized, so in principle it would be hard to understand big differences in profitability. From them you can derive the typical cost saving measures like e. However this does not provide any information on the breakdown by different customers: At this point you may come up with a list of potential initiatives incentivizing our customers to spend more and the case looks complete.
Find out more in our case interview course Ditch outdated guides and misleading frameworks and join the MCC Academy, the first comprehensive case interview course that teaches you how consultants approach case studies. Each specific customer will be generating some revenue and cause some costs.
At an aggregate level: Unfortunately, this is a partial and misleading solution. The idea is the same: The typical situation goes as follows: Understanding why we make less then our competitors Identifying the cost structure fixed vs.PRODUCTIVITY AND PROFITABILITY ANALYSIS- A CASE STUDY OF RAJSHAHI SUGAR MILLS.
LTD. A Research (Thesis) report submitted to the University of Rajshahi for the degree of Master of Business Administration (MBA) in Accounting and Information Systems. productivity, and use a case study to show how different economic changes ─ to prices, sector-wide knowledge, and farm-specific knowledge ─ affect both productivity and profit.
Profitability in-depth analysis. see the problems differently. The most intuitive way of looking at a basic problem like profitability is considering the sheer difference between total revenue and total costs.
The Case for Participation in The Workplace and the People Productivity Process™ This report details the rationale behind Gordon Training International’s People Productivity Process™ and reviews research which indicates that increasing participation competencies has. Improving Productivity by Reducing Operation Cost as Six Sigma Process Improvement Measure and Analysis phase, leading to an emphasis on planning and implementation in the Improve phase.
Such was the case in the Productivity Improvement project. Improving Productivity by Reducing Operation Cost as Six Sigma Process Improvement Using Management Reporting to Analyze Productivity & Profitability time you actually put into a case.
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