Category: Cost and Profitability Analysis

Achieving True Cost Transformation

Suppose your business is facing significant competition from traditional and non-traditional competitors. Demand for your company’s products and services is tepid and customers are deserting you. Revenues are in sharp decline and the impact is beginning to show in shrinking margins. To increase revenues and alleviate shrinking margins you try to cross-sell and up-sell your […]

The Role of Finance in Pricing Decisions

One of the key financial metrics constantly measured and monitored by the business is the level of profitability growth. For any company, profit and positive cash flow, are both critical and with a company that does not initially have investors or financing, real and not paper profit may only be its capital. Without sufficient capital or […]

Driving Profitability Through Enhanced Expense Management Policies

I don’t know of any private or publicly listed organization that is in business only to break-even. Among others, the main goal for these entities is to deliver a profitable return to the owners of the business. This desire to make profit with the least resources inherently makes cost management across the business a strategic […]

4 Tips for Improving Customer Profitability

Despite increased focus on customer centricity and putting customers at the core of the business, many organizations do not have an accurate understanding of which customers are profitable and which are unprofitable. With markets increasingly becoming competitive and consumer behaviours constantly shifting, investing in customer relationships is the key to long term sustained profitability. Gone […]

3 Ways Finance Can Help Improve Operating Margins

One of the challenges facing today’s finance executives is improving operating margins for the business. Top-line growth is very slow, inflationary pressures are causing higher input costs, and customers are pushing for innovative new products and services, albeit at discounted prices. All these factors, among others, are significantly squeezing company margins left, right and centre. […]

5 Ways Finance Can Help Improve Company Profitability

Businesses in various industrial sectors are undergoing a fundamental transformation as a result of the effects of globalization, advancement in new technologies and increasing digitalization.  Apart from presenting a wealth of opportunities to help the organization soar to greater heights, these changes are also presenting a variety of challenges on the business model. They are altering […]

Differentiating Your Company’s Products or Services

Have you ever wondered why your customers keep on buying your products or requesting your services? Why they are willing to pay more for some of the products and services and less for the others? Could it because you are the only supplier in the area? If so, suppose a new company in the same […]

Not All Customers Are Profitable And Worth Keeping

Not all customers are the same. Some customers are profitable and others less profitable depending on the behaviour they exhibit. Some people believe that the customer is always right and should therefore be satisfied at all cost. I tend to differ on this notion. Although customer satisfaction is crucial, the organization’s long-term goal is to […]

The Role of Finance in Driving Sales Effectiveness

These days customers are more equipped with more information about the company’s products and services before they have even talked to the salespeople. Unfortunately, in most organizations, the sales function normally lacks high-quality data to drive sales effectiveness. For example, sales managers lack data to help align sales incentives, overcome price pressures and become a […]

ABC/M vs. Conventional Cost-Cutting

Business leaders always spend a lot of time thinking about costs and how they can reduce them, free resources for investment and improve the bottom line. The pressure to reduce costs is normally driven by cash flow position, shareholders, uncertainty, investments and the need to improve business performance. In light of the aftermath of 2008 […]

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