Category: Cost and Profitability Analysis

Maximizing The Return On Investment (ROI) of Marketing

Since the dawn of the new millennium, the world has experienced tremendous change, both positive and negative. There has been rapid advanced technological developments; introduction of new regulations; natural disasters; increased social and political unrest; growth of social media usage; global economic meltdown; increased cyber threats; increased globalization; increased competition; collapse of once dominant companies, […]

5 Reasons Why Many Cost Reduction Initiatives Fail

Most businesses are under extreme pressure to reduce costs while improving product quality and customer service. Developments in the global economy such as globalisation and advances in new technology have changed the traditional balance between customer and supplier. Today, customers are spoilt for choice meaning businesses need to be more customer-focused. They need to re-evaluate […]

7 Benefits of Conducting Customer and Product Profitability Analysis

Look at any high street retail chain and you will be amazed by the sheer size of their product ranges or number of customers. But what’s more important, is that not all the products that we see everyday stacked up the shelves and not all the customers we see walk through those doors contribute meaningfully […]

4 Benefits of Using Activity Based Costing to Manage Costs

Costs are an important part of the business. Let them spiral out of control, they will affect both your profitability and cash flow. In meeting the needs and wants of customers, organisations have to employ the use of processes and activities. These processes and activities are critical for creating customer value. However, to effectively and […]

Understanding Product Pricing and Customer Perceived Value

If you run a business, other than increasing your market share and maintaining a robust competitive advantage, you also want to improve your cash flow and profitability. Pricing plays a critical role in achieving your goals. The aim is to lower your costs and maximise your sales. However, care should be taken that in a […]

Achieving Pricing Transformation And Profitability

Pricing is one of the most important drivers in order to achieve growth and sustainable profitability. How you price your product or service will determine the level of your organization’s competitive advantage. The key to achieving and maintaining a distinctive competitive position is understanding your market place and how it is constantly evolving. In other […]

Driving Profitability with Better Information

Today, companies are expected to have a depth of insight into their customers’ needs. Global competition, interconnected global supply chains, increased uncertainty and rapid technological changes are all intensifying downward pressures on cost. Producing goods and services with the aim of creating demand no longer suffices in this environment. Instead, companies need to be more […]

The essentials of working capital management (3)

For companies that sell physical products or goods, stock management forms an important part of their operations. Having excessive or large quantities of inventory can place a heavy burden on the financial resources of the company. On the other hand, keeping very low levels of inventory can result in lost sales because of an inability […]

The essentials of working capital management (2)

One of the goals for a business is to make profit from selling its products or provision of services. The company has the choice of providing its products and services on either cash basis, credit basis or both. Profits will only come from cash sales. Credit sales have the risk of turning into bad debts […]

The essentials of working capital management (1)

Cash is the life blood of any organisation: Cash is the lifeblood of any organisation. As blood is essential for the smooth operation of our body, so is cash essential for the smooth running of business operations. Cash is an important element of working capital – money that is used for the day to running […]

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