NK-Profitability

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Profitability

If product Mix is to be mentained see if for each product

Cost can be decreased

Revenue can be increased

Based on the above analysis see if product mix needs to be changed

For each product

Identify relative contribution to overall Revenue, Cost and hence Profits

Costs

Outline all the relevant cost heads and draw up a matrix with value chain activities

Fixed

SG&A

Maintenance & Overheads

Indirect labour

Indirect material

Variable

Direct Material

Direct labour

Layout the entire value chain of the product or the service

Customer retention

Customer acquisition

Manufacturing

Suppliers

Revenue

Effectivly the same as Revenue Growth framework.

Revenues for all segments

Volumes

Distribution

Services - time

Logistics/Supply chain

Brand Strength

Promotion

Consumer

Shifting of segments

Growth/Shrinkage of size

Competitor

Substitutes

New Products

Price

Market forces

Product differentiation

Consumer price sensitivity

Pricing power

Product - Identify Segments

Share

Growth

Profits

Size