Return to profitability (2y) or desinvet ?

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Return to profitability (2y) or desinvet ? by Mind Map: Return to profitability (2y) or desinvet ?

1. Desinvest

2. Restore profitability

2.1. Increase sales contribution (by unit)

2.1.1. Increase price

2.1.1.1. Great customer service?

2.1.1.2. Delivery on time?

2.1.1.3. Quality?

2.1.2. Decrease VC

2.1.2.1. RM

2.1.2.1.1. Lower price

2.1.2.1.2. Reduce quantity

2.1.2.2. Subcontracting

2.1.2.2.1. New contractors?

2.1.2.2.2. New terms for the current contracts?

2.1.2.2.3. Improve production planning so we don't need to go to subcontractors?

2.1.2.3. Shipment

2.1.2.3.1. Larger batches

2.1.2.3.2. New shipper?

2.2. Consumer goods activity

2.2.1. Adjust BU strategy

2.2.1.1. Launch a woman perfume?

2.2.1.2. Retail in department stores?

2.2.1.3. Expand in other European countries?

2.2.1.4. Improve production and delivery?

2.2.2. Exit the perfume market

2.2.2.1. Sell-off the BU?

2.2.2.2. Licence patents/recipe/formula?

2.3. Cuts in Fixed Cost

2.3.1. Wages (Sales + Production + R&D)

2.3.1.1. Reduce number of employee?

2.3.1.2. Lower wages

2.3.1.2.1. Lower base salary

2.3.1.2.2. Lower benefit

2.3.1.2.3. Lower bonus

2.3.2. SG&A

2.3.2.1. Improve the company's working system

2.3.2.2. Take faster decision (on time)

2.4. External strategy

2.4.1. Acquisition

2.4.1.1. Suppliers

2.4.1.1.1. Material unavailable

2.4.1.1.2. Expensive materials

2.4.1.2. Retailer

2.4.2. Merger

2.4.3. Joint-Venture

2.4.4. Strategic alliance