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Suaheli (Fach) / Business Concepts (Lektion)
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- Advantage Price-based Costing Customers do not see it as their job to ensure manufacturers a profit. The only sound way to price is to start out with what the market is willing to pay — and thus, it must be assumed, what the competition will charge — and design to that price specification. Cost-driven pricing is the reason there is no American consumer-electronics industry anymore. It had the technology and the products. But it operated on cost-ledpricing — and the Japanese practiced price-led costing
- Reasons to merge I lncrease market access l Boost the brand and increase market share. I Diversify the company’s holdings. I Pre-empt the competition from acquiring the company. I Inherit management talent. I Obtain patents or licenses. I Gain from synergies, cost savings, cultural integration, expansion of distribution channels. I Gain tax advantages. I Increase shareholder value.
- M&A Special Private Equity Company PRIVATE EQUITY: Many students forget to ask this and they miss out on the countless synergies among portfolio companies. OTHER COMPANY: WHY? FIT - “What other products do they sell?” The acquisition needs to make good business sense.
- Growth strategies Increase distribution channels. Increase product line. Invest in a major marketing campaign. Diversify products or services offered. Acquire competitors or a company in a different industry.
- Efficiency Formula Efficiency = work input/ work output Times Units produces
- Bidding Processes Ask for the number of biddors Compare their bids See how to underbid them
- When comparing Manufacturing to Competitors - Inventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a period of time - Frequency of orders - Number of Units ordered - Variable Costs HOW MUCH HIGHER - Time of production - Number of Fixed costs - Number of workers
- Competitive responses Merge with a competitor to create a strategic advantage and make us more powerful. Acquire the competitor or another player in the same market. Copy the competitor (e.g., Amazon.com vs. barnesandnoble.com). Hire the competitor’s top management. [ MARKETING ] Campaign, Promotion
- Growth decision Is the industry growing? How are we growing relative to the industry?
- Growth strategies Increase distribution channels. Increase product line. Invest in a major marketing campaign. Diversify products or services offered. Acquire competitors or a company in a different industry.
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- Cost analysis – Internal Union wages, suppliers, materials, economies of scale, increased support system
- Cost analysis – External Economy, interest rates, government regulations,transportation/shipping strikes
- Big Mac index - global prices for a Big Mac in July 2016, by country (in U.S. dollars)* Global prices for a Big Mac in July 2016, by country (in U.S. dollars)* Switzerland Sweden Norway Finland US Brazil Italy .... Malaysia South Africa Ukraine
- Profitability after merger Empirical evidence (BCG study) suggest that mergers are on average unprofitable - Managers of bidding company overestimate the ability to run other companies Divergence of interest groups between Shareholder’s Interest (profit maximizers) and manager (size, growth, prestige of running bigger companies, risk diversification maximizers) But: if there are efficiency gains -> competitive advantage -> more powerful The other smaller competitors might merge too, as they are more symmetric now
- Identify Market Life Phase Market growth rate Market growth forecast Stability of market shares Breadth of product in the market frequency of product changes Number of competitors in the market Customer loyality Stability of buying behavior Stability of technological change
- Identify the Diffusion of technology Infrastructure Information User Skills Switching Costs Supply Costs Availability of distribution channels Pricing and Competition Development in connected industries
- Inventory - Chemical Inventory is a cost driver - Increase in clinical trials
- Analyze Buckets of Structure Decision Tree Ask for share of bucket Ask for changes in buckets
- Patent Rule The longer the patent period, the longer the time to amortize the R&D costs -> higher Yields the longer the patent coverage
- Health Care Problems Emerging Countries: Supply-Chain Problem Developed Countries: FInance Problem - Costing, Patents
- Open an Office in Burma Non-Profit Is the market attractive Opportunity Cost of this Strategy How would enter Operating Structure Alignes with Strategy
- Organic Growth growth rate a company can achieve by increasing output and enhancing sales internally
- Inorganic Growth Inorganic growth arises from mergers or takeovers rather than an increase in the company's own business activity. Firms that choose to grow inorganically can gain access to new markets through successful mergers and acquisitions. Inorganic growth is seen as a faster way for a company to grow when compared with organic growth.
- 'Acquisition Premium' Acquisition premium is the difference between the estimated real value of a company and the actual price paid to obtain it. Acquisition premium represents the increased cost of buying a target company during a merger and acquisition. There is no requirement that a company pay a premium for acquiring another company; depending on the situation, they may even get a discount.
- Overall trategy and Sub-Strategy First, I will analyze the potential profits that can be made in the market. After establishing that it is a sufficiently profitable venture for Company X, i will find out the fisibility of setting up the entire value chain. Finally, we can discuss the potential challenges after which I will give my final recommendations to the client. The profit analysis aims to determine the attractiveness. I will look at the competitive structure, ...
- Segment Transportation Cost Nr rucks * Trips per Truck * Distance traveled per truck/avg. Mileage* Cost of fuel
- Segment Café Revenue Best way: Transactions per month * Average spent per month
- Segment total Profit margin with different Channels Total Profit Margin = Profit margin 1 * Revenue Store 1 + Profit margin 2 * Revenue Store 2 + WHAT HAS CHANGED?
- Ewige Rente Comparison Revenue per year / 10
- Horizontal product differentiation distinguishes a product based on one characteristic of the product; however, consumers are not able to distinguish which product has a higher quality. Read more: What is the difference between product differentiation and price discrimination? | Investopedia http://www.investopedia.com/ask/answers/042315/what-difference-between-product-differentiation-and-price-discrimination.asp#ixzz4LTFiYxEM Follow us: Investopedia on Facebook
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- Vertical product differentiation based on one characteristic of a product, but consumers are able to distinguish which product has the higher quality
- Lebenszyklus der Maschine Finanzierung: Lieferantenkredit Transport: Frachtkosten, Zölle Installation: Aufwand der Anbieter der Maschine Betriebskosten: Strom, Schmierstoffe, Einstellung Jährliche Wartung Anfallende Reparaturen Kosten für Beseitigung der Maschine Restwert der Maschine nach der Nutzungsdauer
- WorkingCapital Optimierung Kurzfristige Verbindlichkeiten Lagerbestände an Fertigerzeugnissen Lagerbestände an Rohstoffen Kurzfristige Forderungen = Vorräte + kursfristige Forderungen / kurzfristigen Verbindlichkeiten Liquiditätsanalyse Ziel: Kapitalbindungskosten reduzieren; Spannungsfeld zu Lieferzielen bzw. - garantien des Herstellers -> Supply-Chain
- Lean Production Principles - flache Hierarchien,- mehr Verantwortung und Kompetenz an der „Basis“,- Konzentration auf das Wesentliche und damit deutlich reduzierte Verschwendung,- verbesserte Kommunikation unternehmensintern und mit Kunden sowie mit Lieferanten,- Kundenorientierung - intensive Steuerungen durch das „Pull-Prinzip“ - Kompetenz und Verantwortung zusammenzuführen,- in Netzwerken zu arbeiten,- Verschwendung und Fehler zu vermeiden (Muda)
- Muda (jap. 無駄) ist das japanische Wort für eine sinnlose Tätigkeit T Materialbewegungen (Transportation)I Bestände (Inventory)M Bewegungen (Motion) W Wartezeiten (Waiting)O Verarbeitung (Over-Processing)O Überproduktion (Over-Production)D Korrekturen und Fehler (Defects) TIMWOOD (erste Buchstaben der englischen Schreibweise).
- Hebel um Inventories zu reduzieren? 1. Zulieferer Verhandlungsposition durch Multiple Sourcing, absichern gegen Ausfall Preisvergleiche 2.) Produktion Lagerung im Lagerort am Produktionsstandort Gute ist-soll Planung Flexible Produktion und Anpassung an saisonale Schwankungen ANALYSE: Benchmarking - Zielniveau festlegen 3.) Produktportfolio Reduktion der Vielfalt ANALYSE: ABC-Analyse Make-to-Order und Make-to-Stock je nach Vekaufsschlager
- DOS als Kennzahl zur ABC-Anaylse Day of Sales = Durchschnittl. Lagerbestand / Jahresumsatz * 360
- Reduktion der Forderungen Zahlujngsziele -> ABER: Competitor-Benchmark Mahnungsmanagement Zahlungsmethoden -> Bankeinzug, Click-Pay, Paypal, Voauszahlung Beschwerdemanagement -> Rechnungserstellung -> Schulungen Preispolitik -> Skonti
- Erhöhung kurzfristiger Verbindlichkeiten Erweiterung Zahlungsziele Erhöhung der Banküberweisung (Freiheit der Zeitpunktwahl) Beseitigung verfrühter Zahlungsausgänge
- Street Utilization Länge Auto Anzahl Spuren Länge Brücke Geschwindigkeit Abstand
- Supply-Demand Pricing Oligopolistic Industry-Cost Curve Market PLayers can impact supply curve itself Data needed: Customers (attractiveness, structure, buying criteria Competition (competitive situation, substitution, cost structure, capacity, value chain, competitor pricing Business Strategy ( Market, Lifecycle Stage) Offering ( Functional, unique, cost structure) Regulation ( Legal, IP)
- 10% optimization effect on bit 10% price optimization = 85% EBIT increase 10% Material cost optimization = 50% EBIT increase 10% volume optimization = 30% EBIT increase 10% FC optimization = 4% EBIT increase
- Price Exeution Communication Transactional Prices Contract Management
- Performance Pricing Low consumption per Unit Waste + efficiency exists take part of vaue chain
- Competitor-based pricing = Mineral Oil, Airline, Communications Price Leaser = Competitor follows Cash Cow Position Transaprency
- Price Levers 1. Margin Premium = UPS, Perceived Value, Supply / Demand 2. Volume = Volume curve + Price elasticity 3. Fixed Costs = Mid-term price 4. Variable Cost = Short-term price
- KPI's for growth Sales volume Sales volume trends Sales growth vs. Market growth Share of market vs. MS of competitors Share of new customers Share of new Products = Vitality Index
- KPI's for complexity Number of orders Average Order size Share of rush orders Number of claims Share of oders below min. order quantity
- Optionen für Finanzierung LEasing Sukszessive Installation Verteilung des Anschaffungspreises über Jahre
- CCM2 Kalkulation Net Sales - Distibution Costs - COGS CCM1 - Fixed Manufacturing Costs GM - Shipping Costs - Selling Costs CCM2