How to Map Your Industrys Profit Pools

In: Business and Management

Submitted By cgree
Words 579
Pages 3
| How To Map Your Industry’s Profit Pools | Bus J-411 | | Carl Greeno III | 10/1/2013 |

In this article it describes a useful framework for analyzing how profits are distributed among the various activities that form an industry’s value chain. A profit-pool opens a window onto the underlying structure of the industry, helping managers see the economic and competitive forces that are determining the distribution of profits. The strategy of a firm should be informed by an understanding of the sources and distribution of profits generated in an industry. Gadiesh and Gilbert took a value chain perspective to this when developing the profit pool framework. Profitability in different segments and stages of the value chain may vary a lot by product and customer group, by geography, or by channel.
Step 1: Define the pool
Key is to look at the industry broadly, beyond its traditional boundaries. Include all the activities that are meaningful to influence your organization’s ability to earn profits today and in the future. Examine the industry from three perspectives, your own, your competitors’, and your customers. Take a step back and take a look at your industry through the eyes of the customer. When referring to capsim, one of the most important aspects in the game is the customer survey. In being profitable and achieving a high percent of the market, you must fulfill the customers’ needs and expectations better than the competition. Defining the bounds of a profit pool requires, in short, not just analytical skills but also good, basic business judgment. The pool you draw must be tailored to fit the strategic questions you face.
Step 2: Determine the size of the pool.
At this point, the goal is to estimate overall industry profits, which will serve as a base line. This may require some estimates for individual companies, and already an initial breakdown…...

Similar Documents

Map Your Ear

...the maps of ears Journalist Gary Younge’s book draws heavily on his articles for the Guardian newspaper, as he mentions in his acknowledgements, but it isn’t just a collection of his journalism. Who Are We? is partly a memoir and partly a thoughtful and incisive exploration of the politics and political impact of identity, including race, gender, language groups, religion, sexuality in various countries around the world. He sets out to explore To what extent can our various identities be mobilized to accentuate our universal humanity as opposed to separating us off into various, antagonistic camps? One of the most interesting chapters is Me, Myself, I, in which Gary Younge tells some of his own story. Gary Younge was born in 1969 in Hertfordshire, where his parents had settled when they came to Britain from Barbados. He was the youngest of three boys and brought up in a council house, but his parents, like many immigrants, came to England with a good education. He had a spell of teenage membership of the Workers’ Revolutionary Party, then spent a year in Sudan as a volunteer teaching English after finishing school at 17. After university he studied in Paris (where he experienced a lot of racism) and Leningrad (where contrary to the expectations of many of his friends, he was regarded as the quintessential symbol of wealth and Western cool – he was more clearly not Russian than white English students, and he wasn’t African, so it was assumed that he must be wealthy. He is......

Words: 555 - Pages: 3

How Industries Change

...Real Estate Industry The laws of real property concern the many aspects of landownership, its use, and its conveyance. Its subjects include estates, ownership, leaseholds, contracts, mortgages, deeds, land titles, recording and more. According to J.P. Wiedemer and J. E. Goeters from their book Real Estate Investment, in real property law, an estate is an interest in land. It is the sum of property rights and/or things affixed to the land, which have a given duration of time (including infinity). An estate is concerned with the land; an ownership is concerned with people. Another definition of Real Estate, according to Dennis J. Mckenzie and Richard M. Betts from their book Essentials of real estate economics 2006 edition, is defined as land, that which is affixed to the land, that which is appurtenant to the land and that which is immovable by law. The ownership of real estate carries certain rights, known as the bundle of rights. The bundle includes the right to use, possess, exclude and dispose. These rights are not absolute; they can be legally modified by private restrictions and government regulations and laws. In short, real estate or real property is land and improvements and the rights associated with the ownership of same. One of the largest and most important investments that the average person makes is a house to live in. In past years, it was considered an acquisition of living accommodations and was expected to decline in value as it grew older and more......

Words: 1080 - Pages: 5

Evaluate, Using Your Own Examples, How Firms Can Still Make a Profit and Be Competitive During a Recession. (40marks) download films from the internet or straight onto your TV, eliminating the need for the purchase of actual DVDs. If HMV had moved with the times and offered a similar service they may have been able to avoid administration earlier this year. Location impacts competitiveness for example choosing to enter the e-commerce market is now almost essential. Some companies that locate entirely online have become huge successes, like Amazon and E-bay. These offer 24/7 sales and home deliveries, so working people who may have a reasonable income but not much time can still shop at hours that suit them. This is especially necessary in a recession as companies need all the sales they can get. Blockbuster is a good example of a company who failed to move online and due to this lost the sales they needed to survive. Using the marketing mix to stay competitive for example by setting low prices and increasing customer services, is effective in a recession yet will obviously be costly for the company. So the company will also need to adapt its budgets to cope with the spending and low prices needed to entice customers and remain in profit. Objectives must be made to suit the economical state and the financial position of the company in question. For example; in a recession it would be a bad idea to have expansion as an objective, Profit is the money left when you take all the costs away from the sales revenue. So to maximise profit without increasing selling price you must reduce......

Words: 931 - Pages: 4

How to Breastfeed Your Baby

...HOW TO BREASTFEED YOUR BABY [pic] 1. Position yourself properly It's easiest to get started breastfeeding the first few times if you are sitting up. • Sit up in bed, in a comfortable armchair, or in a rocking chair. • Pillows are a must: Use them behind your back, under your elbow, and on your lap to support the baby. • Use a footstool to bring your knees up or use pillows under your knees if you are sitting up in bed. You should be relaxed with none of your muscles straining. 2. Position your baby properly Baby should be lying on his side with his whole body facing you and his knees pulled in close to your body. The steps on the next few slides will walk you through the cradle hold. [pic] 3. Hold Baby at the level of your nipple You and your baby will be more comfortable if you are not leaning forward to reach him and he is not straining to latch on. Using a pillow on your lap will help. [pic] 4. Offer your breast to Baby Your thumb and index fingers should form a "C" or "U." Be sure your fingers are well behind the areola. Support the breast as close to its natural height as possible while the baby latches on and throughout the feeding, with your thumb in line with the baby's nose and four fingers on the other side of the breast. Keep fingers and thumb well back from the nipple so they don't get in the way as baby latches on. 5. Encourage Baby to latch on properly If Baby turns his head away, gently......

Words: 1100 - Pages: 5

How to Install Above Ground Pools

...How to Install Above Ground Pools A new pool is no fun until it is full of water and installed properly. My husband and I help install two swimming pools per summer for needy families in our community. We have been doing this for six years and it never fails to put a smile on my face the first time I see kids jumping and splashing in the pools we install. In fact, nothing will make me madder than seeing an incorrectly installed pool. It is much better and much cheaper to do it right the first time. These are the basic guidelines to help you install your above ground pool. Before you do anything, make sure you have plenty of people helping you. It will go faster and be more fun if you get a crew together. Preparing the foundation of your pool will be the first step. Remove any sod or rocks that would be beneath your pool. You will also need to remove any sod or rocks from around your pool, up to at least six feet. That means you will have a six foot dirt road around your pool. Once the sod and rocks are gone, you will need to level out the ground by digging up the dirt until you have an even area underneath and around your pool. You can measure and level the ground with a level or a transit. When the ground is level, you will want to lay a foundation under your pool. Sand is the most traditional foundation that people use. The sand acts like a barrier between your liner and the ground. Now you are ready to assemble your pool. Installation instructions vary depending on...

Words: 580 - Pages: 3

How It Savvy Is the Pharma Industry?

...Individual Paper How IT Savvy is the Pharmaceutical Industry? [pic] How IT Savvy is the Pharmaceutical Industry? According to Peter Weill and Jeanne Ross, authors of the book, “IT Savvy: What Top Executives Must Know to Go from Pain to Gain”, IT Savvy firms need platforms of digitized processes that can make companies more agile and boost company performance. "The purpose of a digitized process platform is to disengage people from processes that are better performed by machines," the authors say. Therefore, that frees people up to focus on the key success drivers within the pharmaceutical industry, such as innovation and process excellence, which are embedded with dimensions of speed, quality, and decision making . My company The results obtained from the ‘How IT Savvy are you and your colleagues’ assessment showed the following: • The IT savvy score is 19.3, so the return we get per dollar invested in IT is above the industry average, in accordance with the assessment interpretation. There are still areas for continuous improvement. • The two major areas for implementing some enhanced processes are the cross -functional team shared experience and the simplification of business procedures. A real-life example of the previous topic regarding shared experience is the use of some customer service relevant data captured in one business area (market analysis) which is not taken into account throughout the company as an important tool to improve service,......

Words: 1249 - Pages: 5

Insurance Industry Road Map Ahead

...Insurance Industry – Road Ahead Path for sustainable growth momentum and increasing profitability Foreword The Insurance industry in India has undergone transformational changes over the last 12 years. Liberalization has led to the entry of the largest insurance companies in the world, who have taken a strategic view on India being one of the top priority emerging markets. The industry has witnessed phases of rapid growth along with spans of growth moderation, intensifying competition with both life and general insurance segments having more than 20 competing companies, and significant expansion of the customer base. There have also been number of product innovations and operational innovations necessitated by increased competition among the players. Changes in the regulatory environment had path-breaking impact on the development of the industry. While the life insurance industry got affected by the introduction of cap in charges, the general insurance industry got impacted by price detariffication and Motor third party risk pooling arrangements. While the insurance industry still struggles to move out of the shadows cast by the challenges and uncertainties of the last few years, the strong fundamentals of the industry augur well for a roadmap to be drawn for sustainable long-term growth. The available headroom for development, sustainable external growth drivers, and competitive strategies would continue to drive growth in the gross written premiums.......

Words: 15937 - Pages: 64

How All Maps Distort Reality

...How All Maps Distort Reality There are many types of map projections and they all specialize in showing something different. Because these projecting show different things, it’s only natural that certain things will be distorted in each map. The curved surface of the earth can only be represented accurately on a globe. Map projections shown on flat surfaces such as a piece of paper. Most projections can only preserve one of the four metric relationships or properties of objects on a globe (area, shape, distance and direction). Distortions on large-scale maps are not a big deal because it’s just supposed to be an overview of a large area. An example would be that an Equal-area projection preserves areas consistently across the entire map; each are on the map is proportional to the area it occupies on the earth’s surface. This map slightly distorts shapes. The best example of this would be in a Conformal projection. One form of a Conformal map is the Mercator projection, which is designed for navigation. Mercator maps increasingly distort the north-south dimension away from the equator and distort the east-west dimension near the poles because of the parallel meridians that conic projections employ. Mercator marps exaggerate so much that Greenland and South America appear to be the same size; even though South America is 8 times larger than Greenland. All maps distort something; that is why there are many map projections so that when using them all, reality can come into......

Words: 255 - Pages: 2

How to Bathe Your Dog

...about how to bathe a dog properly. Central Idea: The four main areas of bathing a canine are gathering the material, arranging the bathing area, bathing the dog, and drying the dog. I. Introduction Attention grabber: I would like to start my speech today by sharing a story with you guys about one of my dogs. Last February was the first time I had ever bought a dog that I could call my very own. I was so excited to have my new puppy, but what I did not realize was the work that came along with a new puppy. My new puppy loved to find every mud puddle to roll in and every dirt hole to dig in so my puppy was never clean! The very first time I gave him a bath, I had no idea what I was doing. There was water going everywhere, my clothes were soaked, and the puppy was not happy! Therefore, I want to keep you all from making the same mistake that I did. Purpose statement: So, today I will demonstrate how to bathe your dog properly. Gain for audience: There are a few reasons why you should bathe your own dog. First, bathing your own dog will save you money, allow you to develop a stronger bond with your furry friend, and reduce your dog’s stress. Credibility: I am able to speak to you today about this topic because I own two dogs that I bathe myself and I have heavily researched the topic. Preview statement: So I would like to begin this demonstration by showing you the materials you will need to bathe your dog; then, I will go through the process of how to bathe your dog.......

Words: 840 - Pages: 4

How to Writer Your Name

...You use your official first name middle name if necessary and surname to add up to make your name. What is Lorem Ipsum? Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum. Why do we use it? It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using 'Content here, content here', making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for 'lorem ipsum' will uncover many web sites still in their infancy. Various versions have evolved over the years, sometimes by accident, sometimes on purpose (injected humour and the like).   Where does it come from? Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making......

Words: 412 - Pages: 2

How to Format Your Paper

...|How To Format Your Academic Paper Using Microsoft Word™ 2007 | I. MARGIN, DEFAULT FONT SIZE AND TYPE a. Create new document b. PAGE LAYOUT > MARGINS > NORMAL c. Margins should be set at 1” on all sides d. HOME > FONT > Font: Arial or Calibri > Size: 11 II. SURNAME, TITLE, PAGE NO. in HEADER a. INSERT > Header > EDIT HEADER b. HOME > Click ALIGN RIGHT c. Font: Arial or Calibri > Font Size: 10 d. Type your SURNAME / Essay Title / Alt+Shift+P (for auto page no.) III. TABLE FOR STUDENT INFORMATION a. INSERT > Table > 2x1 b. Right click on the table > Select AUTOFIT > Autofit to Window c. Click the table’s LEFT cell. Press CTRL+L d. Type your NAME COURSE / STUDENT NO. SUBJECT / SECTION e. Click on the table’s RIGHT cell. Press CTRL+R f. Type DATE OF SUBMISSION (Month DD, YYYY) Type of Requirement (Midterm, Final, Reaction Paper) Word Count: (count only the word count in the essay body) g. Highlight the essay’s body and locate WORD COUNT quick link at the lower left corner of the window. IV. MAKE YOUR TABLE LINES DISAPPEAR a. Highlight the table b. Right click > BORDERS AND SHADING > BORDERS TAB > Select NONE > Click OK V. FORMATTING THE TEXT OF THE ESSAY a. TITLE 1. Immediately after the table, press once and type your essay’s title 2. Highlight the...

Words: 559 - Pages: 3

How to Raise Your Child

...How to raise your child Raising a child demands time and effort and being a good parent can be very complicated. There is no wrong or right when raising a child, but there sure are consequences. At home, it is often the parents who are in control and it is of course important what they decide, but what's more important for the child's health and well-being is how they decide it. A child's behavior depends a lot on how it is raised. Do the parents for instance raise their child dictatorial, democratic, flexible or just kind of random? There has now become bigger focus on what we call Chinese tiger mothers. Some may say that their way of raising children is almost dictatorial but there has actually become a bigger understanding for tiger mothers especially in China. There is no doubt that tough control, intense training and discipline often improve the child's academic presentations but on the other hand, the child will often lose its imagination, creativity and their interest in learning. It is a good thing that the parents prepare their children for the education system with strict rules and very serious teaching, but even though the child gets good grades in school they will still develop very bad social skills and eventually end up feeling lonely and maybe isolate themselves from others. Suicide among Chinese youth has been a significant problem in China in the past years. There are several causes for young people's suicide but in many cases, the high number of......

Words: 526 - Pages: 3

A Map in Your Head

...Martins Onskulis PRPE_108 Sec. 08N January 31, 2016 A Map in Your Head There is nothing more worrying in the moment than when you have to say goodbye to your family, a moment when sitting in the airplane and the pilot is starting the engines. Like a heavy bird the plane slowly glides to the runway and turns. Not to miss a single second to feel vibration of airframe, wings and tension beneath them. Land begins to run turning into regular tracery, knitting together like grandmother’s knitted gloves and socks. The only question is how free you can let your daily routine behind you and be open to unknown. Nothing is more breathtaking than the moment when you get out of the train in a strange city, with a map in your hands and overhead the sun as a compass needle. Welcoming of tourist groups and organizations holds back the true first impression of the city. How many places will not been discovered - the festival or hidden waterfalls, by traveling together with the tourist groups from point A to point B, and left without the landscape behind the car window. The best way to travel is alone. Standing alone on the dusty platform, I fill my lungs with the smell of a strange city perfumes. My map is adjusted to the north. Once the first steps are taken in a strange land, it becomes yours. I will never forget the days-long train trip to Omsk (Russia), when I woke up in the morning in my tiny cabin and I know – few more days to travel, I am not leaving train today, have to keep......

Words: 863 - Pages: 4

P5 - Interpreting the Table Below Comparing the Industry Profit

...In this part of the assignment I will be interpreting the table below comparing the industry profit. | Mainwaring Engineering year ending march 2011 | Mainwaring Engineering year ending march 2012 | Industry averages of year march 2012 | Return on capital employed | 7.8% | 8% | 8% | Gross profit percentage | 48% | 44% | 40% | Net profit percentage | 76% | 4% | 75% | Stock turnover | 92 days | 4 days | 90 days | Debtor collection period | 58 days | 60 days | 55 days | Current ratio | 2.6:1 | 2.4:1 | 2.5:1 | Acid test | 1.5:1 | 1.3:1 | 1.4:1 | Return on capital employed (ROCE) To be able to work out the return on capital employed I had to calculate the net profit before tax / Capital profit * 100 and it will give you, your answer. Net profit before interest and taxCaptial employed ×100 Mainwaring engineering year ending March 2012 the Return on capital employed was 8% 69850×100 Mainwaring Engineering is going to be interested to see how well a company uses its capital employed as well as seeing the company’s long-term financing plans. Mainwaring Engineering returns should always be high than the rate at which they are borrowing to fund the assets. If Mainwaring Engineering borrow at 10% and can only aim to return 5%, they are going to be losing money. The return on capital employed in the ending of March 2011 was 7.8% and the Industry averages of year march 2012 was 8% and the company achieved 8% in the ending of March 2012 which means they have......

Words: 1647 - Pages: 7

How to Improve Your English

...system to English. Changing the operating language of your mobile phone, video recorder etc. to English can be an easy way of making sure you use the language everyday. 2. Set goals. Deciding how many hours you want to study, how many words you want to learn or what score you want to get in a test are all good ways of making sure you do extra study. 3. Learn as many words as you can of one category, e.g. animal words. Learning similar words together can both expand your overall vocabulary and make them easier to learn by forming links between the words in your brain 4. Listen to the radio news in English. You can make this easier by reading the news in English first, or even just by reading or listening to the news in your own language. 5. Read English children's books. This is very similar to watching English children's movies, but with the added advantage of there being more illustrations than adult books, which both helps you to understand the story and makes the page brighter and more motivating to read. 6. Watch English films with subtitles in your language. Again, this is not as good practice as English language films with English subtitles, but is more relaxing, can be easier to find suitable DVDs for, and is also possible with VHS. 7. Watch films in your language with English subtitles. If you are finding English films with English subtitles too difficult or you can't find English films with English subtitles in your local video shop, this is a good second best......

Words: 568 - Pages: 3

CDN$ 299.00 | Ian Lloyd Anderson | Celebrity Film Clips/Scenes