ManageBasics.com

WHY YOUR STRATEGY IS WRONG

WHY YOUR STRATEGY IS WRONG
WHERE ARE YOU MAKING THE MOST MONEY?
Figure 10 Electronic Instruments Inc. sales and profits table by product group
Figure 11 Electronic Instruments Inc. sales and profits chart by product group
Figure 12 Electronic Instruments Inc. 80/20 Table
WHAT ABOUT CUSTOMER PROFITABILITY?
Figure 13 Electronic Instruments Inc. 80/20 Chart
Figure 14 Electronic Instruments Inc. sales and profits table by customer group
Figure 15 Electronic Instruments Inc. sales and profits chart by customer group
Figure 16 Electronic Instruments Inc. 80/20 Table by customer type
Figure 17 Electronic Instruments Inc. 80/20 Chart by customer type
80/20 ANALYSIS APPLIED TO A CONSULTANCY FIRM
Figure 18 Strategy Consulting Inc. table of profitability of large versus small clients
Figure 19 Strategy Consulting Inc. chart of profitability of large versus small clients
Figure 20 Strategy Consulting Inc. table of profitability of old versus new clients
Figure 21 Strategy Consulting Inc. chart of profitability of old versus new clients
Figure 22 Strategy Consulting Inc. table of profitability by project type
Figure 23 Strategy Consulting Inc. chart of possibility by project type
SEGMENTATION IS THE KEY TO UNDERSTANDING AND DRIVING UP PROFITABILITY
What is a competitive segment?
Thinking about competitors puts you straight on to the key business splits
Figure 24 Electronic Instruments Inc. table of profitability by segment
Figure 25 Electronic Instruments Inc. chart of possibility by segment
What did Electronic Instruments do to boost profits?
Figure 26 Electronic Instruments Inc. 80/20 Table of sales and profits by segment
Figure 27 Electronic Instruments Inc. 80/20 Chart of profitability by segment
Figure 28 Electronic Instruments Inc. result of 80/20 Analysis
Figure 29 Electronic Instruments Inc. strategic diagnosis
What actions followed this diagnosis?
DON'T TAKE 80/20 ANALYSIS TO SIMPLISTIC CONCLUSIONS
Figure 30 Electronic Instruments Inc. actions taken after all 80/20 Analyses
80/20 AS A GUIDE TO THE FUTURE — DEVELOPING YOUR FIRM INTO A DIFFERENT ANIMAL
Why do you need people?
Are carpets obsolete?
CONCLUSION