business cases

1. profit improvement

Profit= Revenue-Costs
The company would like to understand why the profits have declined. The understanding of concepts is critical.

The above formula could be broken:

Profits=Revenue-Costs=(price-variable cost)*quantity)-FC

Break even point:

Total contribution= Total cost

Factors affecting price:

Market Power
Price elasticity
Product Differentiation
Brand Implications*

*Indicative list

Factors that affect volume:

Competition
Substitutes/complements
Distribution channels
Logistics

Growth Strategies:

Please refer to Ansoff's matrix

Industry Analysis

Tool: Porter's Five forces Analysis

other metrics could be:

oligopoly/monopoly/monopolistic competition/imperfect competition/what?
Trends

Market Entry

Understand the size of the market
Understand the competition
Analyze customers' needs
Identify gaps in need fulfillment
Assess the company's strengths
Evaluate barriers to entry
Evaluate methods to entry (Build/acquire, partner)
Analyse past entry successes/failures

Capacity Expansion

Estimate:

Potential benefit of expansion
Means to capacity expansion

Acquisition

is 1+1=3?

Rationale for acquisition
Likely competition response

Investment

Understand the business
Do an NPV analysis