Skip to main content

Breakeven Point- a key to survival

During a difficult phase which an organisation passes through it is often important to execute some smart tradeoff by flouting routine practices of the industry . A consumer product company often focuses on marketshare , brand building and volume . If the juggernaut hits an iceberg its often better to sacrifice on basic principles and bring the sense of breakeven point into play . At what volume by cutting expenses can you survive and deliver profits . Can you intelligently invest the profits , grow it through the stockmarket and plough it back into growth suitably at a later date . Have seen a company in Central India survive by using this ploy .

I have seen a plantation company sinking as it refused to question the routine practise and instead chased crop and adding fertlisers , agrochemicals and other inputs . Mother Nature never really delivered the desired crop and the company almost sank into non-existence .While good practices good turn around the plantation , a focus on cost cutting could have brought down the breakeven point and survival would have been easy. However ,the task of managers is to complicate matters and hence the impending disaster .

Image result for break even point

Comments

Popular posts from this blog

Top 10 Analytics Courses in India

http://analyticsindiamag.com/top-6-analytics-courses-in-india/ The demand for trained analytics professionals has witnessed a massive growth in recent years. The dearth of skilled manpower can be overcome with serious intervention at the education level and imparting training on specific Analytical and statistical tools. This goes to say that training in Analytics is of foremost importance to match the ever growing demand and dearth in supply. Yet, there is a severe dearth of good training programs in the field. In this article, Analytics India Magazine investigates nine courses on Analytics being offered by premier institutes of India. Certificate Programme in Business Analytics – ISB, Hyderabad ISB is offering a one year Certification in Business Analytics with an aim to create Next generation Data Management Scientists. The programme is designed on a schedule that minimizes disruption of work and personal pursuits. The program is a combination of classroom and Technology

Marketing and Distribution Channels of Britannia

Marketing and Distribution Channels of Britannia – Britannia Marketing Blog (wordpress.com)   Marketing channels are sets of interdependent organisations participating in the process of making a product or service available for use or consumption Role of marketing channels Channel function and flows A marketing channel performs the work of moving goods from producers to consumers. Key channel member functions include gathering information about current customers,competitors and external forces. Place order to manufacturers, assume risk connected with carrying channel work, provide for buyer’s payments and negotiations. Various intermediaries in distribution process Channel levels Channel distribution of Britannia biscuits Britannia’s biscuits like goodday, marie gold, bourbon, tiger, treat, nutrichoice, 50-50, milk bikis, etc can be seen in any grocery store, retail store or supermarket. It is through its extensive distribution with the help of stockiest, wholesaler and retailer that B

Spirits of Estonia

  http://www.inyourpocket.com/estonia/tallinn/Spirits-of-Estonia_56060f 1 For some of our readers, vodka might just be some colorless liquid that tastes like rubbing alcohol but goes great mixed in a cocktail. In Estonia however, hard liquor is pretty serious stuff.  Spirits can be made from many raw materials including grapes, potato, and grain. These days in Estonia the vast majority of vodka is made using high quality rye grain. First the raw material is fermented using yeast, which creates a weak alcohol or mash. Next this product is distilled creating a much stronger alcohol. Finally the impurities are filtered off, and water is added to bring the percentage from about 96 to about 40.And that is how you make vodka! Of course there is much to be said about quality and it certainly varies from brand to brand. The world’s best vodkas are made from the finest grains, the purest waters, multiple distillation & special filtration techniques.    A little history   Alcohol wa