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...

Online Education in India: Trends & Future Prospects

https://www.shiksha.com/mba/articles/online-education-in-india-trends-future-prospects-blogId-14763 With the development of technology, India has witnessed an enhanced acceptance of online education over a period of few years. Many students and working professionals have joined different e-learning platforms in the past few years in order to enhance their skills. And, looking at trends, the number of people adopting online education platforms is expected to increase significantly in the near future. As per a recent report released by KPMG India and Google, Online Education in India: 2021, the market for online education in India is expected to witness a magnificent growth of eight times in the next five years, i.e., from USD 247 million in 2016 to USD 1.96 billion in 2021. Such high growth in online education market is projected to be the outcome of increased number of paid online education users from 1.57 million in 2016 to 9.5 million in 2021. So, as the market for e-learni...

Popular Applications of Artificial Intelligence

AI is relevant to any intellectual task. [204]  Modern artificial intelligence techniques are pervasive and are too numerous to list here. Frequently, when a technique reaches mainstream use, it is no longer considered artificial intelligence; this phenomenon is described as the  AI effect . [205] High-profile examples of AI include autonomous vehicles (such as  drones  and  self-driving cars ), medical diagnosis, creating art (such as poetry), proving mathematical theorems, playing games (such as Chess or Go), search engines (such as  Google search ), online assistants (such as  Siri ), image recognition in photographs, spam filtering, prediction of judicial decisions [206]  and targeting online advertisements. [204] [207] [208] With social media sites overtaking TV as a source for news for young people and news organisations increasingly reliant on social media platforms for generating distribution, [209]  major publishers now use art...