Transcript Document

• Profit Impact
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Productivity The dual approach for the formulation
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Here we have to add that the change of real
income can also be computed from the
changes in income distribution. We have to
identify the unit price changes of outputs and
inputs and calculate their profit impacts (i.e.
unit price change x quantity). The change of
real income is the sum of these profit impacts
and the change of owner income. This
approach is called the dual approach
because the framework is seen in terms of
prices instead of quantities (ONS 3, 23).
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Strategic management - Growth and portfolio theory
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The long-term PIMS study, started in the
1960s and lasting for 19 years, attempted
to understand the Profit Impact of
Marketing Strategies (Profit impact of
marketing strategy|PIMS), particularly the
effect of market share
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Marketing plan - Financial analysis
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obtained (in the UK) from `The Centre for
Interfirm Comparison'. The most
sophisticated use of this approach,
however, is typically by those making use
of PIMS (Profit Impact of Management
Strategies), initiated by the General
Electric Company and then developed by
Harvard Business School, but now run by
the Strategic Planning Institute.
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Porter's generic strategies - Origins
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Empirical research on the profit impact
of marketing strategy indicated that
firms with a high market share were
often quite profitable, but so were many
firms with low market share
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Corporate strategy - PIMS study
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The long-term PIMS study, started in
the 1960s and lasting for 19 years,
attempted to understand the Profit
Impact of Marketing Strategies (Profit
impact of marketing strategy|PIMS),
particularly the effect of market share
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Profit impact of marketing strategy
The 'Profit Impact of Market Strategy'
(PIMS) database yields solid evidence in
support of both common sense and
counter-intuitive principles for gaining and
sustaining competitive advantage: Tom
Peters and Nancy Austin
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Strategic planning software
In the 1970s, the Strategic Planning
Institute collected data on the
performance of business units at its
subscribers.http://www.inc.com/encyclop
edia/profit-impact-of-market-strategiespims.html The resulting Profit Impact of
Market Strategyhttp://pimsonline.com/
(PIMS) model was very influential with its
key insights about the value of having
highest or second highest market share in
improving profitability and return on
equity
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Sustainable growth rate
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According to Profit impact of marketing
strategy|PIMS (Profit Impact of Marketing
Strategy) an important lever of business
success is growth. Among 37 variables,
growth is mentioned as one of the most
important variables for success: market
share, market growth, marketing expense
to sales ratio or a strong market position.
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Sustainable growth rate - Levers and strategy
* Defining the growth strategy as a
portfolio of best suited growth initiatives
considering a multidimensional set of
criteria, e.g. ease of implementation,
growth and profit impact, expected risk vs.
return, cash flow stability
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Marketing Science Institute - History
In the early 1970s, MSI launched and
managed the Profit impact of marketing
strategy|Profit Impact of Marketing
Strategy project which, in conjunction
with General Electric, created and
analyzed a cross-sectional database
that described marketing strategies and
profitability across hundreds of
business units. The results, widely
reported, demonstrated the value of a
scientific approach to marketing.
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