1122422 Maximizing profitability in Sales
B: expand KPP's customer base
D: grow business by investing in marketing and promotional efforts
A: meet revenue and profit objectives
Click on the icons on the arrows to see assumptions and injections
C: make sales more profitable
D': cut costs and expenses
In order to meet revenue and profit objectives I must expand KPP's customer base and in order to expand KPP's customer base I must grow business by investing in marketing and promotional efforts . But, in order to meet revenue and profit objectives I must also make sales more profitable and in order to make sales more profitable I must cut costs and expenses . I can't both grow business by investing in marketing and promotional efforts and cut costs and expenses .
| Relation | Assumption(s) | Injection(s) |
| A-C | 1. Average profit margin on sales is below objective. 2. Pricing must be sharp to win sales from competition. 3. Sales growth through pricing reduction reduces profitability. 4. Customers are constantly striving for lower prices. 5. Overhead costs are rising. | 1. Increase gross profit margin on sales. 2. Purchase product more effectively to reduce cost basis and generate higher gross profit margin. 3. Create different pricing models to leverage higher profit opportunities. |