Huwebes, Hulyo 25, 2019

Basic formula for a business: +Sales - Cost =+GP

Rizal Philippines
July 25, 2019






 +Sales - Cost =+GP

It is the goal of every body in a business organization to Add to Sales, and reduce cost.  The worse member would not sell, or impede sales, or add to cost.     A good and effective member must contribute to either one of them or both...

The goal of marketing for instance is to satisfy customer wants and needs better than competitors at a profit...  It is a no brainer and you do not need a marketing director to give away your product and services at cost or at a loss.

I recently entertained an application for chief marketing officer, working now as SVP for an HMO company.  To pick his brains I asked him to prepare a marketing plan, which after analyzing showed me that he needs P16 m for op ex and cap ex for the first year.  He plans to sell x number of units.  He came from an HMO and he would sell a different kind of product.  He wants to transfer our Head Office to a city and the regulators just approved the transfer of HO from MM to a suburb.. His suggestion is not feasible...

When I asked the candidate to compute the ROI (how from his numbers can we recover the P16M) the candidate sadly asked me to refer the matter to a finance man, (siya inuutusan to justify) as if this office does not know anything about finance...

It is sad to know that in many organizations many people do not understand their relevance to this basic equation:  how to help increase sales, and/or reduce expenses/costs

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