Everyone running a business knows that the bottom line is the bottom line. But how does your company manage profitability? There’s an important distinction between managing to profit objectives and what Ventana Research calls “profitability management.” Setting profit objectives is what most companies do, but profitability management is a means of achieving higher profitability in a more sustainable way. Profitability management enables companies to be more effective in dealing with competitors’ actions, shifts in demand and factor cost changes such as commodity prices.
Watch and listen to Robert Kugel to learn more!