1. Introduction (50 words)
Thoja Cosmetics Company (“Thoja”) is a retailer of high quality and prestigious beauty product. This report will address Thoja’s means of competitive advantages, business mission as well as their key success factors, and what are the useful Management Accounting System procedures and routines to achieve them. Besides this, the report will also discuss possible reasons on why Thoja house-brand initially failed and some Management Accounting System procedures and routines that could have prevented it.
2. Thoja Cosmetics Company
2.1. Means of Competitive Advantages (150 words)
Thoja is pursuing a business strategy of differentiating itself from its competitors on three dimensions; high quality beauty products, prestigious
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(Customer Profitability Analysis by Leonard Brown)
Businesses use traditional accounting methods which does not help in calculating profitability at the customer level, but rather at the entity level. Thus, it is assumed that if products are selling above costs and overall profits are earned by the business, these mean that customers are profitable. Another assumption is that customers with high sales volume contributes the most to profits which may not be the case. (Management Accounting by Brooks, Oliver, Vesty, Eldenburg,
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CPA also provides a basis for well-informed pricing decisions and discounts to customers. (Raaij, Vernooij, Triest, 2003) It could help Thoja to analyse and revise its product pricing structures whereby instead of pricing products lower than competitors, Thoja has to take into account costs like filling orders and transport costs, and reflect them in their selling prices at a competitive rate as well. Lastly, CPA results could introduce customer retention and customer development programs (Raaij, Vernooij, Triest, 2003) where highly profitable customers will need to be retained and if possible, increase their business while non-profitable customers will be converted into profitable ones and if unable to, relationships with these customers may be
The company must factor in that each of their customers has lifetime value, a greater value than a small gain made on first sales. With competition in their sector, more penetration pricing would be appropriate. The penetrating pricing strategy would only make sense to retain customers; the pricing strategy must realize lifetime value, (University of Phoenix, 2011).
• Having the real customer profitability numbers and using CRM tool, RBC know clearly about the customer preferences and needs, issue is what should RBC do with this
4. Distributing services using activity based costing reveals that Customer A is a highly more profitable consumer to Western than Customer B, despite identical net sales (see attached). Customer A uses less storage, delivery services, has fewer requisitions and a smaller inventory balance, making them a more inexpensive customer to service, in comparison to Customer B.
Pricing is a pertinent issue in procurement and acquisition in organizations. Consumers buying the commodities of an entity should get clarity on pricing related issues. There is uncertainty in Pro
MISSHA has created a history in the cosmetic industry. Through MISSHA’s emergence and the remarkable success in early 2000’s, the low-priced cosmetics niche market created by them became bigger enough to attract many other companies.
Another significant result we can see is from the Current accounts and Credit Card Segments shown in Figure 4. As we can see here, 75% of the customers are responsible for generating 130% of the profit and the rest are
Brock beauty, Inc. is a company located in Los Angeles, United states of America specializing in the innovation of natural hair and skin care. The headquarter of the company is found in Oak Harbor BLVD Slidell in Los Angeles, The company was found in 2004 committed in delivering safe natural ingredients and formulae that have been clinically tested and verified to treat inside out. The better business bureau (BBB) has confirmed that the company meets and complies with the BBB accreditation standards. In other words, the business has been doing well in accomplishing high quality products and ensure competency in all sectors of their services.
Perhaps one of the most difficult managerial decisions in the 21st century is the decision to make a decision. Analysis paralysis, endless meetings, and corporate structure have made it painstakingly difficult to come to any real conclusions. So when the Chief Financial Officer, Bruce Berman, of Bloomindale’s was tasked with decision to implement ProfitLogic’s Pricing Optimization (PO) system, he called upon Daniel Gabbay, an analyst in the finance division, to make sense of the numbers and guide his decision making process. Berman was considering implementing a PO system to quantify the markdown
Peter Nicholson wishes to convert the factory in the north east to production of the electric taxi. Using data in Appendix C, Table 1, calculate payback period and the average rate of return.
Facebook is very essential tool for reaching people with easiest way but there are lots of disadvantages about using it. First of all the customers are not anonymous when they ask questions or commented or post, everyone can see their picture even they set up their privacy settings, but in Sephora’s website, everyone is anonymous. This is important because the user might need to ask private questions and might be afraid of her question is embarrassing.
To analyze customer profitability, we firstly summarize how Pilgrim Bank generates revenues, we found that there are three main ways: (1) Through investment income from deposit
I decided to choose ABYAT Furniture Company for my Assignment . In this paper, I am going to talk about ABYAT's history, structure and what services that they provide. Moreover, I am going to talk about achieving the six strategic, In addition, I am going to know about the threats type in ABYAT Company, also I will mention how supporting these levels through information Systems, how managers can affect build and use information systems the success of their company and how achieve operational excellence in terms of customer relationship management.
The ABC system will help management analyse the profitability of each customer and restore the profitability of the company. Allied needs to offer benefits such as modified compensation plan focused on growing customer revenue and profitability to help encourage sales behaviour. TFC is able to significantly improve profits by concentrating on individual account management which SBP is capable of by identifying service costs and calculate the contribution for each account and then rank the accounts according to profitable ones. TFC should charge its customers based on their service usage by using cost plus pricing. The customers would be charged based on the cost of product plus service charge based on SBP systems plus a mark-up so that it will be fair to customers that have the same sales but different level of service.
The main issues in this case are regarding to a scarce resource, a beachfront Palapa, which is an important product for this resort adding great value to customers. Due to this very limited spots The Caribbean Palm Resort has been struggling for developing the right pricing strategy in order to achieve both revenue and customer satisfaction goals. However, the approaches to date they considered have been inconsistent and too complex. As a result, it could confuse customers and staff and also jeopardise their business.
Specialty Food and Beverage company (SF), which founded in 2004 in Denmark, mainly covers foods and beverage, restaurants and hotel area. Recent years, the company had faced several problems which lead SF to an embarrassing situation. This assignment will introduce SF’s current issues, analyze the decision and then discuss the solution way which chose by SF’s high level management team.