Tham khảo tài liệu '“the bagwan marketing insights from every manager needs to know_6', kinh doanh - tiếp thị, pr-truyền thông phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Profits 143 A company that is short-run profit driven will not make long-run profits. The Navajo Indians are smarter. A Navajo chief does not make a decision unless he has considered its possible effects on seven generations hence. Some companies hope to increase profits by cutting costs. But as Gary Hamel observed Excessive downsizing and cost cutting is a type of corporate anorexia . . . getting thin all right but not very healthy. You can t shrink to greatness. Here s the story of one company that thought that its profits lay in cost cutting. The company a manufacturer of hospital devices suffered from flat sales and profits. The CEO was intent on improving the company s profits and share price. So he ordered across-the-board cost cuts. Profits rose and he waited for the stock price to rise as well. When it didn t he went to Wall Street to find out why. The analysts told him that his bottom line had improved but not his top line they didn t see any revenue growth. So the CEO decided to cut product prices to increase top line growth. He succeeded but the bottom line now slipped. The moral Investors favor companies that can increase both their growth top line and their profitability bottom line . Ram Charan and Noel M. Tichy believe companies can achieve growth and profitability together and present that view in their Every Business Is a Growth Business How Your Company Can Prosper Year after This is a bold claim given that top management always faces trade-offs. But they make a compelling case. 144 Marketing Insights from A to Z Some companies have proven that they can charge low prices and be highly profitable. Car rental firm Enterprise has the lowest prices and makes the most profit in its industry. This can also be said of Southwest Airlines Wal-Mart and Dell. To understand the source of the profits of these low price companies recognize that return R is the product of margin X velocity that is Income Sales Sales Assets A low-price firm makes less .
