Customer Profitability Analysis - Today

Diplomarbeit, die am 01.12.1996 erfolgreich an einer Universität in Großbritannien eingereicht wurde. Abstract: Traditional management accounting systems are limited in their ability to provide profitability information relevant to management decisions. The problems of inadequate profitability measurement are intensified by the increasing competition in todays international market and the customer sophistication in locating low-cost providers. In response a number of manufacturers and service companies are experimenting with new methods to analyse their profits. The collection and analysis of information on the customer profitability analysis enables management to identify their most attractive customer groups and support them with their scarce resources, turning loss-making making accounts into profitable ones. The project investigate both the theoretical approach of customer profitability analysis and its usage in practice, today. Relevant data was collected by means of a survey and three ease studies. The survey provided information about the extent of knowledge of member of organisations about customer profitability analysis and the use of it in the decision making process. The interviews added deeper knowledge about the application of customer profitability analysis in practice and helped to find new insights to this analysis method. Table of Contents: |TABLE OF ABBREVIATIONS|4 |TABLE OF FIGURES|5 1. CHAPTER|PREFACE|6 1.1|INTRODUCTION|6 1.2|BACKGROUND|8 1.3|AIM|10 1.4|OBJECTIVES|10 2. CHAPTER|RESEARCH METHODOLOGY|11 2.1|INTRODUCTION|11 2.2|AGGREGATION OF SECONDARY DATA|11 2.3|COLLECTION OF PRIMARY DATA|12 2.3.1|INTRODUCTION|12 2.3.2|SELECT THE APPROPRIATE METHOD|12 2.3.3|THE SURVEY|14 2.3.4|THE CASE STUDIES|15 3. CHAPTER|THE THEORETICAL APPROACH|18 3.1|INTRODUCTION|18 3.2|APPLICATION OF THE CUSTOMER PROFITABILITY ANALYSIS|18 3.2.1|MAKE OPERATING DECISIONS|19 3.2.2|DEVELOP STRATEGIES|20 3.2.3|TACTICAL BENEFITS|2