Uploaded by Vishnu Vardhan Reddy

CS Notes

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Round 2 debrief:
Lower variable costs  improves contribution margin
Reduce costs wherever necessary
Sales forecast is based on potential sales
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Gross Revenue (Price multiplied by Your Forecast.)
Variable Costs (Labor, material and inventory carrying costs subtracted from the Gross Revenue
forecast.)
Contribution Margin (Gross Revenue forecast minus Variable Costs.)
Fixed Costs (Depreciation, R&D costs, Promotion Budget, Sales Budget and admin costs.)
Net Margin (Contribution Margin forecast minus the product’s Fixed Costs forecast.)
Early retirement of long-term debt
Not producing enough as per demand
Look at the competition revision date
Unit sold must be projected value must be lower than the actual sold
General contribution margin must be 40%
Play for a long run
Your strategy must not lie between the short term,
Introduce a new product with the positioning of the long run
Cs score= top score / all score will give the market potential for the next year and which
product is going to sell most in next year
Product cannot be launched in low cost
Cost of sold out is less than cost of cos of inventory
Scientist need to be added in human resources
No more high automation
Get your R&D right
Start with your why and how and what
Market leader should also shape the industry
Customer Buying Criteria should be checked each time
Take advantage of product at right age
Invest money where you can more returns in business
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