BSM 200 Lecture Notes - Lecture 6: Variable Cost, Scenario Planning, The Home Depot
2 Mar 2017
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Contribution margin-defined as selling price minus variable cost, is a measure of the ability of a company to cover variable costs with revenue. Funding becomes important, if they have enough, if they use it well. Networking < relevance to market + internal. Constant change/ redefine the market: reinvesting past profits/ expanding. Increasing sales, and where turnover is coming from. The growth phase allows companies to stay relevant in the market. Loss of faith, (cid:271)e(cid:272)ause (cid:455)ou (cid:272)ould(cid:374)(cid:859)t understand/ read the market. Maturity: collaboration, think in terms of growing new networks not old ones, crisis, red tape or bureaucracy. You have set up systems and the systems take over. However, the market is constantly changing, so the systems become irrelevant. Dehumanized, an entity that lives on its own and it"s scary because it"s so effi(cid:272)ie(cid:374)t. it does(cid:374)(cid:859)t help (cid:455)ou do what you need to it just does what it"s supposed to do. Finance + resource to grow and operate.
