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Non-Profits Find Securing Employee Health Benefits Difficult
Owen and Associates, a leading Canadian employee benefit consulting firm, has made it their mission to provide employee and group benefit insurance and consulting services to non-profit organizations throughout Canada.

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Tune Into The Plug In Profit Website
The latest and greatest breakthrough in terms of web hosting is Host 4 Profit, which gives way to the concept of Plug in Profit websites. Host 4 Profit is a type of business hosting package that can be purchased for as low as $24.95 a month and can help you start earning money right away. Host 4 Profit is a virtual plug in cash machine website that is ready and willing to take orders for you immediately as soon as it is purchased.

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How to Reduce Costs in a Company
Case Study 2- Zamruk Technology Limited (Estimated Reading Time 1.56 minutes)

How To Tell If An Advertisement Costs Too Much
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Top MLM Program, GVO Profits, offers home business opportunities
What is GVO Profits? Posted on October 8, 2009, 12:32 am, by . Edit

Strategic Planning for Non-Profit and For-Profit Organizations
Do it now or do it over, mission and vision statements come first.

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There are so many ways to jump start your prifits and keep your profit rolling. These top 20 ways are essential if you want to run a successful business.

The Mathematical Formula For Making Money
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Consolidated gross margins for manufacturers to increase appliance channel is already imminent - channels, profitability, Gome - HC Network Appliance
Now widely believed that the Chinese home appliance industry is one of the industries best, but there are a lot of direction in sharpening the contradiction between the companies, that China's manufacturing loss, the low level of profitability channels Business "exploit" the result of the charges on the channel to conduct business strong attack.

How to Reduce Costs in a Company

Case Study 2- Zamruk Technology Limited (Estimated Reading Time 1.56 minutes)

Business Background

Zamruk Technology Limited is an electronic company that distributes broadcasting, audio and audio-visual systems. The firm provides access and support to businesses in the television, radio and communications industry as well as government agencies and educational institutions. Headquartered in Sydney, NSW, the company has a national network of offices in major capital cities which are supported by 205 dealers and service agents nation-wide. Subsidiary offices are located in Melbourne, Victoria; Brisbane, Queensland and Auckland, New Zealand. Zamruk Technology is has a team of 95 employees.

Financial Summary

Description(All amounts in $’000) 2008 2007 Revenue $ 68,493 55,047 Revenue Growth % compared to prior year 24.43 17.71 Gross Profit $ 21,704 19,999 Gross Profit Growth % compared to prior year 8.53 30.41 Gross Profit Margin % 31.69 36.33 Net Profit $ 1,627 4,044 Net Profit Growth % compared to prior year (59.77) 42.04 Net Profit Margin % 2.38 7.35

Analysis of Financial Issues The financial results of this company when compared to the previous years are not impressive in terms of growth rates. Its key ratios such as the gross profit margin and net profit margin were way below its competitors. The company was unable to increase its selling prices to meet its rising expenses and keep its entire loyal and knowledgeable staff employed. It also realised that five of its main customers had moved on to its competitors as it was as it was not price competitive. The Chief Executive and the Finance Officer were in immense pressure to reduce costs and improve profitability. What the Business Did This was when they decided to implement the Profit Maps Model. Using the toolkits built-in to the Profit Maps Model they were able to identify the high impact profit and loss line items. The senior management realised just 12 profit and loss line items were contributing to almost 94% of its costs. The team then went ahead and developed concrete, focused and high impact action steps using the Profit Maps Model. The intention was to reduce costs by at least $5 million in the next year. The profit building team then picked up the top 10 action steps according to its rankings and put it to action. The company was able to systematically review and control the action steps and ensured that nothing fell apart. Interestingly enough this company also worked with some of its suppliers using the Profit Maps Model and the savings realised by the suppliers were then passed on to the company. Just like Zamruk Technology realized its suppliers realise for them to thrive in business their customers must do well. Results of Using the Profit Maps Model These action steps helped the company sell $8.78 million more in 2009. The company was able to competitively price all of its products and regain 4 of its main lost customers. It had also managed to sign up a long-term contract with a new customer due to its cost competitiveness. Currently the company continues to use the Profit Maps Model and has developed its own database of 50 high impact items specific to its profit and loss statement and business. It continues to put in place to set of new ideas once every six months and continues to increase its profitability and reduce costs. The company's net profit margin today is 12.5% and its closest competitors being 9.68%.

(Skanda Kumarasingam is a Chartered and Management Accountant. He earned his MBA and MSc from the University of Lincoln UK. He has many professional qualifications in Quality Management, Supply Chain Management and Taxation)


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