margin

Examples of margin in the following topics:

• Ratio Analysis

  • Ratios used to determine a project's health include operating margins, profitability margins, efficiency ratios, and debt.
  • Operating margin and total margin calculate the revenue a project is producing over expenses (a profitable output ratio).
  • Operating margin considers only operating revenues and expenses (such as salaries, utilities, supplies) while total margin considers all revenues and expenses.
  • There are many smaller ratios built into these broader operating margins as well, including output per employee, inventory turnover, and specific cost components in comparison with one another.
  • The operating margin is found by dividing net operating income by total revenue.

• Measuring Organizational Performance

  • Margins - Organizations setting objectives must carefully consider expected margins and ensure that they stay in the black (i.e., do not incur losses).
  • Measuring profitability margins indicates the cents-per-dollar the organization makes by investing in operations.

• Building Support for Intrapreneurship

  • ., a profit margin).

• The Importance of Performance Targets

  • Success can be defined as progress towards strategic or operational goals such as zero defects, percentage of customer satisfaction (or retention), profitability margins, etc.

• Porter's Competitive Strategies

  • Coach handbags are a good example of differentiation; the company's margins are high due to the markup on each bag (which mostly covers marketing costs, not production).

• Types of Innovation

  • For example, the smartphone disrupted landlines, Netflix made Blockbuster obsolete, and mp3s have marginalized CD players.

• Positive Reinforcement

  • "Reaping the Rewards" sales incentive programs are primarily used to drive sales, reduce sales costs, increase profitability, develop new territory, and enhance margins.

• Planning a Project

  • By appropriately incorporating each stage of the model into the planning process, managers can effectively forecast the deliverable, and they can avoiding losing value by accurately assessing the margins that will be produced in a given strategic initiative.

• The Importance of Accountability

  • In the debate over global justice and its distributional consequences, those in highly developed, heavily populated areas tend to advocate greater accountability to traditionally marginalized populations and developing nations.

• The Impact of External and Internal Factors on Strategy

  • This model, created by Michael Porter, demonstrates how support and primary activities add up to potential margins (and potential competitive advantage).