Examples of Revenue optimization in the following topics:
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- Firms utilize strategies such as price and promotional reduction to minimize cost, maximize revenue, and thereby optimize profits.
- Yield management can help firms optimize profits.
- Since total demand normally exceeds what the particular firm can produce in that period, the models attempt to optimize the firm's outputs to maximize revenue.
- Revenue optimization is a method of determining 'optimal' profits or expenditures, and can be related to quadratics, as the vertex of a parabola can illustrate the point where the ‘maximum' revenue can be attained.
- Revenue optimization requires finding the x-intercepts and vertex, which can be done utilizing the quadratic formula (x-intercepts), and completing the square (vertex/ maximum).
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- Most motors need to run at or near their designed power rating (usually 75%–100% of their full load rating) in order for them to operate at optimal efficiency.
- No matter how it's looked at, the overall financial impact a motor will have on a business's revenues should be considered long before a purchase is made.
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- Extending resources to maximize revenues can be applied in almost any setting not just manufacturing – for the simple reason that the word ‘resources' doesn't only refer to ‘raw materials'.
- Locking in customers or markets with optimal customer service or other value initiatives,
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- Every time a business sells a product or performs a service, it obtains revenue.
- This is referred to as gross revenue or sales revenue.
- In the United Kingdom and other countries, revenue is referred to as turnover.
- For example, "Last year, Company X had revenue of $42 million. "
- Revenue is used as an indication of earnings quality.
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- An MNC is a company that operates in two or more countries, leveraging the global environment to approach varying markets in attaining revenue generation.
- International operations are therefore a direct result of either achieving higher levels of revenue or a lower cost structure within the operations or value-chain.
- If successful, these both result in positive effects on the income statement (either larger revenues or stronger margins), but contain the innate risk in developing these new opportunities.
- Combining these four challenges for global corporations with the inherent opportunities presented by a global economy, companies are encouraged to chase the opportunities while carefully controlling the risks to capture the optimal amount of value.
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- Value based pricing (aka value optimized pricing) sets prices primarily on the perceived or estimated value to the customer (rather than on the cost of the product, the market price, competitors' prices, or historical prices).
- Yield management is a large revenue generator for several major industries (including airlines and hotels).
- Value based pricing (aka value optimized pricing) sets prices primarily on the perceived or estimated value to the customer (rather than on the cost of the product, the market price, competitors' prices, or historical prices).
- As a specific, inventory-focused means of revenue management, yield management involves strategic control of inventory to sell it to the right customer at the right time for the right price.
- Value-based pricing, or value-optimized pricing is a business strategy.
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- Management must identify the "optimal mix" of financing—the capital structure that results in maximum value.
- Examples of unforeseen events that may affect future outcomes are the arrival of a new competitor, a change in the overall economic outlook which could affect costs and/or revenues either positively or negatively, or even the arrival of a new company in another line of business that could raise prevailing wage rates in the region.
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- Supply chain optimization applies processes and tools that ensure optimal operation of a manufacturing and distribution supply chain.
- Ongoing investment in a company's operations is necessary in order for supply chain optimization to be achieved.
- Supply chain optimization addresses the general supply chain problem of delivering products to customers at low cost and high profit.
- Supply chain optimization may include additional refinements at various stages of the product lifecycle, and new, ongoing, and obsolete items are optimized in different ways.
- Supply chain optimization applies processes and tools that ensure the optimal operation of a manufacturing and distribution supply chain.
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- For these companies, the reason for keeping one of each item on hand (in inventory) is that it enables them to make sales and capture revenue.
- Balancing these competing requirements leads to optimal inventory levels, which is an on-going process as the business needs to react to the wider environment.
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- Some examples of measurable mutual goals include sales revenue, return on assets, or some performance indicator of customer satisfaction.
- Agreeing on the items to be measured and establishing a continuous measurement program is necessary to provide optimal cooperation among partners and a substantive contributor to establishing mutual trust.