This PPT slide, part of the 60-slide Business Definition Analysis PowerPoint presentation, outlines various methods through which businesses can effectively share costs, emphasizing the importance of collaboration across different value chain steps. It begins with a structured presentation of the value chain, detailing key stages: R&D, Procurement, Manufacturing, Distribution, and Administrative Support. Each of these stages represents opportunities for cost-sharing, which can enhance operational efficiency and reduce overall expenses.

The section titled "How Direct Costs Can Be Shared" lists several strategies. For instance, it mentions the potential for multiple applications of R&D efforts, indicating that investments in research can yield benefits across different product lines. Shared raw materials and inbound logistics are also highlighted, suggesting that pooling resources can lead to significant savings. The slide notes similarities in manufacturing processes and facilities, which can further facilitate cost-sharing among businesses.

Examples provided illustrate these concepts in practice. The mention of 3M’s Tape and Post-it Notes exemplifies how a single R&D effort can lead to diverse product offerings. Other examples, such as gasoline and petrochemicals, and Kohler's vitreous china products, reinforce the idea that businesses can leverage shared resources to maximize output and minimize costs. The inclusion of Philip Morris's cigarettes and candy as well as BankBoston's NOW accounts demonstrates the breadth of industries where cost-sharing can be applied.

This slide serves as a practical guide for executives looking to explore collaborative strategies for cost management. It highlights actionable insights that can be implemented to achieve financial efficiencies while fostering innovation and product development.

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Strategic Analysis Cost Management Value Chain Product Development Manufacturing Logistics Innovation