Framework for Analyzing Business Cost Structures PPT
This PPT slide, part of the 43-slide Business Model Canvas: Guide, Process and Tools PowerPoint presentation, presents a framework for analyzing the cost structure within a business model canvas. The primary objective is to identify the cost structure that enables effective value capture. This is crucial for organizations aiming to streamline operations and enhance profitability.
Key questions guide this analysis, focusing on identifying the most significant costs associated with the business model. It prompts consideration of whether these costs are fixed or variable, which is essential for understanding financial dynamics.
The section on cost structures distinguishes between 2 main approaches: cost-driven and value-driven. A cost-driven approach emphasizes maintaining low prices and maximizing automation, which can lead to operational efficiencies. Conversely, a value-driven approach focuses on creating value, suggesting that investments in quality or customer experience may justify higher costs.
Potential characteristics of the cost structure are also outlined. Fixed costs, such as salaries and rents, are contrasted with variable costs, which fluctuate based on production levels. The slide highlights economies of scale, indicating that bulk purchasing can reduce per-unit costs, and economies of scope, where marketing and distribution efficiencies can be gained through larger operational scales.
The bottom section appears to provide a space for drafting initial thoughts, suggesting that this slide is intended to be interactive, allowing users to customize their insights based on the framework presented. Overall, this slide serves as a foundational tool for executives to evaluate and refine their cost structures, ultimately supporting strategic decision-making.
This slide is part of the Business Model Canvas: Guide, Process and Tools PowerPoint presentation.
MBB/Big 4 style presentation that provides an overview of the business model canvas and how it links to strategy analysis and development.
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