Framework for Analyzing Cost Drivers and Value Creation PPT

This PPT slide, part of the 18-slide Cost Drivers Analysis PowerPoint presentation, presents an overview of various analytical techniques used to assess cost drivers within a business context. It categorizes these techniques into 3 main areas: Financial Ratio Analysis, Value Chain Analysis, and Cost Drivers Analysis, each with distinct focuses and methodologies.

Financial Ratio Analysis serves as an entry point for understanding a company's economic standing. It emphasizes 3 critical performance metrics: current profitability, sustainability of profits, and financial risk. However, the slide notes that conducting this analysis at the business unit level can be challenging, suggesting that broader organizational insights may be more accessible.

Value Chain Analysis is described as a framework for evaluating the value-adding activities of a company. This approach necessitates a deep dive into the company’s processes, highlighting how these activities interact with customer value delivery and the competitive environment. The slide indicates that mapping the industry value chain is essential for identifying cost drivers at each stage, allowing for a comparison with competitors to pinpoint potential advantages and areas for improvement.

Cost Drivers Analysis is closely linked to Value Chain Analysis. It identifies structural causes of costs associated with business activities. This analysis begins with a high-level overview of the company's value chain, focusing on quantifying cost drivers to gain insights into both the company's and competitors' cost structures. The slide emphasizes the importance of identifying cost drivers with the highest potential impact on industry cost structures, suggesting that this analysis can guide strategic decision-making.

Overall, this slide underscores the need for a structured approach to cost analysis, highlighting the interconnectedness of various analytical techniques and their relevance in strategic planning.

This slide is part of the Cost Drivers Analysis PowerPoint presentation.

This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. It explains the approach to Cost Drivers Analysis utilized by global strategy consulting firms.

Download the Full Presentation

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Costing Strategic Planning Value Chain Analysis Value Chain Cost Analysis Financial Ratio Analysis Financial Risk Sustainability

Are you familiar with Flevy? We are you shortcut to immediate value.

Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations

Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Read Customer Testimonials

"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.

The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."

– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.

"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact

... [read more]

– Roberto Pelliccia, Senior Executive in International Hospitality

"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

– Debbi Saffo, President at The NiKhar Group

"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor

... [read more]

– Michael Duff, Managing Director at Change Strategy (UK)

"My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me

... [read more]

– Bill Branson, Founder at Strategic Business Architects

"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)

"As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for

... [read more]

– Jim Schoen, Principal at FRC Group

"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting