Profitability Framework in Product Management with a Case Study.

Profitability problems require analysis of the Revenues and Costs of a company to zero in on the cause of decreasing/increasing profitability. A thorough understanding of revenue and cost heads for various industries can help bring out key insights and reach valuable recommendations

Profitability framework for business

Cost side / Value Chain Analysis

Costs can also be divided (depending on the type of problem statement & the information available):

1. Direct & Indirect Costs
2. Fixed & Variable Costs

Cost framework for business

Now let us use this framework to do a case study on a Beer Manufacturing Company

Interviewer: Your client is a beer manufacturing company that operates in India. The cost structure for the company is poor compared to the international benchmarks, and you have been asked by the client to find out why.