[Management Column Vol. 45] Subdividing Management Units to Engage in Profitable Activities
This is a column written by our representative, Kazuaki Sawada, detailing the insights he has accumulated in the field of business revitalization, management improvement, and bank relations.
We provide information that serves as decision-making material for managers, ranging from reading monthly financial statements, dialogue with banks, organizational restructuring, to business succession.
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Please use this as hints for management decisions, such as building a management foundation, improving management qualities, cash flow management, bank relations, business succession, and restructuring after the appointment of the second or third generation. Also, feel free to contact us with any questions or inquiries when putting this into practice.
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If you have a certain level of management foundation and sales scale, turning a deficit into a surplus is not as difficult as succeeding in a new business. The basic principle is to "stop doing things that are not profitable and focus on what is profitable." To achieve this, you must first understand what is profitable and what is not. However, if the management units are too broad, unprofitable divisions become hidden within the overall numbers. By breaking down management units by business, department, product, store, etc., you can identify the "areas that generate profit" and the "areas that are losing profit" that were not visible with a rough accounting approach. When you feel "unsure of where to start," begin with the breakdown of management units. Related article: Breaking free from rough accounting - Principles of management that a president of a company with annual sales of several hundred million yen should understand https://www.consulting-network.jp/column-20-management-principles Next time, I will discuss "Customer Satisfaction (CS) and Employee Satisfaction (ES) for Creating an Attractive Company."
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Our company is a group of professional consultants who value practical insights born from responding to corporate needs. With practical management know-how and a strong belief, we solve management challenges and achieve everything from startup support, reconstruction and revitalization support, growth expansion support, and business continuity support to building a solid management foundation.






