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Customer Profitability Traps  Growth Illusion  Illusion of Averages  Failure to Act Management does not understand the profit it can expect from each.

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Presentation on theme: "Customer Profitability Traps  Growth Illusion  Illusion of Averages  Failure to Act Management does not understand the profit it can expect from each."— Presentation transcript:

1 Customer Profitability Traps  Growth Illusion  Illusion of Averages  Failure to Act Management does not understand the profit it can expect from each new customer. Management is unaware of the profit that comes from the best 20% and the worst 20% of its customers. The strategic plan is disconnected from the profitability of customers.

2 Min-Yo Lee University of Notre Dame Operations Strategies

3 Min-Yo Market Opportunities Subcontracted Brands Special Garments Licensed Brands Manufacturing Process

4 Min-Yo Tidbits 1.The process is set to produce Thunder shirts in Week 1. 2.There is a past-due order of Thunder shirts of 200 units. 3.Each Dragon shirt order must incur a changeover of 20 hours. 4.If you ever refuse a Thunder shirt order, you are out of the Thunder Shirt business. 5.Open order file in Min-Yo Tables must be updated each week, otherwise you will not have any demands.


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