The aim of this paper is to examine how customer profitability is measured within a manufacturing company and analyze whether the measurement method is institutionalized or not. A case study has been conducted on a Swedish manufacturing company that has applied different measurement methods throughout the years…
Contents
1. INTRODUCTION
2. THEORY
2.1 CUSTOMER PROFITABILITY
2.2 MANAGEMENT ACCOUNTING CHANGE
2.2.1 A Framework for Studying Management Accounting Change
2.2.2 The Process of Institutionalization
2.2.3 Evolutionary Change
2.2.4 Accounting Routines and Meanings
2.2.5 Accounting Routines and Power
3. METHOD
3.1 WHY THIS CASE?
3.2 CHOICE OF METHOD
3.3 THE DESIGN OF THE CASE STUDY
3.4 COMPLETION OF THE CASE STUDY
3.4.1 Interviews
3.4.2 Validity and Reliability
3.4.3 Limitations to the methods employed
4. KANTHAL
4.1 COMPANY HISTORY OF KANTHAL
4.2. CUSTOMER PROFITABILITY BACKGROUND
4.3 CUSTOMER PROFITABILITY MEASUREMENT SYSTEM
4.3.1 Movex Multiple Unit Coordination – The Overall Business System
4.3.2 Qlickview – A Valuable Analysis Tool
4.3.3 PPC – Provides customized prices
4.3.4 Kanthal Pricing Project – More accurate and consistent policies
4.3.5 Value Based Selling – Communicate and Deliver Customer Value
4.3.6 The Waterfall – Customized Cost Analysis
4.3.7 A-B-C Classification – Prioritizing the Most Profitable Customers
5. ANALYSIS OF THE CASE STUDY
5.1 BUSINESS SYSTEMS
5.1.1 Movex – The perfect fit
5.1.2 Qlickview – Partly disregarded
5.1.3 Pocket Price Costing – A guideline for new employees….
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Author: Therese Horttana, Zofia Ryniak
Source: Stockholm School of Economics