RGM 101
RGM 101Growing broke: why a 10 percent revenue year can be bad news
Two companies grew revenue 10 percent. One got healthier, one got sicker. The decomposition tells you which one you are, before your CFO does.
RGM 101You are paying shoppers who would have bought anyway
Most promotions look profitable because the ROI maths quietly ignores the baseline. Here is the calculation that separates volume you bought from volume you already had.
RGM 101Your medium size is not meant to be bought
Price-pack architecture is built from two sides at once: shopper psychology and your own cost curve. Most companies design one and leak margin on the other.
RGM 101Price, volume and mix: the only three ways revenue moves
Revenue went up 15.9 percent. Until you split it three ways, you do not know whether that is good news.
RGM 101The opex ratio your accountant will not show you
Absolute operating expense always rises. The number that matters is what it costs you per ringgit of revenue.
RGM 101Reading a P&L bridge in ninety seconds
Six bars between revenue and net profit. Here is what each one is allowed to tell you, and what it is not.
RGM 101When a discount pays for itself
A 10 percent discount at a 40 percent margin needs 33 percent more volume to break even. Most promotions never get there.