The most important end product of a company's business is profit. Business performance is normally judged by its profit, which in turn affects its share value. To plan, grow and operate a business it is necessary to understand the drivers that influence profit. We have an established pedigree at identifying and evaluating the key drivers to enable you to produce profits.
Operating-cost drivers
Careful modeling of all the costs associated with providing service to your customers, maintenance costs linked to installed equipment, systems and their dependencies such as quality of service targets, requlation, market share predictions and investment budgeted for, will assist to attain business viability.
Capital-cost drivers
In capital intensive industries. infrastructure is likely to account for the majority of capital investment. The three main parameters that influence the design of your infrastructure are cost (investment and running costs), throughput (capacity), and quality (to your customers).
It is important to know the complex drivers that influence the size of the investment and the ultimate impact this will have on your financial performance.
Investment appraisal
The ability to contain costs is paramount to the success of a business, however often there is also a need to understand the investment appraisal process. The ability to make good investment decisions is crucial to the success of any company or organisation. This is particularly true of your business where the focus is on improving service to customers, generating additional revenue and reducing costs. We can assist you to make the right decisions, when to invest and to prioritise your capital investment expenditure.
Costs/benefits analysis and risks
Our consultants will require relevant data inputs to support the analysis but we can also help identify and collate this data. Potential revenues, incremental costs, overhead costs, payback, time value of money, net present value, internal rate of return, and sensitivity tests can then be forecasted and analysed. The activity demands much more than just calculating collated figures. It requires creative and lateral thought and the abilities to identify real impacts on your business and to consider all practical options. We can provide analysis of relevant cost drivers and corporate investment plans, to enable the most cost-effective, optimised solution to be designed.
Features
- Operational cost modelling based upon service to customers and maintenance requirements.
- Identifying capital cost drivers such as throughput and quality.
- Risk assessment of potential scenarios
Benefits
- Highlights the drivers that influence profit
- Enables "what if" analysis to identify the impact of investment decisions & prioritise investment for optimal return
- Decreases risk in investment planning & provides a basis for forecasts
Example Deliverables
The example deliverables listed are a guide. Through detailed analysis of specific customer requirements we will develop tailored consultancy solutions. The deliverable will be a costs/benefit analysis comprising:
- Review of the operating-costs drivers
- Review of the capital-cost drivers
- Review of the investment required
- A list of the risks involved
