個案資料

In early December 2020, the sales controller for Star Medical Equipment, Brazil, was working on the sales forecast for 2021. Sales in 2020 had been severely affected by the COVID-19 pandemic, but ultimately recovered, and the company had ended the year with about 7 per cent growth over 2019. Predicting the market demand for 2021 was uncertain, as the pandemic was not over and newer strains of the virus were afflicting different parts of the world, again and again. What was certain was that freight costs and transfer prices would increase significantly in 2021. If the sales controller attempted significant sales growth, the organization’s gains could be high; its success was uncertain, while a reduction in profitability was certain. He had to decide whether he should play it safe and follow global business guidelines to increase profitability or gamble with ambitious sales and market share growth plans for 2021.

This case is suitable for graduate-level courses on product management, while discussing the profit and loss management of a business. It can also be part of a marketing strategy course, to introduce students to the alignment of a marketing strategy with the corporate strategy and the profit impact of a marketing strategy.<br><br>Since the case outlines a very common and pertinent problem faced by marketers and business leaders, it can also be used in a multitude of executive management programs where the focus is on managing the bottom line. Aspects of employee motivation and the long-term impact of marketing strategy on a company’s competitive position can be considered. <br><br>The case offers students the opportunity to explore the management of a company’s profit-and-loss statement. After working through the case and assignment questions students will be able to understand<ul><li>the trade-offs involved in deciding between revenue maximization and profit maximization objectives;</li><li>balancing the conflicting priorities of the company’s stakeholders—in this case, the conflicting demands of the Brazilian and the global management teams;</li><li>the different reactions that important stakeholders—such as customers, competitors, and company employees—are likely to have to the strategy of maximizing sales or optimizing sales for maximizing profitability;</li><li>how customer selection and marketing programs change due to marketing strategy changes; and</li><li>the direct linkage between marketing strategy and the profit and loss account of the business.</li></ul>

• revenue maximization vs. profit maximization
• linking P&L with marketing strategy
• marketing levers having effect on P&L
• 3 C framework
• unit of optimization