EXPENSE BREAKDOWN
by NHKC Capital Resources™
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Linking Expenses To Strategy And Tactics
The point of the breakdowns and categories is to explore strategic alignment. Far too often, your strategy emphasizes one factor or another but the spending or sales are elsewhere. You should be able to take the breakdowns and check whether your spending is aligned with sales. As you divide sales and expenses into different strategic categories, look for problem areas in which you are either spending far more or less, in percentage terms, than you are selling, in percentage terms. Disparity isn't always bad. It can be strategic. For example, you may want an area that delivers five percent of your sales to get 20 percent of your spending, because you are trying to build that area for strategic reasons. You may also want to spend less in a key sales area simply because other factors make it possible to spend less in that area and use resources more effectively. In any case, this is you chance to consider the problem of strategic alignment, and either bring your spending into alignment with sales or explain why it isn't. To continue click here: Effective Marketing Plan Control.
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