Unlocking profitability in the complex company

Abstract

Purpose

Looks at how the zeal to drive revenue growth can introduce a costly and unmanageable level of complexity, which obscures pieces of the business and drags down overall profitability.

Design/methodology/approach

Opinion piece.

Findings

Managers can take four distinct actions to untangle business complexity: analyze profitability by component, rationalize brands and SKUs, realign customers and networks, and embed this process in long‐term strategy

Practical implications

Provides managers with guidelines for growth action plans

Originality/value

Of particular to strategic planners, CEOs, senior executives.

Citation

Bonomo, J. and Pasternak, A. (2005), "Unlocking profitability in the complex company", Journal of Business Strategy, Vol. 26 No. 3, pp. 10-11. https://doi.org/10.1108/02756660510597056