Profit Management

Component

Marks

Description

Mapped CO

Simulations

20

Sim 1 (10M): The Profit Pivot. Sim 2 (10M): The Pricing War.

CO2, CO3

Case Study

10

"The Profit Zone": Analyzing a company that shifted its profit model (e.g., IBM).

CO1, CO4

Presentation

10

"The Profit Audit": Diagnosing the profit model of a chosen firm.

CO5

Mid-Term

10

Internal written exam covering Models 1–7.

CO1

Project

10

"Model Design": Designing a new profit stream for a stagnating business.

CO2

Participation

10

Active involvement in Socratic dialogue on models.

All

Session

Topic

Pre-Reading (Adrian Slywotzky)

Assignment / Case Study

1

The Profitability Gap

Why revenue growth does not equal profit growth. The path to "Profit Patterns".

Ch 1: Introduction

Assignment: Calculate the "Profitless Growth" of a unicorn startup.

2

Model 1: Customer Solutions Profit

Making money by solving a complex problem, not just selling a product.

Ch 2: Customer Solutions

Task: Identify a "Solution" vs. "Product" offering in IT services.

3

Model 2: Pyramid Profit

Creating a tiered product structure (Firewall: Low-end covers costs, High-end drives profit).

Ch 3: Pyramid Profit

Assignment: Map the "Pyramid" of a luxury car brand (e.g., BMW 3 vs. 7 Series).

4

Model 3: Multi-Component Profit

Separating a business into components (Hotel: Room vs. Bar vs. Conference).

Ch 4: Multi-Component

Task: Break down the profit centers of a movie theater.

5

Model 4: Switchboard Profit

The Platform/Intermediary model (Connecting buyers and sellers).

Ch 5: Switchboard Profit

Case Study: Uber or Airbnb’s Switchboard Economics.

6

Model 5: Time Profit

First-mover advantage and the value of speed (High margins before commoditization).

Ch 6: Time Profit

Assignment: Graph the price decay of a new iPhone over 3 years.

7

Model 6: Blockbuster Profit

High R&D, high risk, massive return projects (Pharma, Movies, Software).

Ch 7: Blockbuster Profit

Task: Analyze the R&D to Revenue ratio of Pfizer.

8

Model 7: Profit-Multiplier Model

Reusing the same asset across different forms (Disney: Movie, Toy, Park, Book).

Ch 8: Profit-Multiplier

Project: Create a "Multiplier Map" for a Harry Potter franchise.

9

Mid-Term Internal Exam

Assessment of Models 1–7 and Profit Logic.

Review: Sessions 1–8

Assessment: Written Exam (10 Marks).

10

Model 8: Entrepreneurial Profit

Lean, agile operations that strip out waste and complexity.

Ch 9: Entrepreneurial

Assignment: Compare the SG&A costs of a startup vs. a legacy firm.

11

Model 9: Specialist Profit

Doing one thing better than anyone else (High margins through expertise).

Ch 10: Specialist Profit

Case Study: Mayo Clinic vs. General Hospital.

12

Model 10: Installed Base Profit

The "Razor and Blade" model: Low margin on base, high on consumables.

Ch 11: Installed Base

Task: Calculate the Lifetime Value (LTV) of a printer ink customer.

13

Model 11: De Facto Standard Profit

Becoming the industry default (Microsoft Windows, Google Search).

Ch 12: De Facto Standard

Assignment: Identify "Standards" in the cloud computing market.

14

Simulation Lab 1: The Profit Pivot

Simulating a company shifting from Product to Installed Base model.

Manual: Strategy Sim

Assessment: Simulation Performance Score (10 Marks).

15

Model 12: Brand Profit

The premium price customers pay for trust and identity.

Ch 13: Brand Profit

Task: Conduct a "Blind Taste Test" pricing experiment.

16

Model 13: Specialty Product Profit

Unique, patented, or design-led products (Differentiating from commodities).

Ch 14: Specialty Product

Case Study: Dyson’s Engineering Differentiation.

17

Model 14: Local Leadership Profit

Dominating a specific geography to reduce logistics costs (Starbucks clustering).

Ch 15: Local Leadership

Assignment: Map the store density of a retail chain in one city.

18

Model 15: Transaction Scale Profit

Making money on massive deals where volume creates efficiency.

Ch 16: Transaction Scale

Task: Analyze the margins of an Investment Bank M&A desk.

19

Capstone Presentation: "The Profit Audit"

Diagnosing a struggling firm and prescribing a new model.

Manual: Presentation Rubric

Assessment: Group Presentation (10 Marks).

20

Course Synthesis

The Cycle of Profitability: When to switch models.

Ch 23: The End

Submission: Final Course Portfolio.