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Financial Impact/Opportunity Analysis
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| Like it or not: what's happening in a factory two blocks from the port of Shanghai may influence your business more than the details of the annual capital expenditure budget. Often, the availability of foreign sources means the erosion of domestic pricing. Your expected returns are based on a certain volume at a particular average unit price. If your average unit prices are declining and your volumes are not increasing in proportion, then you can expect returns on capital below your budget forecast. |
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| The above statements may appear infused with impending doom or part of a scare campaign. The statements' intentions are neither. Foreign competition rarely wipes out a domestic industry or industry segment overnight. In the short run- say, a period of two to four years- domestic producers can rightly assume that foreign competition is producing inferior quality and selling at unsustainable low prices. In addition, domestic producers can rightly believe that foreign competition could never service their customers in the same manner. After about four years, the executives and managers that rightly held these assumptions are replaced. The new executives and managers cut expenses in all areas to offset the decline in prices. Eventually, these new executives and managers sell the company to a competitor. The competitor is always an organization with a consistent method of delivering capital returns superior to its industry peers. The consistent method always involves simple decisions regarding the new economics of the industry. |
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| Manifest Metrics is a starting point for one decision that all US manufacturers, distributors, and retailers must face. That is, can a US organization maintain its market standing and existence by completely outsourcing its production to foreign- mostly Asian- manufacturers? For manufacturers, this probably means the closing and abandoning of its production assets. For the retailer and distributor, this means abandoning the track records of US suppliers and trusting a steady supply from places often unheard of. |
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| A Manifest Metrics customer gets the features and support of a first-rate provider of web-based, on-demand provider of data services. The relationship goes beyond user and technology provider. Manifest Metrics continuously benchmarks against and surpasses the best practices of other internet-based data services. Manifest Metrics, however, does not stop there. The key benchmark of performance is the thoroughness and conciseness that a global consulting organization may offer in our knowledge bases. Using our technology to seamlessly integrate with our professional users' daily tasks and functions is a standard that Manifest Metrics has established. |
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