Refocusing corporate strategy: creating a profit orientation
Preston, A & Kelly, SJ 2004, 'Refocusing corporate strategy: creating a profit orientation', People first: serving our stakeholders: proceedings of the 18th Annual Conference of the Australian and New Zealand Academy of Management (ANZAM), Dunedin, NZ, 8-11 December, University of Otago, Dunedin, NZ, ISBN: 0476011310.
The structure and effectiveness of a profit segmentation method designed to enhance a business’ understanding of the profit impact of strategic plans is investigated in this study. It is argued that a profit-centric segmentation-orientation is more effective in aligning organization resources for profit optimization than a simplistic fixation on market share, as it provides insight and direct correlation with two critical dimensions of organizational performance; the complex relationship between sales revenue and profitability and the architecture of market share and corporate profitability. Results from research that examined outcomes from the broad based adoption of this method by a large industrial corporation support these arguments.