JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Done Cost Cutting, What’s Next? Setting the Revenue Growth Objectives
Author(s): Prakah Deo
Citation: Prakah Deo, (2013) "Done Cost Cutting, What’s Next? Setting the Revenue Growth Objectives," Journal of Applied Business and Economics, Vol. 14, Iss. 4, pp. 68-78
Article Type: Research paper
Publisher: North American Business Press
Abstract:
The prolonged economic downturn following the 2008-2009 demise of the housing market, major wall-
street firms and the financial markets has forced many firms to focus their strategic plans on withdrawl
from indefensible positions and lowering of operating costs to maintaining profit margins. But, cutting
costs cannot go forever. You cannot grow the bottom line until you grow the top line. This article
examines the financial and managerial issues that a firm and its managers need to evaluate when setting
revenue growth objectives. The paper proposes a theoretically sound and practical methodology to
develop annual revenue growth objectives consistent with a firm’s primary obligation to maximize
shareholder value. Specifically, it develops a framework to derive, structure, communicate, negotiate and
set short- and long-term revenue growth objectives both at the consolidated entiry and business unit
levels. We hope that it will help to bridge the gap between “theory” and “practice” for practitioners.