Cumulative margin as an authority management tool

Abstract

The subject of the study is an approach to sales management based on cumulative margin. The object of the study is a car sales business. The purpose of this study is to determine the essence of cumulative margin and its key features. The automotive business in Russia has been actively developing: brands, cars, customer behavior are changing, and with them approaches to managing the automotive business. The problem is that in a dynamically changing market and growing competition, it is increasingly difficult for companies to ensure sustainable business development, profit-oriented and long-term customer relationships. The situation encourages entrepreneurs to continuously look for new and improve old methods of sales management and customer interaction. Special attention is paid to the modern approach to managing and improving business efficiency. The methodology of this study is based on methods of system analysis, which allow a deeper understanding of the interrelationships and structures of the subject of research. The scientific novelty lies in the fact that cumulative margin is considered from the point of view of an approach to sales management as a tool to increase business efficiency. As part of the study, a brief analysis of the basic concepts of management and business efficiency improvement was carried out. The definition of cumulative margin is proposed. Management based on the investigated approach is considered from the point of view of the ecosystem. The functions of cumulative margin at the strategic and operational levels of management of the organization are defined. Examples of the use of cumulative margin at different levels are given. The advantages and disadvantages of the investigated approach are presented. Conclusions are formulated regarding the effectiveness of the business management approach based on cumulative margins in the field of car sales. Examples of activities in which management based on cumulative margin may be relevant are given.