Target Revenue Research Articles

FORMULATING BUSINESS STRATEGY: A CASE OF TUTORING AGENCY IN INDONESIA

PT. XYZ Indonesia is a holding company with a collection of thebusiness unit that has a primary focus on education. One of their business units is XYZthat is an education consultant or tutoring agency. The main problem faced by XYZ is their target revenue in 2017 has not been reached or only 70% realization of total target revenue. In this research, use strategic management process to formulate appropriate strategies for XYZin order to achieve their target. Primary and secondary data collection techniques consisting of aquestionnaire, interview, research internet, document review, and company report. This research results in 9 strategies to increase their sales and market shares including corporate, business, and functional level strategy. The implementation plan of the new proposed strategies implemented by its priority to solve the issues. Suggestion for subsequent research was to add other tools in the environmental scanning and strategy formulation phase to deepen the analysis result. Also can use another performance management framework to evaluate the strategies.

Envy-free auction mechanism for VM pricing and allocation in clouds

A major challenging problem in clouds is designing efficient mechanisms for virtual machine (VM) allocation and pricing. Failure to fully consider the incentives of cloud providers and customers can cause undesirable outcomes, such as no envy-freeness and untruthfulness, which may lead to system instability and relatively low profit for cloud providers. In this study, we proposed a combinatorial auction-based mechanism to address such problem in the presence of multiple types of VMs in a single provider scenario. The proposed mechanism combines two general ideas: consensus estimate that can avoid market manipulation and yields an approximate optimal target revenue with the consensus estimate technology, and RevenueExtraction that can determine the winners and equally shares the target revenue generated by consensus estimate among them with a single sale price. Using the two ideas, the proposed mechanism can simultaneously promise truthfulness and envy-freeness while achieving an approximate optimal revenue. The results of extensive simulation experiments demonstrate that our schemes can efficiently deliver stable and desirable performance, especially in large-scale and over-supplied cloud markets.

Optimal Pricing for Distance-Based Transit Fares

Numerous urban planners advocate for differentiated transit pricing to improve both ridership and service equity. Several metropolitan cities are considering switching to a more "fair fare system," where passengers pay according to the distance travelled, rather than a flat fare or zone boundary scheme that discriminates against various marginalized groups. In this paper, we present a two-part optimal pricing formula for switching to distance-based transit fares: the first formula maximizes forecasted revenue given a target ridership, and the second formula maximizes forecasted ridership given a target revenue. Both formulas hold for all price elasticities. Our theory has been successfully tested on the SkyTrain mass transit network in Metro Vancouver, British Columbia, with over 400,000 daily passengers. This research has served Metro Vancouver's transportation authority as they consider changing their fare structure for the first time in over 30 years.

Optimizing the Labor Strategy of a Professional Service Firm

A professional service firm often faces challenges in matching its available workforce with the demands for service delivery. In this paper, we coin the labor strategy optimization (LSO) problem to prescribe an optimal staffing plan for meeting the target revenues of a professional service firm. It simultaneously optimizes the capacity, capability, location, and flexibility of a firm's workforce at the strategic level. Our modeling framework captures the richness and complexity of a general service transformation process. Mathematical programming based models are developed for both the deterministic and stochastic versions of the problem. A prototype of the LSO technology was implemented at the former HP Consulting & Integration organization. Through a comprehensive computational study, managerial insights are drawn and discussed about the optimal labor strategy under various supply-side risks and uncertainties. The optimal labor strategy provides a cost effective and reliable basis for more detailed workforce optimization concerning scheduling and assignment decisions. Our study also offers a data-driven approach to take advantage of large amount of disparate data, from different organizations and geographical locations of a firm, for improving the workforce planning decisions.

ANALISIS POTENSI PENERIMAAN RETRIBUSI PASAR SEBAGAI SALAH SATU SUMBER PENDAPATAN ASLI DAERAH KABUPATEN HULU SUNGAI UTARA

Market retribution market is one of sources of local revenue in Hulu Sungai Utara. The purpose of this study is to measure the potential revenue, market in Hulu Sungai Utara, which results will be used as a basic reference potential measure the effectiveness of revenue, market, in order to assess the results of the performance of market fee collection. This type of research is research diskiptif, while the data analysis method in use is the qualitative method, ie with a portrait, explain, and interpret the date obtained and analyzed to obtain conclusions.Contribution revenue, market on revenue is relatively small with only contributes a percentage rate 5%, from the year 2009 until the year 2012 revenue, always increasing but retribution market acceptance of is not comparable to the total revenues of local revenue Hulu Sungai Utara. Development of retribution market has increased every year, but in 2012 the increase in 2011 the difference is slight. Revenue, market the Department of Revenue in Hulu Sungai Utara against the target revenue, the market has not reached that yet effective, this is due to the realization of revenue, the market does not meet the expected targets, while potential market acceptance levy of 11 kinds of receipts in Hulu Sungai Utara Rp 1.947.378.000. The number is the whole of the potential is there, but can be developed by adding new facilities.

Risk minimising strategies for revenue management problems with target values

Consider a risk-averse decision maker in the setting of a single-leg dynamic revenue management problem with revenue controlled by limiting capacity for a fixed set of prices. Instead of focussing on maximising the expected revenue, the decision maker has the main objective of minimising the risk of failing to achieve a given target revenue. Interpreting the revenue management problem in the framework of finite Markov decision processes, we augment the state space of the risk-neutral problem definition and change the objective function to the probability of failing a certain specified target revenue. This enables us to obtain a dynamic programming solution that generates the policy minimising the risk of not attaining this target revenue. We compare this solution with recently proposed risk-sensitive policies in a numerical study and discuss advantages and limitations.

L'approvisionnement en bois brut dans un marché de concurrence imparfaite

Raw wood supply in a market with imperfect competition This contribution performs a supply analysis of the Swiss forest enterprises. It explores the factors influencing the quantity of supply, and determines the behavioral characteristics of the forestry firms. Based on econometric methods, the main characteristics of the firms in this strongly heterogeneous and changing sector are taken into account. Overall, the results suggest that Swiss forestry firms are not acting as profit maximizers. In fact, at least some of them, namely the smaller ones, seem to strive for a certain level of revenues, allowing them to cover their current costs (the so-called target revenue model), irrespective of their market position. Specifically, estimations indicate a negative price elasticity of supply, i.e., the quantity of wood supplied decreases with increasing prices. The intensity of this reaction depends on firm characteristics, such as type of ownership (private or public) and the size of the enterprise. Moreover, the results point to the existence of market power among larger forestry firms, which might be used in price negotiations with sawmills and other buyers.

Value-at-risk optimal policies for revenue management problems

Consider a single-leg dynamic revenue management problem with fare classes controlled by capacity in a risk-averse setting. The revenue management strategy aims at limiting the down-side risk, and in particular, value-at-risk. A value-at-risk optimised policy offers an advantage when considering applications which do not allow for a large number of reiterations. They allow for specifying a confidence level regarding undesired scenarios.We introduce a computational method for determining policies which optimises the value-at-risk for a given confidence level. This is achieved by computing dynamic programming solutions for a set of target revenue values and combining the solutions in order to attain the requested multi-stage risk-averse policy. We reduce the state space used in the dynamic programming in order to provide a solution which is feasible and has less computational requirements. Numerical examples and comparison with other risk-sensitive approaches are discussed.

Interval disaggregate

Business planning as well as analytics on top of large-scale database systems is valuable to decision makers, but planning operations known and implemented so far are very basic. In this paper we propose a new planning operation called interval disaggregate , which goes as follows. Suppose that the planner, typically the management of a company, plans sales revenues of its products in the current year. An interval of the expected revenue for each product in the current year is computed from historical data in the database as the prediction interval of linear regression on the data. A total target revenue for the current year is given by the planner. The goal of the interval disaggregate operation is to find an appropriate disaggregation of the target revenue, considering the intervals. We formulate the problem of interval disaggregation more precisely and give solutions for the problem. Multidimensional geometry plays a crucial role in the problem formulation and the solutions. We implemented interval disaggregation into the planning engine of SAP HANA and did experiments on real-world data. Our experiments show that interval disaggregation gives more appropriate solutions with respect to historical data than the known basic disaggregation called referential disaggregation. We also show that interval disaggregation can be combined with the deseasonalization technique when the dataset shows seasonal fluctuations.

Model System Dynamics Infrastruktur BTS Ramah Lingkungan Daerah Rural untuk Optimalisasi Perhitungan ARPU

Green Base transceiver station (BTS) or known as remote BTS is a special BTS with IP technology-based that has a small capacity and takes low power consumption with standard features suitable for use in rural areas. BTS utilizes 100% solar energy as a source of energy. The infrastructure Green BTS is composed of high-tech devices which is able to save energy, environmentally friendly, small and lightweight. The high rate service calls and SMS on green BTS is caused by the absence of competition telecom operators at a site. The solution to this problem needs to be done with system dynamics modeling approach with the aim to establish causality (cause and effect) between the variables. The standard target of model pattern which has been changed on system dynamics can be used to demonstrate the behavior of the model between the number of subscribers, the availability of network capacity and ARPU (average revenue per user) on the Green BTS site. On the changed standard target model, the actual revenue is placed as the actual event, the target revenue is as a target; the difference between the actual and target revenue is as gap, gap changes are as the pressure on the target and the corrective action taken against revenue as a corrective action. Based on simulation results, the standard model change targets can be developed by adding two negative loops (balancing loop) as an alternative solution towards the achievement of revenue targets that have been set.

Revenue targeting in fisheries

AbstractWe apply the target revenue model, a version of prospect theory, to investigate how fishermen adjust their trip length to changes in daily revenue. The key finding is that certain groups of fishermen seem more likely to behave according to the target revenue model rather than to the standard model of labor supply. We also find that vessel capacity has little effect on whether the captains seek target revenue. The study strongly supports the integration of prospect theory into the framework of labor supply analysis.

DOES WAL‐MART SELL INFERIOR GOODS?

I estimate the aggregate income elasticity of Wal‐Mart's and Target's revenues using quarterly data for 1997–2006. I find that Wal‐Mart's revenues increase during bad times, whereas Target's revenues decrease, consistent with Wal‐Mart selling “inferior goods” in the technical sense of the term. An upper bound on the aggregate income elasticity of demand for Wal‐Mart's wares is −0.5. (JEL L81, D12)

Does Wal-Mart Sell Inferior Goods?

I estimate the aggregate income elasticity of Wal-Mart's and Target's revenues using quarterly data for 1997-2006. I find that Wal-Mart's revenues increase during bad times, whereas Target's revenues decrease, consistent with Wal-Mart selling inferior goods in the technical sense of the term. An upper bound on the aggregate income elasticity of demand for Wal-Mart's wares is -0.5.

Forecasting sales for a B2B product category: case of auto component product

PurposeThe purpose of this paper is to improve the capability of managers to forecast revenues and develop marketing plans for B2B component products.Design/methodology/approachThe methodology used is a dynamic market simulation at the product level. A previously developed consumer goods speciality product forecasting model is extensively modified to capture the different parameters (i.e. direct selling) relevant to a business‐to‐business (B2B) component goods product category. A dynamic simulation is developed using a set of equations developed to capture the marketing mix. Using just the demand equation (total supply exogenous) and employing the entire model (supply endogenous), sales are predicted.FindingsThe key findings are that the simulation produced more accurate (lower error) forecasts. The dynamic simulation for total demand for B2B auto components produced a mean absolute percentage error (MAPE) of 8.5 percent, comparing favorably with the average MAPEs of 30 percent achieved by 168 companies forecasting B2B products.Research limitations/implicationsThe main research limitation is that the model is limited to B2B component products.Practical implicationsThe practical implication of the model is that it improves the ability of marketing managers to successfully reach revenue targets.Originality/valueThis improved ability adds value to the B2B component marketing manager's planning process by providing a method of specifying a marketing plan that is likely to result in revenue that achieves or exceeds the target revenue and knowledge of what marketing mix levels would move present sales to meet or exceed target.

Oil production responses to price changes: an empirical application of the competitive model to OPEC and non-OPEC countries

Falling oil prices over the last decade, accompanied by over-production by some OPEC members and the growth of non-OPEC supply, warrant further empirical investigation of the competitive model to ascertain production behavior. A supply function, based on a modification of Griffin's model, is estimated using data from 1973–1997. The sample period, unlike Griffin's, however, includes phases of price increase (1970s) and price decrease (1980s–1990s), thus providing a better framework for examining production behavior using the competitive model. The OPEC results do not support the competitive hypothesis; instead, a negative and significant price elasticity of supply is obtained. This result offers partial support for the target revenue theory. For most of the non-OPEC members, the estimates support the competitive model. OPEC's loss of market share and the drop in the share of oil-based energy should signal adjustments in price and quantity based on a competitive world market for crude oil.

OPEC's production under fluctuating oil prices: further test of the target revenue theory

Oil production cutbacks in recent years by OPEC members to stabilize price and to increase revenues warrant further empirical verification of the target revenue theory (TRT). We estimate a modified version of Griffin (1985) target revenue model using data from 1973 to 2000. The sample period, unlike previous investigations, includes phases of both price increase (1970s) and price decrease (1980s–1990s), thus providing a better framework for examining production behavior. The results, like the earlier study, are not supportive of the strict version of the TRT, however, evidence (negative and significant elasticity of supply) of the partial version are substantiated. Further empirical estimates do not support the competitive pricing model, hypothesizing a positive elasticity of supply. OPEC's loss of market share and the drop in the share of oil-based energy should signal an adjustment in pricing and production strategies.

00/02387 The target revenue model and the world oil market: empirical evidence from 1971 to 1994

00/02387 The target revenue model and the world oil market: empirical evidence from 1971 to 1994

The Target Revenue Model and the World Oil Market: Empirical Evidence from 1971 to 1994

This study draws on other studies that concluded OPEC is not a cartel and Saudi Arabia acts as a dominant producer in the world oil market. The intention here is to see whether the Target Revenue (TR) model provides an explanation for the behavior of some OPEC members that do not coordinate production with Saudi Arabia. We investigate whether production cuts or increases by OPEC and non-OPEC members are based on their investment or budgetary needs. By retesting the TR model, we show that investment ami budgetary needs do not affect the production of oil in free-market economies (OPEC and non-OPEC), but they do affect production decisions of the more centrally-planned, isolated and oil-dependent economies. Existing studies in the literature have conceptual and statistical limitations that justify retesting the model. This study is the first to investigate the TR model in a separate study and to compare the results of static and dynamic models. It is also the first to examine the relationship between the degree of economic freedom and the Target Revenue model and to note the TR model is stable when used for countries that are price takers.

Determinants of layoff announcements following M&As: an empirical investigation

It is often argued that mergers and acquisitions (M&As) lead to employee layoffs. This paper examines factors that influence the probability that a layoff announcement will follow an M&A. A sample of 136 large M&As, involving U.S. targets, that occurred between 1989 and 1993 is analyzed. Analyses of this sample indicate that the probability of a layoff announcement is higher if the firms involved in the transaction are related. The probability that a layoff will be announced was not changed when the acquirer was a non-U.S. firm (cross-border transactions). Target revenue per employee before the M&A is negatively related to the probability that a layoff was announced. Target financial performance prior to the transaction and use of borrowed funds to finance the merger were not found to have an impact on the probability that a layoff will be announced. © 1998 John Wiley & Sons, Ltd.

A Note on Modelling Opec Behavior 1983–1989: A Test of the Cartel and Competitive Hypotheses

The purpose of this note is to update James M. Griffin's study, “OPEC Behavior: A Test of Alternative Hypotheses” in The American Economic Review, Vol. 75, No. 5, 1985. In an attempt to empirically explain OPEC behavior, Griffin estimated four basic models (cartel, competitive, target revenue, and property rights) using quarterly data for the period 1971 to 1983. Griffin concluded that the partial market-sharing cartel model dominated all the other models in the ability to explain production behavior. Further attempts to improve model performance by the addition of lagged oil reserves to the competitive and cartel models failed to alter his basic conclusion. The objective of this note is to follow Griffin's methodology in empirically testing the competitive and cartel models, along with their respective lagged oil reserve counterparts, using quarterly data for the period 1983 to 1989 and to compare the results.1