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Here are some of the weaknesses of ABM:
It may create confusion over unit costs in the short run. Once costs are fully loaded into products, activities, and channels, executives may make knee-jerk decisions about abandoning initiatives because of their high cost. It is important to understand the trends in cost and profit before taking action.
This method does not take into account nonfinancial measurements. It is important to be cost-and profit-conscious, but not at the expense of quality and service. Driving your costs to zero is a going-out-of-business strategy.
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