Petri Suomala

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In the network economy, a profitability analysis based on the figures of one company is not sufficient to obtain an insight into the competitiveness of the whole network. In this paper, the basic ideas underlying the consolidated financial statement are analysed to determine its applicability for managing network profitability. The idea of the consolidated(More)
In a typical manufacturing company the profitability of products varies greatly. According to the literature, the most profitable 20 % of products can generate about 300 % of profits and the remaining 80 % lose 200 % of profits. The aim of this study was to find out how much the profitability of a product varies. The underlying hypothesis was that all(More)
Recent years have witnessed rising interest towards integrated performance measurement and control systems. Total Quality Management (TQM) and Balanced Scorecard (BSC) are management philosophies that have been widely discussed not only in academic world, but also in business world. The aim of this paper is to compare the contents of TQM and BSC and to(More)
Management accounting is an applied science, the idea of which is to produce theoretically grounded solutions for practical purposes. However, the general opinion among management accounting researchers seems to be that management accounting research has failed to produce theories with such pragmatic implications. In addition, there seems to be disagreement(More)
The paper discusses the validity aspect of the ratio type of performance measurement. Quality cost measurement is used as an illustrative example of the challenges that might be faced while striving to maintain validity in practice and possible ways to overcome these challenges. The paper suggests that some surrogate ratios have become so established that(More)
Customization is nowadays often regarded as a dominant paradigm in many industries. However, the impacts of customization on different business perspectives are still inadequately reported. Especially in the case of long product life cycles, after sales is a very significant business domain. In addition, it is even claimed to be a very profitable one. A(More)
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