COST ESTIMATION AND PROFIT PLANNING 2
Cost Estimation and Profit Planning
Per Pallant et al. (2020) “mass customization is a form of micro-segmentation where
firms create product or service variants that can be altered and/or combined to satisfy individual
customer needs.” For example, firms and companies could solicit feedback from their customers
and encourage active participation to interactively engage in the design process for services and
products (Xie et al., 2020). One example of mass customization would be the hotel industry
where customers are catered to and companies want to create memorable experiences for their
guests (Rahimian et al., 2021). Mass customization is also a viable strategy to mitigate
competition and securing the market segments, which may lead to reduced costs (Li et al., 2021).
The potential cost reduction can support the dynamic pricing aspect of mass customization.
The notion that superior management is a craft technology is widely supported in the
literature. “Job crafting is characterized by job holders' own initiatives to alter the content and
meaning of their job, as well as the quality of their relationship with others in the workplace”
(Shin et al., 2020). The literature further points out the paradox of managerial macromarketing in
delivering business instruction on sustainability, emphasizing the formal aspect of management
training in education (Peterson, 2021). Further “critical pedagogy is crucial for the teaching of
informal educators, enabling lecturer and practitioners to interrupt the hegemony of neo-liberal
and neo-managerial thinking in their practice and in higher education, and re-orientate
themselves and examine their positionality within their institutions” (Smith & Seal, 2021). This
means that critical pedagogy challenges students to think critically by introducing social,
economic and political management theories.
Managers can leverage technology for a variety of business processes, but it has its
drawbacks as well. “Managers and employees in craft enterprises experience increasing
COST ESTIMATION AND PROFIT PLANNING 3
psychological strain due to technostress. However, there is a willingness to take preventive
interventions and a desire for more support in creating healthy working conditions in the context
of digitalization” (Scheepers et al., 2022). Technology may not fully replace the balance between
automation and the human high-touch element, and the excess of technology can induce personal
fatigue. With all said, technology cannot undermine human connection and trust, which can be
bolstered by face-to-face communications and reading the nonverbal cues between managers and
the workforce that include context clues. Lack of face-to-face communication can also
undermine strategic relationships that are needed for businesses to progress and grow vertically.
One company that busted bureaucracy and applied a novel technique is Zappos, which
used Holoracy which consists of implementing decentralized managerial structure for teams to
self-organize and replace traditional bureaucracy with circle teams that have clearly accountable
roles and inject innovation and agility to daily operations (Weirauch & Galliker, 2023). Another
example of busting bureaucracy is Netflix which emphasis “freedom of individual
responsibility” and underlines consistency of actions and words (Pucik et al., 2023). Further,
Netflix abolished corporate culture in favor of more progressive culture, which promotes driving
away from the classic bureaucratic concepts (Kazmi, 2023).
According to Kemper et al. (2019) “if institutions, including disciplines and business
schools, remain wedded to assumptions regarding the compatibility between the environment
and economic growth and acceptance of market forces then the development of alternative
perspectives on sustainability remains highly problematic.” This statement questions whether
economic growth is compatible with sustainability and pushes the narrative that alternative
models for sustainability should be evaluated. No growth philosophy should be approached with
caution and prudence to navigate complex business issues with wisdom and experience.
COST ESTIMATION AND PROFIT PLANNING 4
The biblical worldview and scripture to support all the above points states “he has shown
you, O mortal, what is good. And what does the Lord require of you? To act justly and to love
mercy and to walk humbly with your God” (New International Bible, 2011/1978, Micah 6:8).
This scripture discusses stewardship, mercy, and prioritization of relationships to include servant
leadership. Micah provides a framework that can be applied to organizational leadership and a
variety of business practices, underpinned by God’s wisdom and direction with decision-making.
References
Blocher, E., Juras, P., & Smith, S. (2022). Cost Management: A Strategic Emphasis (9th ed.).
McGraw Hill
Kazmi, S. (2023). Waiting for the punch(line): the circuit of culture and internal public relations
at netflix. Corporate Communications an International Journal.
https://doi.org/10.1108/ccij-05-2023-0078
Kemper, J., Hall, C., & Ballantine, P. (2019). Marketing and sustainability: business as usual or
changing worldviews?. Sustainability, 11(3), 780. https://doi.org/10.3390/su11030780
Li, H., Xu, L., & Fan, Y. (2021). Cultural distance and customer orientation strategy of chinese
service mnes under the belt and road initiative. Cross Cultural & Strategic Management,
28(3), 657-678. https://doi.org/10.1108/ccsm-08-2020-0165
New International Bible. (2011). The NIV Bible. https://www.thenivbible.com/. (Original work
published 1978)
Pallant, J., Sands, S., & Karpen, I. (2020). The 4cs of mass customization in service industries: a
customer lens. Journal of Services Marketing, 34(4), 499-511.
https://doi.org/10.1108/jsm-04-2019-0176
COST ESTIMATION AND PROFIT PLANNING 5
Peterson, M. (2021). Using macromarketing to teach business sustainability. Journal of
Marketing Education, 44(3), 390-401. https://doi.org/10.1177/02734753211048538
Pucik, V., Björkman, I., Evans, P., & Stahl, G. (2023). Introduction to the global challenge., 1-
36. https://doi.org/10.4337/9781035300723.00006
Rahimian, S., Shamizanjani, M., Manian, A., & Esfidani, M. (2021). A framework of customer
experience management for hotel industry. International Journal of Contemporary
Hospitality Management, 33(5), 1413-1436. https://doi.org/10.1108/ijchm-06-2020-0522
Shin, Y., Hur, W., Park, K., & Hwang, H. (2020). How managers’ job crafting reduces turnover
intention: the mediating roles of role ambiguity and emotional exhaustion. International
Journal of Environmental Research and Public Health, 17(11), 3972.
https://doi.org/10.3390/ijerph17113972
Scheepers, L., Angerer, P., & Dragano, N. (2022). Digitalisation in craft enterprises: perceived
technostress, readiness for prevention and countermeasures—a qualitative study.
International Journal of Environmental Research and Public Health, 19(18), 11349.
https://doi.org/10.3390/ijerph191811349
Smith, A. and Seal, M. (2021). The contested terrain of critical pedagogy and teaching informal
education in higher education. Education Sciences, 11(9), 476.
https://doi.org/10.3390/educsci11090476
Weirauch, L. and Galliker, S. (2023). Holacracy, a modern form of organizational governance
predictors for person-organization-fit and job satisfaction. Frontiers in Psychology, 13.
https://doi.org/10.3389/fpsyg.2022.1021545
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Xie, L., Li, D., & Keh, H. (2020). Customer participation and well-being: the roles of service
experience, customer empowerment and social support. Journal of Service Theory and
Practice, 30(6), 557-584. https://doi.org/10.1108/jstp-11-2019-0228
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