Executive Summary

A strategic analysis of Packore Packaging’s growth, servicing costs, and customer profitability from 2016 to 2020. This project applies Customer-Based Accounting (CBA) and Tableau insights to assess the impact of Amanda Drive’s aggressive growth model on net margins and outlines a profitability-focused path forward.

1. Objective

After initially working on this business case without access to the underlying data, I revisited it with a fresh goal: to uncover what the numbers said about the profitability of Packore Packaging’s customers and product lines. With Amanda Drive, the new CEO, actively driving rapid account growth, I explored whether that expansion translated into sustainable value. Using the available dataset, I identified cost inefficiencies and developed data-driven recommendations to shift the business from a volume-led model to one focused on margin and operational efficiency.

2. Key Business Trends

• Revenue Growth (2016–2020): +119.2% -Revenue more than doubled under Amanda’s leadership
• Customer Growth: +557 new accounts- the customer base grew from 443 to 1,000
• Net Profit Growth: +54.3% - Profits increased, but not at the same pace as revenue
• Net Profit Margin: Dropped from 7.1% → 5.0% - Profitability declined despite growth

3. Key CBA Findings

• Profitability Tier Formula (Click to Expand)

Customer Profitability Segmentation:

Servicing Cost Analysis:

Product-Level Profitability:

Figure 4: Product Level Analysis. Reveals that the highest-earning product also incurs the highest COGS and ranks second-lowest in profit margin, indicating high volume but low efficiency.