Case Study on Cost Efficiency

Topics: Google, Android, Nexus One Pages: 22 (7109 words) Published: March 23, 2013

It is not easy to compete in the market today. Rising prices, shifting fuel rates, global competition, varying labor rates around the world, and spiraling health insurance costs have made cost control a moving target. Sometimes it seems that a company gets one set of expenses under control, and in the meantime, another area of the company begins experiencing cost overruns. It is a never ending battle to maintain company profitability.

The importance of cost efficiency programs within a company cannot be overstated. Companies that are losing money, need to increase profits, or must become more competitive need to cut expenses in order to succeed. Knowing how to implement effective cost reduction strategies can be the determining factor in the survival of a business.

Every organization strives to reduce cost and accomplishment of work at minimum resources to gain maximum output and financial performance. Cost efficiency is a measure of the level of resources used to create a given level of product value. How much resources are being used to create an optimum and defined level of outcomes need to work out to determine the cost of resources and cost of ultimate output it brings in existence. Company can offer lower price product for its customer benefits or can provide more features for the same price of product. While allocating Budget Company would like to maintain same level of service provisions and quality but at reduced cost and try to earn profit as much as it can.  

Objectives of the subject

• To study the concept of cost efficiency.

• To study importance cost efficiency.

• To study consequences of cost inefficiency.

• To study the case study on cost efficiency with reference to Google purchase Motorola mobility.

Research methodology

The information for the present study is collected through secondary sources i.e. from books, journal, magazines, internet, etc.

Limitation of the study-

The information for the present study is collected through secondary source no primary source is used.

Organization’s Profile


History of Google

Google began in January 1996 as a research project by Larry Page and Sergey Brin when they were both PhD students at Stanford University in California. While conventional search engines ranked results by counting how many times the search terms appeared on the page, the two theorized about a better system that analyzed the relationships between websites. They called this new technology Page Rank, where a website's relevance was determined by the number of pages, and the importance of those pages, that linked back to the original site. A small search engine called "Rank Dex" from IDD Information Services designed by Robin Li was, since 1996, already exploring a similar strategy for site-scoring and page ranking. The technology in Rank Dex would be patented and used later when Li founded Baidu in China. Page and Brin originally nicknamed their new search engine "Back Rub", because the system checked back links to estimate the importance of a site. Eventually, they changed the name to Google, originating from a misspelling of the word "googol", the number one followed by one hundred zeros, which was picked to signify that the search engine wants to provide large quantities of information for people. Originally, Google ran under the Stanford University website, with the domains and The domain name for Google was registered on September 15, 1997 and the company was incorporated on September 4, 1998. It was based in a friend’s garage in California. Craig Silverstein, a fellow PhD student at Stanford, was hired as the first employee. In May 2011, the number of monthly unique visitors to Google surpassed 1 billion for the first time, an 8.4 percent increase from May 2010 (931 million). Mission of Google

Google Inc. is an American multinational corporation...
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