Proposal for Artemis Sportswear Company
•Proposal for Artemis Sportswear Company for cutting operational expenses to increase profit margins; some ideas.
As a business, Artemis can cut down the operational costs by down-sizing the labor force so the company can compete with other sportswear companies.
There are two ways a company can down-size the labor costs, one of these is down-scaling the direct labor, and the other one would be to relocate the labor and obtain cheaper labor force. Reduce Employee Costs. Outsource any jobs where a full-time employee is not necessary. This will cut your payroll expenses, health-care costs and space requirements. Introduce a reward scheme for employees who do not take any sick days in a year or six-month period. The cost of the reward is minimal compared to the savings made by the company. Rather than pay overtime rates, try re-organizing the work rosters and routines to prevent the need for overtime. Offer staff incentives for reducing their personal days and sick leave taken. Hire college students or interns-Internship programs are a win-win for both sides. You get an ambitious employee who will do monotonous work and they get college credit, experience and hopefully, an excellent reference.
Cutting everyday expenses can lower operational expenses. When purchasing office supplies, generic is going to be less expensive than brand name. Buying the store brand is generally sold at a lower cost. Buying supplies in bulk is cost effective over a long period of time. Leasing equipment is better than buying equipment. When leasing you have the opportunity to upgrade or downgrade when necessary. Technology is always changing and improving, so by leasing there is the option to stay current with the new changes in the equipment.
Smaller equipment such as telephones, printers, fax machines and calculators should be purchased not leased. Smaller equipment will hold its value over time and can be easily replaced if needed. Try shopping for bargains or sales whenever
As a business, Artemis can cut down the operational costs by down-sizing the labor force so the company can compete with other sportswear companies.
There are two ways a company can down-size the labor costs, one of these is down-scaling the direct labor, and the other one would be to relocate the labor and obtain cheaper labor force. Reduce Employee Costs. Outsource any jobs where a full-time employee is not necessary. This will cut your payroll expenses, health-care costs and space requirements. Introduce a reward scheme for employees who do not take any sick days in a year or six-month period. The cost of the reward is minimal compared to the savings made by the company. Rather than pay overtime rates, try re-organizing the work rosters and routines to prevent the need for overtime. Offer staff incentives for reducing their personal days and sick leave taken. Hire college students or interns-Internship programs are a win-win for both sides. You get an ambitious employee who will do monotonous work and they get college credit, experience and hopefully, an excellent reference.
Cutting everyday expenses can lower operational expenses. When purchasing office supplies, generic is going to be less expensive than brand name. Buying the store brand is generally sold at a lower cost. Buying supplies in bulk is cost effective over a long period of time. Leasing equipment is better than buying equipment. When leasing you have the opportunity to upgrade or downgrade when necessary. Technology is always changing and improving, so by leasing there is the option to stay current with the new changes in the equipment.
Smaller equipment such as telephones, printers, fax machines and calculators should be purchased not leased. Smaller equipment will hold its value over time and can be easily replaced if needed. Try shopping for bargains or sales whenever
References: http://articles.businessinsider.com/2010-07-02/strategy/30074782_1_business-travel-businesses-and-entrepreneurs-sustainable-business#ixzz1rlVIIUW0 http://www.proedge-asso.com/FNews_Articales/Major%20Ways%20to%20Cut%20Business%20Cost.pdf http://www.entrepreneur.com/article/71318 50 Ways to Save Money in Your Business http://www.ittoday.info/Articles/Cutting_Costs.htm