PROPOSAL

Proposal for Cost Reduction

Proposal for Cost Reduction

Introduction

As the globalization has taken a toll, the competition in the world has immensely increased. This ever increasing competition is compelling the companies all around the world to be as competitive as they can, by catering to their customer base in the best manner. It can only be achieved once these companies maintain the quality of the product, along with controlling the input cost of manufacturing and other imperative operations. The profit margins of any company play a pivotal role in determining its potential success and the welfare of its workers.Proposal

The purpose of this research paper is to design a proposal for Artemis Sportswear Company which had been experiencing a downturn in its profit margins. The most common approach to tackle the dwindling profit margin of a company is to tackle its enormous and increased operational expenses first. If the cost are handled and controlled swiftly that is, the expenses in comparison to the profit earned are less, then, it has a direct impact on a company's profit margin. A company can control the expenses and increase the profit margin in numerous ways; however, the management of the company needs to keep in minds the direct implication of the decision of the cost cuts would have on the company, its workers and its productivity.Considering the above mentioned scenario, the Artemis Sportswear Company at the outset should begin with assessing the factors which are inducing the extra burden on the company with respect to the cost, and then take the counter remedial measures accordingly (Levitt. 1972).The real burden on Artemis Sportswear Company lies at it Cost of goods sold, besides the marketing and other administrative expenses. If we closely look at the Cost of Goods sold, their main issue seems to lie in the excessive labor cost, when ...