Corporate Cost Control Strategies

Decent Essays
Symbiosis Institute of International Business

A Report on

Submitted By: Prn: 12020241117 | Gandharv Gaurav | Prn: 12020241118 | Jaideep Sowani |
To be profitable, companies must not only earn revenues, but also control costs. If costs are too high, profit margins will be too low, making it difficult for a company to succeed against its competitors. In the case of a public company, if costs are too high, the company 's may find that its share price is depressed and that it is difficult to attract investors.
This report focuses on the corporate cost control strategies and tries to fulfill a few objectives such as * Why it is needed? * What it deals with? * What are the various
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Network Alliance), benefits, sales financial management, etc. * Cooperatives for purchasing, advertising, etc. (including trade associations) * Joint Ventures and strategic alliances * Employee incentives and rewards for cost-cutting | * Bootstrapping * Cash flow management * Managing employee retention and turnover costs * Budgeting, planning, forecasting * Estimates and price quotes * Corporate restructuring, recapitalization and reorganization | * Competitive bidding and RFP’s for vendor needs * Grassroots and guerilla sales and marketing techniques * PR vs. Advertising Costs * Customer referral, retention and loyalty systems (80/20 rule of costs of getting new customers) * Barter networks |
Human Capital Costs:
One of the most important resources is the human resource and this needs to be managed properly to ensure better cost controlling. Low productivity and high turnover cost employers two to three times more than insurance premiums and medical claims. A new paradigm for managing human capital costs can reduce these "indirect" expenses to benefit both employer and employee. There can be various ways to control these costs as Outsourcing payroll processing, Telecommuting and virtual offices, Professional employer organizations etc.
Methods to implement:
There are various
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