Proposal for Cutting Operational Expense

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INTRODUCTION

Artemis Sportswear Company is a company that sells every type of sports wear from the head bands to the shoes on your feet. The company has experienced a steady yearly increase; however, the company is still looking for ways in which they can improve their profit line. Their goal is to find ways in which to accomplish this with minimal effect on the workers and productivity.

BACKGROUND

Artemis Sportswear Company has been in existence for six years. During this time the company has been fortunate enough to experience a profitable gain. However, in a market plagued with increased competition, tight budgets and strict regulations, that may not be the case this year if changes are not made. With the economy being in
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Old equipments use more power and energy to operate. By changing these old equipments to modern and energy-efficient ones, money will be saved on electricity and maintenance. Another strategy is by the installation of motion sensors to turn lights off when a building is not occupied.

Motion detectors could be installed by every employee’s desk to turn off lights when the desk is vacant. An example could be seen by this statement made by Katsnelson, 2007, “motion sensors installed at each desk turned off lights and monitors when spaces were unoccupied” (p.2).

Tracking down prices for lower rates, and consulting outside agency to monitor profit, is another strategy to increase revenue. Purchasing lower priced quality goods will yield revenue for the company. Moreover, hiring outside agency that requires lower percentage of payment when the company makes profits ensures no money lost by the company if no profits made. According to Olijnyk, 2004, “seek professional help if you don’t have resources, time or inclination to do this sort of expertise-reduction exercise on your own” (p.4).

EFFECTS ON WORKERS AND PRODUCTIVITY

Cutting operational expenses in order to improve Artemis Sportswear Company’s revenue could have some effects on workers and productivity. In consideration of these effects, the changes should be done gradually. The management should notify the employees of the change. The changes might be introduced in the
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