Proposal For Artemis Sportswear Company Essay

1815 words - 7 pages

Cutting operational expenses is something ever organization must learn to balance to ensure productivity and profit margins increase for the company. An increase profit margin is the bottom line for any business and its stakeholders. In order to cut operational expenses productively Artemis Sportswear needs a comprehensive look at the everyday operational expenses. Cutting the everyday expenditures is in need of balance, because to much cuts can cause lose of productivity which in the end will not achieve the desired affect of increase profits. Cutting operational expenses also affects the work force of Artemis Sportswear. This proposal is to define the expenses that need or could be to cut to ensure the success of Artemis Sportswear and how these cuts will affect the workforce.
Cutting everyday expenses can help lower operational expenses. When purchasing office supplies, generic is going to be less expensive than brand name products. Buying the store brand name 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. Leased equipment always comes with an insurance policy, which is not needed if there is a currant insurance policy with the company. To avoid being double charged register with your company’s insurance broker then submit a copy of the new insurance to the leasing company to have it dropped.
Smaller equipment such as telephones, printers, fax machines and calculators should be purchased not leased. Usually the smaller equipment will hold its value over time and can be easily replaced if needed. Shopping for bargains or sales of the smaller equipments can save a considerable amount of money. Finding a 3 in 1 package which would include a telephone, fax and printer can also cut costs. Printing in bulk is another way to keep costs down because each copy is less expensive when purchased in larger quantities.
Researching various companies for the best rates on telephone services; checking both long distance and local calling plans. Companies that have plans of unlimited local and long distance are generally the best deals. Another possibility to look into is how much a telephone company charges for each fax that is sent. Most companies charge a flat rate of a minute instead of six second increments which adds up over a period of time.
Out sourcing is a great way to significantly cut down costs. The way outsourcing works is when a company obtains a contract with another company to provide services for them. There are many types of companies that specialize in many different services. Companies can rely on outsourcing if they themselves cannot afford or do not want to spend the money on the expensive equipment....

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