Proposal for Artemis Sportswear Company Essay

press curlting operating(a) expenses is something ever organization must learn to balance to ensure productivity and get ahead margins add-on for the partnership. An increase profit margin is the bottom line for any business and its stakeholders. In disposition to running operational expenses productively Artemis Sportswear needs a comprehensive look at the e rattlingday operational expenses. Cutting the everyday expenditures is in need of balance, because to much cuts rout out cause lose of productivity which in the end entrust not achieve the desired affect of increase profits. Cutting operational expenses besides affects the utilization force of Artemis Sportswear. This proposal is to define the expenses that need or could be to cut to ensure the succeeder of Artemis Sportswear and how these cuts will affect the workforce.Cutting everyday expenses fuck help lower operational expenses. When purchase office supplies, generic is going to be little expensive than brand n ame products. Buying the p arntage brand name is generally sold at a lower toll. Buying supplies in loudness is cost effective over a long period of duration. Leasing equipment is better than buying equipment. When leasing you nonplus the hazard to upgrade or downgrade when necessary. Technology is al soulal manners changing and improving, so by leasing in that respect is the picking 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 conjunction. To avoid being double charged register with your alliances insurance broker then submit a copy of the new insurance to the leasing company to beat 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 sack up be easily replaced if needed. Shopping for bargains or gross reve nue of the smaller equipments erect save a considerable amount of money. Finding a 3 in 1 package which would include a telephone, fax and printer can also cut be. opinion in bulk is an new(prenominal) way to wield costs down because all(prenominal) copy is less expensive when purchased in larger quantities.Researching various companies for the best rates on telephone services checking some(prenominal) long distance and local calling objects. Companies that begetplans of unlimited local and long distance be 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 sixsome second increments which adds up over a period of time.Out sourcing is a great way to importantly 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 man y different services. Companies can rely on outsourcing if they themselves cannot afford or do not want to spend the money on the expensive equipment. These companies can produce less expensive products and labor. In most cases they do not break their employees benefits and the hourly amount the employees receive is usually very low.These companies typically acquire less overhead to gravel about, making it possible to pay less for their work. These types of contracts are generally done overseas, such as mainland China and India. Outsourcing not only cuts down costs, but it also can aid in expanding the business by building foundations in different countries. The benefit to expanding is more income coming in. Another benefit from outsourcing is that it helps to reduce the work that managers perform allowing them to take care of bigger issues. Of course outsourcing has its disadvantages it can take away from the personality of the company, by not having a personal communication bet ween the company and clients.In business, your profits are your come back for your endeavors. In fact, profitability is the only reliable measurement of a business success. Profits are the very lifeblood of a business. They fuel growth, support the owners, provide for the well being of the staff, and ultimately determine the success or failure of the business. Peters Elworthy and MooreCutting operational expenses to increase profit margins is key for Artemis Sportswear to continue selling quality sportswear. jump press clipping operational expenses in house is a must. In house is where everything begins so thats the root place to begin cuts. Hiring a company to help budget Artemis Sportswear is a smart way to educate employees to cut costs. A budget company will first evaluate immediate obstetrical delivery opportunities for Artemis Sportswear by reviewing operating expenses and guiding higher office andemployees to cut operational expenses. Investing in a company to help budge t Artemis Sportswear is a smart way to cut costs and raise profits.There are other ways to cut cost without hiring professionals to help budget the company. utilise the internet to search for topics is also an inexpensive way to save money. After saving money from not hiring a budget cutting company, it will add to Artemiss profits. Ideas such as those on ehow.com, ezinearticles.com, and pem.com can save money and just as important, time. Simple tips and ideas like not making cuts without considering the consequences, to leasing fixs the option of upgrading or downgrading, depending on needs and changes in technology.Sitting down with the companys decision makers and brainstorming strategies to cut spending is another inexpensive way to keep costs low. Look over company expenses and stimulate a list of needs or must haves. Review the companys business plan and see what necessary costs have to be made in order for the company to trifle its objectives, goals and boilersuit missio n. Think about cutting full-time workers into part-time workers or making the positions contract without benefits. proposition for Artemis Sportswear CompanyWhen discussing cost cutting measures, it is imperative to consider the costs to the employees. When payroll is cut, how Artemis carries the process out can have a negative effect on the employees left and most certainly will have an effect on their work production.Keogh (2001) claims, Economic trends have been at its worst since 1991 (p 17). A few things have been learned about payroll slashing since then. Some companies are asking the employees what to do in order to cut costs before cutting payroll and have received replies as simple as saving energy to more convoluted solutions. Energy savings alone can result in savings of thousands of dollars.Another fact that has been learned is that it takes a community to support a business. The resulting cuts can have people losing their homes and movingaway from the city that Artemis Sportswear resides in. With loss in population, higher tax levies for businesses whitethorn result. The local retail trade is affected. This will also affect the local unemployment rate with an increase in government supplements and food stamps.When people have worked with a company for many years, they dont have any skills for searching for a job. Even termination can be done with care. It is advised to give ample notice of termination and information about benefits. A company can be leased to help workers cope with career transition (Austin, 2001, p 60).When layoffs are activated, the resulting production of the left over employees may or may not be affected depending upon how the terminations were made. When workers are cut, service is cut. A better idea may be to cut per hour costs or offer early retirement packages for aged(a) employees.A hiring freeze may be a viable alternative. Employees who leave the company are not replaced. Along with lower cost per hour, this might t ake a while for the company to see profit increase, but if the employees are made to feel part of the solution to its own problems, there may be a significant production increase. This is a point that retraining would come in.Companies like Federal extinguish and Saturn have gone to retraining programs instead of immediate terminations. Buckstein (1997) explains that training has yielded $30 for every dollar invested (p 131). Bonuses are paid to managers who volunteer to participate as instructors. Retraining consists of team building and changes in workplace culture. Employers can restate what is expected of the workers and let them become aware of what the new focus of Artemis Sportswear is. Company determine and Artemiss mission statement can be communicated. Employees can be reenergized, knowing that Artemis is trying to keep staff and prevent layoffs. Work assignments can be filled by more than one person as well as rotate, to prevent boredom. This can give a boost to product ivity.It is immanent to offer information to the workers about proposed changes.Greenhalgh and McKersie (1980) caution rumored use of the layoff strategy leaves employees with a feeling of employment insecurity which affects their work, their kinship with management, and their commitment to continue working for the organization (p 577). If rumors are circulating, Artemis does not have an accurate measure of their cost cutting implementation strategy.Bleckstein (1997) summarizes, But a firms ability to learn faster than its competitors may be its only sustainable competitive advantage (p 131). This translates to research. Management must consider the costs overall before cutting jobs. Most important, management must consider the costs to their loyal employees when research indicates effective money saving alternatives.Artemis Sportswear has a few options open to them before cutting payroll. Kinsman (2001) warns, Its time for corporations to start thinking about all the pieces of t he success equation before lopping off payroll (4). lastBusiness is ever changing in the new world economy. Artemis Sportswear like any other business and will have to take steps to improve business and profit margins. The use of cutting operational expenses is shown in many different forms from out sourcing to cutting back everyday expenses. These are essential for improving the profit margins of Artemis Sportswear but the consideration of how these cuts can affect the worker of the company.ReferencesAustin, P. (2001). The making of a one-company ghost town. Business and Society Review, 59-64. Retrieved April 16, 2008, from the EbscoHost database.Blickstein, S. (1997). A wider view of training effectiveness. Industrial and Commercial Training, 29(4), 131-132. Retrieved April 11, 2008, from the EbscoHost database.Greenhalgh, L., & McKersie, R. B. (1980, November/December). Cost-effectiveness of alternative strategies for cut-back management. realityAdministration Review, 575-584. Re trieved April 12, 2008, from the EbscoHost database.Kelly, L. (1996). The costs of cost-cutting. Worklife Report, 10(2), 3. Retrieved April 16, 2008, from the EbscoHost database.Keough, J. (2001). The trouble with layoffs. Industrial Distribution, 90(8), 17. Retrieved April 12, 2008, from from EbscoHost database.Kinsman, M. (2001, March 12). The problem with cutting staff in flow times. Westchester County Business Journal,4-8. Retrieved April 12, 2008, from the EbscoHost database.Wise Geek. (2003-2008). Wise Geek What is Outsourcing?. Retrieved April 15, 2008, from http//www.wisegeek.com/what-is-outsourcing.htm