Essays on Cost Cutting

Response Hyundai Cut Cost

All organizations should look for ways of cutting costs when they experience a decrease in profit. However, in implementing cost-cutting measures, it is important to start by establishing budget variances. This helps to identify the costs that have adverse variances. After identification, the management should look at the reasons behind the variances and establish how to rectify the variances. At this stage, the management comes up with methods of reducing the variances. These are the cost cutting measures that the organization should adopt. Another measure of cutting cost is adopting zero-based budgeting approach. In this approach, every expenditure item ...

1. Introduction Cutting cost has become a priority for many oil companies in recent years. The discussion covers the reason why oil companies are cutting cost and the means that management in oil companies are employing to cut cost. 2. Why oil companies are cutting cost? Oil companies are cutting cost in response to the radical drop in oil prices in the last two years. From 2011 to 2013, the price of crude oil was above $100 per barrel. In 2014, prices dropped to below $100 per barrel but above $90 per barrel. By 2015, crude oil price fell ...

Implementing Cost Cutting in the Oil Industry

Abstract In the modern day, organizations across different industries across the globe are implementing new strategies focused towards enhancing the profitability. Cost cutting is one of the major strategies adopted by companies to enhance their profitability. In the oil and gas industry companies have been pursuing different cost cutting strategies aimed at enhancing their profitability an issue that has been of primary concern. Various strategies have been proposed towards enhancing cost cutting strategies and these include automation that facilitate a throughout system, heightened regulatory measures compliance, technical support and solutions as well as maximizing modularity and replicability. These are ...

Internal Analysis of Encana

Internal Analysis of Encana

Introduction

The oil and gas industry in North America is currently experiencing challenges and transition stage. The increasing need for the environment-friendly and sustainable forms of energy is affecting the industry negatively as more governments and companies are encouraged to use energy with no or low carbon emission. More companies are now developing solar and wind energy and create vehicles that can rely on electricity rather than oil. Such growing trend in the energy sector resulted to lower demand of oil and gas particularly in the North America. Many oil and gas producing countries and companies ...

Introduction about the Company

Honeywell is one of the globally leading US-based conglomerates, with earning revenue of $23.65 billion, as per 2001 available figures. It has numerous products, used in multiple areas of different industry segments and production facilities in all corners of the world. Aerospace is Honeywell’s leading industry segment where its experience of the line benefits the customers all around the world. Otherwise, Honeywell’s technology product range is quite varied. It is a leader in the manufacturing of technology products. Customers around the globe depend on Honeywell for its aerospace control technologies used in towers, houses and industry; automotive ...

The purpose of this essay is to discuss, the pros and cons of the non-renewable energy sources usage; coal and natural gas to be more specific. How does it affect the society and the economy? What are the alternatives? What are the strategies to implement such transition? The most significant reason behind the non-renewable energy sources is its low cost. Coal is relatively cheap to other energy sources and it produces a large amount of relative energy. Moreover, it is easy to combust; therefore its processing procedures are not as complicated as other sources of energy. Natural Gas maybe ...

Executive Summary

In view of the issues facing the ABC management, the key solutions identified relates to three issues on cash and budget, innovation and product development as well as theft and fraud reduction. With that, The Cost and budget management solution is meant to enhance the business performance by reducing the excessive and unnecessary use of the company resources. That would be achieved through key initiatives involving effective management of the sales and expense as well as debt management that would cut on expenses and the interest paid on debt by having more responsible personnel overseeing the accounts and their ...

Question 1

The terminology business cycle is used to denote the fluctuations in the economy in production or any other economic activities over a given period of time. These fluctuations occur around a long-term expansion trend and often involve changes over time between periods of high and vigorous growth and periods of relative stagnation (Tvede, 2006, p 7). The components of a business cycle include boom, recession and recovery. Boom refers to the economic period where businesses are experiencing large sales which results in high profit margins. During this period, the levels of employment are relatively high (Freiber, J. & Freiberg, K., 2007, p 41). Business ...

Course of action on the issue of employee lay-off

It is my proposition that the company should reduce the number of employees to be laid off from 10% to a lower figure so as not to affect the company’s future ability to attract talent, to prevent a decrease in employee morale and to prevent giving a bad customer image. The lay off number can be reduced by making an across the board pay cut and offering unpaid vacations as a cost cutting measure and refocusing on the core business of the firm in the long run. Immediate lay off should be carried ...