What are other companies cutting spending for

Assignment Help Financial Management

Reference no: EM133696427

Assignment: Strategic Financial Management

Project Overview

In the previous project part, you developed a flexible (flex) budget based on an unforeseen expense provided to you by your professor. For this project part, you will take things one step further by determining ways to reduce spending in different areas or aspects of your business.

Using your operational budget as a guide, determine three potential cuts to spending in your business. These cuts may be broad (e.g., an overall staff reduction of X%) or targeted (e.g., switching from expensive oak to much cheaper pine for the production of skateboards).

The goal is not to create an immaculate budget, but to find creative opportunities for reducing your overall spending without affecting the quality of your product or the health of your company.

Bear in mind that business solutions, especially with regard to budgeting, are rarely straightforward. Not every cut your team makes will be a matter of simple subtraction. Sometimes investing more money in the short term can lead to spending less in the long-term. Other times, outsourcing or sub-contracting work can reduce costs across multiple departments or processes.

Regardless of the cuts you propose, be prepared to explain your group's decisions either in class or in the Budget Analysis Discussion Board.

Procedure:

A. Using your operational budget as a guide, conduct a budget analysis and determine three potential areas or aspects of your business that could receive cuts to reduce spending. These cuts may be broad (e.g., an overall staff reduction of X%) or targeted (e.g., switching from expensive oak to much cheaper pine for the production of skateboards).

B. You must identify three potential cuts that can be made. There are almost always multiple opportunities for budget cuts in any organization.

C. For inspiration, research recent spending cuts in your market sector. What are other companies cutting spending for? Why?

D. Using the information from your budget analysis, generate three separate budgets that account for these proposed cuts. Which saves the most money? Which makes the most sense for your business?

Reference no: EM133696427

Questions Cloud

Which type of forces could cause institutional adaptation : The Environmental Protection Agency has just tightened restrictions on the amount of pollution mills can legally emit into the environment.

Which makes the most sense for your business : Using from your budget analysis, generate three separate budgets that account for these proposed cuts. Which makes the most sense for your business?

What values are implied in our mission and vision statements : What values are implied in our mission and vision statements? Which of these values are absolutely critical. Limit this list to a few items (five to seven).

Summarizing the top 3 risks : Compose a business memo/e-mail in Word (or PDF) from the project manager to project sponsor summarizing the top 3 risks and what you will do to deal with them.

What are other companies cutting spending for : For inspiration, research recent spending cuts in your market sector. What are other companies cutting spending for? Why?

How does human bias affect decision making : How does human bias affect decision making? Under what sort of condition would an entrepreneur desire to start a business in an oligopoly?

Explain the socio cultural economic for bail-indonesia : Explain the socio cultural economic for Bail, Indonesia. Explain the competitor analysis for bail, Indonesia.

Critically evaluate cryptographic technologies : CST2572 Secure Web Technologies, Middlesex University - Distinguish from a range of technologies and how to apply them appropriately. Critically evaluate

What is the after-tax cost as a percentage : What would the dividend yield as a percentage today and a year from now if the dividend growth rate is 12%? What is the after-tax cost as a percentage?

User Account

All Pages