Cost cutting has been on top of the priority list for all the companies in this tough economic times. Every one watching out for new ways of cutting expences. Here are some trivial approaches that most of the companies follow that confirms a company is in the first level of cost cutting -
- Cutting on office supplies and making it minimum.
- Cutting on corporate lunch / outings
- Minimizing the corporate travel costs
- Creating new (documented) process for support activities (like upgrading a laptop?)
But two aggressive steps that can immediately decrease the operational costs are:
- Outsourcing the new wave that caught as number one option for cost cutting.
- Trimming the work force and bringing down the scope of work
All these are done and seen. In recent days I have seen companies being more innovative in cutting cost. Here are some examples -
- Cognizant gives the concept of WFH a new dimension by introducing 20:20:20 programme.
- Infosys is asking each employee to show a one time cost saving of $10
These are some very simple examples of how hard times can drive innovation.
Yesterday I came across this article on CNN Money. With an alarming increase in childhood obesity this should be a welcome change started at Pepsi. I feel Indra Nooyi is doing the right thing at the right time. Just hoping others like McDonalds and KFCs follow the trend!
Tata motors (TTM) – Indias No. 1 auto maker was recently in news for two completely opposite achievements. As promised they did come up with an easily affordable (low cost) people’s car Tata Nano. I personally am very happy to see such a innovative yet practical idea. At the same time they are also bidding for Fords Luxury brand cars – Jaguar, Land rover.
I am a believer of “Do one thing and Do it right”. I can’t understand how the above two completely opposite business models can fit in the same company.
I am hoping everything will go fine for tatas.
Its all about marketing! Jordan’s Furniture a local MA furniture company owned by Warren Buffett had put forward a Monster Deal of giving away all the furnitures purchased between March 7,2007 and April 16, 2007 if Boston Red Sox win the 2007 MLB World Championship. Obviously this looks like a bad deal now as Red Sox leads 2-0. But Jordon’s has already covered all its bases by insuring all these purchases. Talk about a win-win scenario 