Lower Costs Is Equal to Higher Profits

Lower Costs Is Equal to Higher Profits

  • Submitted By: byjeffries
  • Date Submitted: 11/30/2008 3:16 PM
  • Category: Business
  • Words: 2695
  • Page: 11
  • Views: 1

Benchmarking: Global Communication

Benchmarking: Global Communication
Andrea Lynch, Brittany Jeffries, James Walker-Pontius
Lou Hendricks, Scott Hilkene
University of Phoenix
November 3, 2008

Common knowledge in the business world indicates lower costs equal higher profits with all else remaining equal. Keeping this in mind, companies look for the most viable and efficient ways possible to decrease cost across the playing board. As technology increases exponentially and organizations seek the latest and best ways to tackle their own markets, benchmarking allows for a huge advantage especially if a company is able to successfully adapt another company’s strategy to benefit its own profitability (Maul).
In a continuation of this strategy to further understand its implications, ten companies are compared in a benchmarking situation to better understand how these companies handled concepts such as ethics, communication, outsourcing, downsizing, and problem based learning.

Job loss/downsizing
GM and UTC experienced decreased sales and made subsequent cuts in processes and product output in order to control net profits.  In turn, shareholders remained happy with finances and the companies remained competitive.  Yet GM and UTC followed very different paths to downsize their workforce.  GM was at a disadvantage having to negotiate with the auto workers union.  Even though the economic fluctuations of the market dictated downsizing, the union put forth great resistance.  Although merging with another giant auto maker would mean shared resources and lower costs for GM, the union was threatened.  The Union understood that the merger would mean loss of jobs. 
Nonsequitor-   We’ve got to make a transition here.
UTC understands the needs of its workforce.  UTC mobilized to tackle the difficult issues of layoffs rather than masking its actions. In other actions?

Do we know that UTC had a layoff? I don’t see this in the...

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