Cost Reduction for Business's Sustainability

Abstract

          Nowadays, economy is a huge problem in Thailand. Not only is the product shortage but also expensive. The entrepreneur has faced the problems in cost increasing in the range of the raw materials, the wages and other production costs, especially the cost of fuel for transportation which affects the cost of goods.Therefore, the executives should be aware of the  cost reduction. To survive and to be a potential in business, the executives have to consider the cost management since the costs of each business are different. They have to be understanding about the cost of their business for planning, decision making, controlling, budgeting and maximize efficiency.  

          Cost reduction is important since increased costs mean lower profits.If the cost can be reduced, the profit will increase. Management strategies can be applied to reduce the cost as appropriate to their businesses, leading to the sustainability of their business. Such strategies are cost reduction in the productivity, the logistics, the balanced scorecard, the benchmarking, the merging of businesses ,the six sigma, the guerrilla marketing and the power of bargaining, the outsourcing, and the staff reducing.