Systems Operations Management for General Motors
Not what you're looking for?
General Motors terminated half of their workforce in order to reduce some of their operating costs. Based on some professional experiences provide examples of how an organization might reduce their operating costs?
What are some ways in which an organization can lower their operational costs?
Purchase this Solution
Solution Summary
Systems operations management for General Motors is examined. Some of the ways in which an organization can lower their operational costs are provided.
Solution Preview
REDUCING OPERATING COSTS
Operating costs are those expenses related to marketing or distributing the product and service and those incurred in administering the business (Keown, 2002). As reflected in the company's income statement, they are termed as selling, general, and administrative expenses. They are often times referred to as expenditures in relation to the day-to-day operations of the business.
Operating costs are either fixed or variable. Fixed expenses are those that remain the same regardless of the products produced while variable expenses are those that vary according to the products produced ( http: //www.investopedia.com).
Fixed operating costs are incurred on a regular basis (e.g. monthly). An example is the monthly salaries paid to employees. As such, they could hardly be reduced in the short-term. A company cannot just terminate employees without valid cause. Otherwise, the company may be faced with labour charges. In ...
Education
- Bachelor of Science in Business Administration, University of the Philippines
- Master in Business Administration, Saint Mary's University
- Doctor of Philosophy in Education, University of the Philippines
- Doctor in Business Adminstration (IP), Polytechnic University of the Philippines
Recent Feedback
- "Excellent information thanks for the input"
- "Thank you"
- "Very thorough and informative. Thank you."
- "Good response. Very detailed"
- "This solution is excellent. Thank you"
Purchase this Solution
Free BrainMass Quizzes
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.