Final Research Paper
This proposal is designed to assist Artemis Sportswear Company in cutting their operational expenses to increase profit margins, while considering the effect on workers and productivity.
“In the 1970s, athletic sportswear began to evolve from a product line aimed at small and unique markets into a mainstream fashion product” (Clean Clothes Campaign, 2004). Artemis Sportswear Company has helped transform sport shoes and apparel into a fashion statement. Today the “total worth of the athletic apparel and footwear market is estimated at over 58 billion US dollars” (Clean Clothes Campaign, 2004).
In recent years Artemis Sportswear Company has ...view middle of the document...
By affecting the productivity of the remaining employees, Artemis would not increase its profitability; it would result in a profit loss. Thus to avoid such a scenario, Artemis should consider other alternative methods of down-sizing that will cut labor costs and use termination only in cases where it cannot avoid the situation (Manson, 2000).
Rather than spending funds and time devising a plan on how to cut labor, Artemis should focus on its current employees and their talent. The management should survey the employees and evaluate their multiple skills. Recognize the talent and retain the multi talented employees. Now, instead of having two positions, they can be combined into one. Motivating these employees is important for them to remain engaged and focused. Allen, president and chief operating officer of an administrative service and HR company, recognizes that rewarding employees with incentives, such as promotions, keeps them engaged and motivated. Allen (2009) stated, “If employees are afforded the chance to learn new skills and advance in their careers, they are more likely to remain committed to the company and be more content with their jobs, even when more is expected of them” ( Natural attrition: The ‘organic’ way to downsize a company, para. 17). A lot of work, especially new work, can tire and wear out employees. This possible problem has to be immediately recognized by Artemis and immediately be solved. Recognition events, rewards, and challenges are all a good way to keep employees motivated. Genuine smiles and a well-deserved thank you go a long way as well.
Office Supply Expenses
There are several ways for Artemis Sportswear Company to cut operational expenses to increase their profit margin. They could start by switching from name-brand office supplies to generic. Generic office supplies are often the same quality as name-brand office supplies, and many times come in a larger quantity. Artemis could have their letterhead or business cards printed in bulk, as most print shops offer a discount for having something printed in mass quantity. Some shops will even store the bulk of the order and ship it at no extra cost as the business needs it (Kahn, 2007).
Another way Artemis Sportswear Company can cut expenses is to evaluate their employees’ efficiency. The employees should be directed to spend their time on the things that bring more profit and add more value to the company.
Also, the company could outsource tasks that do not add value, which would free up more of the employees’ time and enable them to focus on the company’s marketable items or services. Artemis can constantly evaluate their practices and procedures and cost-effectively experiment with new strategies that could potentially bring in more profit and/or cut operational expenses. They should also avoid constant fluctuations in their pricing and stick to prices that will remain nearly the same for longer periods of time: this will...