115 www.gogreen-project.eu Extended Information Sheet Informative videos about the climate change and global warming https://www.nationalgeographic.org/video/climate-101-cause-and-effect/ https://climate.nasa.gov/climate_resources/139/video-global-warming-from-1880-to-2020/ https://youtu.be/8Rvl6z80baI How are costs linked to corporate strategy? • The main aim of a company is to maximize wealth. To do this, companies are strategically minded and emphasize long-term growth. • To grow a business, organizations must ensure that they reduce their costs where possible to increase their profits. • To do this, all stakeholders within an organization need to be mindful of implementing cost reduction strategies at all times, especially in the early days of product or service development. • Failure to consider costs at all stages of the product/service lifecycle could result in the product or service becoming too costly to roll-out, and causing cash flow and liquidity issues for the organization. What opportunities are available to an organization to significantly reduce their costs? There are many different strategies and opportunities available to support an organization to reduce the costs associated with their products and services, including: 1. Cost Reduction by Design 2. Reducing overhead costs 3. Lean manufacturing and production opportunities 4. Implementing standardization policies 5. Economies of scale Opportunities available to an organization to significantly reduce their cost Cost Reduction by Design • The creation and design stage of any product is the best opportunity for an organization to identify any cost cutting measures that can be implemented. Eco-design principles allow companies to design out waste thus reducing costs. • Once the product has been designed, it is very challenging for organizations to reduce the costs associated with its creation. • At this stage, one change may impact on other items – for a manufacturing company creating tables, by using cheaper wood, the nails or glue used to hold the wood together may not work in this cheaper raw material. • It is important to consider the ecological impact of decision making at this stage, because although these changes may not be visible, there could be significant damage occurring to nature and the environment.
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