Investigate cost-cutting measures

Investigate cost-cutting measures

During economic recessions, MNCs often react by minimizing costs in order to maintain profitability or minimize losses.

Investigate cost-cutting measures implemented by selected American MNCs in their supply chain (this falls under the distribution “P”).

Beginning from the year 2008 (the year that the most recent global recessionary period began), you will investigate selected companies’ supply chain cost cutting actions and their consequences on the companies’ market.

ASSIGNMENT:

Prepare a report discussing the trends and actual measures these companies have taken from 2008 to the present. Be sure to address the following issues.

Select any two companies from the Fortune Global 500 list (easily found online). Give a brief synopsis of the supply chain of these companies as it stood prior to 2008.

Highlight actions these companies have taken since 2008 in order to minimize relevant costs (both variable and fixed) in their supply chains.

Discuss the apparent consequences of these actions on the companies’ products, revenues and customers.

Describe any similarities and differences you observed between the two companies you were investigating.

Were the companies’ actions successful? What alternative actions would you have suggested?

Have the companies recently been changing course? That is, are they now investing more or less in their supply chains? Have the supply chain cost cutting actions been reversed or are they ongoing/further enhanced?

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Investigate cost-cutting measures

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