strategy
Undertaking cost-cutting
Synonyms:
Slimming down industries Context:
Firms undertake cost-cutting if they are not profitable or not competitive, or if they wish to improve their competitiveness or savings. Typically, cost-cutting means job-cuts, thus significantly reducing labour costs. Cost-cutting can be most severe and controversial when a firm faces bankruptcy.
Broader:
Improving competitive standing Narrower:
Reducing labour costs Facilitates:
SubsidizingInvesting savingsCompeting in businessCollapsing businessesReducing unemploymentIncreasing unemploymentCombatting long term unemploymentBeing competitive at the country levelEstablishing stable competitive marketsDemanding executive accountability to social imperatives Facilitated by:
Liberalizing tradeRemoving government subsidiesStudying causes of poor competitive standingEnhancing independence of executive branch actionReducing measures supporting uncompetitive production Problems:
Abuse of in kind paymentsCorporate greed
Deficient business leadership
Differential labour costs among countries
Discriminatory wage scales
Elimination of jobs by automation
Evasion of social costs by companies
Excessive salaries of corporate executives
Insolvency
Labour displacement due to import competition
Overdependence on government subsidies
Overuse of industrial subsidies
Prohibitive labour costs
Restrictive trade practices
Underutilization of labour force
Unemployment
Unrestrained wage increases
Values:
CostlinessUndercutting Subjects:
Commerce → Purchasing, supplyingIndustry → Industry
Industry → Manufacturing processes
Type Classification:
E: Emanations of other strategies Related UN Sustainable Development Goals:
