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Any initiative started with the goal of reducing costs would be a cost-cutting intiative. Many hospitals today are seeking to improve their bottom line by reducing costs. Be sure that eliminating a cost will not eliminate a profit! Many services cost money to run, but they may be run as loss-leaders. These are programs or products that perhaps the organization does not make much money or maybe even loses a little money on, but in return several other services feed off the business attracted by these loss leaders. ER visits may lead to clinic visits. L&D visits may lead to pediatric visits or admissions. ER and clinic visits drive lab and radiology services. We must examine all aspects of how cutting costs will drive the business model.
Most of us has a misconception that cost cutting intiatives are the one that has to be taken when a company is operating through a difficult economic period, that we can rather call it damage controll measures.
Cost cutting initiatives are the initiatives that has to be taken when a company is at it's highest profit grossing stage. The management has to find out the most inevitable things for the company.Naturally a company which is making more profit will look for further investment or expansion or diversification. The company can do so only by appointing more experienced, productive and efficient employees in the new venture. Hireing suitable and experienced personnel is the key factor of cost cutting, because an efficient and experienced employee does know tooperate a business in the most cost effective and efficient way.
Sorry Dear I Dont have sound knowledge about it .
Well first of all am not an expert in answering questions but yes whichever question i have answered is based on my personal experience or i have implemented them at my work place.
In my opinion Cost cutting initiatives is basically when you cut your unwanted expenses to improve your financial circle. There can be number of cost cutting initiatives in different domains for instance if we talk about managing a team of employee you can layoff that employee who is not performing upto your expection and not producing any result. In short cost cutting initiatives are those expenses which are becoming liability for an individual or organization in certain period of time.
