Research Paper on:
Cost Avoidance and Cost Reduction

Unformatted Sample Text from the Research Paper:
inputs for the company to start up and grow. There are also some exceptions, such as the not for profit enterprises. However, we need to make no mistake, that although  many business may portray themselves otherwise, as caring for the community, sensitive to the environment or socially aware, unless they were in the position of making a profit these other  aspects would not manifest. In other words, a company can be all of these things, but also needs to consider the bottom line. There are many ways that a company  may seek to increase it profitability, in this paper we will consider the role of cost reduction and cost avoidance. In reducing costs or avoiding them we are maximising the  use of resources, such as capital. This in turn increases both the profit as well as many of the productivity ratios. There are many ways that this may be  achieved, and in turn show on the bottom line. Here we will consider some of the various ways we may make this happen, but to achieve this there needs to  be an open mind in the way operations are managed and a willingness to change them. Supplier Development A supplier is a key component in the value chain,  and as such is the source of the input material (Porter, 1980). If the mistrials that are placed into the input part of the proves are of the right quality,  then the transformation process will be more efficient. This means it makes sense to develop a good relationship with the supplier. Even Porter identifies one of the elements of the  macro environmental forces that result on the way a company can behave as the power of suppliers (Porter, 1980). In Porters five forces model, the power of the supplier