Identifying Cost Reduction Strategies across Income Statement PPT

This PPT slide, part of the 24-slide Cost Reduction Opportunities (across Value Chain) PowerPoint presentation, presents a structured overview of cost reduction opportunities across various components of the income statement. It highlights how organizations can identify and act on potential savings at each level, ultimately enhancing their financial performance.

The left section outlines "Net Sales," emphasizing challenges like declining revenues and the need for investment in sales and marketing. It suggests that by increasing spending in these areas, companies can drive growth in SG&A and R&D costs, leading to improved long-term results.

Next, the "COGS" (Cost of Goods Sold) section points out rising material prices and overhead costs. It advocates for reducing spending and enhancing efficiency across both primary and supporting functions. This approach can yield immediate benefits by lowering costs and increasing value.

The "SG&A" (Selling, General and Administrative Expenses) section reiterates the need for cost reduction, focusing on the efficiency of operations. It implies that a thorough review of these expenses can lead to substantial savings.

The "R&D" (Research and Development) segment acknowledges the increasing costs associated with innovation. It suggests that a strategic approach to spending in R&D can also contribute to cost efficiencies.

The "Capital Employed" section addresses the high cost of capital and the importance of optimizing working capital and fixed assets. It indicates that improving the capital structure can lead to mid- to long-term financial benefits.

Finally, the slide concludes with "Economic Value Added (EVA)," which serves as a metric for assessing the effectiveness of these cost reduction strategies. Overall, the slide serves as a guide for executives looking to enhance their organization’s financial health through targeted cost management initiatives.

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Value Chain Analysis Cost Reduction Assessment Cost Management Cost Reduction Value Chain Capital Structure Sales Innovation