Cutting Operating Cost Essay Example | Topics and Well Written Essays - 500 words

Cutting Operating Cost - Essay Example Therefore, by cutting operating costs, Method will be able to reduce its liabilities and increase its assets. This means that if the company had been spending $200 million on expenses, and then it manages to cut this to $150, the company will be able to decrease liabilities by $50 million. This, on the other hand, will increase the assets of the company by $50 million in the form of hard cash or money in the bank. The method may decide to invest in green business activities, which may prove to be expensive initially or in the short run. In order to undertake such activities, the company might be forced to purchase new equipment or upgrade its equipment to make sure that it is able to embrace green business activities. This may prove costly in the short run. However, in the long run, this may help the company save costs and improve efficiency. For instance, when method decided to improve the efficiency of their shipping, they decided to purchase biodiesel trucks. These were additional costs to the company. However, they helped the company to save on fuel used for shipping. This is due to the fact that the trucks that use biodiesel fuel are able to get 13% more miles for each diesel gallon. Yes, I think that over the years household companies have realized that green products can help them be efficient and save costs. Research conducted in the year 2008 showed that the use of eco-friendly household products was expected to rise from 3% in the year 2008 to about 30% by the year 2013. This is a huge increase and in order to tap into this market, many households companies have decided to go green. In addition to tap into this ever-growing market for eco-friendly household products, the companies may also have realized the benefits that they may enjoy by growing green.