ENTREPRENEURSHIP

Detailed explanation-1: -Cost cutting refers to measures implemented by a company to reduce its expenses and improve profitability. Cost cutting measures are typically implemented during times of financial distress for a company or during economic downturns.

Detailed explanation-2: -Cost cutting is a strategy organizations employ to reduce expenses when they experience a decline in profitability metrics. For example, reduced travel and a focus on energy-efficient procedures are two of the many ways frequently used to save costs.

Detailed explanation-3: -Strategic cost cutting means that the companies can differentiate between the costs that they need to incur to survive. This would companies can identify mundane expenses like electricity, fuel, accounting costs, regulatory costs, etc. and contrast it with costs related to competencies.

Detailed explanation-4: -If you cut too much too quickly, you could end up jeopardizing your company’s long-term success. Some of the ways cost-cutting can hurt your business include: Decreased vendor quality: If you trade high-cost suppliers for low-cost ones, you could also inadvertently switch from high-quality to low-quality ones.