In the modern business scene, companies strive to make more profits from sales and investments by minimizing costs and production time. It is therefore essential to a have in place a proper operations management as well as an appropriate chain of supply management. Operations management involves coming up with the highest level of business efficiency possible within an enterprise. Supply chain management, on the other hand, is the practice of optimizing business operations in order to maximize both speed and efficiency. A company must critically apply proper operations management as well as supply chain management strategies in order to become more competitive. For instance, while speed is important in business flow, too much speed may skyrocket costs and ruin the business. A company must, therefore, optimize and regulate its operations while also making sure to observe efficiency and optimal speeds. Proper management of a company's operations ensures prosperity, growth, and development of the company ( Srinivasan, 2014) .
Cost control is an essential aspect of business operations. No business operation should take place without a proper cost control strategy in place. It refers to the act of identifying and reducing business expenses in order to increase profits ( Niţă &Ştefea, 2014) . Cost control begins with the budgeting process, where the company compares the actual result of a budget expectation to the planned costs. In the situation where the actual costs are higher than the proposed costs, the management has to take actions to cut down the budget by minimizing expenses. This practice is important while competing with other firms as it ensures that a company does not lose more than it can recover. Global factors such as legal matters, political, economic, social and technological factors, must all be considered before setting out on business operations. A company must consult about these factors before investing or distributing products in a particular region.
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References
Srinivasan, G. (2014). Operations and supply chain management. Routledge.
Niţă, C. G., &Ştefea, P. (2014). Cost control for business sustainability. Procedia-Social and Behavioral Sciences , 124 , 307-311.
