Comm215

Adunni Easton University of Phoenix Essentials of College Writing Comm/215 Version 10 Instructor August 21, 2011 Sportswear is being worn more today by adults, teenagers and infants and toddlers than ever before in America. It has now become a very big trend in today’s fashion. In this day and age, businesses have noticed a change in increase of profit in selling sportswear. Even though business have realized how popular the sales and profit has become; there is still a question of how they can cut expenses to increase profit margins. Artemis Sportswear Company needs to cut operational expenses by changing their marketing strategy. Artemis should look into the type of consumer that can best work with their cost and productivity of their products. Artemis should mainly focus on the market and not so much on its products, if the product sells for itself. Artemis should strive for higher operating profit margins, although this is not always easily done. Although it may vary from industry to industry, a company that is considered to have a high operating profit ratio has one of over 30 percent on an average. If the sportswear company can make a comparison of their past sales history, look at the previous and current sales and project a business plan with a budget, they can obtain some since of what is going on. Because legitimate expenses provide the framework for this type of company, they may not want to cut the operating expenses too deeply. Here are four simple ways that Artemis Sportswear Company can help cut operational expenses in order to increase its profit margin: * They should plan for better shipping or mailing. To avoid overnight or second day delivery which is MUCH more expensive they need to figure out an alternate method. If they must ship overnight, then they should check the various carriers as well as the post office for the best rates. * Use the Internet for advertising or sales. Nearly every company has a website containing product, pricing, and ordering information. * They can also use a down-sizing option where they can terminate employees. Although, this may affect the productivity of the remaining work force as well as lower, it is also morale. Therefore termination may ultimately affect production which will in turn reduce the profit margin. So in order for Artemis to avoid such a scenario, they should consider other alternative methods of down-sizing that will cut labor costs and use termination only in cases where it cannot avoid the situation. * Artemis Sportswear should also try to increase their sales. An increase in sales, on incoming money, can also increase your operating profit margin. Increasing sales should be a goal every company strives for. There are a number of ways the Sportswear Company can make their operating profit margin higher; however, it is important for them to take all things into consideration before cutting costs in various areas. If they begin to deny their consumers little things and certain luxuries that they are used to, they could end up losing some of their business. In the long run that can have a negative effect on their operating profit margin.