Question

Rahael's Bakery is a small organization which specializes is cakes, cookies, and other treats for special events such as birthdays, weddings, and religious affairs. In an effort to increase profit margins, the bakery management is implementing a cost-minimization strategy. Which of the following activities would not be a possible action under this strategy?
a. start selling plainly frosted cakes that the customer could then decorate.
b. only sell chocolate chip cookies
c. hold weekly employee meetings
d. stop delivery services
e. None of these ideas would work in the strategy.

Answer 1

Answer:

C) hold weekly employee meetings

Explanation:

Generally when a company wants to minimize its costs, one of the first things it does is avoid employee meetings because it costs money and the employees are not producing anything during that time.

Generally cost minimizing companies also spend less money in perks, and any type of policy aimed at increasing employee commitment or satisfaction.

Answer 2

Answer:

hold weekly employee meetings

Explanation:

Rachael's Bakery is trying to increase profit margins and a good way to do this will be by reducing cost that the business incurs.

The other options given result in reduced cost. That is selling plainly frosted cake, only selling chocolate chip cookies, and stopping delivery services.

However holding weekly employee meetings will result in increased cost. There will be increased cost of transporting employees to the meeting each week, and also logistics cost like accommodation.