Stakeholders’ participation in the cost reduction strategy of a business firm; case study: Zain Uganda

Abstract

This research is about cost cutting strategies in a business firm, with an aim of making profit and grows tremendously. The study sought to find out the extent to which stakeholders participated in cost reduction plans or the contribution they would bring to that effect. The primary objective in a business firm is to make good profits. Economists generally say that the positive difference between TR and TC means gold. The problem stands that despite all the effort to implement the cost reduction strategy, not much of the expectations have been realized even when stakeholders have been involved in the implementation plans. The purpose of the study was to establish how much stakeholders could contribute to the cost saving strategy, if they were to be properly involved in the plan. The objectives of the study were to examine the role played by the workforce in the Cost cutting plans, to establish the ways in which the company’s Management systems approach or implement the cost cutting strategy, to find out how much the Service providers or contractors contribute to the cost management of their client and to find out the effect of Budgets on the operational systems in respect to the cost saving strategy. The methodology used involved a research design that gave a direction of approach to the field visit and data acquisition. The research instruments used included questionnaires, interview guide, phones and notebooks to gather the info. The findings showed that only a few stakeholders are involved in the strategy which affects the successful implementation. Decisions made excluding other stakeholders are responsible for the poor results. The recommendations are that all stakeholders must stake part in the cost strategic planning and and implementations and performance rewarded, if something substantial is to be realized.