Cutting Costs 10% (Group of 6 members)

You are a senior manager at Phoenix, a small advertising company. Last year the company
overspent in the following areas. Can you think of any ways of cutting costs?

Item Overspend
Marketing: Entertaining clients £10,500
Promotional gifts £8.500
Overheads: Cleaning £8,500
Heating £20,000
Sales: Hotel accommodation £22,500
Travel expenses £20,000
Staff benefits: Company car for managers £50,000
Ten year service bonus £8,500

2. Work in groups. You are going to hold a meeting to find ways of saving money at Phoenix.
(Information about items are below)

MARKETING
Your task is to find ways of cutting marketing costs. This is the situation at present:
➤ Clients are often taken out to meals, invited to sports events, etc.
➤ Clients receive promotional gifts at New Year.

SALES
Your task is to find ways of cutting costs in the sales department. This is the situation at present :
➤ Sales representatives stay in top hotels
➤ Sales representatives usually travel first class

OVERHEADS
Your task is to find ways of cutting overheads. This is the situation at present:
➤ Cleaners come in 7-9 p.m every day.
➤ Offices are heated to 20°C all year round.

STAFF BENEFITS
Your task is to find ways of cutting staff benefits. This is the situation at present:
➤ All managers have a company car: at the moment this is a Mercedes.
➤ Bonus for ten years' service: 2 months' extra salary "

Role Play: Cost-Cutting Meeting at Phoenix Advertising

Characters:
- Chair (Senior Manager): Alex
- Marketing Manager: Jamie
- Sales Manager: Taylor
- Operations Manager: Jordan
- HR Manager: Casey
- Finance Manager: Morgan

Setting: Conference room at Phoenix Advertising. A round table with six chairs, a
whiteboard, and a projector.
[The team gathers around the table, each with a notepad and pen ready.]

[Alex looks at the clock and addresses the team.]

Alex: Good morning, everyone. It's nine o'clock, so let's begin. Jenny sends her apologies for not
being able to join us today. Let's make sure we have an agenda in front of us. We'll allocate five
minutes per topic. Jordan, could you take the minutes, please?

Jordan: Happy to, Alex.

Alex: Excellent. Today's focus is on reducing our overspending by 10% while maintaining client
satisfaction and staff morale. Jamie, you have the floor to start us off with marketing strategies.

Jamie: Thank you, Alex. Regarding digital marketing, I suggest we pivot from traditional print
ads to more targeted online campaigns. This includes social media ads, Google Ads, and email
marketing, which offer better tracking and ROI (Return on investment).

Taylor: Jamie, that's a solid plan. However, I'm concerned about scaling back on client
entertainment. How do we maintain those relationships without the usual wining and dining?

Jamie: It's a valid concern, Taylor. My proposal is to host in-house events such as workshops or
product launches. These can be just as engaging and significantly more cost-effective.

Morgan: On the topic of promotional gifts, I recommend we switch to practical, branded items
like eco-friendly water bottles, custom pens or umbrellas. They're useful, appreciated, and won't
break the bank.

Jamie: That's a great suggestion, Morgan. It aligns with our brand values as well.

Alex: I think we're in agreement here. Do you have any other points or shall we begin discussing
the Sales in more detail, Jamie?
Jamie: No, that covers it for marketing. Let's proceed.

Alex: Alright, Taylor, let's discuss the sales department's approach to hotel accommodations.

Taylor: Certainly, Alex. We've been overly generous with our hotel policy. I propose we establish
a company-wide policy for using mid-range hotels, balancing cost with comfort.

Morgan: That's a practical approach. And for travel class, limiting first-class travel to
intercontinental flights seems reasonable. Economy class should be the standard for shorter trips.

Taylor: The numbers support this change. Additionally, embracing virtual meetings can further
reduce our travel expenses, making our operations more efficient.

Casey: I'm on board with that. However, we should invest in training our sales term to ensure
they're adept at conducting virtual meetings.

Taylor: Yes, absolutely.

Alex: Excellent contributions, everyone. We'll draft a new travel policy and ensure clear
communication with the team. Now, let's turn our attention to overheads. Jordan, your thoughts
on the cleaning schedule?

Jordan: To reduce costs, I suggest we decrease the cleaning frequency and switch to a daytime
schedule, avoiding premium after-hours rates.

Alex: And what about energy efficiency?

Jordan: By installing LED lights and energy-efficient equipment, we can significantly lower our
electricity bills.

Alex: Great. Casey, let's discuss adjustments to staff benefits, starting with company cars.

Casey: It's a delicate matter, but opting for more fuel-efficient vehicles or a car allowance can
lead to considerable savings. We'll need a thoughtful approach when communicating these
changes.

Alex: And the service bonus?

Casey: Rather than a two-month salary bonus, we could offer a non-monetary award, such as an
extra vacation day or a personalized gift, to show our appreciation.

Morgan: I'll review the financial impact of these proposals. They seem promising.

Alex: Your insights have been invaluable. We'll formalize these proposals and evaluate their
effectiveness at our next meeting. Thank you all for your dedication to our company's financial
health.

[The team nods in agreement, finalizing their notes as the meeting draws to a close.]