ROA

The problem faced by ROA is not a new one and is completely solvable The company needs to however , achieve a greater level of economic efficiency and cost-cutting in to turn the tables in terms of revenues and profits . The financial statements analysis in previous sections presents a dire dilemma for ROA that can be overcome by strategies implemented with care and vigil . This section will be describing some of the most important strategies in detail

A bold and effective step that would enable ROA to cut a sufficient amount of cost

is to reorganize senior management . It should be remembered that the senior management is one of the most highly paid section of the workforce . Reducing the number of senior managers will reduce costs effectively . ROA could restructure their organization and convert it to a more vertical layout consolidate responsibilities with fewer Senior Management . This will simplify management and reduce corporate overhead costs and infrastructure . However , there is a certain tradeoff here . Reducing the number of senior managers will reduce the expertise and knowledge in organizational decision-making . This however can be offset to a great extent by having their presence in the company as Board of Directors . Passive participation means that their ownership in the company will boost their will and desire to think positively about the company and at the same time relieve the expenses on the payroll

Labor and capital efficiency are two aspects which ROA needs to tap in with an iron hand . There are several books and strategies available that explain how labor efficiency can be achieved . However , at ROA it should be understood that there are various categories of laborers , each with different requirements and compensations . The craftsmen and the loading /unloading are two instances of the laborers within ROA Examining the skills and capabilities of the laborers at ROA and accordingly rotating their jobs will bring about greater labor efficiency and employee satisfaction . Though it may not be felt in the short-run , this will lead to significantly cheaper labor in the long run owing to improved productivity

Several production companies in the world are now focusing on ways to make the production process as streamlined as possible . Reducing delays and improving the mechanism used to move intermediate products from one output to another input are processes that can cost companies significantly , if overlooked . ROA should carry out a screening of its production and post-production process . Historically when firms deal with such heavy-weight products , there are bound to be significant transportation and labor costs . ROA could reduce these labor and transportation costs by buying newer , larger vehicles to transport these products . More capacity means a greater number of stones transported at the same time . Although larger vehicles have greater fuel demands , the efficiency of the transportation costs will be definitely higher in this way . In an era of rising fuel prices ROA should give more priority to this strategy since transportation costs are a significant portion of the company 's expenses

The importance...