A cost-effective company

Companies must(prenominal) remain good and efficient in monastic come in to compete in todays business word. Organizations, even non-profit organizations, must remain monetary value effective and efficient to remain viable. In order to be cost-effective, a party sets a budget and determinations and uses the companys assets to meet those goals. As long as they remain within the budget, they piece of ass focus their attention on meeting the goals of the company.A cost-effective company meets its goals with the documentation provided a company that is not cost-effective either fails to complete the goal altogether or requires additional funds in order to do so. This company must also be cost efficient, meaning that they cannot drop down four dollars when two dollars is sufficient. In addition, they must put the companys finances ahead of all else, including job stability. A cost effective and efficient company stays within a budget bandage still meeting its goals.It is more i mportant for any organization to be cost effective than cost efficient. In the overall picture, an organization must seek to meet its goals above all else. They must focus on using their resources to meet the goals, rather than setting the goal at economy money. Shareholders expect a return on their investment, which absolutely cannot happen if the company does not focus its attention on getting the best survey for its dollars.For example, Volvo strives to make the salutaryst cars in the world for the most part, it has succeeded in this goal. The company uses its resources to fight an image of safety while remaining profitable. For this reason, consumers view Volvo as the safe car brand this is why the company is cost-effective rather than cost-efficient. In order to be cost-efficient, Volvo would have to put the product second and the cost of producing the product first. Safety would give way to economy, and this would completely undermine the mark strategy.