1. Cost Effective and Cost Efficient
Cost effective
The essence and necessity of efficiency in an organization cannot be overemphasized. Management and planning are the key aspects that are considered when dealing with cost effectiveness. Cost effective is defined as an aspect of economic evaluation that does a comparative analysis between costs and outcomes of certain actions. An action is evaluated based on the extent to which the resources allocated for a project have achieved the predetermined objectives. If a project has not effectively produced the envisaged feedback, the essence of cost effectiveness is reviewed to determine areas of deficits. In instances where an organization seeks to acquire some products or services, the prices are considered against the materials that are supposed to be provided.
Cost efficiency
Cost efficiency is defined as efforts employed to minimize the expenses by an organization while maximizing on the outcome of a particular product. For instance, organizations that employ media marketing work on a framework that minimizes the amount spent while enhancing the publicity given to a product. The focus is minimizing costs while extracting maximum benefits from a particular incentive.
Cost efficiency is better than cost effectiveness based on some fundamental facts. In cost efficiency, it propagates for the effective use of the available resources. Even though the funds might be there for use, it considers the available options before making a move in the market. Wasting of funds, time and effort are some of the issues that are not entertained by cost efficiency. It limits losses in an organization while maximizing the profitability of the initiated programs and plans.
2. Core Strategies used by Coca-Cola and the Assumptions used to establish the strategies
The Coca-Cola Company employs various strategies as a consequence of maintaining its competitive advantage in the market. One of the strategies that are employed by the company is the expansion of productivity program. Cost saving is the benchmark policy that is employed in ensuring that the company meets its objectives (The Coca-Cola Company, 2015). While the company focuses on expanding its operations to different sectors, it does so by restructuring the existing units. Such tendencies aid the company in effectively managing its resources. The company assumes that by expanding its existing infrastructure, it can minimize cost while expanding the production level.
Simplification and streamlining of the model is a key focus for the Coca-Cola Company. The firm seeks to have a framework where decision-making is effective and efficient. Coca-Cola achieves this objective by decentralizing decision-making to various management units in the firm (The Coca-Cola Company, 2015). The company assumes that by reducing the number of employees at the top management level, it can reduce the hierarchical tendencies that are manifest in the institution.
3. Federal Budget
The federal budget of 2015 has a got some programs that have been expanded while the scope of others declined. Two of the programs in the budget will increase, and they include Childcare packages and tax cuts for small business. While the federal government increased allocations for family households, the program will increase because of the increasing healthcare demands of the people. The individuals that earn $165, 000 will save up to $30 though the number of people in this category will rise. The business that generates less than $2 million will have a tax cut of about 1.5% (Chantrill, 2015). Due to market dynamics, the tax reduction strategies will be expanded to other business making less than $4,000,000.
References
Chantrill, C. (2015). “US Federal Budget Pie Chart.” Web. June 24, 2015. Retrieved from: < http://www.usgovernmentspending.com/federal_budget_pie>
The Coca Cola Company. (2013). “Coca Cola Journey.” Web. June 24, 2015. Retrieved from:
http://www.coca-colacompany.com/>
