Selling, General & Administration (SG&A): Cost Reduction Focus

Build on the Business Model: The Foundation for Lasting Business

A company’s business model prescribes not only how business units will associate with each other and with corporate headquarters, but also how SG&A functions operate throughout the company. Any SG&A improvement program must take into account how the company’s larger business model affects the SG&A infrastructure, both when looking for improvement opportunities and when recommending solutions to existing problems.

In this article we look at the four basic business models:

  • Executive leadership strategic control
  • Executive leadership decision control
  • Business-unit Independence
  • Centralised services model

Click here to see the full cost reduction journey

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