How they control cost: 22-August-08
Sourav Mitra -
Friday, August 22, 2008 10:01 PM
Fresenius, the health-care company best known for its kidney dialysis products and services:
It exploited the exchange rate (strong euro, weak dollar) to make a major acquisition - U.S. drugmaker APP Pharmaceuticals - for $3.7 billion.
[Click here for full story at Businessweek.com]
Purchases in weak currency countries = cost savings
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Hyundai and Kia, South Korean carmakers of the Hyundai Group:
They share engines and some components though they are largely separate.
[Click here for full story at Businessweek.com]
Sharing engines components = savings of development costs and greater benefits of scale
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Grindrod Ltd., Africa's largest shipping company:
It will avoid the increased raw material costs of building new vessels by buying rivals to expand
[Click here for full story at Bloomberg.com]
Finding ways to avoid rising raw material costs = cost savings
(Will not the rising prices be factored into the selling prices of the rivals it seeks to buy out?)
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Tata Motors Ltd., the Indian automaker planning to introduce the $2,500 Nano car later this year:
It may move its Nano plant from the state of West Bengal to avoid protests stemming from its factory land dispute even though it has already spent $346 million on the factory.
[Click here for full story at Bloomberg.com]
Avoiding dispute = saving of cost of litigation, delay and disruption.
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