Cost Effective Operations


Why must Cadbury (and other Businesses) always seek to be COST EFFECTIVE?

Businesses must always be cost effective as the less money they spend the more money they make. This is because the total output will be deducted from the total revenue equals the profit. For example if a business spends £100 and makes £200 they make £100, if their same company becomes more cost effective and spend £50 on a product and make £200 they increase their profit.


What is the PRODUCTIVITY formula? Why do Businesses measure it? What if 100 workers produce 300,000 Cadbury Dairy Milk bars each year? 

The productivity formula is the amount that can be produced with the resources that are available, the way businesses work this out is the will do this equation:

Productivity=Number of Goods Produced

                                        Number of Workers

 So if 100 workers produce 300,000 in a year their productivity…

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