SOUND HEALTH LIMITED Sound Health Ltd. is a private company that deals with manufacturing and selling of anti- mosquito treated bed-nets. The company distributes the nets in and outside Kenya. The chief executive of Sound Health Ltd. has stated that the objective of the company will be “to supply the best possible product to the greatest number of consumers at the lowest possible cost”. The lowest possible cost will only be achieved by introducing a number of radical changes which will affect employees, shareholders and management. The ultimate goal will be to improve the efficiency of operations. The holders of this view who include the chief executive are people who joined Sound Health Ltd. recently and have not stayed in the organization for more than three years. This group is small in number but they are quite influential. The “newcomers” have had extensive private sector business experience where managerial internal controls are strict and well established. This is in contrast with what has been happening at Sound Health Ltd., where there are many loopholes and contradictory systems of control. Required: Explain the role of a manager in reducing operational costs in an organization

The role of a manager in reducing operational costs in an organisation
i. The manager is a central figure in the introduction of radical changes through proceses such as BPR and TQM
ii. Ensuring that resources are committed to their best uses (high output-input ratio)
iii. Allocating resources to activities according to priorities identified in the annual objectives
iv. Coordinating departmental uses of the resources available to the organisation
v. Innovation/entrepreneurial; came up with ways of doing things for example recycling of certain materials.



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One Reply to “SOUND HEALTH LIMITED Sound Health Ltd. is a private company that deals with manufacturing and selling of anti- mosquito treated bed-nets. The company distributes the nets in and outside Kenya. The chief executive of Sound Health Ltd. has stated that the objective of the company will be “to supply the best possible product to the greatest number of consumers at the lowest possible cost”. The lowest possible cost will only be achieved by introducing a number of radical changes which will affect employees, shareholders and management. The ultimate goal will be to improve the efficiency of operations. The holders of this view who include the chief executive are people who joined Sound Health Ltd. recently and have not stayed in the organization for more than three years. This group is small in number but they are quite influential. The “newcomers” have had extensive private sector business experience where managerial internal controls are strict and well established. This is in contrast with what has been happening at Sound Health Ltd., where there are many loopholes and contradictory systems of control. Required: Explain the role of a manager in reducing operational costs in an organization”

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