See the following: K. P. Coyne, S. T. Coyne, and E. J. Coyne Jr., “When You’ve Got to Cut Costs Now: A Practical Guide to Reducing Overhead by 10%, 20%, or (wince) 30%,” Harvard Business Review, May 2010, pp. 74–82 (available at http:// my.gartner.com/html/itexecutives/downloads/ExecPicks_ITCost_CutCosts_0610.pdf). 

Required

After reading the above-referenced article, answer the following questions:

1. In general, how does this article relate to the material covered in this chapter?

2. The authors of the article state that “administrative cost-reduction opportunities follow similar patterns everywhere.” What two major conclusions do the authors offer, based on their accumulated experience in implementing successful cost-cutting programs?

3. The authors of this article also state that cost-reduction goals typically require “ten or more actions.” For each of the three classifications of cost-reduction goals discussed in the article, provide examples of specific actions that managers can pursue in an attempt to meet the stated cost-reduction goal.

4. Provide a concise summary of the authors’ recommended approach for determining the “right level of overhead.”