A Fabulous Affair will initiate an aggressive cost-control strategy to prevent expansion and operating costs from escalating throughout the company which could potentially erode profit margins.  This will prevent operating costs from exceeding projections throughout the company’s start-up efforts.  The table (Cost Containment) is a basic version of the timetable for the cost-control program.

The self-directed cost audit containment will be comprised of several programs which will be used for internal cost control purposes.  Several of the programs are mentioned above.  The Cost Reduction Reward Program will be designed to enable employees to earn bonuses based on projected cost savings of the suggestions they provide. Employees will be encouraged to become aware of areas where inefficiencies exist in the business operations of A Fabulous Affair.  Jack Banquet will evaluate their input and reward suggestions where the reductions in cost of operations, as a result, have been substantial.

Jack Banquet will also conduct a complete analysis of the management structure, operating logistics and communications channels of the company periodically to determine if any alternative organization of these structures could result in any additional savings.   

Moreover, by establishing good relationships with suppliers and subcontractors,  A Fabulous Affair will be forewarned of fluctuations in the cost of supplies or services that they depend on, thus limiting the downside potential of variable costs by incorporating this into their forecasts.  Careful research and planning well in advance of the events they intend on producing will take this variability into account.  Further, by attempting to maintain a surplus in its own stocks of often used supplies A Fabulous Affair will thereby save money by eliminating certain variable costs altogether.  By setting targets in line with market forecasts, A Fabulous Affair is confident that the above cost-control strategies will allow it to effectively establish and build the business.  Should projections be off the mark A Fabulous Affair will revise targets to better reflect the direction of the business and to re-evaluate its cost-control techniques.