Question

Do businesses spend equal time forecasting on cost cutting and increasing revenues?

Answer 1

No, It varies from business to business. A new Company will always focus on expanding and increasing the revenue, as because a new company has lots of option in increasing their revenues like getting more customers, expansion in new areas and upgrading their products, i.e. they always focus on increasing revenues to attract investors and venture capitalist.

On the Other hand a well established company always focus on Cost Cutting as because it has no scope of Expansion or to reach people. People already know the product and their customers are already present, hence this types of company focus on Cost Cutting.

Some Live Example can be Company Like UBER or any new Startup Company- they gives lots of Discount Vouchers on using their app when they launched their product new in the market as because they want the people to be aware of their product they do lots of advertisement giving discounts, etc. just to increase their Revenues. They dont focus on their Cost Cutting.

Now the Companies like COCA COLA, FORD etc. focus on Cost cutting as because they already expanded throughout, now they focus on technological development which helps them to reduce their cost. Hence these companies focus on cost Cutting.