EVALUATING THE EFFECTS OF INTERNAL ENTERPRISE ACTIVITIES ON COST REDUCTION IN EDUCATIONAL INSTITUTIONS: A CASE STUDY OF HAWASSA UNIVERSITY IN MAIN CAMPU

Abstract

In recent years, educational institutions have been facing budget constraints and increasing financial pressure. This study aims to investigate the effect of internal enterprise activities on cost reduction in educational institutions in case of Hawassa university main campus. This thesis intends to explore the relationship between internal enterprise activities and cost reduction, identify the most effective practices, and provide recommendations for educational institutions to achieve optimal cost savings. The study adopted explanatory research design and 385 sample respondents participated from students, employees and top administrative of the campus. A convenience probability sampling technique was applied to select the targeted respondents. Primary data were collected using self-administered questionnaires for analysis. The result endorses that all the six determinates of internal enterprise such as administrative efficiency, technological adoption, outsourcing, efficient resource allocation, staff development, and sustainable practices had significant effect on overall cost reduction. As tuition fees constantly rise and funding becomes scarcer, educational institutions are required to explore innovative ways to reduce operational costs and ensure financial sustainability. Identifying and addressing inefficiencies in administrative tasks, organizations can reduce overhead costs and improve productivity. Embracing new technologies such as automation, data analytics, and cloud computing can streamline operations, increase efficiency, and reduce the need for manual labor. Cost reduction is essential for organizations to remain competitive and financially sustainable in today's dynamic business environment. Implementing cost reduction measures requires a holistic approach that involves all aspects of the organization, from operations to finance. Continuous monitoring and evaluation of cost reduction initiatives are necessary to ensure long-term success and effectiveness. Successful cost reduction efforts can lead to improved financial performance, increased competitiveness, and enhanced overall organizational efficiency. My findings suggest that adopting efficient internal enterprise activities can lead to significant cost savings for educational institutions, allowing them to better utilize their resources to improve the quality of education. Develop a comprehensive cost reduction strategy that integrates Administrative Efficiency improvements, Technological Adoption initiatives, Efficient Resource Allocation practices, Staff Development programs, and Sustainable Practice initiatives. By adopting efficient internal enterprise activities, institutions can streamline processes, improve resource usage, and ultimately reduce overall costs