Analysis of the relationship between costs and firm growth using the example of the Unicredit Group S.P.A.

Abstract

A firm is defined as a form of organisation which performs commercial activities in order to generate income to settle costs and generate profit and in such manner as to accomplish certain objectives. Every firm has different objectives which refer to operating business activites and strategic planning, depending on industry, firm size, environment and other conditions. The subject-matter of this paper is cost behaviour depending on firm size and the way enterprises manage costs in order to optimise their performance. The example of the Unicredit Group will be used to display the analysis of firm growth and cost trend which follows this growth. The objective of this paper is to display to which extend the Unicredit Group, as a firm, managed costs successfully and whether their growth followed their cost trend according to current economic rules. For this purpose, there will be used scientific methods.