Retrenchment

Retrenchment

improving efficiency
1. to cut down or reduce something, to use resources more carefully.
  1. NOKIA, 2010, new CEO, 30,000 jobs lost, focused on partnership with microsoft
  2. YELL, demand for paper based products down, $3bn debt, rationalisation, further cost cutting and investment in digital media
what drives it?
1. uncompetitive cost structure
2. inadequate returns on investmen
3. poor competitive investment
4. financial distress/debt
5. market decline
6. failed takovers
7. economic downturn
8. change of ownership
methods used
1. reductions in output or capacity
2. job losses
3. product or market withdrawals
4. disposal of business units
5. outsourcing key functions
6. demerging
implications for change
1. depends on scale of retrenchment
  1. small scale, incremented retrenchment has limited impacts
  2. significant retrenchment often associated with fundamental repraisal of the the business
downsides of downsizing
1. little evidence that it improves profits
2. motivation and morale worsens
3. damaging effects on productivity, innovation and staff retenchment

Resumen del Recurso

	Creado por andy.dartnell.ad hace casi 10 años