Retrenchment

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Mind Map by andy.dartnell.ad, updated more than 1 year ago
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Created by andy.dartnell.ad over 5 years ago
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Description

A Levels BUSS4 (BUSS 4) Mind Map on Retrenchment, created by andy.dartnell.ad on 06/09/2014.

Resource summary

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