Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Downsizing/Fixed Costs
There are a number of industries that have downsized their fixed costs. Most manufacturing industries, for example, have downsized fixed costs by offshoring work, reducing the size of their workforce or by making adjustments to their pension commitments. Industries such as auto manufacturing, airlines and banks have all taken advantage of the opportunity to lower their fixed costs. Government agencies have also undertaken downsizing in recent years, again with an eye towards lowering fixed costs.
A reduction in fixed costs does not necessarily impair a company's ability to meet the needs of its customers. In many cases, the restructuring was necessary to modernize the way the company does business. In other cases, firms like Eastman Kodak have downsized because they have fewer revenues. This means that the downsizing will not affect their service levels...
Companies like the automakers that have restructured the fixed costs associated with their pensions should not see a negative impact because their fixed costs were not going towards customer service, R&D or anything else related to today's business.
That said, not every industry is able to downsize without compromising service levels. There comes a point when fixed cost reduction is beyond the point of diminishing returns. This means that further reductions have limited value economically to the company, but will continue to harm service levels. Once a company has downsized the excess costs that were not being used to generate revenues, it will begin to downsize too much, and key performers will be lost.
Overall downsizing is a step that many businesses need to take periodically to ensure that they are operating…
Downsizing and Change Management In any organization, the only permanent reality is change if the firm wants to thrive and succeed in the global economy. In times of extreme hardships, companies will some times have to make decisions, which are fairly harsh but are immensely important for survival of the firm. Downsizing is one such decision and while it appears unfair to some, it is actually the only way a company
Boosting Employee Morale After Downsizing Downsizing has become a significant idea in today's economy and maintaining the trust of employees when something like this takes place has also become very serious business (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994). The question is not whether a company should downsize their employees but how to do the downsizing properly so that as few employees as possible are injured (Brockner, Konovsky, Cooper-Schneider, Folger,
early retirement incentives as a downsizing strategy sUMMARY: This is a thesis that analyzes and studies the use of early retirement incentives as a downsizing strategy by organizations. It has 23 references in APA format. Chapter I- Definition of the Problem Definition of terms-alphabetical order Chapter II- literature Review Health and security Tax deferral Financial targeting Institutional Rationale Employees Impacted Chapter III- Methodology 19-Data collection 19-Data analysis Chapter IV- Data analysis 21-Analysis relevant to research 25-Analysis relevant to research 26-Analysis relevant to research Chapter 5-
Automation Process automation has revolutionized the way that organizations do business and has led to the downsizing of many companies. There are a variety of technology products that are available through process automation which make business operations simpler and less expensive. The purpose of this paper is to discuss process automation and the impact that it has on downsizing. We will discuss the technologies that are available and why these technologies
Arborite Case Study The need to increase profits and revenues has forced many establishments to evaluate and redefine the way they carry out strategies within the organization and the manner in which they deal with external factors affecting the company. The rationale being that an organization needs to constantly grow and evolve if it has to be competitive in a constantly changing market. Leaders and managers who head organizations should have
Managerial Accounting Strategic Management in Large Multinational Corporations Strategic Sources, Inc. is a multinational organization that operates in 20 countries around the world. They offer a wide variety of products and services to their customers. Their extensive business portfolio includes some portions of the organization that serve as suppliers for other parts the organization. In an effort to increase profit margins, the Chief Financial Officer has been appointed the task of presenting