Topic for Discussion:
Many companies have made decisions to reduce their workforces, close stores, and otherwise shrink their businesses – often because of a decision to outsource. Conduct an Internet search to locate an article about a company that has recently announced significant layoffs, store closings, or other business reductions.
Questions for Discussion:
In your answer, provide the link to the article and give a brief summary that explains the company’s reasons for the announced action. Does the article discuss how the company will assist displaced employees? What obligations, if any, do companies have to employees and communities that are impacted by their actions?
Answer:
Now-a-days we could see that many companies are reducing their workforces, closing the stores, and otherwise shrink their businesses .One of the main reason behind this is decision of outsourcing.
Internet search example:
We could take the example of Sear Roebuck & company and Praxair, where a Sears shares rose by 30% in just Six( 6) months after reducing their workforces .They have cut down 2400 jobs and closed down their 89 stores and with closing down their several other small businesses.
This company was the nation’s largest retailer according to the revenue till the 1980s, at the time when Wal-Mart surpassed it. By the passing out time, just like other department stores, this company has been hit by large flailing in-store electronics sales, in market .The main reason behind this is tuff competition from the Internet.
Now Sears has closed down almost 500 stores.
company’s reasons for the announced action.
The main reason behind this closing down is stopping the bleeding.
The company has planned to reduce costs
Along with cutting the cost ,it want to concentrate on improving its loyalty program.
They want to rationalizing their physical footprint to concentrate on their better performance of stores and within the markets so that they can improve their pricing with promotional design
