...today's economy is a challenge for all types of companies and organizations. When faced with struggling budgets outsourcing and or downsizing are often seen as the only possible solutions for businesses to stay afloat. Trying to maintain competitiveness while downsizing and or outsourcing brings about additional challenges for human resource management organizations. Containing Human Resource Costs During Economic Challenges The current economy brings challenges to every level of a corporation, including human resource management. Maintaining an effective budget is not always easy and becomes even more difficult with the strains of an economic crisis. While the elimination of unnecessary materials and or processes may help in curtailing costs and spending, it is not always an easy task; and an even more difficult task involves the elimination of actual jobs. As companies are faced with having to cut costs, eliminating jobs is sometimes an unfortunate solution. Human resources management is defined as the process of managing human talent to achieve an organization's objectives (Bohlander & Snell, 2010). Being able to effectively execute the process of human resources management relies on several factors. Being able to compete, recruit and staff globally; embrace new technology; manage change; manage talent; respond to the market and contain costs are imperative to a successful human resources management organization In today's challenging economy, containing...
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... | |Prof. A Srinivasa Rao | | | Contents INTRODUCTION 2 DOWNSIZING 3 RESTRUCTURING 4 PRIMARY ISSUES 5 How to Downsize Effectively 5 COMPANY BACKGROUND 8 PRIMARY ISSUES - II 9 GENERAL MOTORS: RESTRUCTURING 10 RECOMMENDATIONS 14 CONCLUSION 15 REFERENCES 16 INTRODUCTION Over the past eight years, our country has experienced a whirlwind of economic slowdown that has led to the restructuring of the way companies do business today. Gone are the days when corporate mergers, acquisition, downsizing, and restructuring were few and far in between. The economic slowdown coupled with ongoing economic uncertainty has led many companies to adjust their organizational operations to a new level of efficiency. Words such as downsizing, rightsizing, restructuring, and reengineering are common vocabulary to corporate businesses of today. Other changes are brought on by the globalization of businesses and changes in the industries and markets. Regardless of the reasons, mergers and acquisitions are likely to continue into the next century (Boockholdt & Service, 1997). In this case study, we will discuss the organizational restructure that...
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...operations for manufacturing Datsun from the automobile division of Tobata Casting Co. LTD, and its company name was changed to Nissan Motor Co., Ltd. in 1934. There were numerous good and bad times the company has faced but it became consistently with the progression of time and now it has turned into one of the main company of making automobiles in the world. The following is a SWOT analysis based on the case study provided of Nissan Motor Co. LTD. Nissan has a number of strengths, one of the most important strength is that it operates globally. After the second world war, Nissan developed steadily, growing its operation internationally. It's got to be particularly fruitful in North America with a lineup of littler gas productive autos and little pickup trucks as well as sports coupe cars. Nissan was extremely remarkable for its advanced engineering and technology innovation, plant productivity, and quality administration. It is because the combination of these strengths the company has held its position over the world. The Nissan company has many strengths, on the other hand it also has weaknesses. One of these is that wrong estimation of customers wants. Customers like stylish, innovative cars, but Nissan thought they preferred good quality cars. As opposed to reinvesting in new product designs as other competitors did, Nissan management seemed to be substantial to keep on collecting the accomplishment of demonstrated outlines. The strategy of Nissan was focusing...
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...Introduction II. Definition a. Downsizing b. Restructuring III. Primary Issues (Part One) a. How to Downsize Effectively IV. Company Background V. Primary Issues (Part Two) a. General Motors: Restructuring VI. Conclusion VII. References Introduction Over the past eight years, our country has experienced a whirlwind of economic slowdown that has led to the restructuring of the way companies do business today. Gone are the days when corporate merger, acquisition, downsizing, and restructuring were few and far in between. The economic slowdown coupled with ongoing economic uncertainty has led many companies to adjust their organizational operations to a new level of efficiency. Words such as downsizing, rightsizing, restructuring, and reengineering are common vocabulary to corporate businesses of today. Other changes are brought on by the globalization of businesses and changes in the industries and markets. Regardless of the reasons, mergers and acquisitions are likely to continue into the next century (Boockholdt & Service, 1997). In this case study, we will discuss the organizational restructure that led to the downsizing of the company, General Motors. In the midst of economic uncertainty for the United States, General Motors has had to adapt to changes to recover from the damage of the existing economic recession. We will try to capture events leading up to the downsizing of the company as well as where the future...
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...world automobile industry as a whole, was struggling financially. The slumping economy had a significant effect on US automobile sales, with a 50% reduction year over year, negatively impacting company earnings. (Grant, 2010, p. 46) Reduced sales, emerging markets and increased competition created a changing landscape and financial sustainability issues amongst the market. These forces and Ford’s growth created excess capacity beyond consumer demand resulting in inefficient use of resources. Synopsis of the Case Ford and the collective automobile industry were faced with challenging times due to a US recession, resulting in reduced demand. This decline caused a focus shift from existing markets to new growth markets, such as Asia, Europe and Latin America. (Grant 2010, p. 48) Companies partnered with outsourced providers and adjusted operational methods in an effort to reduce costs. This growth partnered with a decrease in consumer demand resulted in high carrying costs across the industry. Relevant Factual Information about the Problem or Decision the Organization Faced The US automobile industry experienced a boom in the early-mid 1900’s, resulting in Ford and the industry growing rapidly. (Grant, 2010, p. 48) In order to meet the demand, capital investment in manufacturing capabilities was occurring. In the late 1900’s the industry began to see a decrease in US sales, culminating in the most unprecedented fall in demand in the industry’s history. (Grant, 2010, p. 46) ...
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...General Motors and the Auto Industry: A Strategic Analysis Drexel University Management 450 5/21/2009 Helena Boe, Diane Ketler, Nicole O’Keefe, Andrew Rubenstein, James Siverio Table of Contents Executive Summary 3 A Snapshot of General Motors Today 4 The Strategic Issue Facing GM: Avoiding Bankruptcy 5 The Economy Today 6 History of the recession 6 Economic Climate 7 Stimulus Package 7 Gross Domestic product 8 Inflation Rate 8 Unemployment Rate 8 The Auto Industry Today 9 GM’s Strategy 11 Threats Affecting GM 12 Threat of Rivalry 12 Threat of suppliers 14 Economic Threats 16 Threat of Substitutes 17 Threat of Buyers 18 Threat of Entry 20 Weakness of Internal Cost Structures 21 Government Intervention and the Restructuring of GM 22 GM’s Outlook/Recommendations 23 Works Cited 25 Executive Summary General Motors (GM) is one of the big three auto makers of the world (GM, Ford, and Chrysler) and has historically been the largest and most successful. They have built some of the most famous and classic vehicles on the road which have portrayed messages of both modesty and display of class for a market of consumers who range from working class to music superstar; as Alfred P. Sloan, CEO of the 1920s put it, GM makes “a car for every purse and purpose.” In recent years however, GM has taken an unexpected turn for the worse due to the changing economic climate that is affecting the world. Many economists argue that the US has been pushed into a...
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...were to survive. General Motors began to diversify by adding sever different names to the General Motors name, Chevrolet, Vauxhall, and Opel. These lines made added to the reach of GM. The GM motto was “a car for every purse and purpose”( http://www.gm.com/company/historyAndHerit age/acceleration.html). By becoming so diverse, GM proved to the world that the automobile was more than just a means of transportation. By the 60’s GM was facing new challenges and new changes. Environmental concerns were becoming more apparent, and the foreign market played a role in GM’s downsizing of its automobiles. In order to stay diverse and competitive GM was forced to reengineer many of its models. By the 1970’s, GM once again proved diverse and cutting edge ability by introducing the first engines to run off low lead, or un leaded gasoline. GM was beginning to understand that in order to stay diverse and competitive it had to keep up with the market. By being so revolutionary in the manufacturing of automobiles other companies began to try to achieve such competitiveness. With World War II well behind them and fuel prices rising, both Germany and Japan began exporting vehicles to the United States that were more fuel efficient and the American public welcomed...
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...of its customers work or go to school; those locations include universities such as ECU, medical centers including Vidant Medical Center and various government organizations within the city center. The auto shop is family owned and operated, and, since its establishment in 2008, has expanded to include 6 lifts and has gone from a staff of 2 full time employees to 6; a part time shuttle operator also works on Mondays and Fridays. Much of the diagnostic equipment needed for servicing vehicles is owned. Currently, Import Services feels that their current location is operating near or at capacity, both within the shop and outside where parking and storage are very limited. Said shop is also rented, so options are limited at the moment regarding any upgrades. While not a one-stop-shop for all automotive needs (such services as tire replacement, wheel alignments, body work and upholstery replacements are not offered), Import has positioned itself in the niche market of import and high end vehicles. While they market themselves as such, due to clients owning both foreign and domestic vehicles, Import does service domestics. The ambition of Import Services is not to widen the services provided to domestic vehicles, but to offer a greater amount of services to the niche market which they already serve. Due to the constraints of ownership over the current facility and the lack of expansion opportunities which that presents, Import is exploring options regarding new locations in...
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...R e se a rc h a n d Stat i s t i c s B r a n c h working paper 16/2009 Impact of the Global Economic and Financial Crisis over the Automotive Industry in Developing Countries UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION RESEARCH AND STATISTICS BRANCH WORKING PAPER 16/2009 Impact of the Global Economic and Financial Crisis over the Automotive Industry in Developing Countries Peter Wad Copenhagen Business School UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna, 2010 This paper was prepared by Peter Wad, UNIDO consultant and backstopped by Nobuya Haraguchi, UNIDO staff member, Research and Statistics Branch, Programme Coordination and Field Operations Division. Iguaraya Saavedra provided administrative support. The designations employed, descriptions and classifications of countries, and the presentation of the material in this report do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. The views expressed in this paper do not necessarily reflect the views of the Secretariat of the UNIDO. The responsibility for opinions expressed rests solely with the authors, and publication does not constitute an endorsement by UNIDO. Although great care has...
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...find suitable markets for expanding his granite rock business profitably by relinquishing some control of his business. Mr. Hyland is also concerned with achieving a balance between his local business interests and family life in Canada. Alternatives 1. Keep ongoing operations as is (status quo) 2. Service Boston, Hamburg and London only 3. Expand to Tokyo and Amsterdam (in addition to Boston, Hamburg and London) Facts considered 1. There is a significant household gardening market, especially in USA 2. The local Canadian gardening market is saturated 3. The need to localize MNG’s granite products in international markets 4. The trading advantages for MNG brought about by NAFTA 5. The rising cost of auto-propane fuel 6. Mr. Hyland is fluent in English and French 7. Mr. Hyland plans to balance his local business and family life Recommendation After much careful analysis of Mr. Hyland’s primary problem, the recommended plan of action for Maynooth Natural Granite is to expand to Boston, Hamburg and London only. Assumptions * Declining profit margins for MNG, since the local Canadian market is saturated * High possibility of stronger brand recognition in North America largely due to the benefits of NAFTA * Little brand recognition beyond Ontario, since MNG has not yet expanded overseas * Higher prices for MNG products due to the rising cost of auto-propane fuel * Similar tastes in gardening markets in both Ontario...
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... The Republicans combined both wars as one in the same and Bush continued to push to America that he would not stop until the world was free from terrorism. He already had a popular backing after Sep 11, 2001 and he held a popular margin vote in the Gallup polls going into the 2008 re-elections . This poll was America’s opinion on who they were in favor of handling the war on terrorism; Bush was winning 54% to Kerry’s 37%. The final factor important to voters was the state of the economy. If the economy continues to be steady or slightly on the rise then voters look for reasons to continue the in-party’s tenure. 2008 was a different story. The economy was spiraling down leading up to the financial crisis in America. The housing market was crashing, jobs were being lost, and two costly wars in Iraq and Afghanistan were ongoing. America felt the republican parties priorities had shifted from interest of the people, to their own political gains. Barack came into the campaign vowing to bring our troops home. He Spoke to the people saying the focus had been lost and the focus needs to be America and fixing the economy and increasing job opportunities for all. He...
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...The 2008 Collapse of Chrysler Melinda A. Dobson MGT 435 Organizational Change Robert Hamamoto November 18, 2011 The 2008 Collapse of Chrysler Beginning in the late half of 2008, a global recession hit the economy of the United States. With a combination of several years of declining automobile sales and the limited availability of credit led to a more widespread crisis in the United States auto industry in 2008 and 2009. Soon after the dramatic decline in sales, the U.S automaker, Chrysler, requested emergency loans from the government in order to stay afloat. In 2009, Chrysler’s situation had gotten worse and was faced with imminent bankruptcy and liquidation. With that being said, I would like to discuss the changes that have been implemented to Chrysler, identify new changes that still need to be implemented and assess the effectiveness of the change and the potential benefits of the new changes. Chrysler is an American automobile manufacturer that has built automobiles since 1925 and was the second largest automaker between 1936 and 1949. After a merger with Daimler-Benz Corporation in 1998, Chrysler was part of the German based DaimlerChrysler now known as Daimler AG. Chrysler suffered from poor management and lack of investment until 2007 when the company was sold to Cerberus Capital Management. Under DaimlerChrysler, the company went by the name of “DaimlerChrysler Motors Company LLC,” with its U.S operations referred to as the “Chrysler Group.”...
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...escaped bankruptcy of the Big Three among the automobile industry by June 2009, Ford suffers $14.7 million loss of revenue and elimination of stockholders’ equity due to the record-breaking fall in demand for 2008,US. However, to understand Ford’s position today requires understanding the American automotive industry. * General Industry analysis * From 1900-2008, US motor vehicle production has a rapid increase to9, 000,000 from 1900 to 1967, after not, there is a graduate decrease to 3,000,000 until 2008. At the mean time, the median age of passenger car in US was Spiral upwards. Combine the two phenomenon, we can get that the automobile industry market is quite saturated and the demand fell down. Regard to the automobile manufacturing technology, despite less differentiation between manufacturers due to the converge of technologies and design, the technological progress was incremental and lead to the various segmentations in each country. Follow the two situations, there are 3 big issues were emerged. One was the deep demand of auto cars result in excess capacity. Another one issues was the high cost among the technological development. Last one issue was the lacking differentiation. However, it also offers automakers new product segmentations and market. For an insightful analysis, we need to look at more information in details. * Porter’s Five Forces First of all, we can get a comprehensive industry environment analysis through the Porter’s Five Forces. In terms...
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...and Theme In 1950 U.S. steelmakers dominated the world market. By 2000 global productivity increased and foreign steelmakers had entered the United States market causing what was perceived as a threat to domestic businesses. At this time, American steelmakers pressured the United States government to provide protection from imports leading President George W. Bush to put in place steel import tariffs under Section 201 of the 1974 Free Trade Act by March of 2002 (Robertson 2002). These protectionist measures imposed an average 30 percent tariff on selected foreign steel entering the United States. During negotiations, The International Trade Commission (ITC) recommended imposing a 40 percent commission while some extremists proposed 80 percent (Ho 2003). Although steelmakers were content with the implementation of the tariff as it provided some relief from imports, critics argued against the effects it would have on steel consuming businesses (Carbaugh 2011). The American Institute for International Steel (AIIS) felt that this tariff did not support free trade. The AIIS also believed that the steel tariff did not force companies to work in a price-competitive environment. David Phelps, president of the AIIS, believed in survival of the fittest. Phelps said that without protections such as these, strong companies would survive and weaker players would be eliminated (Robertson, 2002). With the key arguments from the U.S. auto makers, tariffs from some steel were revoked as it would...
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...attention Congress is devoting to the critical issues that confront the domestic automotive industry in the current economic environment. In this submission, we first provide an overview of the current business environment, then discuss our Plan for viability, and conclude by answering the specific questions posed in the correspondence received from Speaker of the House Nancy Pelosi and Senate Majority Leader Harry Reid. We all have a shared interest in protecting American jobs, a vital American industry and American innovation. As the Committee knows so well, the ongoing economic and credit crisis has affected many Americans – from losing their jobs to losing their homes. The recession also has had very negative ramifications for the U.S. auto industry, which supports five million jobs in all 50 states and spends $12 billion annually on research and development in the U.S. – more than any other industry. We fully appreciate that the industry needs to transform itself to better compete by developing safer, greener and even better quality vehicles. We recognize Congress’ important role as guardian of the American taxpayers, and we hope in our submission that we address your valid concerns about our potential for future viability and restore your confidence in our commitment to bring change and accountability. As a company and as an industry, we readily admit that we have made our share of mistakes and miscalculations in the past. We would ask Congress to recognize, however, that...
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