Downsizing

Industry downsizing has been a major part of the corporeal world, even political relation agencies are downsizing. GovernmentExecutive.com covers the business of the federal brass and its huge departments and agencies - dozens of which dwarf the largest institutions in the private sector on its website. Read the assigned Government Executive member and answer the following questions: Which industries have substantially reduced improve cost commitments? Do you believe this reduction in cost has substantially impaired the ability of these industries to meet the needs of their customers? It appears that both privite and public sectors are reducing fixed cost. According to Ciccotello and Green, the technology, auto, and government industries have substantially reduced fixed cost. The specific examples referenced in the article, Industrys Downsizing Lessons, were IBM, Honda, and the DoD; in some cases the downsizing has been beneficial and in others it has been detrimental. DoD has interpreted the lead in the current round of federal downsizing, instituting some(prenominal) initiatives to reduce permanent staff positions, rely more than on temporary help and outsource production.

Honda make large cuts in its permanent engineering staff in response to the more volatile sales environment for automobiles since the mid-1980s. These cuts left Honda unable to withstand pace with its competitors in the design of new automobiles. The results have been the detriment of market share and profit for Honda, which now faces the difficult depute of trying to catch up. The consequence of cutting fixed costs too far could be even more sedate for a government enterprise like DoD. The computer manufacturing is rapidly changing technology is causing companies to reassess large, fixed-cost commitments. As a result, evidence of decreasing operating leverage in this industry abounds. Many large computer firms have made dramatic cuts in permanent staff. Standard and Poors reports that IBM had more than 370,000... If you want to get a full essay, order it on our website: Orderessay

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