The most critical issue currently facing management, in my opinion, is the economy. The nation’s current economic standing is requiring companies to operate under tight financial constraints. I chose this topic simply because it is evident, through reports of huge job cutbacks and closings of several stores and manufacturing plants, that companies are suffering. It appears the global economy is moving towards a recession.
The economic standing of the United States has changed drastically within the last year due to varying factors such as the War in Iraq, heavy natural disasters and unethical practices from major financial institutions. All these significant factors combined are causing businesses to experience huge financial burdens just trying to maintain simple day-to-day operations. It is vital for a business to have sufficient plans in place to survive during critical financial times and taking action toward economic revival falls heavily on management as it tries to come up with innovative ways to “do more with less.” The key to survival is to come up with ways to weather the economic storm until the economy improves. Currently, organizations are identifying the problems caused by limited financial resources and are discovering low-cost ways to create and market their products and services. One prime example of this is the Starbucks Corporation. Starbucks has decided to change the scheduling system of its employees so there will be fewer employees working more hours at its coffee shops. This new program was created in effort to reduce labor costs and improve sales by focusing on familiarity between the company’s customers and its employees. A smaller group of employees creates a more inviting and caring atmosphere therefore more patrons are more likely to visit the stores and purchase its unique coffee products. Many organizations are using this crucial time to also analyze their business practices, streamline operations and come up with...
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