Of a Business? [25] 2. What Side-Effects, Other Than on Levels of Employment, Might Widespread Downsizing Have on the National Economy

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INTERNATIONAL SCHOOL OF BUSINESS, KOLKATA
POST GRADUATE DIPLOMA IN MANAGEMENT
SEMESTER – 2 [SUPPLEMENTARY ASSESSMENT]
MACRO ECONOMIC ENVIRONMENT
(PGM11206)
ASSIGNMENT

❖ Hard Copy version to be submitted to the Examination Department within the specified due date. The work should be original and not a copy job, plagiarism check would be done during evaluation and if found, shall be penalised.

❖ Mention the following information in the First page of your Assignment: Name
ISB Registration No.
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Semester
Subject Title
Faculty Name
Date of Submission

❖ Page Content Guidelines:
Font: Times New Roman
Font Size: Heading – 16; Sub Heading – 14; Body - 11 Page: A4
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Page No.: Each page should have proper page no.
Page Limit: No limit but Accurate but precise answer will be given weightage

❖ Max. Marks: 50 (Answer all questions)

❖ Faculty Name: Mr. Rabin Mazumder

❖ Last Date of Submission by student: 18th December 2012

Questions:

Read the Case as mentioned below and the questions that follow:

Downsizing and Business Reorganisation: The case of IBM

During the 1980s and 1990s many businesses, especially in the USA, undertook large-scale reorganisation. One result was mass redundancies, as major corporations attempted to ‘downsize’.

The initial wave of downsizing consisted mainly of companies which were suffering from falling profits. Their objective was to reduce costs and thereby bolster their profits. Later, downsizing began to be practised by companies doing well in their various markets. These included companies such as General Electric (104 000 redundancies between 1980 and 1990), Procter and Gamble (13 000) and AT&T (40 000). Such companies practised downsizing not out of desperation, but as a means of improving their performance. By reducing the size of their headquarters...
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