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Assessing the Strategy-Culture

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1. List the six guidelines proposed for successful downsizing, and explain the importance of each
one.

2. Wheelen & Hunger(2010), points out the importance of assessing the strategy-culture compatibility when
implementing a new strategy. Do you feel that culture follows strategy, or does strategy follow culture? Justify your answer.

Rerefernce:
Wheelen, T. L., & Hunger, D. J. (2010). Concepts in strategic management and business policy (12th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.

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1. List the six guidelines proposed for successful downsizing, and explain the importance of each one.

Let us discuss each guideline one by one.

1) Eliminate unnecessary work instead of making across the board cuts- In order to reduce costs, organizations should not make across the board cuts. Instead, they should identify and eliminate those activities or tasks that are being unnecessarily included in the organization's processes and systems. This will help in reduction of labor costs in an efficient manner and will help in eliminating those costs that are being unnecessarily incurred by the organization. It is better to eliminate the task and not the workers by identifying unnecessary tasks and activities.

2) Contract out work that efficiency- It is important to outsource work that others can do in a cheaper manner. Outsourcing or subcontracting of work allows an organization to focus on its core competencies.

3) Plan for Long Run efficiency- It is important for organization to think and plan from longer term perspective. Organization should not focus on short term goals and objectives, such as achieving short term cost reductions by postponing expenses. They should plan for achieving long run efficiency by continuing to grow and develop the organization in ...

Solution Summary

Discusses guidelines that helps in successfully downsizing in an organization. Also highlights the importance of each guideline.

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