Explore BrainMass

Business Management

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Three movements in corporations are likely to affect the nature of corporate strategies. These are (1) corporate downsizing (reduction in staff), (2) outsourcing (focusing on one's core competencies and letting other firms sustain the other elements of one's business), and (3) re-engineering (a radical redesign of business processes to cut costs or gain in service and time). What are the repercussions of these three movements for your organization, your competitors and your customers? What role does information technology and software play in these changes? What effect do these changes have on the generic and functional strategies of your organization? How would you as a strategic manager address these changes within your organization?

© BrainMass Inc. brainmass.com March 21, 2019, 6:32 pm ad1c9bdddf

Solution Preview

The response address the queries posted in 1053 words with references.

// In this paper, we will discuss three major decisions that are affecting the 'Nature of the Corporate Strategies', these are Corporate downsizing, Corporate re-engineering and Outsourcing. We will discuss; how to address the changes in the organization and outside, effects on customers and competitors and managing these changes: //

To understand the outcomes of corporate downsizing, Outsourcing and corporate re-engineering, we first, need to understand the meaning of these terms. Corporate downsizing refers to a methodical reduction in the workforce of an organization, with the basic idea of reduction in costs and improving the effectiveness of the organizational processes. Outsourcing is defined as the reliance on external sources for manufacturing components and other value adding activities. These services are essential for doing business; but are not the core functions of the firm (Advantages and Disadvantages of Outsourcing, n.d.). And, business re-engineering is the radical redesign of business processes for the purpose of cost-cutting or for achieving excellent results in the organization's performance. It includes identifying the organizational processes and making them highly efficient.

// After gaining an understanding of the terms, it will be easy for us to understand the repercussions for the organization, competitors and customers. We will look at the reactions of these three that follow: //

Now, the degree to which, a business gets affected may differ according to the type of the business and its working. For some firms, these operations may be successful and unsuccessful for others. Downsizing may be done to maintain the profit levels, when, the demand for a product or service declines, to stop the business from a subsidiary or as a result of merger with a company. The employee reactions are not very favorable in the case of downsizing, there may also arise some legal implications of the ...

Solution Summary

The response address the queries posted in 1053 words with references.