You are on page 1of 6

CASE DOWNSIZING DECISION

PRESENTED BY:
HARSH JAIN PGDM, ROLL- 5130

ABOUT- DOWNSIZING
A downsizing strategy reduces the scale (size) and scope of a business to improve its financial performance. A reduction of the workforce is one of only several possible ways of improving profitability or reducing costs.

Continue
Why do Firms Downsize? Reduce costs Reduce layers of management to increase decision making speed and get closer to the customer Sharpen focus on core competencies of the firm, and outsource peripheral activities Generate positive reactions from shareholders in order to improve valuation of stock price Increase productivity

SWOT ANALYSIS
STRENGTHS:
 Performance of Switch gear and connectors division are highly satisfactory.  Company still working with 35 year experience and has 40150 employees on its roll.

WEAKNESS:
 Underlying strengths but are not using in a significant manner.  Performance of wire and cable is not upto the mark, and diversified products is inconsistant.

Continue..
OPPORTUNITIES:
 Market avenue.  Creating a good position in market.

THREATS:
    Falling stock prices. Defection of clerical staff. High cost and least profit. Reduction of EPC staff.

STRATEGY OF NAVEEN MEHTA


Reducing high cost. More concentrate on those products which have a more profit. Eliminate wire, cable and diversified products. Relocation of employees.