downsizing

STRATEGIC CAUSES AND OBJECTIVES OF DOWNSIZING There are various strategic reasons for organizations to downsize. They include: acquisitions and mergers, to avoid bankruptcy, to prepare for privatization and to reduce costs to remain competitive in an increasingly competitive and global economy (Labib & Appelbaum 1994, p.61). Acquisitions and Mergers Downsizing usually results following an acquisition or merger. Duplicate and redundant functions are eliminated in an attempt to consolidate all operations in order to achieve synergies. The resulting …

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