Retrenchment BUSS4 examples
- Created by: Amy Bird
- Created on: 15-06-13 13:18
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- Retrenchment
- Sony
- Too bureaucratic failed to change to keep up with technological change
- Failed to keep up with businesses such as apple
- Diversified into too many industries, lost its core business
- 10,000 jobs will be cut (6%) over 12 months, with no profit business sections
- TV will be kept but fixed cost cut by 60% and operating costs by 30%
- Now focus on smart phones, games, cameras and tablets
- Problems from the economy
- Too bureaucratic failed to change to keep up with technological change
- Thomas cook
- change in customer demand
- holiday makers want more personalization in holidays
- made easier with the internet
- Previous strategy of cost leadership with low operating costs, high asset turnover and control over the supply change is no longer effective
- need to differentiate
- Closing 200 of 1350 stores and cutting 1000 jobs
- Employees no longer allowed staff discount
- Winter capacity cut from 41 to 35, 500 hotels removed from catalogues
- Hewlett-Packard
- Technological change
- Ipad is reducing HP sales
- Want to focus on a simpler business, cutting 27,000 (8%) of staff
- Considering exiting the PC market
- Thorntons
- Change in customer demand
- Change in consumer behaviour, high streets suffering
- Due to the internet
- Thorntons have halved their stores to 364,1000 jobs have been cut
- Sales have fallen by 12.6%, however sales of supermarkets grew by 25%
- Sony
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