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
    • 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%


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