ENG315 Week 5 Discussion Questions

During an economic downturn a firm must carefully consider its options and assess the feasibility and applicability of cost-reduction alternatives before deciding on layoffs. It is critical for an organization to factor in the concept of cost-reduction and to recognize the specific cost-reduction stage that characterizes the firm’s current business position and environment. A firm needs to determine the expected duration of the business downturn, and In order to do so successfully, the executive manager must know exactly where the firm is in its cost-cutting stage. A firm’s cost-reduction stage, by definition, refers to the timeframe the company requires to be able to reduce operational expenditures successfully.