Quick Question!!!!

[peterle1]

Describe how one external factor might cause downsizing to occur and suggest an alternative response by management other than downsizing.

thanks guys

[Deadshot]

Macro environment; Economic pressures, causing profit levels to drop. ect

As for the downsizing, not to sure, perhaps offering bonuses for efficiency improvements?

Not 100% sure however

[observer7]

Operating: Competition, also causing profits to reduce ^

Strategy; might be to look into new markets to expand operations to increase revenue/profit

[RossiJ]

External operating factors: competitors (remain competitive by reducing costs associated with labour)
External macro factors: Economic (the GFC is a prime example which saw our unemployment rate go above the government's goal of 5% in 2009)

An alternative response would be to decrease production costs another way (in the short run), i.e. - as "observer7" stated, look into new markets to expand operations. Ultimately resulting in increased profits and revenue.

However, a long term strategy could be the incentive to invest in improved technology which in the long run will raise efficiency/productivity and therefore profitability of the firm will improve as a result

(( << Don't state that investing in technology will result in decreased jobs as this is not true ))