Productivity and Strategy; Manufacturing To maintain profit growth, several manufacturing companies have responded to the recession by cutting jobs. After the 2008–2010 recession,for example, Harley-Davidson reduced its workforce by 1,400 in one year and 1,600 more in thenext year. As sales declined, the company reduced labor capacity at many plants. The same is trueat General Electric, Texas Instruments, Coca-Cola, and many other companies that have reducedcapacity at certain plants, closed selected plants entirely, or dropped product lines. In many of thesecompanies, the profits are held as cash, and the companies are holding off on making any new investments until economic conditions improve. Some analysts say the companies are just shrinking theiroperations to match the decline in expected future demand; the companies are profitable but smaller.Required1. Do the actions by these companies support their long-term strategies?2. How do the productivity gains at these companies affect profits in the short-term and long-term?
Productivity and Strategy; Manufacturing To maintain profit growth, several manufacturing companies have responded to the recession by cutting jobs. After the 2008–2010 recession,
for example, Harley-Davidson reduced its workforce by 1,400 in one year and 1,600 more in the
next year. As sales declined, the company reduced labor capacity at many plants. The same is true
at General Electric, Texas Instruments, Coca-Cola, and many other companies that have reduced
capacity at certain plants, closed selected plants entirely, or dropped product lines. In many of these
companies, the profits are held as cash, and the companies are holding off on making any new investments until economic conditions improve. Some analysts say the companies are just shrinking their
operations to match the decline in expected future demand; the companies are profitable but smaller.
Required
1. Do the actions by these companies support their long-term strategies?
2. How do the productivity gains at these companies affect profits in the short-term and long-term?
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