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Excerpt coming from Essay:
Mergers, Acquisitions and Downsizing
How does the role of a company’s motivation determine the selection of a business effort of a merger, acquisition or a downsizing? Your answer should certainly summarize the role of the economies of scale and become adapted to include a corporate example (current or perhaps past employer should be utilized).
The current workplace that will be evaluated is just how various services are delivered to the public from local government officials. During this procedure, there was a spotlight on downsizing various departments and blending others jointly. This is illustrating how managers are focusing on reducing costs and elevating the quality of providers being offered. In most cases, which means that many applications are known and the position of government (as a part of reaction) is generated within question. Since the traditions of providing various solutions and growing the number of applications, has not properly addressed the underlying difficulties impacting municipalities. Instead, it has increased the total amounts of expenses and led to many areas experiencing a declining taxes base. This is certainly problematic, as they issues have forced many governments to deal with long-term money issues. (DiNapolli, 2009) (Preed, 2007) (Stanley, 1992)
To deal with these challenges, a larger number of entities are utilizing economies of scale to change their role and redefine the kinds of providers that are delivered. This is when there is a focus on lowering the costs of producing different product or service. In the past, these ideas have already been utilized to include a positive effect on private organizations. As they had been able to decrease their bills and increase productivity. During the period of time, it will help to make such organizations more effective. At the same time, they are providing the population with more expensive products and services in lower prices. This creates a earn – get situation for all by responding to these essential needs. (DiNapolli, 2009) (Preed, 2007) (Stanley, 1992)
Evidence of this can be noticed with observations from Aaker (2001) who have said, “What matters isn’t the label; it can what’s included. The idea at the rear of the cost of items sold is always to measure each of the costs straight associated with making the product or delivering the services – the materials, the labor etc. ” (Aaker, 2001, pg. 55) These kinds of ideas are displaying how the community is concerned regarding the quality of products or services to address their particular underlying needs. Those organizations that are able to accomplish these objectives will reduce their costs as much as possible. As a result, various kinds of non-profit and government entities had been following this case in order to know greater rewards for everyone. (DiNapolli, 2009) (Preed, 2007) (Stanley, 1992)
Different governments will be incorporating these types of ideas into the services they are really providing to stakeholders. The way that this is usually achieved can be administrators have already been seeking
