A Downsizing Strategy at Archer Corp

question 56

Multiple Choice

A downsizing strategy at Archer Corp.has resulted in negative stock returns and lower profitability following the layoffs.Which of the following best explains the reason for these negative results at Archer?

• A) Downsizing tends to distinguish good performers from poor performers rather than eliminating an entire group of employees.
• B) Downsizing demands the HR department have a third-party vendor provide services, which results in lower revenues.
• C) Downsizing conducts a complete review of the organization's critical work processes, which results in heavy expenditures.
• D) The HRM of a firm is not authorized to provide downsized employees with outplacement services to help them find new jobs.
• E) When labor costs fall after a downsizing, sales per employee also tend to fall.

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Definitions:

Aggressors

Aggressors are individuals or entities that initiate hostility or conflict, often without provocation.

Institutional Investors

Organizations that invest large sums of money into securities, real estate, and other investment assets.

Shares

Units of ownership interest in a corporation or financial asset, which provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Merger Control Statutes

Laws and regulations that govern the merging of companies to prevent anti-competitive practices and ensure market fairness.