TAILIEUCHUNG - Resizing The Organization 21

Resizing The Organization 21. This book seeks to provide executives with useful insights, tools, guidelines, principles, and lessons learned about organizational transition and change. | Resizing and the Marketplace 181 motivations and actions focused mostly on how to exploit the resizing firm and its employees and customers. With regard to performance outcomes firms in quadrant 2 may experience growth at the expense of the resizing rival but they run the risk of losing their employees and customers to the rival or to other competitors. Firms in quadrant 3 may protect their employee and customer base but they run the risk of experiencing below-average growth since they are not attempting to exploit merger-based growth opportunities. Businesses in quadrant 1 run both of the above risks and are likely to experience below-average growth. Companies in quadrant 4 have the greatest chance to protect their own employee and customer base while reaping the benefits of above-average growth at the expense of a rival s resizing effort. Implications for Resizing Organizations This study provides some important implications for both managers and competitors of resizing companies. First resizing company managers must be mindful of the growth opportunities afforded their competitive rivals by their own efforts. Rivals of resizing firms must be aware of these opportunities as well as be ready to take purposive action to exploit them. second resizing managers and competitors must recognize that customers are the key to reaping the benefits flowing from a resizing effort. Although it is important to focus attention on customers of a resizing company and understand the nature and sources of their patronage it also is critical for rivals of the resizing company to not take their eye off the ball with regard to current customers. Another clear implication is that employees of the resizing organization are the primary source of customer satisfaction or dissatisfaction. Thus resizing company managers need to be careful in their planning to understand and appreciate the effects of the resizing efforts on their employees especially employees in customer contact positions. .

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