Proposal for a Downsizing Program

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Recommended: Attractiveness of the telecommunications industry

Proposal for a Downsizing Program

1.1 Main aims and Objectives

This report is to recommend a downsizing programme which is built upon the companies previously agreed redundancy programme and to carry out a cut of 50 employees within the production and distribution department, these cuts will also include job redesign. The downsizing recommendations for the remaining departments will follow in a different report. The downsizing programme also aims to work with the union and non-union members in a consultation process to ease the transition.

1.2 Competitive Environment

The telecommunications industry is changing creating the need for a more competitive company. The changes that are happening are that there is greater competition in the market with foreign firms such as China Netcom and China Telecom are entering the UK market[1] increasing the number of firms. Also the European Union is looking to improve competition by breaking open the telecommunication markets further by giving national authorities stronger powers[2]. The type of competition is also changing in recent times as firms grow in size and capability as they merge. The recent trend being the buy out broadband and telephone companies so that firms are then able to offer bundled services[3].

1.3 Company Profile

Terrible Phones 4US is situated in Conwy North Wales. The main site is to the North Western edge of Conwy on Bangor Road the opposite side of the A55 to the Conwy golf club. Terrible Phones 4 US employees 360 people with a breakdown below:

|Department |Employment Numbers |

|Production |300 ...

... middle of paper ...

...] FT 2007 “China Netcom to open London headquarters”

[2] FT 2007 “Bandwidth Banter”

[3] FT 2007 “Mobile phone spending falls”

[4] www.emplaw.co.uk 2007 “Basic Position”

[5] International Mining case study 2006

[6] Band, D. and Tustin, C. 1995. “Strategic Downsizing”. Management Decision 33(8).

[7] Singh, H. 2003. “Managing Downsizing Exercise”

[8] Financial Adviser 2003 “Making early retirement work… difficult to achieve”

[9] www.nhspa.gov.uk 2007 NHS Pension Scheme

[10] Wenatchee Business Journal 2002 “Downsizing has its own downside; On Profits.”

[11] Wenatchee Business Journal 2002 “Downsizing has its own downside; On Profits.”

[12] Apparel Inc. Case Study 2006

[13] Daily Post 2007 “170 jobs lost as factory closes”

[14] Labib, N. and Appelbaum, S. 1994. “The Impact of Downsizing Practises on Corporate Success”. Journal of Management Development 13(7).

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