Business Paradigms - Business Paradigms Key Point 1: How...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Business Paradigms Key Point 1: How Corporate Restructuring affect our society? In the 1990s, restructuring of companies are reporting in newspapers and magazines almost daily. In 1995 alone, domestic mergers totaled more than $ 450 billion. In just the first week of the second quarter of 1996, merger activity totaled $ 28.3 billion. To cite a couple of companies that participated were Bell telephone systems and AT & T. Pros and cons come from such large mergers and acquisitions. A good aspect that comes from the merger of Bell was that they were capable of serving 30 million residential and business customers in seven states west of the Mississippi. On the other hand, a negative aspect that came from the merger is that many times, after the merger had taken place, the companies decided to reduce the size to make more efficient their new ventures. Long time employees are being dismissed from the company. Investors and analysts alike, seemed to respect the companies that inflicted the deepest cuts and fired as many workers. Executive pay rose along with corporate profits and productivity. Compensation packages for dismissed workers were linked to job performance. This created an enormous amount of hostility. The merger has also created fear among employees. Fear of job loss eroded the loyalty between employees and their companies. Mergers, however, are sometimes unavoidable. Companies must find ways to remain competitive, not only international but worldwide. Key Point 2: Management of social response Large companies are responsible for providing the consumer a safe and reliable product. They are also legally obliged to ensure that the company is to offer the consumer what the consumer gets. Take the video of its kind in the U-Haul, for example. U-Haul said that each car is inspected regularly to ensure the safety of customers. The inspection record should note a recent date the last inspection. A team of reporters visited a number of U-Haul affiliates in the United States. The results were shocking. Was found after professional mechanics inspect the vehicles, most were unsafe to drive. This negligence on the part of U-Haul's life puts consumers at risk. It has become a big problem after several deaths due to negligence of the vehicle is U-Haul. Laws should be stricter than those companies offering this type of service to consumers. Key Point 3: Conduct Code of Ethics and Business (Nuclear Energy) The debate over whether nuclear power is a socially acceptable form has gone on for years. Recently, it has become very questionable from the initial perception. The chaos of Three Mile Island became passive actors active opponents of the development of nuclear energy sources. In 1986, the disaster at the plant Chenobyl in the former Soviet Union further strengthened the position of the forces of anti-nuclear power, especially here in
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/20/2011 for the course BUS 475 475 taught by Professor Webster during the Winter '09 term at University of Phoenix.

Page1 / 4

Business Paradigms - Business Paradigms Key Point 1: How...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online