Ch.14 Strategy Downsizing & Bankruptcy Verified Test Bank - Test Bank | Health Biz Strategy 2e Moseley by George B. Moseley. DOCX document preview.
CHAPTER 14 TEST BANK
Chapter 14. Strategic Planning Options: – Downsizing, Divestiture, and Bankruptcy
1. Under what circumstances should a business consider a significant modification of its organization design?
2. Describe three situations in which an organization may feel that it has to reduce the size of its workforce (i.e., downsize).
3. Name three strategies an organization could implement to avoid downsizing.
4. What are three costs (financial and otherwise) associated with downsizing that make it a questionable strategy?
5. What is the difference between divestiture and closure? Under what circumstances would an organization make one of these strategic choices?
6. Offer some recommendations for how to carry out a divestment. Which units will be divested? To whom will they be divested? How will the public relations surrounding the decision be handled?
7. There are two kinds of bankruptcy proceeding – Chapter 7 and Chapter 11. What is the difference between them? When are they most likely to be used?
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