In the past the company has been operating successfully with healthy profits, however in the recent turn of events the President of US has mentioned that he would be bringing theUSarmy troops back home. The statement of the president along with the current financial crisis that is being faced by the economies all around the world presents a major setback for the XYZ Company and its operations.
Due to the plans for limiting US Army activity in the international regions, the overall activity and job undertaking by the XYZ company is due to decrease. Aside from this the transportation contracting XYZ Company would be facing limited sales of its services. The US Army would be cutting down on the contracts that it gives out which can considerably decrease the budgets available to the contracts for operations. This compiled with the prospective cut in the defence budget does not bide well for the XYZ Company and its operations.
The effects of the environmental changes with the President’s declaration for bringing home the US troops, the looming financial crisis and the credit crunch means that the XYZ company will have to significantly limit its operations and expenses and induced in drastic actions like restricting the business processes, decreasing jobs and increasing unemployment by downsizing that can in turn effect the commitment and the workforce of the human resource employed at the XYZ company.
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