The main stakeholders of any company are its customer, its suppliers, and its creditors, the banks in case of any loans, the employees, and the board of directors as well as the management. In the case of the XYZ Company the stakeholders of the company include the shareholders of the company, customers and clients that compose of the US army as well as other contract offering organization, the suppliers of the company that include the logistic support and equipment suppliers and the inventory suppliers. The board of directors and the management along with the staff and the human resource employed are also the stakeholders of the company.
The impact that downsizing would have on the stakeholders can be varied, but the overall effect would be negative as downsizing tends to increase negative sentiment. The shareholders of the company would be facing decreased revenues generated from decreased overall productivity and the slowdown in the operations of the company. The downsizing would decrease the costs associated with human resource management however it is not a sustainable strategy. The clients of the company would be considering the image and the financial position of the company as to what could lead the XYZ Company do take the drastic step of downsizing. The most impact however would be born by the human resource of the company that would depict negative sentiment towards management, low satisfaction of work, low motivation to work and increased job insecurity.
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