Create an outline for how you would communicate and manage each of the following

Question

Create an outline for how you would communicate and manage each of the following scenarios:

1.In spite of heavy investments into new technology, you must report to shareholders that your company’s profits have fallen 20 percent.

2. Last month, because of increasing losses, management concluded that the only way to save the company would be layoffs. In just four days, on-third of the entire company would be let go. What no one expected, however, were the negative effects of the layoffs on those who still had their jobs. They were afraid that the layoffs would not stop with one round. They were worried that they would be asked to do much more work for not much more money. But most of all, they felt guilty, since they still had jobs while their friends would have to struggle through unemployment.

3. How would you motivate the workers in this company to do their very best?

Please answer thoroughly and dont copy and paste.

Explanation / Answer

Q1) Shareholders are the stakeholders of the firm who invested in the firm with an objective to generate high returns on their investment. Hence, a shareholder will always look at the financial performance of the firm of which profit is the most important value for the firm's growth which results in an increase in its valuation in the market.

Considering the scenario where inspite of heavy investments into new technology, the company's profits have fallen 20 percent and the same needs to be communicated to the shareholders as below -

Investment in new technology initially would incur huge amount of costs and adoption of the same by the employees will take some time due to the learning curve involved due to which the profits are not very encouraging this year. Also, the technology is slowly getting sychronized with the processes to deliver high performance and increase in efficiency. That said, once the technology becomes stable in the next year or so, we are expecting to reap in huge benefits in the form of lowered costs as well as increased sales. Hence, we forecast to breakeven on the investment in the technology in 2-3 years from now post which we are expecting an increase in profits. At this moment, we are completely focused on technology adoption and resource training.

Q2) Below is how the workers who still hold their jobs can be motivated, considering around one-third of them are fired owing to the increasing losses for the firm -

The management needs to commuicate to the workers clearly the various issues it has been facing with the increased losses due to which it had to take the toughest decision to fire some of the employees. It should take a while for the firm to stabilize and get on track but we are confident of the turnaround in the next 1-2 years which can only be possible with all your hardwork. We assure you all of bright future and development in the firm while the only ask is to be motivated and perform well. We are trying our best to avoid further layoffs and we now are left with the best of the employees in you. Hence, we request you to keep your focus while we are employing every means to strategize a turnaround of the firm with couple of major projects in line.

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