The company with the second best organization ends up second place in the market.
Wayne Calloway, CEO PepsiCo, Inc.
Mergers and acquisitions are increasing. The result was that more people were downsized than at any time in recent history. Why is this happening? Companies want to boost profits and can’t do it by simply raising prices. They’re now relying on what’s called developing ‘economies of scale’, becoming bigger and removing redundancies in the process. Financial analysts speculate this merger mania will engulf all industries as companies improve their balance assets by shedding non-value adding assets and people.
Companies with stagnant sales often want to change quickly because of competitive, customer, or regulatory pressures. The question is how? Should it be evolutionary or transformational? Many now follow a transformational approach of blending mass downsizing with redesigning work processes such as AT&T. Such mass changes set the stage for Brand U nation.