The Reduced Margins of DMC Free Essay Example, 1500 words

The way DMC is doing business is not an ideal one in this type of industry where day by day new product is launched, and where obsolesces of technology is very frequent but in spite all of these issues DMC is doing traditionally with any proactive thinking for the future DMC is not quick enough to respond quickly to market changes which result in decreased margins. Like other areas of the company finance department also feel the same heat of below-par performance although finance VP is very much confident about some good news from his side but all this is just expectation not the news, due to lower sale and higher cost and overall loss of more than 1000 million dollar the company has now the only choice to reduce its operating cost which obviously much hard for the staff that may also demotivate the employee because it s not just the fault of employee who bear such cost but mainly its possible due to lack of strategic plan, as if all this is proactively managed the position of compan y would be a profit earning organization, further due to uncertainty involved in its product market demand it is also a difficult task for the finance department to calculate the exact return on capital employed which would create difficulty in negotiation with financial institution, (Hello, 2015) Human Resource function would also have to bear the loss of the company by either downsizing or outsourcing, because a change in HR strategy often means lay off of employees but this would demotivate exiting employees and is not a recommended technique in this sort of situation because in company life sudden losses and especially in IT environment are usual phenomenon therefor while addressing this situation we should assume the broader aspect of the company and see the company in long term approach, hence neither the downsizing nor outsourcing is the solution to the problem but the only solution is strategic planning for all upcoming activities and proactive management of resources instea d of reactive approach. We will write a custom essay sample on The Reduced Margins of DMC or any topic specifically for you Only $17.96 $11.86/pageorder now