Sample Essay

In the light of the drastic cuts that are forecasted in the coming defence budgets by the United States of America and the withdrawal of the US army troops and forces in the coming months means that the XYZ Company would be losing on the sales of products and services that it makes to the US army.

As a result the profitability and the operations of the company would be adversely affected. In order to cope with the changes taking place in the external environments, the company will have to manage for change by laying employees off and downsizing. “”Downsizing” is one of the terms used to describe the efforts of companies to gain a competitive edge” (Petzall et al, 2000). In this scenario, however downsizing is a tool that would be used by the company to survive the set back that it would be facing by losing its contracts with the US army and limited growth of sales and revenue in the future.

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