Downsizing of Plastic Packaging.



Downsizing of Plastic PackagingJohn, President of Plastic Packaging (a small bottle manufacturing company located in western

Massachusetts), has decided that downsizing is the solution to the recent financial struggles that the

company is experiencing as a result of a decrease in customer demand. Last Friday afternoon, John sent

a mass e-mail to all of the employees at the facility to explain some of the disappointing financials and

his decision to use a downsizing strategy to deal with the situation. The 75 employees of Plastic

Packaging starts to panic. During the afternoon break, the rumor mill is on overdrive in the breakroom.

People are anxious, confused, surprised, and upset with this executive decision. Many of them wonder if

there are better alternatives to the financial problems the company has recently experienced and they

know that their president could have handled the situation at hand in a much more effective manner.

Please respond to the following questions in four distinct and labeled sections: (1) Identification: (a)

what are some of the main problems and related issues that you see within this scenario/case? (b) Who

are the relevant stakeholders involved in the given situation? (2) Analysis: (a) Evaluate the root causes

and relevant factors (internal business environment) contributing to the main problems that you

identified? (b) Explain at least two causes using relevant management and OB concepts. (3) Alternatives

and Recommendations: What could John have done differently? Generate alternatives (minimum of 2)

(4) Action Plan: How should John carry out these alternatives that you recommended? Use references

from books and journal articles to support all of the sections of your discussion.

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