Posted on by Judy

Capacity Cutdown at Chrysler Robert Nardelli, the former CEO of Chrysler oncutting 35,000 jobs in order to save his company during the financial crisis: I signed on as Chrysler CEO in July 2007. Theindustry was robust, but the brand had lost its identity. The first six monthswere great. We rebuilt the brand, disentangled it from Daimler, pruned theproduct line. Then came the financial crisis. The first thing we lost wasleasing; 20 percent of our business disappeared overnight. Then the fleetbusiness went away, and financing for new car purchases dried up. It soon became clear that we were in a battle tosurvive. We cut $5 billion in costs and brought the capacity down by 1.4million units. It wasn’t enough. The toughest decision I had to make was reducing theworkforce by 35,000 people. We desperately needed to preserve cash to keep thesupply chain intact. We could have sold assets or furloughed union employees,but because of contractual obligations neither of those options would have madeus cash-positive. I had no choice but to cut staff. It was traumaticreleasing them into an economy where it wouldn’t be easy to find another job. Ihad to lay off 5,000 salaried people the Wednesday before Thanksgiving. Iremember going into a large staff meeting and seeing that the crowd in theauditorium was half what it had been when I started as CEO. It was such ahaunting visual. The union was on board. We all recognized that wewere one step away from cataclysm. The UAW didn’t roll over, but it recognizedthat we were in it together. If we hadn’t made layoffs, we would not havegotten the first $4billion from the government. Every supplier would have feltthe domino effect. The 10 percent unemployment rate is misleading. Thereal figure is closer to 18 percent. Unless this country creates 150,000 newjobs every month for the next four years, we won’t get back to where we were in2007. We need specific programs built to create new jobs-real jobs, not censusjobs, not seasonal jobs. As gut-wrenching as my decision was, it was criticalto saving the company. A lot of families made big sacrifices for Chrysler, andI will never forget that. Question 1: In strategic capacityplanning, what other capital intensive resources should Robert Nardelli cut aswell as reducing labor force?

In strategic planning, I would take the following strategy:
1. Reduce the number of shifts and increase overall productivity and efficiency to meet same targets with reduced manpower. This would reduce consumption of energy and power hence costs. The resources would give a better output with same expenses.
2. I would focus on maintenance and upkeep of existing setup and give 2 or more responsibilities to the same employ to make them agiler and allow job rotation. This will save time and resources utilized at the time of breakdowns
3. I would prune any self-owned outlets and go for multi-brand outlets to sell my product line.
4. The machinery and parts of the plant which were underutilized will be sold to suitable brands at good costs to get more financial leverage.
5. I would go a step further and try to use the same resources to come up with a more in demand product line.
6. Last but not the least I will diversify into other business interests to avoid crisis situation like now.
 
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”

What Students Are Saying About Us

.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐
"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"

.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."

"Order a Custom Paper on Similar Assignment! No Plagiarism! Enjoy 20% Discount"

Related posts:

  1. Creating value proposition is critical for success. A brand’s value to customers is based on how they perceive your company. 1. Identify a brand that does exactly this via their brand’s value, vision, personality, attributes, benefits and positioning. Discuss how they do this in each of those areas. *Please use different answer from the chegg since my friend already use that answer. Thankyou.
  2. Mighty Company Purchased 60 Percent Interest Lowly Company January 1 2013 537 600 Cash Low Q17784032
  3. Imagine you are a digital marketer for ATB Financial Bank in Canada. The company’s goal for using LinkedIn is to generate brand awareness; they want to be known as an employer of choice. Based on this goal, how would ATB use LinkedIn Company page analytics to ensure that their strategy was producing their desired result? Describe three key ways the company could track brand awareness for recruitment using LinkedIn analytics. Your answer should be submitted typed and be 250-500 words in length.
  4. 6 Cash Budget Aan Aa E Mellon Company S Financial Managers Meeting Company S Bank Renew Li Q17760144