Restructuring

With the economy in the state that it is in, businesses are making further cuts in order to survive. With less demand for products and services, businesses have to make decisions on how they are going to move forward in a changing climate. Workforce is generally the first to go and if that is not enough, businesses have to look at other areas. In the past, businesses have had chains of stores, some running at a loss but are only kept open as a form of exposure for their brand. Unfortunately, with decisions to close stores in order to trade another day, many people will lose their jobs, which in turn effects the unemployment rate and competition for remaining jobs will increase. (life is a competition).

How many of these closures are due to new technology changes i.e. downloads etc. Are these closures actually impacting the businesses bottom line or are the only losers in these closures the employees?

Merger

A merger between Boots Alliance and Walgreens is set to become the worlds largest healthcare retailers. The synergies between the two companies is set to or should I say hope to equate to more than the 2 separate companies. This should result in increased market share, higher turnover and profits. A greater number of retail outlets, sharing of products resulting in a wider product range, shared development costs, distribution costs and many more. This could also mean diseconomies in scale with regards  to communication and job losses as restructuring takes place. Could there be potential derailment if the culture and leadership of these two companies are not aligned. Article