Contents

• Introduction 3
• Multinational Corporations 4
• The Impact of Recession on Multinational Corporations 5
• Measures of Survival for Multinational Corporations 6
• Downsizing 7
• Outsourcing 8
• Organizational Restructuring 10
• Recommendations 12
• Conclusion 12
• References 14

Description

Global recession which started as a sub prime crisis of banks and then falling real estate sector in the USA has caught with all the businesses across the globe. It was initially considered as bankers’ and realtors’ problem but now has spread to all the financial markets. It has serious consequences of falling down of share prices, dwindling businesses and hence increased unemployment. Multinational corporations are being hit by recession too. Multinational corporations in the retail industry as well as IT and finance sector are seriously hit by recession. The impact of recession is manifold on multinational corporations since they have operations worldwide. The organizations faced with decreased earnings are forced to adopt cost reduction methods to survive through recession. Some of the cost reduction methods multinational corporations adopt are downsizing manpower and operations, outsourcing and organizational restructuring. The report does an analysis of each of these cost reduction methods. This report finally recommends organizations to attempt organizational restructuring outsourcing and finally downsizing in that order to minimize adverse impact on their businesses due to implementation of cost reduction methods.