The automobile industry of United States suffered most of the losses because of the financial crisis and numerous production units were shut down and governments gives several bailouts to big organizations like Ford, Chrysler and General Motors. The share of these “Big Three” was declined because of the decline in demand and it declined from 70% to 53%. That is the reason why analysts were predicting that these financial mishaps are jolting the economy and quick measures are required to remove this menace. The debts of the organizations were increasing and governments were giving bailouts to these organizations.
Economic and financial crisis are usually considered as the biggest mishap of the world’s economy and every country was suffering from it. Although, all these organizations are labelled as capital intensive organizations and this sector is always considered as a booming one. But the economic conditions of the world changes drastically and the purchasing power of individuals declined. People were laid off from their organizations and the per capita incomes of individuals were declining slowly and gradually. That is the reason why they were unable to purchase cars for their general use. The demand of luxury items were declining and normal individuals were jolted by the aftermaths of this havoc. Therefore, a change in strategy was required and revamping the entire organization was the only solution of this menace. There are certain organizations that faced these crises bravely and they suffer minimal losses because of the fact that they implemented effective change management strategies in their organization. Therefore, it can be said that change in organizations is an essential element and every organization must change their conventional style of doing the business. In certain conditions they have to cut the cost and move to low cost alternative which would although offer low profits but the stability of an organization is maintained because of this. In the similar manner change must not be for the sake of change and it should be beneficial for the entire organization in both the short and the long run. In this chapter, aspects that were related to change management and the financial crisis were discussed in detail and an effort was made to give an overview about the topic in such a way that the reader would understand that what are financial crisis and what are aftermaths of these crisis. The economic crises were actually discussed with relation to change management strategies.
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