2. • Started as small furniture making
company
• Separate Capital for acquisitions
• Kiran Swastik takes over as CEO
in 1996
• High Customer service focus
• Employees treated well

3. • Revenues have dropped
• Profits have dropped
• Facing competition from
cheaper retailers
• 10% of the workforce needs to
be cut

4. • Elaboration Stage - Need for
Revitalization
• Revolutionary Change
• Kiran Swastik has to go through
a change himself
• He has to chose from
any/combination options given
by his board

5. 1. First in first out
2. Rank and yank
3. Last, in first out
4. Lose a unit
5. Pay cut

6. Alternatives
• 4day work weeks
• Unpaid Vacations
• Furloughs
• Pension cuts
• Methods to Cut labour costs
and still maintain labour force

7. • Downsizing (Technological)
• Structural (technological)
• Performance Appraisal (HRM)
• Reward Systems (HRM)
• Integrated Strategic Change
• Culture Change

8. • MD needs to be the motivating
leader
 Motivate
 Bring Transparency
 Give new direction to the
company and the people
• Identify the weak links(give
severance pay)

9. Pay cut
 Stop new recruitments
 Employees need to take a
paycut
 Unpaid vacations
 Cut down on parties and
expenses
Md needs to loosen his purse