The influences of the downsizing strategy on business structures
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Keywords

Downsizing. event study. strategy. Telefónica.

How to Cite

Soria Bravo, C., & Herrero de Egaña Espinosa de los Monteros, A. (2017). The influences of the downsizing strategy on business structures. Review of Business Management, 19(63), 118–132. https://doi.org/10.7819/rbgn.v19i63.1905

Abstract

Purpose – This paper investigates the effectiveness of the downsizing
strategy when applied to the Telefónica case.


Design/methodology/approach – By using the Event Study method,
we present the relationship between downsizing strategies and results.
Statistical significance of results was analyzed using t-statistics analysis.


Findings – Results are significant, proving that the downsizing strategy
brought about greater profitability and better funding, leveraging
company market values.


Originality/value – Results indicate that downsizing is a strategy
alternative that allows for better adaptation, if carried out proactively
and associated to changes that are necessary within organizational
structure and processes.

https://doi.org/10.7819/rbgn.v19i63.1905
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