Allisa Hwang Eun Sol
2.22.2013
published 21 Feburary 2013
by GMT
BBC news
Hewleet-Packard, HP, has seen a 6% drop in first quarter sales. Chief executive Meg Whitman said she will increase HP again, but she doesn't know how long will it take. However, Dell, the rival company, drop in revenue 11%, and fall 31% in quarterly profit. Both companies HP and Dell are having struggle to increase profits. To get over, HP made a plan to fire 27,000 people by the end of 2014. Ms. Whitman said "While there's still a lot of work to do to generate the kind of growth we want to see, our turnaround is starting to gain traction as a result of the actions we took in 2012 to lay the foundation for HP's future"
I chose this article, because I thought this is one example of microeconomics. HP made choice to cut 27,000 jobs, and i think it would be a hard choice. I thought about its benefits and opportunity costs to cut 27,000 people. I think its benefit is that HP will not have to give salary for those 27,000 people. However, the opportunity cost may be that much of labor. I would choose to fire them. In this moment, the company is dying, so i think it is more important to save the company than make a profit.
That's what I thought too. It's kind of sad, but it's necessary, I guess. If I had to make that choice, I probably wouldn't have cut that many....which is why I am not going into business, I guess. -Grace Lee
답글삭제I feel very sorry for whom was fired by the company. It may seem unreasonable, but maybe it was absolutely only choice for the company to save them. I think the government has to prepare measures quickly so that people on both sides would benefit and save their livings :) ----crystal
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