Question

The corporate restructuring since the 1980s had created more efficient economies in developed countries that lead to much lowered unemployment rates?

Answer 1

Case Specifics:-

Changes are part of any economy and have existed ever since the very existence of mankind. Like people evolve over a period of time, so have companies evolved as well. This is often known in layman language as change or restructuring.

Restructuring is a diverse term involving several segments such as financial changes or organizational changes, which basically alter the way in which a company widely functions.

The 1980's saw a drastic change in the outlook of the companies. Due to rise in customer awareness and increasing costs, companies that did not adapt to changes required or restructuring required ultimately perished.

From the financial front, those companies which adopted newer methods of financing such as enabling equity or shareholding within the firm and adopted other changes such as improving the quality of the products and services offered, increasing social welfare of the employees and following a customer driven strategy found themselves doing much better than those that did not.

In short, companies have had to change their dynamics from a push strategy in which they could manufacture whatever they wanted to and expected the consumers to purchase them, to involving the customer at each subsequent stage of production, understanding their needs and wants and then producing.

This strategy has primarily been followed by most companies today, and has contributed towards the development of a service based economy than a product based market type only.

Today, consumers have become more aware of what they require and the purchasing power has increased significantly. Profits for companies that have radicalized change and have created better products have also risen.

All of this, has meant that unemployment rates have decreased in developed economies, because companies are now producing goods that customers desire and in turn can afford to hire people because the end product sells much better.

Conclusion:-

Due to the increased focus on consumerism which has caused corporate restructuring, efficiency of companies and of the country as a whole has increased. Increased competition has led to rapid innovation in the developed economies and unemployment rates have gone down significantly as market demand for product and services has increased.

Please feel free to ask your doubts in the comments section if any.