Attrition

  

To lesson or go down relative to its original construct. Example:The harsh and sudden way for a company to cut costs: layoffs. The gentler way? That method is called attrition.
The basic strategy involves slowing down hiring (or freezing it entirely) so that the number of employees leaving through the normal course of business (resignations, retirements, power tool accidents, etc.) outstrips the number of new recruits coming in. Over time, the company's headcount, and presumably its expenses, will drift down.
Imagine that today's headcount is the top of the Grand Canyon. Meanwhile, the ideal headcount the company wants to achieve is the bottom. Layoffs represent a jump into the canyon. Attrition is taking the long mule ride down one of those winding paths to the Colorado River.

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Finance: What is Planned Obsolescence?201 Views

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Finance allah shmoop What is planned Obsolescence We officially nominate

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this business strategy for the top five dumbest business ideas

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in history In the late nineteen sixties the american auto

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industry was taking over the world America bought the most

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steel and rubber shipped vastly the most cars and came

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to dominate the banking and capital landscape Because this heavy

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industry had such global impact on so many levels a

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booming car industry pushed other countries to build roads and

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bridges and infrastructure like stoplights and gas stations It spurred

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interest in mining coal and steel and it brought nations

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together to build something well practical and you know fun

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Never drive it convertible in summer that's pretty cool music

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blaring and we like that But then came along well

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a bunch of idiots These were managers of the big

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car companies in the nineteen seventies who observed that our

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cars were lasting too long They were being too well

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made And if we continued to make our cars better

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and better so that they didn't wear out for twenty

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years Well then the they'd sell fewer cars presumably So

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what do they do Well they tried to make them

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Worse Yes You heard that right They actively tried to

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make american cars obsolete at some point not too many

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years after you bought one so that owners would have

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to turn them in and presumably by another american car

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from an american manufacturer All right Yeah They'd have to

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buy another car And another and another well The financial

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managers at the time had the arrogance that the u

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s auto industry was so powerfully dominant that nobody in

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the world would ever catch up or compete They thought

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they had so much room ahead of the japanese korean

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and german car makers that well we could afford to

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make them worse Yeah instead of a ten twelve year

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cycle from birth to death the managers of gm ford

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and others thought that if we created cars that died

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after six or seven years well people would be forced

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to buy mohr of them or rather buy them more

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often And you khun bet that the legions of mechanics

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might iss muffler shops and other repair areas Well they

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were delighted with this notion and highly supportive of planned

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obsolescence Unfortunately the us managers who made these decisions well

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they didn't get out much at least not to japan

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or korea and you know what happened Well look out

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the window over your parking lot you see on lee

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american cars not so much The japanese automakers stepped in

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with much simpler builds in their cars with fewer parts

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and better assembly and they were able to make them

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at meaningful cheaper prices Will the american auto companies couldn't

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change fast enough when they realized what a fungal mess

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they've made and wealthy us dominance in auto manufacturer ended

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quickly as buyers were introduced to a whole new and

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better way of driving courtesy of Well the japanese players

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mercedes and bmw also made big inroads at this time

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this obsolescence pretty much nothing they're retired They took their

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pensions built good golf games and well that's about it

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get so distracted chasing mars that only missed the game 00:03:22.92 --> [endTime] entirely but we're better known Juan

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