Question

Would you say this case describes a situation of a labor surplus or a labor shortage? Why? 2. Horizon has grown rapidly since its founding, but what if the environment changes so that the company has to scale back some products? How would you recommend the company handle a drop in the need for marketing professionals? Explain your reasoning.

Answer 1

In the given scenario, a drop in the need for marketing professionals would indicate a labor surplus. The company can handle this by offering voluntary redundancy packages, implementing a hiring freeze, reallocating professionals, and investing in retraining programs.

Step-by-step explanation:

In the given scenario, if the environment changes and Horizon has to scale back some products, it may experience a drop in the need for marketing professionals. This would indicate a situation of labor surplus in the marketing field. A labor surplus occurs when there are more workers available than there are job openings or demand for those workers.

To handle this drop in the need for marketing professionals, the company can consider several strategies:

• Offer voluntary redundancy packages or early retirement options to marketing professionals.
• Implement a hiring freeze for new marketing positions.
• Reallocate marketing professionals to other departments or areas where there is greater demand.
• Invest in retraining and upskilling programs for marketing professionals to enhance their skills and make them more adaptable to the changing needs of the company.

By implementing these strategies, the company can effectively manage the labor surplus and optimize its resources.