Question

In recent years, Jack Sprouts' business has declined due to a weak focus on quality. Holding managers responsible for the declining sales, the CEO decided to lay off those who lacked effectiveness and were inefficient. Who among the following did he lay off?

1) Managers who lacked effectiveness
2) Managers who were inefficient
3) All employees
4) Customers

Answer 1

The CEO of Jack Sprouts' business laid off managers who were ineffective and inefficient as part of a response to declining sales and a lack of focus on quality. Option a is the correct answer.

Step-by-step explanation:

Jack Sprouts' business has faced a decline, mainly attributed to a lack of focus on quality. The CEO's response, in an effort to rectify the situation, was to lay off specific individuals within the management team. The ones affected by this decision were the managers who lacked effectiveness and those who were deemed inefficient in their roles.

This implies that the managers who did not meet the company's performance criteria were held accountable and subsequently let go. Alternatively, this does not encompass all employees or customers, as the downsizing targeted managerial roles specifically linked to the decline in business performance.

The nuances associated with business operations in a market economy reveal that failures can stem from a multitude of causes including poor management, lack of productivity, sudden shifts in market demand and supply, and intense competition. Thus, it is essential for businesses to remain adaptable, offering quality products and services to remain viable. When business challenges are not adequately addressed, it may result in downsizing as a corrective measure.