Business Studies – 2.2.4 Why reducing the size of the workforce may be necessary | e-Consult
2.2.4 Why reducing the size of the workforce may be necessary (1 questions)
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Answer 3:
Impact on Customer Base: Closing branches can inconvenience customers who regularly use those locations. Customers may have to travel further, leading to reduced customer satisfaction and potential loss of business. The company needs to consider how to retain these customers, such as offering online alternatives or consolidating services at remaining branches.
Key Factors for Branch Closure Decision:
| Factor | Description |
| Profitability | The branch's current and projected profit levels. |
| Customer Base | The size and loyalty of the customer base served by the branch. |
| Location & Accessibility | The branch's location and how easily accessible it is to customers. |
| Operational Costs | The cost of operating the branch, including rent, utilities, and staff. |
| Strategic Importance | The branch's contribution to the company's overall strategy and brand image. |