SOUTHERN DISCOMFORT

Southern Discomfort



Date: Southern Discomfort

Issues faced by Malescowski and the company and the reasons for these issues.

The key issue, which the company has been facing, is the high cost of operations in the Oconomo plant. Jim Malescowski is responsible to analyze the operational costs and suggest strategies to minimize the cost. In addition, the increased cost is partly due to high-cost labor. If the company chooses to have Mexican labor force, it would save $15 million a year. However, these savings will be offset in part by increased costs for training, transportation, and other matters. The major concern for the company which resulted in these issues is the competitors. The competitors were doing a better job than Lamprey in terms of price and were extremely close to overtake it in product quality. Other concerns for the company include resistance of union leaders to accept lower wages. Jim and the plant manager even discussed cell manufacturing approach, which was also resisted by the union leaders. The company needs to make a better return on its investment if it is to continue at all. In short, Malescowski is in a dilemma to whether dismantle the plant or not.

Strategy for changing things that would help resolves the situation at hand.

Since personnel costs are a significant part of the costs of any company, these costs guide aims to reduce in the first place. The reduction or replacement of staff by low-wage workers in the company is an essential measure. However, before embarking on such actions, it is essential to develop a strategy of behavior in a crisis. Next, optimize the structure of the company under a new business model, and only then decide on these implementations.

The situation at hand can be resolved through the "Practice of Management". It includes a series of practical, easy to apply methods which an employer can implement to increase productivity, lower costs, reduce the environmental impact of production, improve the production process and raise safety.

The three potential benefits of Good Corporate Governance Practices form a triangle that produces a synergistic effect. It results in a triple win and a process of continuous improvement in the company or business which provides advice.

Cost reduction.

Reducing environmental impact.

Organizational improvements.

Strategy for changing people that would help resolves the situation at hand.

One of the hindrances to the introduction of change is that some people benefit while others suffer losses, so they resist it to ...