Case Study

Pages: 5 (1203 words) Published: January 3, 2013
Deshler Chemical Company
Case Study II

Case summary
Nine years ago, because of the considerable negotiation of the city government to the company, Deshler Chemical Company was established at the city of Conroyville, Tennesse.

The company paid enough money for the land; they constructed a plant to Deshler’s specification with the company repaying the building cost and agreed that the company should have an employment for at least 50 persons and to collect no property taxes for 10 years.

After several years, civic development is proposed by the city which includes a general area that involves the Deshler Chemical Company’s manufacturing operations. New park featuring boating and picnics facilities centering around Hickory creek, but waste from the chemical plant contaminated the water.

The city government requested the company to install special chemical equipment to neutralize the waste material. But the money needed for the equipment and for the maintenance is very big for the company. So the president state that insistence on such an outlay will result to abandoning the Conroyville plant and locating elsewhere.

The president further pointed out that the company has fulfilled every requirement on the initial agreement. The building is specially designed and built for this company’s particular type of chemical manufacturing and not an all-purpose building and can be utilized economically only by such firm such as Deshler Chemical Company.

The city takes view that the initial deal was offered to assist the company in getting established. The company is part of the community and therefore should assume its obligation as such. Pouring waste into a public stream is harmful and simply cannot continue. Also, in the opinion of the city officials, the threat of the company abandoning its Conroyville plant is a pure bluff. A suitable building at today’s price will cost more than twice what the one in Conroyville did, efficient labor will be cost and moving itself is costly.

Problem Indentified
Problem identified

Due to the initial agreement made through the negotiation covers only the things that they need to start building up the Deshler Company’s manufacturing plant, has resorted to the appearance of the different things that has never been considered before. With this conditions, those factors off-casted are now serves as the problem providers.

1. To establish cooperation between the company and the city. 2. To provide courses of action that would help the company to acquire special chemical equipment. 3. To have a better agreement between the company and the city that both of them will benefit. 4. To allocate fund for the future problems.

Areas Of Consideration
areas of consideration
1. Improper planning and agreement.
The agreement created during the negotiation nine years ago is not enough for a sound and problem free operation. They only include those which is for the lead-off. Everything should be planned trimmed and properly. If everything is well planned especially those which is important the most, everything will flow smoothly and orderly.

areas of consideration
2.Absence of interdependence.
The company is part of community and therefore should assume its obligation as such. But also in the first place, the city is the one who approached the company to locate their factory in their site. What is happening is that they’re pushing each other to do the job. Well in fact all of them will suffer if the waste will continuously contaminate the water.

areas of consideration
3. Insufficient fund for future problems
Because of not considering the other factors that can cause problem, the company is also not ready for it. For example: the company cannot provide enough money to answer their problem in regards with the waste that contaminates the water in the creek.

areas of consideration
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