Assignment 4: Southern Discomfort

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RUNNING HEAD: Southern Discomfort

Strayer University

Dr. Charles Milazzo

December 2nd, 2012

1- Analyze and describe the issues faced by Malescowski and the company and the reasons for these issues. Analyzing the case of Southern Discomfort, some of the issues facing Malescowski and Lamprey, Inc. are the high cost of labor, the ability to compete agaist coompanies in the same industry as far as price and the product quality of their goods produced at that particular facility. One of the major issues is that if the company decided to look at the option of opening a new plant in Mexico and cease operations in the town of Oconomo. This small town in Wisconsin would suffer greatly the lost of lamprey, Inc. The town has a population of just over 9,000 people and the plant employs about 520 local workers. Some of the workers are a third generation employees of Lamprey making Jim feel guilty about the project. One difficult situation the company faces is the unionized labor. The company does not have a choice of less price labor. The company also faces the problem of having the current employees perfrom more dituis to reduce cost due to union labor agreements. The reasons Lamprey is thinking of moving its operations elsewhere, could also be because of that the new location provides better opprotunity to reduce cost , as opposed to expansion of an existing plant, Lamprey can take advantage of the market conditions in Mexico and the other movements that will be taking place with the move to be more competitive. There comes a point when in some situations it costs less to start over in a new more affordable place than to repair the current facilities. Further, there are newer machines, new processes and new plant layouts that may improve productivity and quality of the products. All of this can make a new facility look like the best choice. Still, the tendency of the human mind is to play up current facility's shortcomings while downplaying the...
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