To: Alex MacDonald
Subject: Analysis for AWC
Bridge Consulting would like to thank you for the opportunity to provide our services. We appreciate the family culture AWC has maintained throughout your 60 years. Our report is attached; the following is a summary of the key points: I. Major Issue to be Addressed:
Our analysis will focus on the pros and cons to complying with regulation by the government; two options of filtration systems are proposed to AWC, and you must make the decision between the two systems or no system at all. Each option proposes its own benefits as well as risks. The most expensive filtration system is $400,000 but includes additional steady expenses to keep up with the systems maintenance. The cheaper option is $240,000 yet it only addresses a portion of the environmental issues. Finally, AWC can ultimately chose not to install a new system, save the money they were going to spend on the new system, but be in risk of getting investigated, prosecuted, and fined for not complying with regulations. II. Recommendation
Based upon the options that were proposed, Bridge Consulting suggests that AWC chooses the expensive filtration system to avoid any legal issues that could financially burden AWC, you personally, and your employees; this option also benefits AWC with their branding strategy, gives you another competitive advantage amongst your competitors, and it diminishes the risk factor you endure if you chose the other two options. There are additional expenses that are incurred due to this filtration system; however, the benefits of this system out-weight the other options immensely. III. Analysis
There are added expenses that are involved with choosing the more expensive filtration system. We must train our employees to handle hazardous waste amongst other skills which will cost AWC extra; we will be charged $500 to haul the sludge away, as well as a $200 expense for the inspection of the sludge. However, we have come up with some cost-effective methods in order to ensure these expenses can be covered without burdening AWC. This filtration system still surpasses the other options due to the many advantages this filtration system provides. If you have any questions of require additional information, please let Bridge Consulting know. You can reach us by email or phone during normal business operating hours. AWC was founded in 1950 by your father, Jim MacDonald. With a family-like culture, AWC has continued to thrive in this economy amongst its 37 surrounding competitors because of your competitive pricing, your positive and hardworking employees, and the foundation that your father had created. Bridge Consulting would like to thank you for the opportunity to provide our services. We have carefully analyzed the information you have provided, and have put together a report that entails our recommendation. Critical Issues:
It is crucial we address the ethical and business dilemmas within your situation. You are faced with the challenge of whether or not to comply with regulations, and how each of your decisions will affect different sectors of AWC. When making your decision you must keep your customers, your employees, and the future of AWC in mind. You have heard testimonies from your father, as well as employees that have been with the company for numerous amounts of years; however, it is important to note the substantial shift the business world has made in the more recent years. The testimonies rave about the family culture AWC has obtained throughout the years. This is an important aspect of AWC, and why it has thrived for over 60 years despite the 37 competitors in the surrounding area. If we want AWC to continue to succeed, it is vital we ensure AWC is not intentionally ignoring the laws that were put in place in order to provide a safer environment for the...