Midwest Education Case Study

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Midwest Company is a major supplier of educational materials, and the company is providing books, manuals, videos, software and hardware used in the field of technology. The company's main objective criteria is determined its focus is on cost reduction, quality enhancement and innovation. The headquarters is located in the Kansas City and the total number of staff employed is 416. In the Human Resource department there are four sections and they are 1) Staffing 2) Compensation & Benefits 3) Labor Management Relations 4) Training, Career Development & Performance Appraisal and also there can be found HR specialists in each of the three divisions around the country. The company is looking forward into investing a large sum of capital in Educational Training Aids (ETA). 1) Can Midwest education be selective in who it offers relocation benefits to? Companies which are running in the modern business and economic environment tend to come up with different strategies which might be beneficial to the company than the other rival competitors. So it can be more identifiable and unique in the business context where the final ultimate objective is to make profits. Employment growth is a major goal of a state economic policy. Changes in employment are driven by continuous job creation and job destruction, which in turn are the result of six dynamic processes including the birth, death, growth, contraction, and in-migration and out-migration of business establishments. The engagement of Midwest education company in a long-term ongoing project to study the job creation-destruction processes in California with an emphasis on quantifying and better understanding the contribution of each of these business establishment dynamics to employment changes in the state, at the aggregate state level as well as inter-regionally. We can argue that in thinking about interstate business relocation, one should not focus exclusively on business leaving Kansas City and ignore those that move into California. In addition, one should examine the effect of business relocation in a broader context that incorporates other types of business dynamics that influence employment growth in the state, including the formation of new business establishments and the expansion, contraction, and closure of existing establishments. To the extent that there is a role for public policy to encourage employment growth, it should focus on the processes of employment change that have the greatest potential to encourage employment growth.

First, it is generally expected that business establishments in some industries are more mobile than in other industries; for example, businesses that produce or sell tradable goods may find it much easier to relocate outside a state from California or Missouri and at the same time to maintain their customer base inside the state. Indeed, based on a survey of corporate executives, a study by the California Business Roundtable and Bain & Company (2004) emphasized that California's high-value mobile jobs are most likely to move to other states. If this is the case, then the previous conclusion about the effects of business relocation at the aggregate level may understate the significance of relocation for certain industries because some organizations are averaging over industries where relocation is a viable strategy and industries where it is not. Thus, it is particularly important to explore how serious interstate relocation is in the more mobile industries. “The total number of jobs moving out of and into California in each year during 1992-2002, has a significant impact on to the productivity of the work force and the expected results which is due from the employees” (Jackson, S.E. and Schuler, R.S, 1995). In other words, one has to consider all jobs as the same. This is potentially inadequate because if the jobs created by in-migration differ from the jobs lost due to out-migration, relocation could change the composition of...
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