Awc Inc
WRITTEN ANALYSIS AND COMMUNICATION I | AWC INC. : THE VENTILATION DILEMMA | REPORT 3 |
Letter of Transmittal
August 20, 1991
Mr. Alex MacDonald,
President and Owner,
AWC Inc.
Subject: Recommendations for installation of emission control systems
Respected Mr. Alex,
I submit herewith recommendations for the installation of exhaust system and a second welding line considering the best interests of AWC Inc.
Sincerely,
XYZ,
Management Consultant
* Word Count: 49
Summary
Due to slowdown in construction industry over 1989-1991 period, AWC is facing intense competition in the industry. The margin of AWC has reduced to 3 percent. Upcoming free-trade agreement between U.S. and Canada would further add to its woes owing to low cost products of U.S.
To counter the competition, AWC has developed a low-priced high-quality door design which has led to significant increase in AWC’s sales. This new design requires double usage of welding line. Thus, AWC either has to operate in second shift or buy a second welding line.
Over previous few years, the laws pertaining to releasing environmentally harmful fumes inside or outside plant have been strengthened. Since AWC does not have any emission control system currently, it runs the risk of being fined heavily. The probability of being fined is only 0.002 but the health implications on the employees can be huge, ranging from respiratory problems to cancer.
The two available options for emission control are exhaust system and air recirculating filtration system. The criteria for the evaluation of options are: financial impact, employees’ health concern, ethics and abidance by the law.
If AWC installs exhaust system or air recirculating filtration system, it would incur a cost of $240,000 and $400,000 respectively. It would not face any penalty or legal action as it would abide by the law. AWC would be ethical in doing so and would also mitigate the risk posed to the health of its workers. Since
Letter of Transmittal
August 20, 1991
Mr. Alex MacDonald,
President and Owner,
AWC Inc.
Subject: Recommendations for installation of emission control systems
Respected Mr. Alex,
I submit herewith recommendations for the installation of exhaust system and a second welding line considering the best interests of AWC Inc.
Sincerely,
XYZ,
Management Consultant
* Word Count: 49
Summary
Due to slowdown in construction industry over 1989-1991 period, AWC is facing intense competition in the industry. The margin of AWC has reduced to 3 percent. Upcoming free-trade agreement between U.S. and Canada would further add to its woes owing to low cost products of U.S.
To counter the competition, AWC has developed a low-priced high-quality door design which has led to significant increase in AWC’s sales. This new design requires double usage of welding line. Thus, AWC either has to operate in second shift or buy a second welding line.
Over previous few years, the laws pertaining to releasing environmentally harmful fumes inside or outside plant have been strengthened. Since AWC does not have any emission control system currently, it runs the risk of being fined heavily. The probability of being fined is only 0.002 but the health implications on the employees can be huge, ranging from respiratory problems to cancer.
The two available options for emission control are exhaust system and air recirculating filtration system. The criteria for the evaluation of options are: financial impact, employees’ health concern, ethics and abidance by the law.
If AWC installs exhaust system or air recirculating filtration system, it would incur a cost of $240,000 and $400,000 respectively. It would not face any penalty or legal action as it would abide by the law. AWC would be ethical in doing so and would also mitigate the risk posed to the health of its workers. Since