Bethesda Mining Company

Satisfactory Essays
جامعة القدس

الكلية : الدراسات العليا

التخصص: ادارة اعمال

Downsizing

الاسم : علي حجازي ابو علي

الرقم الجامعي:1112482
الاستاذ :د. صلاح عودة

Downsizing

International forest products company (IFP) supported the local workforce and provide many job opportunities. However it had a problem which led the manager of the company to cutback the workforce by 30 percent on a crash basis. That decision should be performed by the human resource director at IFP, Scott wheeler, who had to put a suitable plan with many strategies and elements like: The union reaction, the effects of their decision on the surrounding community and the major rearing is the interests of their shareholders.
Finally there was serious conflict between those elements and Scott should suggest a plan whish solve this problem.

Questions:
1-a: The reaction of the union about the IFF decision on the surrounding community.
The company wills cutback the workforce upon to the seniority and also after intensely scrutinized management actions during that period. In my opinion: the IFP decision shouldn’t be taken upon the seniority. I think it should be depend on the abilities and experiments of the workforce.
B: The impact of it’s decision on the surrounding community.
He knew that the cutbacks would depress the area’s economy , but they didn’t have other choice to protect their sales beside the bad effects of competitive companies .and we can say that company can put a pricing strategy to control the sales.
C: The interests of IFP’s shareholders.
Protection of the interests of their shareholders is the major reason of their decision because of returning on their investments. It is legitimate decision but it must be far of the workforce.
2-It is true that Scott should be concerned first and foremost with protecting the interest of the shareholders. That because a shareholder group disrupted their annual meeting they seem to be more concerned with the return on their

You May Also Find These Documents Helpful

  • Powerful Essays

    Bethesda Mining Company

    • 1590 Words
    • 7 Pages

    Bethesda Mining Company 02/24/2011 Introduction Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West Virginia, and Kentucky. Recently the coal mining industry has been impacted by environmental regulations that have presented challenges for the industry. However, a combination of increased demand for coal and new pollution reduction technologies has led to an improved market demand for high-sulfur coal. Bethesda is considering operating a new strip…

    • 1590 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Bethesda Mining Company

    • 792 Words
    • 3 Pages

    CHAPTER 7, Case #1 BETHESDA MINING To analyze this project, we must calculate the incremental cash flows generated by the project. Since net working capital is built up ahead of sales, the initial cash flow depends in part on this cash outflow. So, we will begin by calculating sales. Each year, the company will sell 600,000 tons under contract, and the rest on the spot market. The total sales revenue is the price per ton under contract times 600,000 tons, plus the spot market sales times the…

    • 792 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Case: Bethesda Mining (Chapter 6) I have been asked by the President of Bethesda Mining Company to analyze a proposition by Mid-Ohio Electric Company to supply coal for its electric generators for the next four years. This proposition involves opening a new mine in Ohio, and making an investment in new equipment of $85,000,000, with a residual value to be transferred to a subsequent location of 60% of the purchase price, or $51,000,000. The equipment will be depreciated according to a 7-year MARCS…

    • 703 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Bethesda Mining zirconium

    • 1222 Words
    • 5 Pages

    Bethesda Mining In order to decide whether our company should undertake the project, we should refer to the project’s NPV and IRR. NPV indicates the possible profit (net cash flow) which the project will yield in future, a positive NPV suggests that company can earn profit from the investment and vice versa. IRR is the discounted rate which makes the NPV of all cash flows equal to zero, the greater the amount it exceeds the cost of capital (required rate of return), the higher the net cash flow…

    • 1222 Words
    • 5 Pages
    Good Essays
  • Good Essays

    CHAPTER 6, Case #1 BETHESDA MINING To analyze this project, we must calculate the incremental cash flows generated by the project. Since net working capital is built up ahead of sales, the initial cash flow depends in part on this cash outflow. So, we will begin by calculating sales. Each year, the company will sell 500,000 tons under contract, and the rest on the spot market. The total sales revenue is the price per ton under contract times 500,000 tons, plus the spot market sales times the…

    • 783 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Bethesda Mining Company To be able to analyze the project, we need to calculate the project’s NPV, IRR, MIRR, Payback Period, and Profitability Index. Since net working capital is built up ahead of sales, the initial cash flow depends in part on this cash outflow. So, we will begin by calculating sales. Each year, the company will sell 600,000 tons under contract, and the rest on the spot market. The total sales revenue is the price per ton under contract times 600,000 tons, plus the spot market…

    • 991 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Mini Case Study-Bethesda Mining Mini-Case Study: Bethesda Mining Company Week 4 Application 2 Jo-Ann Savoie Walden University Finance: Fiscal Leadership in a Global Environment DDBA-8140-2 Dr. Guerman Kornilov March 24, 2011 The following Mini-Case on Bethesda Mining Company was taken from the text corporate finance (2010, P. 203-204). In order to determine if Bethesda Mine should open, a thorough analysis of the payback period, profitability…

    • 350 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Mini-Case Study: Bethesda Mining Company Week 4 Application 2 Jo-Ann Savoie Walden University Finance: Fiscal Leadership in a Global Environment DDBA-8140-2 Dr. Guerman Kornilov March 24, 2011 The following Mini-Case on Bethesda Mining Company was taken from the text corporate finance (2010, P. 203-204). In order to determine if Bethesda Mine should open, a thorough analysis of the payback period, profitability index, average accounting…

    • 1331 Words
    • 6 Pages
    Better Essays
  • Better Essays

    Bethesda

    • 1123 Words
    • 5 Pages

    World Blues add on. Did I like any of those games? Well honestly, no, not really. It may be a question of taste, but I’ll try to explain why none of those games and for what it’s worth the entire Bethesda game design philosophy has never given me any satisfaction. I will start by saying that Bethesda is not that bad actually. They are unfortunately in that lukewarm place that makes something neither perfectly hate-able neither enjoyable. They’ve got the basics right, they know how to make numbers…

    • 1123 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    American Mining Company

    • 9720 Words
    • 39 Pages

    HRM 410 Group- A BACKGROUND AMC Moves to Colombia: AMC was one of the leading coal mining company in America for a long period of time and it was among the top 300 largest private companies in America before it shifted to Colombia. AMC had a reputation of providing high quality coal, reliable delivery and excellent service. AMC told its workers that the company would not transfer its operations to abroad but they did eventually. AMC moved to Colombia because the country provided some very crucial…

    • 9720 Words
    • 39 Pages
    Powerful Essays