Southern Discomfort

Topics: Time, Future, Corporation Pages: 2 (568 words) Published: May 7, 2013
Some of the issues facing Malescowski and Lamprey, Inc. are the following: the high cost of labor, being able to compete with competitors, 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 cease operations in Mexico, the town of Oconomo would suffer greatly. With a population of just over 9,000 people, the plant employs 520 local workers. If Lamprey moves its operations elsewhere, could be because of the following; A new location, as opposed to expansion of an existing plant, can take advantage of changing market conditions or other movements that are taking place. There comes a point when it costs less to start over than to repair the current facilities. Further, there are newer machines, new processes and new plant layouts that improve productivity. 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 costs of starting up a new facility. It is human nature to idealize how well everything will go at the new site. Some communities, especially large ones, may be able to absorb the closure of a facility easily. There may be jobs in other companies in the area, so there is little effect on local social services. However, in small communities the impact of closing even a fairly small facility may be great. The economic impact of the move may be very large, leaving many people unemployed at a time when it is hard for the local community services to respond. Working through the move with local leaders takes time but can pay off in helping make the move a smooth one. To ensure that all parties involved had all the information possible to make a sound decision for continuing operations in a given area, the following aspects would have to be considered; Participation is probably the most universally recommended technique for reducing resistance to...
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