Discussion 2 – Your Local Business Instructions (Please do not attempt if you ca
ID: 414392 • Letter: D
Question
Discussion 2 – Your Local Business Instructions (Please do not attempt if you can not fulfill all the requirements)
Continuing along with the topic of many discussion postings last week, we are going to consider the ramifications of having to outsource some parts of a domestic business. First, consider the scenario, below. Then compose an original reply to me that is comprised of two parts (read CAREFULLY below). Then (after you have posted and all next week) interact with your peers.
Scenario:
You are the sole proprietor of a small local business called Walsh Works, employing approximately 200 residents of your rural city two hundred miles from Detroit. Your organization creates intermediate goods used as input to a larger manufacturing facility in downtown Detroit (Detroit Manufacturing, Inc.).
You have been in business fifteen years, profitable almost from the beginning, and have grown from an original 5 employees to the current 200 employees. You have an administrative staff, three shifts of production workers, a small shipping department, a bookkeeper, and a core team of midlevel managers. All in all: an American success story. You are proud of the fact that you completely make and manufacture your product in the U.S.
Detroit Manufacturing, Inc. has just contacted you to let you know that they must cut costs in order to remain competitive in their market. They need you, in turn, to cut the cost of your output goods by 20% - unthinkable, as you run fairly close to the margin. If you are unable to do so, they will regretfully let your contract end in December and begin to purchase their intermediate goods from a less expensive supplier. You do not have enough other customers to keep the business operating. If Detroit Manufacturing, Inc. goes, you would likely have to close shop.
After briefly panicking, you decide to send a text/email (your choice) to your midlevel management team. You want to convene a meeting to discuss your situation. You do not want word to get out, but you need to reach them all and have them start thinking about the situation before you meet at the end of the day today.
ORIGINAL POST PART 1
Compose an email to your mid-level management team in 140 characters or less, relaying as much of the above information as you are able and calling a meeting for this evening. The first part of your original discussion post will consist of nothing but this < 140 character email. Consider everything in the paragraphs above and write a compelling message that includes enough of the information so that your management team comes to the meeting prepared to talk.
(Note: no hash tags please!) Do not post this email yet. Continue with the scenario.
Scenario continued:
After you and your management team meet and exhaust your options, you collectively decide to do the formerly unthinkable: procure some of your input goods from another country, in this case, Mexico, in order to realize significant cost savings and to keep from losing your largest customer, and ultimately your business. However, you will still need to lay off about 10% of your workforce to make up the financial difference. You know each of the members of your company personally, and you know that this will adversely affect them. You also know your local town (town motto: “We’re the Heart of America”) will not take this well. This will affect at least 20 families. You decide to be proactive and prepare a brief press release explaining the company’s actions, why, and the effects of doing so.
ORIGINAL POST PART 2:
In 200 words or less (use Word, and watch the Word count in the lower left-hand corner before pasting your post on the discussion board), prepare a brief press release. (NOTE: research how to write an effective press release!). Include what you wish but try to put a positive yet empathetic spin on the news. Beneath the post, you created (in part 1, above) skip a couple lines, type Press Release, then follow it with your 200-word (or less) press release.
Explanation / Answer
Email to midlevel management:
Hello all,
This is mail is regarding issue of cost cutting.
We all knew our company started with 5 people and now almost 200 employees working in 3 kind of shifts. We have satisfied all customers with our quality and cost.
Customer needs, customer satisfaction made us to survive this competitve environment. This goodwill made a giant company, Detroit manufacturing, INC to contract with us. For sure we met their expectations till date. I really happy about performance.
Now the problem has rised. Detroit manufacturing, INC is demanding to cut the cost of output materials by 20%. Which we run close to the margin. If we fail to cut our cost, for sure Detroit company INC regretfully close the contract by this december. We are going to lose our contract which may also leads to wind up a shop.
I wanted you all to attend meeting by today afternoon about this serious concern. As this is confidential and sensitive I ask you all not to disclose this anywhere in company. I also recommend you all to be prepared about the measures for cost cutting.
Regards,
Wlsh Works
PRESS RELEASE:
"We are leading business in producing intermediate goods to the leading firms. Which we are hired 200 local community people from this rural area. This made eradication of poverty and unemployment. We used to purchase resources in local.
Our business grown from 5 employees to 200 employees.We are grown a short span pf time because of all 200 people efforts. As a owner, I really appreciate it.
I have came accross many hurdles as of now. But now we are facing big issue with our financial crises. We are really running near to the margin. If we fail to execute, it may also lead to wind up the business.
After a meeting, we have came across few resolutions, which may affect town Motto.Resolutions are under:
1) Planning to inport resources from another country
2) Very hard to say to layoff 10% of workforce. We regret, but we dont have any other option
I know this will adversely affect the system of 'Heart of America'. We dont have other choice to get out of this resolution.
I assure that that we layoff by providing 1 month extra wages and business sustains as we keep trying to meet our financial condition again. After few days, when financial condition comes to the normal stage, we again hire the same people and constantly we also decraese import and start getting resources from here.
I hope aituation fluctuates and we work hard to make up all these situation as soon as possible.
By this i end up my words.