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Scenario:

You are the sole proprietor of a small local business called Wealth 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. Post your original response including the email to mid-level management and the press release on the discussion board by clicking REPLY to the discussion posting.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92464862

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