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Southern Discomfort

Case Study
by

sergey redkiy

on 4 January 2013

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Transcript of Southern Discomfort

Case Study Southern Discomfort Problem Background Thank you for your attention! Another thing that needs to be understood is that for the company to meet its operations, it must realize some returns from what it has invested. Having invested in the company, managers and shareholders do expect that the company is going to provide sufficient returns which will be shared and at the same time enable the company to stay in the market.
There exist risks of the competitors who are in the market currently. For the company to make it in the market, it must change its working conditions so that they fit with the current market situation
What forces for change are evident at the Oconomo Plant? The greatest force that drives the company to anticipate for change is that it’s operating at a cost which instead of giving returns it’s giving out loses.

The cost of its operations is extremely high such that instead of realizing profits, the company does make loses only. Due to this, it’s the aim of the company to make changes so as to be realizing profits in the future.
What forces for change are evident at the Oconomo Plant?
Jim Malesckowski who is the president of the Wisconsin Specialty Products Division of Lamprey Inc. was asked to go to Mexico and make research and report about operational costs if they will move their factory in Lamprey’s Oconomo to Mexico.
There were 520 people who made a living at Lamprey’s Oconomo facility.
If plant in Oconomo will be closed, most of them wouldn’t have a journeyman’s prayer of finding another job in the town of 9,900 people.
$16-per-hour average wage are paid at the Oconomo plant.
On the contrary the Mexican workers-who lived in a town without sanitation and with an unbelievable toxic runoff from industrial pollution-would amount to about $1.60 an hour on average.
That’s a savings of nearly $15 million a year for Lamprey, to be offset in part by increased costs for training, transportation, and other matters.
Competitors had already edged past Lamprey in terms of price and were dangerously close to overtaking it in product quality.
Although both Jim and the plant manager had tried to convince the union to accept lower wages, union leaders resisted.
They also tried to discuss a cell manufacturing approach, which would cross-train employees to perform up to three different jobs, local union leaders could barely restrain their anger.
It was apparent that Lamprey could put its investment dollars in a bank and receive a better return than what its Oconomo operation is currently producing.
Jim doesn’t want to be responsible for the plant’s dismantling, an act he personally believes would be wrong as long as there’s a chance its costs can be lowered.
The costs are too high, the union’s unwilling to cooperate, and the company needs to make a better return on its investment if it’s to continue at all. It sounds right but feels wrong.
What should Jim do?
What forces for change are evident at the Oconomo Plant?
What is the primary type of change needed-changing “things” or changing the “people and culture?” Can the Wisconsin plant be saved by changing things alone, by changing people and culture, or must both be changed?
What do you think is the major underlying cause of the union leaders’ resistance to change? If you were Jim Malesckowski, what implementation tactics would you use to try to convince union members to change to save the Wisconsin plant.
Another problem is the workers point of refusing to cooperate. The company is planning to reduce the amount of pay it’s going to provide to its workers with a significant drop. This is a great problem which workers are not ready to accept the desired change of the company.
Another force for change is that competitors are in the market and of late they have threatened the company from the services and products that they are providing to the society. Quality is one thing that the company should look at so as to retain its market segment else the upcoming companies will out perform the company
What forces for change are evident at the Oconomo Plant? Another problem is the workers point of refusing to cooperate. The company is planning to reduce the amount of pay it’s going to provide to its workers with a significant drop. This is a great problem which workers are not ready to accept the desired change of the company.
Another force for change is that competitors are in the market and of late they have threatened the company from the services and products that they are providing to the society. Quality is one thing that the company should look at so as to retain its market segment else the upcoming companies will out perform the company What forces for change are evident at the Oconomo Plant? The primary change that is applicable at the moment is changing the people and their culture.
The reason as to why changing people and culture is of importance to the company is that, having changed people, all other things will work accordingly.
People’s culture is of importance in the way the company operates simply because if the culture or people fit in the objectives of the company, then all other things will be in place. What is the primary type of change needed-changing “things” or changing the “people and culture?” Can the Wisconsin plant be saved by changing things alone, by changing people and culture, or must both be changed?
People are the main target of any given business set up. This means that in changing anything that is in respect to the company’s operations, people and their culture is the initial thing that should be taken into consideration.
Another thing is that having changed peoples perception, competitors have no say simply because you will have drove the attentions of the market to your operations What is the primary type of change needed-changing “things” or changing the “people and culture?” Can the Wisconsin plant be saved by changing things alone, by changing people and culture, or must both be changed? People are the main target of any given business set up. This means that in changing anything that is in respect to the company’s operations, people and their culture is the initial thing that should be taken into consideration.
Another thing is that having changed peoples perception, competitors have no say simply because you will have drove the attentions of the market to your operations What is the primary type of change needed-changing “things” or changing the “people and culture?” Can the Wisconsin plant be saved by changing things alone, by changing people and culture, or must both be changed? Union leaders are resistant to change due to a single reason which the company is reluctant to handle.
The reason as to the resistance is that Oconomo plant has plans to provide workers with less wages which they feel they cant live within that budget.
Looking at some companies which are emerging, union leaders are not ready to accept the change simply because those companies are giving out wages which are high and the quality of services and products that they have is almost outdoing the one Oconomo plant is providing.
What do you think is the major underlying cause of the union leaders’ resistance to change? If you were Jim Malesckowski, what implementation tactics would you use to try to convince union members to change to save the Wisconsin plant.
What do you think is the major underlying cause of the union leaders’ resistance to change? If you were Jim Malesckowski, what implementation tactics would you use to try to convince union members to change to save the Wisconsin plant. Jim has a hard chance of convincing union leaders on what should be done. What he is supposed to do is to give union leaders the risk behind getting a new job if they lose the one they have.
There are so many people in the town who are looking for job. In the mean time, he should convince them to work as the negotiation is being carried out for a better change.
There are benefits that workers get from the company and if they resign, such as medical and insurance benefits, then they will no longer get until they get another job.
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