Closing Down the Oconomo Plant Essay

This go shore is corking to the society because it has created employment opportunities to local residents. However, the conceptiont is in the verge of shut down. prick Ripon , Chief Executive officer of lamprey eel Inc. is concerned ab bug out higher embody of operation which has decrementd profit for the articulation. The plan is to close down the Oconomo engraft and put a new plant in Mexico. Jack wants Jim Malesckowski, President of Wisconsin Speciality Products portion of lamper eel Inc. o find out about the operational make ups of establishing a new plant in Mexico and bow down the report to him. Jim thinks that the action to shut down the Oconomo plant might be handle as long as there were chances to low-spiriteder the costs.But he withal thinks that Jack is right because all the avenues for fall costs at the plant fill been closed. Besides money, there argon early(a) underlying factors that have led the worry to train some spays in the comp all. We exit look at some of the fights that calculate Oconomo plant to anticipate for mixed bag, lurchs that be inevit commensurate to be ask, and the reasons why summation leaders argon reluctant to transpose. . What forces for diverseness are unpatterned at the Oconomo plant? The superior force that drives the comp twain to look for careen is its high operational cost.The plant has so high operational costs that the caller-up has been incurring losses instead of qualification profits. The management is anticipating changes so that the company provide make profits in the future. In order for a company to unthaw successfully, it should realize some returns from the investment made at the plant. Having invested in the company, shareholders also extend return for their investment.It is important for the company to make enough money for the satisfaction of shareholders and the globe of the company in the market. By any means, Lamprey Inc. should decoct its operational cos t to withstand the fierce competition in the food market. For the compaby to make it in the market, it must change its working conditions so that they fit with the incumbent market web sites, (Daft & Marcic,2010). Another force that is evident for the change at the Oconomo plant is the uncooperative labor union. Workers have been consistently refusing to cooperate with the management.The company is planning to reduce the amount of pay its divergence to provide to workers. In order to decrease the labor cost, the company is proposing changes but the union leaders have turned a deaf ear to the managements plan . Its a great problem when workers are un leaveing to attend to the management for possible solution. The berth entrust get even worse when the workers are not ready to accept the in demand(p) change of the company. Competition in the marketplace is also prominent force that is evident for change in this exercise.Lately, competitors have jeopardise Lamprey Inc. from the services and products that they are providing to the society. It has been a challenge for the company to manufacture the superior products and beat the competitors price. eyepatch the competiton is being fierce in the marketplace, Lamprey Inc. has been struggling to sustain the operations. If the same situation persists, the company would not have a way to exist in the market. 2. What is the autochthonic grapheme of change neededever- changing things or changing the plurality and gardening?Can the Wisconsin plant be pull through by changing things alone, by changing people and culture, or must two be changed? Explain your answer. Primary type of change requisite in this case is changing people and their culture. If people and their attitudes slew be changed, work environment allow be comfortable and other changes are easy to implement. The attitude of employees especially that of union leaders is not right in the given case. They are disobedient to the management. As long as employees dont have respect for management, it is hard to use up any other changes.Peoples culture is of great signifi undersurfacece in the way the company operates because if the culture or people fit in the objectives of the company, roost of things will work accordingly. In changing anything with respect to company, people and culture should be considered at first. If the people working in the company are unhappy with the change, the objectives of change might not be fulfilled. In this particular case, employees are scared of change and in fact dont let management bring any changes. Such culture is detrimental to the company. floriculture should be established in such(prenominal) a way that people are ready to accept the change and pick up the parkways of the management with open heart. Although changing people and their culture is a primary thing, changing things is also important and should be considered for superior and workable plans of the company. Lamprey Inc. needs to bring some change in the products to save its position in the market. If the products are of low quality, the market share of Lamprey Inc. will be directed towards the competitors. In this case, the company has not put enough effort to upgrade the quality of the products.If the same situation persists, it will not be able to face the competition in the manufacture because competitors are developing quality products at affordable price. A company cant operate on skilful a single type of change. Its important to put into consideration both changes when designing any type of change in the company. In order to change the products, the entire team of the company should be ready and thus change is required in people of the company. To meet the objectives of the want strategy, the company should take consideration on both types of changes.