CASE STUDY

Chatsworth Sports Products

Chatsworth Sports Products

Q. 1. Was there a reasonable economic basis for the termination of the ten disabled workers (rather than the Valley State employees also working for CSP)? If you do not think there is enough information, what other data would you like to be provided? (Consider the opportunity cost of using the ten workers provided by the Sheltered Workshop in contrast to the opportunity cost of using existing Valley State staff and facilities.)

The reasonable economic basis for the termination of the ten disabled workers cannot be measured through the given data, as the total number of workers is not provided. However, on the theoretical basis, cost benefit analysis (CBA) is a tool for comparing the costs of an action with its benefits in order to aid decisions and choices between alternative courses of action. CBA is useful to green businesses because it enables them to integrate environmental and economic goals in their operations. Ensure that environmental and social costs are taking into consideration in their purchasing or investment decisions. The costs investigated by CBA include opportunity costs—the costs of forfeited options (Thomas, 2000). Because the various options present in a decision-making process are often mutually exclusive—where to build a factory, or whether or not to offer a “green” version of a detergent—picking an option eliminates the other options as possibilities. You can use raw materials to make one thing or another; you can allocate funds to one end or to another. The impact of eliminating options is an opportunity cost.

The opportunity cost utilizing to put value in the environment area. For instance, we can work out the advantages that can be gained in terminating the employees which cannot be gained in retaining those employees. This cost then subtracted from the cost of the attaining these advantages. So in terms of the employees, the cost of keeping those employees and services being provided for them can be subtracted from the total cost of the employees. If those employees terminated, the total cost of the entire organization can increase as there will be no additional costs for those ten employees. The high amount of the services, including the salaries and other benefits provided to those employees, who have subtracted from the amount, can be utilized in other aspects of the business like in promotion and advertising of the overall organization. This amount, which had preserved for those ten employees can be utilized in constructive means of the company (O'Brien, 2004). This shows that terminating those employees can benefit the organization as the amount reserved for the employees can be utilized in the benefit of the company and other significant opportunities. The company was also spending resources in the development of those ten employees. Provide proper and up to date training were being conducted to teach the employees to defuse situations that can result in stress. Regular team support meeting were being conducted to support employees. The company also encouraged them to share difficult situations and discuss issues ...