Southern Discomfort

[Name of Instructor]

[Name of Course]

Table of Contents

Abstract3

Analyze of Issues faced by Malescowski and the Company4

Implementing Strategies5

Strategy for changing People5

Arguments presented to the Union6

Conclusion7

References8

Abstract

Southern Discomfort is a case that determines a scenario where the all the dimensions of the organization are under complete stress. The case represents that on one side, the company is demonstrating major losses due to keeping up with high cost of operations relating to the plant and mainly because of the high labor cost. The next thing represented managerial concerns regarding the losses and the decision making that had to be considered. Malescowski who was in charge of the situation represented a trouble situation, as he did not wanted a complete shut down on the plant on the other hand, the labor union was consistent with their demands of not reducing the wages. After going through all these conditions, the recommendations in this regards were made that with dimensional change in the company relating to technology and relationship with the union could help in contribute a position that can immediately stop the plant from shutting down return back to prospective future.

Southern Discomfort

Analyze of Issues faced by Malescowski and the Company

The company was facing some big issues while dealing with the extensive labor cost and with any business obstruction will always occur when dealing with such issues. The company and Malescowski were facing a few other issues, which revolved around the labor cost, and handling of a company's plant in Oconomo, Mexico. Moreover, the plant in Mexico was producing enough trouble for the company and its accounts, as the high labor cost was damaging the company in terms of growth and profits. In this regard, the company's Chief Executive Officer was considering shutting down the plant, since he could get better returns if he would invest that amount of money he was paying every month to the labor, in a bank.

The bigger issue in this regards was that closing down of the Oconomo plant would result in 520 people losing their job in an area, which was only based on 9000 people. The concern that Malescowski had was related in a sense if the Oconomo plant was to be shut down and the company moved its operations in some other location than these would be unemployed, as they would lose their job and would be in a state of misery.

In this situation, the company and Malescowski were aware of the financial facts that it would cost less to start over with new operations in new location rather than repairing or maintaining the plant in Oconomo, which is in operation. In addition to complexities of such situation, the issue that is further not helping the company and its management towards resisting with the plant is the labor union, which is not allowing the company to reduce its cost of labor. The labor union had refused to reduce the cost of operations in terms of reducing the wages as the company's management had tried a lot to convince ...