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Anonymous
Would someone help me with this problem? 2016-11-02 19:58:15 Post No. 1598217
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Would someone help me with this problem? 2016-11-02 19:58:15 Post No. 1598217
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I am doing a case study report for a class of mine, and I am having trouble figuring something out. Here is a summary:
A small company in Illinois has been bought out by a multi-national company headquartered in Great Britain. Before the buy-out, profits were robust, along with orders on the books, production levels and customer satisfaction. New employees have been hired at lower rates, replacing long time employees, who have been let go with little notice and small severance compensation. Positions are eliminated and their responsibilities have be consolidated into existing positions, increasing individual workload. Major purchases of new manufacturing equipment are made. At the end of the first year following the transfer, labor costs are down, orders are steady, but profits have dropped 12 percent.
What are some of the issues that are causing this drop in profit? I know that production levels would be an issue, or possibly over-worked employees, but other than that, I am stumped.
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>>1598217
lol get fucked this happened to the assholes that bought out my relative's business. they assumed they knew how to make it profitable and they didn't so now they're floundering and it's really shitty for the employees but they still paid the buyout which was like millions of dollars lmao
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>>1598242
Yeah, it's sad when the employees take a hit like that, when they are essentially what makes a company run properly. Do you know what kind of issues are hurting the profitability?
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>>1598217
that new equipment costs money.
also those green employees are probably screwing things up. Sometimes experience is worth the price.
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For sure, I definitely agree with the green employees part. I am having trouble finding solutions to a problem like this
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>>1598261
solutions as in how to return profitability?
if we agree that the equipment purchases and inexperienced labor are hurting profits then there's a number of options.
raise prices, cut costs somewhere else, rehire experienced people, move operations to china, grow, shrink, declare bankruptcy, sell to some sucker, close up shop. Those are just the standard actions. You could do weird stuff like importing labor or partnering with a local school to get students working for you. Maybe hire convicts on a work release program. Who knows?
personally I'd transfer all the equipment to a holding company and then rent it back from them while they declared bankruptcy and paid pennies on the dollar for it.
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>>1598325
Yes, this is exactly what I am needing. I am not experienced in any kind of business strategies, so the only solution I could think of was hiring experienced employees back.
Thank you for discussing this with me. I appreciate it.
is there a certain name or terminology used when dealing with your personal solution of transferring the equipment?
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>>1598352
no, there's no particular name for it. It's just bankruptcy. Perhaps fraud if you don't have a good team of lawyers.
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>>1598357
Hahaha for sure, it did sound a little bit on the fraud side of things.
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