Downsizing International forest products company (IFP) supported the local workforce and provide many job opportunities. However it had a problem which led the manager of the company to cutback the workforce by 30 percent on a crash basis.That decision should be performed by the human resource director at IFP, Scott wheeler, who had to put a suitable plan with many strategies and elements like: The union reaction, the effects of their decision on the surrounding community and the major rearing is the interests of their shareholders. Finally there was serious conflict between those elements and Scott should suggest a plan whish solve this problem. Questions: 1-a: The reaction of the union about the IFF decision on the surrounding community.The company wills cutback the workforce upon to the seniority and also after intensely scrutinized management actions during that period.
In my opinion: the IFP decision shouldn’t be taken upon the seniority. I think it should be depend on the abilities and experiments of the workforce. B: The impact of it’s decision on the surrounding community. He knew that the cutbacks would depress the area’s economy , but they didn’t have other choice to protect their sales beside the bad effects of competitive companies . and we can say that company can put a pricing strategy to control he sales. C: The interests of IFP’s shareholders.
Protection of the interests of their shareholders is the major reason of their decision because of returning on their investments. It is legitimate decision but it must be far of the workforce. 2-It is true that Scott should be concerned first and foremost with protecting the interest of the shareholders. That because a shareholder group disrupted their annual meeting they seem to be more concerned with the return on their investment than with social responsibility and because of the order of his manager, MS.Deason which is that the shareholder interest should means above all else.
3-Ithing if the company follow some strategies to perform they will solve It’s problem . For example; a- Pricing strategy: Which give their sales less prices than other sales competitors to attract new customers to our goods. b- Cost strategy : Which let us buying row material with little prices so we can produce product and the sale them with the least cost.
*So these strategies make the life very easy to the customer, and reduce the depress on the work forces and support them.