Question

Global Warming: WRAP Prompt 2013

You are a consultant for Con-Glom Inc., an industrial equipment manufacturing firm. A coalition of concerned scientists and environmental groups has issued a report on global warming, the theory that the recent gradual heating of the earth’s atmosphere is a result of human and industrial activity. The scientists point to several climate change risks: rising ocean levels, erosion of shorelines, disruption of agriculture, and loss of animal habitat. The coalition’s report suggests that Con-Glom and other large corporations are using loopholes to avoid complying with federal emissions standards because they are more concerned with profits and jobs than environmental preservation.

In response to the report and the public outcry it produces, Con-Glom faces a decision about whether or not to install filtering systems at its plants. The filtering systems are expensive to purchase and install (about $75,000 per site), and their use would initially decrease the productivity of Con-Glom's manufacturing plants at a time when the company already faces serious financial problems. Nevertheless, the company is seriously considering installing the filtering systems and publicizing its action as a means of countering the negative publicity generated by the report.

However, the decision is likely to be unpopular among employees and their families. The cost of the filtering systems and the loss of manufacturing output would force Con-Glom to scale back production by 5% and close one of its eleven production facilities. If the filtering systems are installed at ten facilities, the company will be forced to close its oldest and least efficient manufacturing plant, located in Greenwich, Illinois. This action would put 1,400 employees out of work, in an area already suffering from high unemployment. Alternatively, the company could install the filtering systems at only five of its plants. In this case, the Greenwich, Illinois plant would not need to be closed, but production would still need to be scaled back and 700 employees would be laid off.

Directions:

The company's CEO, William B. Friedman, has asked you to assess the situation facing the company and suggest a solution to the problem. Write a memo to Mr. Friedman in which you discuss your solution. A secondary audience might be the members of his Management Committee.

Elements of a desired response:

• A clear organized description of problem and explanation of solution
• inclusion of specific supporting details and evidence
• demonstration of a clear purpose and awareness of the audience
• effective development of your ideas
• appropriate style and tone for business document
• standard written English, spelling, grammar and punctuation

Answer 1

To

Mr. William B. Friedman

CEO

The current situation at hand that Con-Glom Inc. is facing is a serious issue and needs to be handled in a sensitive and careful manner for the company to be able to maintain its brand equity, goodwill and reputation in the market as a responsible corporate entity. Keeping this in mind it is paramount importance that the company installs filtering systems at its plants. This will help in dispelling the negative public perception and turning the image of the company in a positive manner as a company who is aware of its responsibilities towards the society and implements steps to fulfill its CSR (corporate social responsibility) obligations.

After analyzing the situation my recommendation is that Con-Glom Inc. should install the filtering system at its ten production facilities and close the eleventh plant as it is the least efficient plant. I am suggesting this as installing the system at only five plants is a short term solution and the company will have to, in the near future; install the system at more plants. By installing the system at once at all the ten plants the company will be better prepared to deal with the repercussions like scaling back of production and loss of manufacturing output. The company can consider is at a onetime cost and amortize it over the future periods. The 1,400 employees who will go out of work can be employed in other facilities of the company in a staggered manner. Installing the filtering facility at just five plants is not rational as the company will have to later on install the system at the remaining five plants as well. Another reason why I am recommending the installation of the system at all the ten plants is that the image and perception of the company will gain strength in the eyes of various stakeholders and especially its customers.

This could translate into benefits for the company in the form of greater traction in its sales. This would lead to benefits of installing the system outweighing the costs in the long run.