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Southern Discomfort Case Solution

Solution Id Length Case Author Case Publisher
1915 867 Words (4 Pages)
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The key issue as discussed before is the unemployment of loyal employees with whom the president of the facility has developed close friendship and most of whom are third generation employees who would take their laying off in the worst manner. Relocation of the plant is a necessary step, which must be taken and there is no alternative for it unless Lamprey Inc has no concern over losses. Giving pink slips to these employees would be the hardest part of the relocation process, which the management of the facility has to undertake unless they can find a way to reduce the costs to such an extent that relocation is no longer required, which seems like an impossible task because of the stubbornness of the worker’s union.

Following questions are answered in this case study solution

  1. What is the background to the problem?

  2. What issues can be identified in the case?

  3. What is the key issue?

  4. What theories are relevant to address the problem?

  5. What are the problem solving objectives?

  6. What is your recommended implementation/action plan?

Case Analysis for Southern Discomfort Case Solution

1. What is the background to the problem?

Lamprey Inc has a manufacturing facility in the US, which has massive running costs. The CEO of Lamprey is planning to move the facility to a newer and significantly cheaper place. The costs of the US facility are so high that competitors are able to produce and sell their products at a much cheaper price, and have almost started to mimic the quality of products offered by Lamprey Inc. Mexico has been chosen to move the plant where the labour costs, as well as, environmental costs are significantly lower, and Lamprey can produce their products at a lower price and regain their market position. However, shifting the plant would cause unemployment of more than 500 individuals for whom newer jobs would be rare because the town in which the plant is situated has a total population of 9,000 individuals. The move is a dilemma for the president.

2. What issues can be identified in the case?

The movement of the plant would lead to unemployment of individuals who are third generation workers at the facility and are extremely proud employees. These employees would not be able to find jobs in the small town where they live, and the plant is situated.

The relocation of the plant is a necessary step for Lamprey to keep hold of their market share, or they would lose it to their competitors who are able to sell at a lower cost. The high wage structure of workers in the US is the major hurdle followed by a strong union, which do not accept lower wages or newer training programs. Firing these loyal and third generation employees is the next big issue, and there is no easy way of doing it. This would cause panic among the employees and would not bode well for their future, especially for those whose grandfathers started working in the facility, and for them it is a family tradition.

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