¶ … Family Pump Business
Major Facts: This particular case study evaluates some of the more prominent concerns that arise when doing business in a relatively small, family owned business that maintains a small town identity. Specifically, there are advances in technology and materials that present opportunities for such a business (which is an agricultural pump manufacturer known as Muenster in the case study) in terms of reducing costs, lowering its overhead, and potentially increasing its revenue. However, such opportunities are readily contrasted with a bevy of concerns that pertain to employee treatment, reputation, and industry/local politics.
Major Problem: Within this case study, one of Muenster's more cosmopolitan employees becomes purchasing manager and ascertains a way to greatly reduce the costs for producing one of the company's more popular pumps. However, one of the points of pride with Muenster is that the company has historically manufactured its own pumps and operates a manufacturing facility that would have to close down -- thus resulting in unemployment in a number of individuals who depend on working there for their livelihoods. Moreover, these human capital concerns are greatly attached to the company's status as the largest business operating in this small town. Closing down its manufacturing facility could have considerable ramifications with local relations with the town's power structure, which might produce...
Additionally, Muenster would potentially have to contend with depending on a third party -- it's new supplier -- to meet the needs of its customers. The case study references some dubious aspects about the amount of time it would require to get the parts that Muenster would need to service its customers in the time frame which the company is both used to and renowned for.
Possible Solutions: A. The most obvious, and possibly best, solution to the problems addressed in the preceding section is for Muenster to not vary its manufacturing processes or policies. That way, it would be able to retain all of its employees in its manufacturing unit. Moreover, it would continue to preserve its status as the most noted employer in this small town, ensuring a propagation of the auspicious relationship it has had with the town. B. Alternatively, Muenster could choose to utilize cost-cutting measure recommended by one of its more worldly employees. This way, it would be able to reduce costs. However, it could attempt to make some alterations to the scheduling and delivery of the parts from the third-party, as this would be a principle point of concern. Additionally, it could try to manufacture other types of pumps to still employ those that would otherwise be laid off. C. Muenster could attempt to alter its production method so that it could spend less to produce the materials for its pumps. That way, it could keep…
