Lamps Plus manufactures lamps for residential homes. The president of the company, Laura Cole, is convinced that
Question:
Lamps Plus manufactures lamps for residential homes. The president of the company, Laura Cole, is convinced that she must get concessions from the workers if Lamps Plus is to compete effectively with increasing foreign competition. In particular, Cole is displeased with the cost of employee benefits. She doesn't mind conceding a competitive wage increase (maximum 3%), but she wants the total compensation package to cost 3% less. The current costs are shown in Exhibit 9.9.
Your assistant has surveyed other companies that are obtaining concessions from employees (Exhibit 9.11). You also have data from a consulting firm that indicates employee preferences for different forms of benefits (Exhibit 9.10). Based on all this information, you have two possible concession packages that you can propose, labelled "Option 1" and "Option 2" (Exhibit 9.11).
Please answer the following questions:
- Cost out each of the two options, given the data in Exhibits 9.9 and 9.10.
- Which package would you recommend to Cole? Why? Which of the options do you think employees will be more likely to accept? You may want to refer to Exhibit 9.9.
- Could you propose a better options than the two suggested that will achieve Cole's goal and at the same time be more likely to be accepted by the employees with less resistance?
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr