Hello ) I need to answer the question as a part of my essay I'm working on it now, and so far I couldn't get my valid opinion Can you please give me some ideas or guidelines for it Thank you for your help Critically evaluate the ethical consideration related with the line of business of Kimco How can those considerations affect the financial decisions making of the company Kimco Ltd Modernisation or Relocation J ereld Kim founded Kimco LTD, a rm that is currently one of the largest producers of paper and pulp with annual sales of AUD 200 Million Kim located his rst plant in a rural town in Tasmania partly to create jobs for the many unemployed workers in the area The rm has always been active in the affairs of the community and donates generously to local civic and charitable organizations Kimco also takes special pride in promoting a family atmosphere among its employees Personnel experts believe that these policies are largely responsible for the enviable productivity record of Kimco's workers During the last 50 years Kimco had an impressive record of growth in earnings and sales But as the company grew, the top level management of the company was reluctant to decentralize and delegate authority to the lower business units Randy Cole who was appointed as the CEO of the company commenced to decentralise the company operation One major change involved the company's capital budgeting procedtu'es Kimco didn't have a formal mechanism for capital projects Randy appointed a six person capital expenditures committee (CEC) that would decide on projects costing more than $200,000 Smaller expenditures would be decided at the regional and local levels At present (2020) the CEC is considering two alternatives for achieving a much needed increase in the fum's production capacity One option involves modemising the existing plant in Launceston Tasmania If the plant is not renovated soon production would drop to 150,000 tons per year for the next ten years The other alternative is to build a new mill at Devonport, Tasmania For this purpose Kimco expects to use a land slot which purchased 10 years ago for $30 million Currently this land has been used as a storage facility which was constructed ve years ago for cost of $5 0 million dollar The current market value (Year 0 (2020)) of the land is $40 million The land value (mice) of this area record 2 5 annual growth ENIPLOYEE CONCERNS Some CEC members are worried about the impact on employee morale if the factory is relocated Apparently, says Smith, there is considerable opposition to closing down the old factory, judging 'om the inaccurate gtu'es we received It is noted, however, that the move will most certainly not cost any one a job, but will, in fact, create new positions, including some relatively high paying managerial ones Nonetheless, it was obvious that the proposed relocation would impose costs on the employees Many would either have to relocate to Devonport or face a ZOO kilometre round trip daily commute Smith wondered if it was fair and appropriate to ask the employees to bear such costs, especially considering the remarkable loyalty the Launceston employees had shown to the company She notes that a large proportion of the employees have worked for Kimco for more than 10 years One thing is clear, remarks a subdued Randy If we choose to relocate the plant, it is important that it does not appear to be some type of ivory tower decision that would be inconsistent with the management philosophy we promoted all these years Smith, I am sensitive to the issues you bring up Employee morale and employee loyalty are very important considerations Maybe we could work something out you know, like some type of moving allowance or separation package for those who do not wish to relocate Randy also reminded the committee that Devonport was the closest suitable site to Launceston should the company move

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Hello  ) I need to answer the question as a part of my essay  I'm working on it now, and so far I couldn't get my valid opinion  Can you please give me some ideas or guidelines for it  Thank you for your help  Critically evaluate the ethical consideration related with the line of business of Kimco  How can those considerations affect the financial decisions making of the company  Kimco Ltd  Modernisation or Relocation J ereld Kim founded Kimco LTD, a rm that is currently one of the largest producers of paper and pulp with annual sales of AUD 200 Million  Kim located his rst plant in a rural town in Tasmania  partly to create jobs for the many unemployed workers in the area  The rm has always been active in the affairs of the community and donates generously to local civic and charitable organizations  Kimco also takes special pride in promoting a family atmosphere among its employees  Personnel experts believe that these policies are largely responsible for the enviable productivity record of Kimco's workers  During the last 50 years Kimco had an impressive record of growth in earnings and sales  But as the company grew, the top level management of the company was reluctant to decentralize and delegate authority to the lower business units  Randy Cole who was appointed as the CEO of the company commenced to decentralise the company operation  One major change involved the company's capital budgeting procedtu'es  Kimco didn't have a formal mechanism for capital projects  Randy appointed a six person capital expenditures committee (CEC) that would decide on projects costing more than $200,000  Smaller expenditures would be decided at the regional and local levels  At present (2020) the CEC is considering two alternatives for achieving a much needed increase in the fum's production capacity  One option involves modemising the existing plant in Launceston  Tasmania  If the plant is not renovated soon  production would drop to 150,000 tons per year for the next ten years  The other alternative is to build a new mill at Devonport, Tasmania  For this purpose  Kimco expects to use a land slot which purchased 10 years ago for $30 million  Currently this land has been used as a storage facility which was constructed ve years ago for cost of $5 0 million dollar  The current market value (Year 0 (2020)) of the land is $40 million  The land value (mice) of this area record 2 5  annual growth  ENIPLOYEE CONCERNS Some CEC members are worried about the impact on employee morale if the factory is relocated   Apparently,  says Smith,  there is considerable opposition to closing down the old factory, judging 'om the inaccurate gtu'es we received   It is noted, however, that the move will  most certainly  not cost any one a job, but will, in fact, create new positions, including some relatively high paying managerial ones  Nonetheless, it was obvious that the proposed relocation would impose costs on the employees  Many would either have to relocate to Devonport or face a ZOO kilometre round trip daily commute  Smith wondered if it  was fair and appropriate  to ask the employees to bear such costs, especially considering the remarkable loyalty the Launceston employees had shown to the company  She notes that a large proportion of the employees have worked for Kimco for more than 10 years   One thing is clear,  remarks a subdued Randy    If we choose to relocate the plant, it is important that it does not appear to be some type of ivory tower decision that would be inconsistent with the management philosophy we promoted all these years  Smith, I am sensitive to the issues you bring up  Employee morale and employee loyalty are very important considerations  Maybe we could work something out you know, like some type of moving allowance or separation package for those who do not wish to relocate    Randy also reminded the committee that Devonport was the closest suitable site to Launceston should the company move

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