MGT $436$ Sopcial Responsibility Mini$-$Case $($Indlvidual Assignment$)$

Rocky Hills Quary $($RHQ$)$ is a rock quarry located outside of Springlield, lllinois which produces gravel for the local area $($most customers are within $100$ miles of the quarry, due to high transportation cost$).$ The quary sells to individual homeowners with gravel driveways, as well as contrectors, other commercial customers, and local road departments. The quary has been in operation for nearly twenty years, and is currently planning on expanding due to the purchase of an additional $230$ acres of land. This expansion will allow the quary to operate longer into the future, and will create around fifty additional jobs. The expansion is being financed using earnings that were retained in the company, as well as a loan from a regional bank

The gravel business is somewhat competitive, and consumers typically buy based on price. RHQ is able to deliver gravel at a lower cost $($and price$)$ to local customers, since the other quarries are further away and must bear higher transportation costs. Likewise, RHQ is a at a cost disadvantage when servicing customers who live closer to another competing quary. Thus, one could describe the business$-$level strategy of RHQ as a cost focus strategy, since they are the low cost producer for a relatively narrow segment of the market $($those living geographically close to the quary$).$ When the quarry first became operational twenty years ago, it sat in the middle of a comfield. As the suburbs of Springlield ullinois have expanded, the quaryy finds itself in a more developed area. One side of the current quary is a subdlivision, and the new expansion of the quary will border a golf club. The management of RHQ has never systematically thought about what sort of social responsibilities they have as a firm. Generally, the managers believe they have always focused on thing to make money for the shareholders who own the quary, so that a high dividend can be paid each year to the shareholders $($however$,$ no dlvidend has been paid for the past couple of years, since the money was saved for the expansion$).$ At the same time, they do not belleve they have taken actions in the past that were unethical, or had any substantial adverse impact on the community.

Recently however, there has been some community backlash toward the expansion of the quarry. The members of the golf club have been one of the most vocal critics of the expansion. They belleve that the expansion will make the golf course less aesthetically pleasing, since the quary will be putting hills of gravel on the border of the golf course. Those living in the bordering subdivision have complained about the expansion as well. While they already border the quariy and are not directly affected by the expansion, they belleve that the expansion will allow the quarry to operate for longer. Thgy were hoping that the quary would close in about ten years, but they know that with access $5$ the additional real estate, the quarry may be able to operate for another thirty years. Those in the neighboring subdivision complain about the visual aspects of the quarry operations, the dust that it generates, and the occasional shaking due to the quarry blasting $($dynamiting rock$).$ Some homeowners belleve that the frequent blasting at the quarry may cause the foundation of their homes to start to crack over time. Also, having the quarry as a nelghbor keeps the values of their homes from rising as quickly as other homes in the area that do not border the quarny.