Read Case study $4$: Where to Place the Hard Rock Cafe on pages $363-364.$ Answer discussion questions on page $364$ and submit your work for grading. $363$ Discussion Questions $1.$ Evaluate the inducements offered Southern Recreational Vehicle Com$-$ pany by community leaders in Ridge$-$ crest, Mississippi. $2.$ What problems would a company ex$-$ perience in relocating its executives from a heavily populated industrial$-$ ized area to a small rural town? $?3.$ Evaluate the reasons cited by O'Brian for relocation. Are they justifiable? $4.$ What legal and ethical responsibilities does a firm have to its employees when a decision to cease operations is made?$6$:$23$ Case Studies Southern Recreational Vehicle Company In October $2018,$ the top management of Southern Recreational Vehicle Company of St$.$ Louis, Missouri, announced its plans to relo$-$ cate its manufacturing and assembly opera$-$ tions to a new plant in Ridgecrest, Mississippi. The firm, a major producer of pickup campers and camper trailers, had experienced $5$ con$-$ secutive years of declining profits as a result of spiraling production costs. The costs of labor and raw materials had increased alarmingly, utility costs had gone up sharply, and taxes and transportation expenses had steadily climbed upward. Despite increased sales, the company suffered its first net loss since opera$-$ tions were begun in $1982.$ When management initially considered reloca$-$ tion, it closely scrutinized several geographic areas. Of primary importance to the relocation decision were the availability of adequate transportation facilities, state and municipal tax structures, an adequate labor supply, posi$-$ tive community attitudes, reasonable site$6$:$231.$ Exemption from county and municipal taxes for $5$ years $2.$ Free water and sewage services $3.$ Construction of a second loading dock $-$free of cost$-$at the industrial site $4.$ An agreement to issue $$500,000$ in in$-$ dustrial bonds for future expansion $5.$ Public$-$financed training of workers in a local industrial trade school a In addition to these inducements, other factors weighed heavily in the decision to locate in the small Mississippi town. Labor costs would be significantly less than those incurred in St$.$ Louis; organized labor was not expected to be as powerful $($Mississippi is a right$-$to$-$work state$)$; and utility costs and taxes would be moderate. All in all, the management of Southern Recreational Vehicle Company felt that its decision was sound. On October $15,$ the following announcement was attached to each employee's paycheck: To: Employees of Southern Recreational Vehicle Company$6$:$23$ Dlat$),$ anu uu LUOLD CU LACS vuuru ve rate. All in all, the managem $+$ Southern Recreational Vehicle Company felt that its decision was sound. On October $15,$ the following announcement was attached to each employee's paycheck: To: Employees of Southern Recreational Vehicle Company From: Gerald O'Brian, President The Management of Southern Recreational Vehicle Company regretfully announces its plans to cease all manufacturing operations in St$.$ Louis on December $31.$ Because of in$-$ creased operating costs and the unreason$-$ able demands forced upon the company by the union, it has become impossible to op$-$ erate profitably. I sincerely appreciate the fine service that each of you has rendered to the company during the past years. If I can be of assistance in helping you find suitable employment with another firm, please let me know. Thank you again for your cooperation and past service.