Miss Essay

374 Words2 Pages
UNION TRUCKING INC. REPORT_GROUP C Union Truck Inc, as a profit-making company, primary`s objective is the maximisation of shareholders wealth. To archive that objective, the company must be socially responsible to all its stakeholders, hence the need to consider the interest of employees in any strategic business decision. Thus, this report analyzed the benefits of continuing with the current operation and going with the proposed operation in order to make an effective decision that best satisfy both parties by striking a balance between profitability and employee redundancy. BENEFITS Proposal A: CONTINUING CURRENT OPERATION Available information from the case study shows that the company stands to benefit from the following if the current status quo is maintained: 1. Guaranteed sales revenue of 700,000 revenue miles. 2. Guaranteed profit of $150,000. 3. Lower BEP of 500,000 revenue miles compared to 614,285 revenue miles of the proposed operation which implies lower risk. 4. No employee redundancy and disengagement cost. Proposal B: NEW PROPOSAL Some of the benefits if Union Trucking takes the new proposal include: 1. Greater profit: the organization will make an additional profit of $120,000 which is quite significant. 2. Increase Turnover: the same saved from manual loading and unloading will speed up distribution which will in turn increase the number of times the process is repeated. 3. Higher Product quality: the proposed operation will improve the quality of the product by eliminating/minimizing the rate of the damages in each of the process. 4. Capacity efficiency: since the additional revenue miles to be maximized will need more drivers, it can make good of the extra profit by training some of the truck loaders to become potential drivers which in way, will also resolve the issue of employee redundancy. 5. It

More about Miss Essay

Open Document