Case Study Example | Topics and Well Written Essays - 2000 words

Case Study Example What decisions does the firm face with continued growth? The company has to decide on how to expand the business but not to operate in their sub sites. The challenge in proceeding with this decision is the fact that finding new sand gravel sites in the new areas is hard because they are Scarce. The Company’s director Frank Wardlaw has found two sites at Celadon owned by the local council. However, they are leasing only one site hence the company has to decide which site to take. The first site, Bardon Farm, has sand and it is promising because of the development of Washington new town and also because in South Shields, the number of housing is increasing and therefore the market for sand is high. Cleadon Hill produces gravel and the positive side of this site is that it has a ready market where Tyneside Company can secure a four year contract with motorway contractors. The firm therefore has to decide which site to take. What are the risks associated with expansion in particul ar the operational risks John Hepple might, however, been justified by being against the expansion because of the operational risks that come with it. The one major risk is that the company might end up in debt thereby losing its property due to borrowing so as to finance the expansion. John Hepple, being the main shareholder, is against having new shareholders and hence that option of getting finances is out. The other operational risk is that the company has a lot of competitors whom it should keep in touch with to avoid being left behind. This will not be easy as the firm will be concentrating with expansion. Expansion also comes with a lot of work and everyone is working towards proving that they made the right decision (Sease & John, 1994). This may lead to the employees having a lot of pressure and their morale may be compromised. They may feel overworked and the firm may not be able to motivate them in the short run because all their finances will have been exhausted in the e xpansion. The firm also faces the risk of making losses if they are not able to attract new customers. The company however can deal with the risks by ensuring that the money they borrow will be paid within a certain period and still leave them profits. The board of directors has selected a committee that will establish the feasible project so as to expand it. The committee which consists of employees gives them an opportunity to choose what they feel they are capable of achieving and therefore doing away with the risk of losing employees due to pressure. The firm should do enough research to know what their new customers expect. This way they will have new customers and also be ahead of their competitors. Analyze the cash flow presentation. Identify any potential problems with the identification of the cash inflows and outflows The company has come up with a cash flow that shows how money will move in and out enabling them to know the rate of return of the project. The cash flow sho ws movement of cash operations that is the sales; there are also the cash flows from financing. The difference between the cash inflows and outflows gives the net cash flow. The Tyneside firm may have potential problems in identification of cash inflows and cash outflows. This problem arises when purchasing items with cash which is an inflow unlike when purchasing i Case Study Example | Topics and Well Written Essays - 750 words - 3 Case Study Example Some former Hooters waitresses have filed a class action lawsuit, alleging that the ambience that is deliberately created in â€Å"Hooters† restaurants exposes them to sexual harassment. The issue here is to decide what would be the right things for Hooters to do, and why? â€Å"Hooters† positions itself as a restaurant for the sporty and fun loving types and deliberately employs attractive waitresses to create an even livelier ambience. But this chain never serves hard liquor and behaves as a responsible corporate citizen by donating liberally to local and national charities and national and international sports events. It even donates substantially to Holy Family Lutheran Church. But it also hires and invites gorgeous women like Playboy Playmates if it feels that might increase its turnover. One must first ascertain what moral rights the aggrieved parties to a dispute have and then decide on a course of action that best honours those rights. Human beings have a fundamental moral right to choose what they would like to do with their lives and they cannot be manipulated to suit objectives of other persons. Further, every human being has a right to the truth and must have free access to information that might substantially affect the choices that have been done. In addition, every human being has a right to what has been agreed upon as a contract and also not to be harmed or injured. The other touchstone of judging whether or not an action is ethical or moral is to evaluate the extent to which such action fosters common good of the society. By common good it is meant certain social policies, systems, institutions and environments that are equally to everyone’s advantage. The other equally important criteria that any advice must fulfil in order to be considered as an ethically and morally sound advice is whether such an advice encourages action that would strengthen and spread moral virtues in a society. A judge