Lamprey Inc Remains Viable as a Business Enterprise Essay

Lamprey Inc Remains Viable as a Business Enterprise - Essay Example This huge disparity in salary already manifested in the uncompetitive pricing of Lamprey Inc.’s products compared to its competitors. Competitors were also dangerously close to overtaking Lamprey Inc. in terms of product quality. Lamprey Inc. has to lower its cost, to remain viable as a business enterprise. If it will continue to operate with the same cost in the present state of competition, it will not long be long before it will fold. Looking at the numbers, moving the plant to Mexico seems to be the easiest solution considering the wage disparity of $16 per hour in Oconomo plant and $1.60 per hour in Mexico translating to a $ 15 million savings per year. But limiting the consideration of the decision to lowering wages can be a very simple solution to the problem. The real issue of the Oconomo plant is the high operational cost and wage is only one of its many components. In addition, the level of the plant’s productivity may be also an issue for it might be producing less at the same cost. If the management and the employees can find ways to lower the cost and increase productivity that will make the company’s return higher and enable it to keep a savings equivalent to moving the plant to Mexico, then it should be explored. As an experienced manager, Jim Malesckowski felt it in his gut that the decision felt wrong although it sounds right. Strictly looking at the disparity of the wages may seem to be right but he knew that as long as there is a chance that the cost will be lowered, the plant should be saved. Jim has to engage the employees through its union in the solving the problem of lowering the cost and enhancing productivity. He has to be forthright with the employees that both of them want the same thing, to keep the plant at Oconomo without cutting the wages.   So they have to solve the problem of competition which undermines their mutual interest in keeping the plant.