ASSIGNMENT: Write an essay in which you analyze the mini business case below. Consider all sides of this complex situation fairly and fully, and explain what action you would take, and why. 


FORMAT: 3/4 to 1 page single-spaced – no shorter – using Arial 11 or Times New Roman 12 (about 350 words, minimum.)

ASSUMPTIONS: you may make realistic assumptions to provide further detail to your analysis. 

COVER BOTH SIDES: Make the strongest possible case for both sides of the dilemma. Persuade readers to agree with the side you support. Most good essays will have 4 or 5 paragraphs:

1. Introduction-summarize the most important points of the case and give the possible options

2. Analysis of the first option (option A) 

3. Analysis of the second option (option B)

4. Possibly an alternative to A and/or B

5. Conclusion: your position and why you support it 


The Problem: 

Roger Smith’s company had been battered by competition from Asian firms. Not only were Asian products selling for less money, but also their quality was substantially higher. By investing in some high- technology equipment and fostering better union– management relations, Roger was relatively certain that the quality gap could be overcome. But his overhead rate was more than 40 percent above that of the competitor firms. He reasoned that the most efficient way to lower costs would be to close one of his older plants, lay off the employees, and increase production in the newer plants. He knew just which plant would be the one to close. The trouble was, the community was dependent on that plant as its major employer and had recently invested a great deal of money for highway repair and streetlight construction around the plant. Most of the workforce were older people who had lived in the area most of their lives. It was improbable that they could obtain alternative employment in the same area. Should Roger close the plant or not? Explain your decision.