Video Concepts Case

8/9/2019 Video Concepts Case

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WRITTEN ANALYSIS AND COMMUNICATION-1

Video Concepts,Inc

Assignment 1

S!mitted to"

D#$ %it& C'&d'i

()

Ani#!&n C'&nd#&

On

Septem!e# *, *+1*

Lette# o T#&nsmitt&

.) 1//1

To

Ae0 M&cDon&d

#esident, AWC Inc$

S!2ect" Recommend&tions o# Compi&nce to En3i#onment Reg&tions

De M#$ Ae0,

e&se 4nd encosed t'e #epo#t on t'e &n&)sis o t'e sit&tion AWC is &cing

#egding t'e p#o3inci& en3i#onment #eg&tions &nd imp&cts o t'e options

&3&i&!e$ It &so '&s e3&&tion o possi!e options &nd t'e #ecommended p&n o

&ction o# AWC Inc$

Since#e) Yo#s,

Ani#!&n C'&nd#&


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M&n&gement Const&nt$

Smm)

Sit&tion An&)sis

5 AWC$ Inc$-medim si6ed &minm &!#ic&tion comp&n), p&te#n&istic, empo)ee

#iend) 7it' e0t#eme) committed empo)ee !&se

5 8ig') competiti3e met 7it' o7 ent#) !#ie#

5 Recession in const#ction indst#), &t e&st to st&) o# t'#ee )es -AWC s#3i3es

on :&it), p#ice &nd e;cienc)

5 C&n&d&-US t#&de &g#eement-competition in oc& met !t US met is no7

&ccessi!e

5 Ne7 p#odct-ni:e, p#ice 'ig' 3ome o#de#

5 Second 7eding ine to meet t'e dem&nd o t'e ne7 p#odct

5 Noncompi&nce 7it' t'e %o3e#nment Reg&tions #egding potions

5 #esent 7eding ine e0poses empo)ees to to0ic p#odcts, &so d&m&ging o# t'e

en3i#onment

5 Recent) go3e#nment sensiti3eness on en3i#onment #e&ted isses

5 nis'&!e o


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5 Ieg& &nd net'ic& to d&m&ge en3i#onment

Adopting t'e e0'&st s)stem

5 Conside#&!e 4n&nci& imp&ct

5 A


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$

Recommend&tion" /

&n o Action" /

E0'i!it 1" 1+

E0'i!it *"

$$11

E0'i!it "

$$1*

E0'i!it B"

$$1

Sit&tion An&)sis"

AWC Inc$ is & &mi) o7ned medim si6ed comp&n) in &minm &!#ic&tion indst#)

o# F+ )es$ It '&s !een p&te#n&istic in n&t#e since inception de to 7'ic' it '&s

e0t#eme) committed empo)ees$ Aminm &!#ic&tion in C&n&d& is & 3e#) p#ice

sensiti3e competiti3e indst#) 7it' o7 ent#) !#ie# de to 7'ic' AWC '&s

competito#s in sot'e#n Ontio &one$ As t'e indst#) m&in) c&te#s to t'e

const#ction indst#) 7'ic' is in #ecession o# &st cope o )es &nd t's t'e

p#o4t mgin o# comp&nies i9e AWC is do7n to G$!t AWC '&s !een &!e to

s#3i3e de to its competiti3e p#ice, :&it) o p#odct &nd e;cienc)$Aong 7it' t'&t, t'e C&n&d&-US #ee t#&de &g#eement inc#e&ses c'&nce t'e oc&

competition e3e in C&n&di&n met !t t'e &g#eement &so opens t'e US met

o# C&n&di&n comp&nies$

Recent) AWC '&s int#odced & spe#io# doo# design &nd de to its :&it), p#ice in

compison to simi p#odcts in met, AWC is getting 'ig' 3ome o#de#s$

To meet t'e dem&nd o t'e ne7 p#odct, AWC '&s to #n its 7eding ine on &

time !&sis, &nd sometimes 7it' second s'it, 7it' inc#e&sing s&es o# t'&t p#odct


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it 7od #e:i#e o# & second 7eding ine >cost HF+++? o# second s'it o# &!o#s

7it' s'it p#emim &nd 'ig'e# in3ento#) cost It is e3ident t'&t t'e *nd 7eding ine

7i !e p#o4t&!e in t'e ong #n &s & pe#m&nent sotion$

AWCs potion cont#o s)stems e not in compi&nce 7it' t'e %o3e#nment

#eg&tions #egding en3i#onment &nd &!o#$ Its p#esent 7eding ine e0poses t'e

7o#9e#s to potenti&) 'm to0ic ptices #esting in se#ios 'e&t' '&6ds &nd&cco#ding to t'e %o3e#nment stdies it is &so d&m&ging o# t'e en3i#onment$

Recent) t'e go3e#nment '&s !een mo#e &cti3e t'&n !eo#e in cont#oing potion

!) !ot' eg& &nd economic dete##ents$ Noncompi&nce 7it' t'e #eg&tion is &

pnis'&!e oE0'i!it*?

#o!em st&tement"

W'et'e# AWC s'od to go o# t'e emission cont#o s)stem &nd i so, 7'ic' one to

c'oose

Options"

5 AWC m&int&ins t'e st&ts :o

5 AWC &dopts t'e e0'&st s)stem

5 AWC &dopts t'e #eci#c&ting 4t#&tions s)stem

C#ite#i& o# e3&&tion >dec#e&sing o#de# o impo#t&nce?"

5 Imp&ct on c&s' =o7 &nd income st&tement

5 Et'ic& isses #e&ted to t'e empo)ees

5 Leg& impic&tions &nd et'ic& isses #egding t'e en3i#onment$5 Long te#m sst&in&!iit)$

E3&&tion"

Not &dopting &n) o t'e emissions cont#o

5 T'e#e is no e0t#& 4n&nci& imp&ct, neit'e# on t'e income st&tement, no# on t'e

c&s' =o7>E0'i!it


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5 T'is st&ts :o sit&tion is not eg&$ AWCs p#esent s)stem 7o#9ed o# B+ )es

!t gi3en t'e go3e#nments #ecent st&nd on t'e isse, conside#&!e #is9 is in3o3ed

5 It is not et'ic& gi3en t'e comp&n) poicies &nd p&te#n& n&t#e o t'e comp&n)

&nd t'e e0t#eme) committed empo)ee o#ce$

5 It is e3ident t'&t %o3e#nment 7i !e mo#e se#ios &!ot sc' isses in t'e t#eJ

'ence it 7ont !e & pe#m&nent sotion$

Adopting t'e e0'&st s)stem

5 Conside#&!e imp&ct on t'e income st&tement de dep#eci&tion >non-c&s'? &nd

c&s' =o7 de to e0t#& inte#est !#den >E0'i!it1?$ T'e e:ipment !eing )

dep#eci&ted 7it'in eig't )es &te# 7'ic' t'&t e0pense 7ont occ# in t'e income

st&tement &nd t'e ie o t'e s)stem 7i e0tend !e)ond eig't )es$

5 It is et'ic&) sond 7'en on) t'e empo)ees e conce#ned &s t'e) e not

e0posed to to0ic p#odcts$

5 E0'&sting t'e mes otside t'e &cto#) 7i !e sti ieg&$

5 %i3en t'e comp&n)s t#e g#o7t' !&sed on t'e ne7 p#odct 7it' &ccess to t'e

ne7 US met, t'e#e 7i !e inc#e&sed p#odction #e&ted to 7eding ine 7it'

inc#e&sing en3i#onment& imp&ct, 'ence it is not & pe#m&nent sotion

Reci#c&ting s)stem

5 T'e#e is 'ge imp&ct on t'e p#o2ected income st&tement &nd c&s' =o7 de to

dep#eci&tion, inte#est e0pense &nd 7&ste dispos& >>E0'i!it1?$ (t t'e c&s' =o7

imp&ct is pe# )e 7it' dec#e&sing t#end$ AWC s'od negoti&te 7it' t'e !&n9s &nd

oo9 o# options i some go3e#nment conside#&tion is &3&i&!e o# & onge# te#m

o&n$ T'&t #eci#c&ting 4t#&tion 7i !e ) dep#eci&ted &nd e0t#& inte#est e0pense

7i !e !) eig't )es$ 8ence to &3oid inso3enc) in te#ms o c&s' =o7, it s'od

oo9 o# &nd negoti&te o# 4n&ncing options 7it' onge# o&n pe#iod, &nd &te# dep#eci&tion o eig't )es, t'&t e0t#& dep#eci&tion e0pense 7ont !e t'e#e$ To &3oid

inso3enc) #egding t'e c&s' =o7s, t'e G g#o7t' #&te >s&es &nd g#oss p#o4t? 7i

inc#e&se !) e0poiting t'e ne7 p#odct$ i t'e s&es tget '&s #e&son&!) possi!e

BG g#o7t'>e0poiting t'e US met !) t'e t#&de &g#eement? &nd i t'e s)stem is

inst&ed in 1//,inste&d o 1//*,t'e c&s' =o7 7i !e !&&nced !) 1// nde# t'e

p#esent inte#est st#ct#e>E0'i!it ?

5 Ate# t'e s)stem gets dep#eci&ted 7it'in K )es &nd 7it' onge# o&n pe#iod, it

7i !e sst&in&!e in t'e ong #n$

5 Et'ic&) sond &nd it 7i c#e&te & st#ong im&ge o# empo)ees &nd t'e) 7i gi3e

mo#e t'&n 1++G o# t'e comp&n)5 It is et'ic&) &nd eg&) sond #egding t'e en3i#onment #eg&tion 7it' &n one

time in3estment$

5 Wit' inc#e&sed p#odction in *nd 7eding ine &nd inc#e&sed s&es it is &

pe#m&nent sotion$

Recommend&tion"


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@#om T'e decision m&t#i0 p#esenting t'e e3&&tion >E0'i!itB?, it is #ecommended to

go o# t'e #eci#c&ting s)stem 7'ie inst&ing t'e *nd ine o 7eding ine

&n o &ction"

5 AWC Inc$ '&s to inco#po#&te *nd 7eding ine o# dec#e&sing 7&ge #&te &nd 'ig'e#

3ome p#odction$5 As d#ing t'e #ecession met e3e#)7'e#e peope 7i oo9 o# !ette# p#odct &t &

o7e# p#ice, t'e ne7 doo# design '&s its US in !ot' US &nd C&n&d& so e0poit ne7

!siness oppo#tnit) in t'e US !) &d3e#tising t'e ne7 p#odct

5 Negoti&ting 7it' t'e !&n9e#s o# 4n&ncing t'e ne7 emissions cont#o s)stem 7it'

onge# o&n pe#iod$ Loo9 o# options o# some go3e#nment sppo#t$

5 Inst& Reci#c&ting 4te#ing p#ocess$

5 T&c9e t'e immedi&te imp&ct on c&s' =o7 !) inc#e&sing s&es tget o &t e&st BG

g#o7t' o3e# t'e ne0t t7o )es$

Wo#d Cont" 1+

E0'i!it 1" Imp&ct o t7o emissions s)stems on income st&tement &nd c&s' =o7 >in

dos?


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E0'i!it *" SWOT An&)sis o# AWC o# t'e p#esent sit&tion

E0'i!it " Imp&ct o #eci#c&ting s)stems 7it' p#esent s&es g#o7t' o G &nd BG

&te# t'e *nd 7eding ine

E0'i!it B" Decision M&t#i0 E3&&tion o t'e options !&sed on t'e c#ite#i&

OptionsC#ite#i& No emissions

cont#o E0'&st s)stem Reci#c&ting 4t#&tion

Impo#t&nce

@in&nci& imp&ct 8ig' 1 -+ -1

Et'ic& to t'e empo)ees 8ig' -1 1 1

Leg& impic&tions &nd en3i#onment& d&m&ge Medim -1 -1 1

Sst&in&!iit) in t'e ong #n Medim -1 -1 1


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Tot& sco#e -* -1 *

Reci#c&ting 4t#&tion sco#ed positi3e in & c#ite#i& e0cept 4n&nci& imp&ct

Documents

Video Concepts Case