1

Answer 1

As a member of Board of Directors of Southern Recreational Vehicle Company, I would

agree with the proposal to the relocation plans.

Answer 2

A company would experience lot of problem in relocating its executives from a heavily

populated industrial area to a small time rural area. Marketing would be one of the major

problems as the rural area would not have expansive opportunities of growth. Thus, marketers

would have the added responsibility of attracting customers from outside the small twon that

would increase travel expenses. Moreover, it would significantly enhance the dissatisfaction of

the executives as they would have fewer outlets of relaxation that corresponds to urban lifestyle.

Thus, overall organizational performance would decline.

Answer 3

The reasons by O’Brian for relocation of the company are justifiable as the company has

been experiencing loss for the last five years and the present and incentives offered by the state

would significantly reduce not only its spiraling production cost but also reduce the burden of

rising taxes, increased labor and utility cost etc. that are associated with industrialized states

which have strong labor union format.

Answer 4

A firm has legal and ethical responsibility towards its workforce when it decides to cease

its operation. Though employment and labor laws across states may differ, the basic employment
 2

contract ensures that employees are given far warning and compensation by the firm when it

decides to cease its operations and relocate. Moreover, ethical and moral considerations are key

issues that look at the wider welfare of the employees who have served the company with

commitment and worked hard for its success. Thus, the firm must ensure that employees are

given fair compensation and provided with opportunities to serve in its new location also.

(words: 291)
 3

Reference

Resource as provided