Lamprey Inc Remains Viable as a Business Enterprise Essay

Lamprey Inc Remains Viable as a Business Enterprise - Essay ExampleThis 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 bring low its be, to remain viable as a business enterprise. If it will continue to operate with the same cost in the present state of ambition, 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 time of day 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 put forward 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 an(prenominal) components. In addition , the level of the plants productivity may be also an issue for it might be producing less at the same cost. If the counsel and the employees can find ways to lower the cost and increase productivity that will make the companys return higher and enable it to prevent 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 incorrect although it sounds right. Strictly looking at the disparity of the wages may seem to be right but he knew that as long as on that point 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 int erest in keeping the plant.