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In reference to the situation at TCI industries, it is evident that the firm problems are emanating from foreign competition through dumping, the firm has therefore changed it’s cooperate strategy and demands 14% rate of return after Tax. The simplest problem that has solutions to many of the firm’s solutions is the issue of employee morale. The CEO should recognize that employees are the most valuable assets of an organization and should be motivated through guaranteed satisfaction, genuine appreciation, recognition, inspiration, and good compensation. Cases of absenteeism, cost due to intentional damage and theft will be reduced, sales and managers will manage there expenses reasonably. This will guarantee improved productivity for the organization prior to implementing the internal auditor’s report, TCI Industries should refer to the established employment laws because some of the auditor’s recommendations are likely to breach labor laws and that shall result to libels.
In respect to the issue of domestic and international managers giving kickback payments to vendors and suppliers in efforts to meet the expected standards, the firm should continue to use its different performance measures depending with respect characteristic of the business. Therefore, each manager will have to meet his respective business’s target without paying bribes.
There are various pension plans options for TCI Industries; these include Savings Incentive Match Plans for Employees of Small Employers (SIMPLE), payroll deduction plans, Individual Retirement Accounts, 401(k) plans, and Simplified Employee Pensions (SEPs). The best option for TCI is 401(k) plans that will favor its employees who are risk averse and the majority who are almost retiring and working in businesses with ROI businesses.
The case of the health and benefit cost is a sensitive issues. The firm should ensure that it is a responsible corporate entity and provide it workers with a favorable working environment and thereby reduce the incidences of work related diseases. This shall control the increasing health claims. In cases of the product affecting the users adversely and the resultant liability lawsuits, TCI should ensure that its products are safe for the users. Otherwise, inability to meet the minimum quality expectation and setting a favorable working environment will require the firm to change its products lines. This option will come with more cost requirement and the new business ventures will require good working condition and quality standards must be met too.
Lay off should be initiated in the firms with low ROI where there are many old workers, however, the firm should be ready to pay hefty retirement benefit for early retirement. The businesses in the underdeveloped countries where the political regime is demanding 51% of the stake should be closed. The European acquisitions that are yet to earn much profits should be given a period of six month to show improvement, if not, they should be sold.
The most critical TCI issue involves takeover and the declining market share. It is unethical for large corporations to be bought back due to a hefty debt issue. The takeover by the takeover and greenmail artists should be resisted by the top management. Seeking a white knight is the best option for the firm because act in good faith while taking into consideration the interests of the shareholders and the firm. The only short coming with white knight is that the firm losses its independence, however, it is better than a hostile takeover.
Different productivity measures that should be used by different TCI businesses include return on assets, return on investment, return on equity, and return on sales. Each business should have its own performance measure depending with the nature of the business operations. Despite the foreign competition and unfavorable business environment in the developing countries, the firm should ensure its firms are motivated. Motivated workforce will result to increased employee productivity, minimal costs, and efficient of resources because the employees are satisfied with their work station.
In respect to the issue of domestic and international managers giving kickback payments to vendors and suppliers in efforts to meet the expected standards, the firm should continue to use its different performance measures depending with respect characteristic of the business. Therefore, each manager will have to meet his respective business’s target without paying bribes.
There are various pension plans options for TCI Industries; these include Savings Incentive Match Plans for Employees of Small Employers (SIMPLE), payroll deduction plans, Individual Retirement Accounts, 401(k) plans, and Simplified Employee Pensions (SEPs). The best option for TCI is 401(k) plans that will favor its employees who are risk averse and the majority who are almost retiring and working in businesses with ROI businesses.
The case of the health and benefit cost is a sensitive issues. The firm should ensure that it is a responsible corporate entity and provide it workers with a favorable working environment and thereby reduce the incidences of work related diseases. This shall control the increasing health claims. In cases of the product affecting the users adversely and the resultant liability lawsuits, TCI should ensure that its products are safe for the users. Otherwise, inability to meet the minimum quality expectation and setting a favorable working environment will require the firm to change its products lines. This option will come with more cost requirement and the new business ventures will require good working condition and quality standards must be met too.
Lay off should be initiated in the firms with low ROI where there are many old workers, however, the firm should be ready to pay hefty retirement benefit for early retirement. The businesses in the underdeveloped countries where the political regime is demanding 51% of the stake should be closed. The European acquisitions that are yet to earn much profits should be given a period of six month to show improvement, if not, they should be sold.
The most critical TCI issue involves takeover and the declining market share. It is unethical for large corporations to be bought back due to a hefty debt issue. The takeover by the takeover and greenmail artists should be resisted by the top management. Seeking a white knight is the best option for the firm because act in good faith while taking into consideration the interests of the shareholders and the firm. The only short coming with white knight is that the firm losses its independence, however, it is better than a hostile takeover.
Different productivity measures that should be used by different TCI businesses include return on assets, return on investment, return on equity, and return on sales. Each business should have its own performance measure depending with the nature of the business operations. Despite the foreign competition and unfavorable business environment in the developing countries, the firm should ensure its firms are motivated. Motivated workforce will result to increased employee productivity, minimal costs, and efficient of resources because the employees are satisfied with their work station.