Mgmt

Okefenokee Sporting Clays Inc.

After learning about the company, we were able to develop a list of undesirable effects. The undesirable effects that we observed are: OSC Inc. is not making enough profit, no employee training program, an unskilled workforce, underutilized capacity in tournaments, current members not renewing their memberships, low employee retention rate/high turnover rate, not enough demand for services, increased prices of merchandise and membership, low employee compensation/salary, and low advertising budget. These all meet the criteria to be considered a UDE, which are that it must exist, must be undesirable, and must be under influence or control. By evaluating the UDEs, we discovered that the leading UDE is that Okefenokee Sporting Clays is not making enough profit or that the value of the firm is not being sufficiently enhanced. The core problems include the low employee compensation, the low advertising budgets, and the increased prices of merchandise and membership. After discovery of these core problems, we were able to make three one-UDE clouds. The objective of the first cloud is to maintain a cost-efficient workforce. For this cloud, D is to raise the employee salary, while D’ is do not raise the employee salary. The D side aims to retain capable workers, and D’ wants to keep the labor cost low. The injection is that raising employees salary will lead to a more motivated and efficient workforce, which will ultimately lead to lower overall labor costs. For the second cloud, the objective is to maintain a cost-efficient advertising budget. The mutually exclusive D and D’ are to increase money spent on advertising or to not increase money spent on advertising. D aims to increase awareness, and thus, increase demand. D’ aims to spend less money per customer for advertising. The injection for this cloud is that increasing the amount of money spent on advertising will attract enough new customers to cover expense of increasing advertising...