Downsizing

Downsizing

The environment we choose to live in and the friends we select to hang around have contributed to who and what we are today. The same is true for a business. The elements in and outside the company’s environment will have an effect on Scott’s plan and each element affects the other. Companies themselves are a part of the communities and its culture within a city. Because of this reason the downsizing of International Forest Products Company (IFP) will have an impact on and be affected by their: stakeholders, employees, union, economy of the town since IFP employed almost 10% of the local workforce, government officials and civic leaders, suppliers, agents, distributors and their customers. The list is long but each entity has a contributing factor to Scott’s suggested plan.

Interests of a Shareholder

A Shareholder would believe that their views, opinions and suggestions should come first since they legally own a share of stock however, most people would agree that the customers should come first. The reasons are simple: a shareholder tends to look at the bottom line; how much money do I get? A stakeholder is more concerned with the employees, suppliers and the society at large. But, a satisfied customer should be the primary goal of every company since a happy customer comes back and is willing to pay a little more for their products or services. None-the-less the bottom line is the stakeholders will be successful and the shareholders will benefit nonetheless, in my view, the customer should be Scotts first and foremost concerns followed by the stakeholders because in general they usually are concerned with the employees, suppliers and the society at large.