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Lay off only temporary workers.
Inform workers of the need to lay off temporary workers. Provide assurance to full time workers of their job security. The expected increase in demand is highly likely Foldrite furniture case study occur, especially because of the outdoor event supplier.
Its impact is high it might leave the company exposed if it does not meet the demand. The failure to meet demand will result in the destruction of company image. If this threat materializes, the company will have no option, but to seek credit.
Tight credit will affect the company operations, as it will be unable to meet most of its production. The impact of this risk is high because it has the potential to affect all functional areas of the company.
Hiring additional staff would be beneficial to the company in the short run, but the probability of this happening is minimal. This is because the company has minimal funds, and there are other ways of handling increased demand.
This threat has a high impact as the company would have to justify their need and ensure it has enough demand to necessitate hiring more staff. However, the exposure to the company is minimal because an increase in demand would mean it could afford to pay their full time pay. Currently, the company has idle production capacity, which the new staff could make use of and increase production while reducing production time.
Employee fatigue is inevitable if the company opts to increase overtime hours. The employees would have to work for longer shifts, and their off days would be reduced. The exposure of this threat is high because the company would suffer if it does not meet its consumer demand.
Reduced yield would mean it is paying workers more for less production. The last threat is laying off workers.
This threat has been experienced before, and it normally reduces employee morale. The probability of this threat is medium, as it will only occur if more workers are hired and expected increase in demand does not materialize.
If this occurs, it would have a high impact and high exposure to the company. Previously when workers were laid off, the remaining workers were less motivated. Having experienced this before, the management of the company is unwilling to lay off workers in order to keep them motivated.
There could be other ways that the company could use instead laying off workers.
In the case of having hired temporary staff, the company should make the temporary workers aware that they will only be retained if demand increases and there are available positions. This would ensure that workers do not get demotivated when the temporary staffs are laid off.View this case study on Foldrite Furniture Case Analysis.
During the planned workshop the participants will be provided with an opportunity to share and reflect. FoldRite Furniture Company Case Solution. Moreover, the lead time to make a deliver was reduced to 2 weeks and this helped the company to receive more orders and increases its revenues.
FoldRite Furniture Company Case Solution. Introduction. FoldRite Furniture Company was established in , in Colorado.
The company started with the production of banquet tables mainly for small school and church functions. Later on, the company adopted the innovative strategy and started to make stackable chairs and folding tables.
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