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Stonewall - Case Study Example

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This paper consists of the questions and answers on Stonewall. Stonewall Industries Limited is a construction material company that focuses more on wallboards. Whatever factors influence the demand of construction, will in turn, affect the demand of construction material. …
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Stonewall Case study
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Download file to see previous pages (b) Economic factors: The economic factors comprise of interest rates, taxation changes, economic growth, inflation and exchange rates. It can impact business in different ways, for instance the higher interest rates may discourage investment because it costs more to borrow. (c)Inflation: It may give rise to higher salary demands from employees and also raise the costs, for instance higher national income growth may boost demand for a firm's products. (d)Social factors: Changes in social trends can impact the demand for a firm's products and the willingness of individuals to work. If we say that population of Canada is ageing, then we will also consider that more old age homes would be required, which in turn would require construction material. (e)Technological factor: New technologies create new products and new processes. It is also capable of reducing costs and improving quality and it also leads to innovation. These developments can benefit consumers as well as the organizations providing the products. 4. Identify and explain the various techniques for forecasting labor supply and labor demand. What can organizations do in the short run when they recognize a gap in which supply far exceeds demand? What could Stonewall do in this situation? The techniques that can be used for forecasting labor demands are trend analysis and management forecast. (a) Trend analysis: in which labor requirements are forecasted on the basis of some organizational index. (b)Management forecast: are the opinions of experts, supervisors and sometimes the skilled labor as well, regarding the organizational labor forecast. The supply of labor can be forecasted by different techniques including staffing tables, Markov analysis, and...
Stonewall Company should explore alternatives prior to making its downsizing decision. One way to do so is by employee transfer to either within company’s subsidies, or to other companies. Later, if performance of transferred employees remains stagnant, then layoffs with proper reasoning will be the only way out. Information regarding downsizing should be provided to the employees as it is not only an employee’s right to know about it at least 3 months prior to layoff, but it is also constitutes the company’s foremost duty to its employees. Stonewall Company should opt for downsizing the Montreal plant. The reasoning behind it is that the Quebec is relatively small province as compared to others. If at times, more supplies are needed, Mississauga plant can easily transport it to Montreal because it is only on a 6 hours drive. Moreover, average hourly rate in Montreal plant is less as compared to others. So, in order to avoid the negative impact on the remaining employees, Stonewall can increase the average hourly rate, which would easily motivate the existing employees. ...Download file to see next pagesRead More
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