Given these facts, chose one facility and identify 5 stakeholders. Explain how closing the facility may impact on them and how they may react to news that it may close.
The location we decide to close is the Toronto one. And the first group of stakeholder to impact is our employees/operators, as all of them need to be laid off. First, they will panic for their impending unemployed state and this restless state of mind will not result in a qualitative work environment, then they would ask for termination pay in lieu of notice (which would create more expenses for us) and they would ask for NOC/ROE (additional paperwork for payroll dept.). Some of the employees might get extremely agitated and might demand additional compensation for the untimely loss of their job as industry-wise it is very competitive in Toronto to get into call centre jobs due to high volume of workforce availability with superior skill/expertise.
The second group of stakeholders would be families of employees. It's very common that every adult family member will work to support their families. Losing job would be one of the biggest losses for the family both financially and mentally. Their frustration for coming future would know no bound.
The third group will be the customers, which is definitely one of the core groups. Considering the close of the location, the most obvious impact is that the available lines will be cut, so it's very likely that the time waiting for next available customer service representative will be a little bit longer.
The fifth group will be the manufacturer/service providing companies that we have contract with. We might lose their confidence when they come to know of our losing a major contract and might not renew their contract with us for next terms or be looking for superior service facilities provided by other call centre operating companies in the city.
The last group of stakeholders will be our competitors. The lesser the competition, the better – that’s what each unit within any industry feel! On the one hand, they would work hard to take over our customers or try their best to attract them; on the other hand, the layoff of our employees is a really good source pool to recruit from without a small or no training at all.
We chose to close the Toronto location. 5 external factors to consider are as follows:
1. Economic Factor
Cost reduction is the most important component in our decision at the moment. Toronto has the highest net salary paid per employee. Also, only in Toronto, when 25 people are reduced per shift, the implication also means closing the office. This saves the rent expense altogether.
2. Legislative Factor
Reducing work force in Toronto will have the least amount of trouble for the company, as employees are not unionized. Such as, if it was in the Cornwall location, union can ask employees to go on strike. Also, the average length of contract of employees in Toronto is the shortest, which will cause the least amount of compensation obligations for our company.
3. Government rules and regulations
In Cornwall and Cambridge, government is helping to grow businesses by offering assistance and incentives to companies for setting up /growing businesses. Based on availability of government support our company has a better chance to improve its business by offering services to new companies that enters into the local market.
4. Real Estate Market
Real Estate Market is very expensive in Toronto and rent/lease for commercial purpose is very high. As the facility is rented for the Toronto office, not company owned, closing this facility will definitely reduce ample overhead cost for the company as well. And if in future it’s needed to re-open the facility, there is always surplus of available buildings,
5. Labour Supply
Due to slow business, we need to reduce the work force. But when business peaks up, the company needs to hire again. With this in mind, where would the company be
