Sharon Construction Corporation Harvard Case Solution & Analysis

3rd proposal: By inducting an amount of $60,000, the time duration for the expedition of the roof could be reduced by 6 weeks with the help of using 3 shifts and some overtime.

This proposal stated that the time duration for the filling of the roof of the stadium could be reduced by 6 weeks. In order to speed up the elevation of the roof process the company would need to invest an additional cost of $60,000 and the saving would be $42,000. So the net cost of this alternative would be $18,000. As shown, this process is way better than alternative 1 and 2 in monetary terms as this proposal saves more investment than the above to proposals.

4th proposal: Do nothing until the 1st week of December. In that case if the company wants to cut down the duration of any activity, after the strike, to no less than 1/3rd of that activity, then this would cost the company $20,000 per activity per week reduced.

As per the analysis, the best alternatives among all, as in this case, if the strike occurred and the company did nothing at the time of the strike,if  they just followed the policy of wait and watch and after the settlement of strike, then the company can gear up their activities and for that they will have to invest on extra expense and cut the duration of each activity by no less than 1/3rd duration of the activity. The company would bear additional $20,000 per activity per week and on the other hand, the benefit of $7,000 will be there as well. This option is most feasible and beneficial for the company in terms of money and time duration

5th proposal: No need to take any special action.

No cost and benefits could be allocated to this alternative. The reason is that they are hoping in the future, that there is no strike up coming and their company would follow on the same guideline which they were previously followed.

RECOMMENDATION:

After the careful assessment of the alternatives as shown in the attached Excel file, the best alternative is alternative 4, i.e. do nothing until December and wait for the strike to occur. If the strike occurs, speed up all the activities for just $20,000 and try to complete the project within 48 hours and avoid any late penalty and extra overhead cost.

Proposition 3 stands 2nd in the list of the best alternatives,  i.e. by an introduction of an amount of $60,000, the time duration for the expedition of the roof could be reduced by 6 weeks with the help of using 3 shifts and some overtime, which could cost only $18,000 and completes within the time frame of 48 hours without a strike.

Question No. 2: What other factors might enter into the decision, such as behavioral, organizational and political?

Answer:

OTHER FACTORS TO BE CONSIDERED:

Behavioral Factors:

Behavioral factors are any particular behavior or behavior pattern which strongly but adversely affects the business processes. It increases the likelihood of non completion of work, lack of moral values, lack of morale in the labor force, etc. The most important behavioral factor which might disturb the decision making process where there is a use of unionized labor force as they can create hurdles and can slow down the project time duration if they are not handled accurately.

Organizational Factors:

Organizational factors are any particular internally generated factors which can affect the business adversely. The most important organizational factor in this case can be employees / labor force. Since, the proposed project is lengthy and time consuming, they might switch left and this could create serious troubles in finishing the stadium.

Political Factors:

These are the factors which the organization can't control. In case, if the company is unable to complete the stadium on time then they have to bear the penalty and even in the worst scenario, the opposition may file a suit against the company which will be dangerous for the image in the public. Public expectations are yet another political risk factor that might affect the company’s performance adversely.

Question No. 3: What decision would you make as the president?

Answer:

After all the studies and analysis, as the president of the Sharon Construction Company, I conclude that among all the proposals, alternative 4 is the best alternative as its cost is less among all other alternatives and it is also time effective. Although the proposal 5 has no cost assumed...............................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Sharon Construction Corporation Case Solution Other Similar Case Solutions like

Sharon Construction Corporation

Share This