Answer:
2 strategies analysis:
The first strategy is ineffective because with a company, when you fire 2 staffs of your company to reduce the wages pay out, this would not work well. As the result of the number of employees that you fire is just 2, this is a really small number of employees if your company is a medium or big, this won’t give any significant improvement for the company. This will also not help your company reduce the wages of employees much and it also won’t give you more money to use in developing the company. This strategy would satisfy manager of the company because manager will pay less for employees as the result of more money would be putting in developing the business. This strategy would not satisfy employees or saying more detail is it will not satisfy 2 employees that were fired. The 2 junior staff that were fired would have decreased satisfaction as they were kicked out of the company and are forced to find a new one. This strategy won’t affect customers and suppliers.
The second strategy is effective because, when the company move the shop to a less expensive lease, this means that the business will pay less for the shop rent. This strategy will mostly satisfy manager with the short-term because first as the result of paying less for the location that the shop is located. But then, after some time if the location is not as popular as the old one, manager would be decrease in satisfaction. This strategy may satisfy employees because for some employees, that would be an increase in satisfaction but for some others, that would be decrease in satisfaction as the result that the company would move to a new place and some employees would have to move further to go to work but some would have to move less to work. Customers would be either increase or decrease in satisfaction as the new location might be nearer for some customers but in the other hand, some customers would be farther from the shop and lead to a decrease in satisfaction. Suppliers would be the same, they would be either decrease or increase satisfaction, they would increase if the shop is nearer to them, but they would decrease if the shop is farer to them than the old one. This strategy will not satisfy the landlord of the old location because the company not hiring it anymore and lead to a decrease in the money get from that.
Recommendation:
The strategy that will satisfy the stakeholders the most is move the shop to the location with less expensive lease. This is because when the company pay less for the rent fee, they will get more money to put on business in order to develop the company. The other reason is the second strategy is more effective than the first strategy is to fire 2 staffs of the company.
Hope this help you lol :3
