CEO of a Company
You are the CEO of a corporation that makes computer hard drives. The company made $50 million dollars in annual profit this year, after struggling for the 5 previous years. About 6,000 people are working for your company and about 80% of them are directly associated with the manufacturing plant. Workers at the plant have not received a salary raise for the past 5 years, and the workers union is demanding a salary raise this year. The company has an annual payroll of about $500 million dollars, with about 70% of it for the workers in the plant. Factory managers are asking for $25 million dollars to upgrade the equipment and improve the efficiency of the plant. White-collar workers in the head office claim that it is their strategy that turned the factory around and put it on the path to profit. Due to this reason, they think they deserve to get a big bonus. How do you allocate the profits to meet all these demands? Justify your decision.
Leave a Reply
Want to join the discussion?Feel free to contribute!