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Jomo Kenyatta University of Agriculture and Technology, Nairobi *

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Nov 24, 2024

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1 Production Management Case Study Student’s Name Department, University Course Code: Course Name Professor’s Name Due Date

2 Production Management Case Study 1. Who is likely to be in favor of the plant, and what would be their main arguments? The local and state governments, local business owners, and those seeking jobs are likely to support the construction of the plant. The local and state governments would support the plant because it would stimulate the community’s economic growth and generate more tax revenue for the government (Bernier et al., 2020). The construction of the plant would likely increase the population and attract more businesses to the area, thereby increasing the economic activities that would fund public services. Furthermore, the state and local governments would support the plant because it would create more jobs and generate property taxes for the government. Thus, the local and state governments would support the plant because of its economic benefits to the community. Local business owners would support the plant because it would increase the demand for their products, thereby increasing their profitability. The VW plant will likely attract more people in the area, and increase the customer base and the availability of employees for various local business owners, thereby boosting their sales and revenue (Bernier et al., 2020). Thus, the business owners would support the plant because it would increase their profitability by attracting new customers to the community. Residents seeking employment would also support the construction of the plant because it would assure them of a sustainable source of income through employment (Bernier et al., 2020). The company projects to employ about 1,600 managers and production workers, which would directly benefit those seeking employment. The plant will enable them to secure employment and negotiate for better employment benefits for improved quality of life. Thus, those seeking employment opportunities will support the construction of the VW plant in the community because it would provide them with a source of income through employment opportunities.

3 2. Who is likely to oppose the plant, and what would be their main arguments? The environmentalists, residents of the small retirement community, and small-scale manufacturers of similar products will likely oppose the construction of the plant, because of the challenges it would pose to their quality of life and their businesses. The environmentalists would argue that the automotive plant would negatively impact the environment by increasing carbon emissions and disrupting the local ecosystem (Helmers et al., 2020). Increased population and traffic in the area would also increase environmental pollution and affect the community. On the other hand, the residents of the small retirement community would argue that the plant would cause noise pollution, and make the area less habitable. Besides, the plant would inspire economic growth, which would in turn increase the property values in the area, thereby increasing the cost of living for retirees. Thus, the environmentalists and the retiree residents would oppose the project because of its environmental impacts that would affect the climate and their quality of life. Small-scale manufacturers of similar products would also oppose the construction of the plant because it would encourage unfair competition that would negatively affect their profitability. Volkswagen is a well-established company that would result in unfair competition to small-scale manufacturers of similar products in the area. As such, the plant would paralyze the small-scale manufacturers’ activities by decreasing their profit margins (Bernier et al., 2020). Thus, the small-scale manufacturers of similar products would oppose the VW plant because it would result in unfair competition and affect their profit margins. 3. How would a VW representative respond to the arguments of those opposed? VW representative would respond to the arguments of the opposers by pledging to comply with environmental safety regulations and emphasizing the economic benefits of the plant to the community. The representative would assure the environmentalist that the company would take measures to mitigate the environmental impacts of the plant on the

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4 community by complying with environmental regulations (Alhaj et al., 2022). The representative could highlight measures by the company such as building sound barriers to mitigate noise pollution, and other strategies to reduce carbon emissions. Thus, the representative would address the environmental concerns by pledging compliance with environmental safety regulations. The representative could also assure local small-scale manufacturers of fair competition that would promote their development. They could also offer small-scale manufacturers training and resources to enable them to improve their products and adapt to the market. Besides, the benefits of the plant, such as economic growth of the community and increased population, would also benefit the small-scale manufacturers to help them maintain their profitability. Thus, the company would assure local manufacturers of similar products of fair competition and help them adapt to the new market requirements to improve the overall growth of the area. 4. What other benefits could the VW representative offer the city for approval? Apart from the economic benefits to the community, VW can also offer to solve some community problems through outreach programs, educational scholarships, and investment in the local infrastructure. The community outreach programs would facilitate charity work to improve the livelihood of the less fortunate in the community. The educational scholarship programs would improve the community’s socioeconomic status, and improve their awareness of trending strategies to improve community development. Additionally, investing in local infrastructure such as roads, hospitals, and other recreational facilities would improve the community’s quality of life (Luo, 2021). Thus, constructing the VW plant in the community would tremendously improve the socioeconomic status and infrastructure, and facilitate outreach programs for the residents to improve their quality of life.

5 References Alhaj, M., Tahir, F., & Al-Ghamdi, S. G. (2022). Life-cycle environmental assessment of solar-driven multi-effect desalination (MED) plant. Desalination , 524 (115451), 115451. https://doi.org/10.1016/j.desal.2021.115451 Bernier, L., Bance, P., & Florio, M. (2020). The routledge handbook of state-owned enterprises . Routledge, Taylor & Francis Group. Helmers, E., Dietz, J., & Weiss, M. (2020). Sensitivity analysis in the life-cycle assessment of electric vs. combustion engine cars under approximate real-world conditions. Sustainability , 12 (3), 1241. https://doi.org/10.3390/su12031241 Luo, Y. (2021). New OLI advantages in digital globalization. International Business Review , 30 (2), 101797. https://doi.org/10.1016/j.ibusrev.2021.101797

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