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Case Analysis Jury comments Carbonide Case 2019

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Problem analysis PR: company image and reputation at stake Logistics: access of lorries to the factory; accidents involving factory lorries Equipment upgrade: checking the factory operating equipment for pollutants Employment: factory closing will raise unemployment CSR: factory activity affecting community life Company general strategy: what policy to implement?

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Prioritizing problems Company image Logistics Equipment upgrade Employment CSR Company general strategy

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Possible solutions 1 Employ a public relations consultant 2 Defend the firm’s record 3 ‘Clean up’ a factory 4 Move Project 73 to another country

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SWOT Analysis THREATS - polluting residential area with soot (carbon dust ) - heavy lorries in narrow streets - lead compounds in the atmosphere, possibly accumulating and reaching dangerous levels in vegetation, animals and human beings. OPPORTUNITIES - 500 jobs, supporting many families and helping many other local businesses to prosper, - pays rates (i.e. local property taxes) to the local government authority

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SWOT Analysis COMPANY POLICY Isolate its managers – to keep them out of local politics, prevent them forming too strong an attachment to an area or becoming locally too well known. Objective: avoid unwelcome publicity. Achievement: Lars has not been too successful Actions to take: reassure the people in the town. Words to say: there will be much less smoke, fewer lorries, and no more lead in the atmosphere; and (b) that no jobs are going to be lost. Lars Laurensen’s word is likely to carry more weight than anyone else’s.

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Figures analysis 18 per cent of the population has lived in Dolnovo for less than 5 years, In 1993 84 per cent wanted ICC to take over the steel mill; In 2007 only 39 per cent definitely want ICC to stay. In 1993 8 per cent thought pollution to be the most serious threat; in 2007 this figure rose to 49%. The increase in the ‘don’t knows’ between 2003 (Chart 1 – 13%) and 2017 (Chart 3 – 30%) suggests a confused and demoralized community. However the answers to question 2 above do also suggest that an increasing number of people agree on the need to take action of some sort. The fall in unemployment from 24% in 2009 to 10% in 2017 and apparent upswing in the population figures (18 per cent have been in Dolnovo less than seven years) will cheer Laurensen, because the revival of the town, insofar as it has revived, must be largely due to ICC.

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Possible solutions 1 Employ a public relations consultant Advantages No major changes at the factory; little or no interference in production. No jobs lost, possible to persuade the people of Dolnovo that the chemical works is for their own good Disadvantages Uncertain, but perhaps considerable, expenditure which would add nothing to the firm’s assets, PR effects may be short-lived

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Possible solutions 2 Defend the firm’s record Advantages No changes of any kind in the factory. Minimum expense. A lot of support for Laurensen. Disadvantages Hard work for Laurensen. Splitting the community into two opposed groups. High risk of losing trust and position.

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Possible solutions 3 ‘Clean up’ a factory Advantages A fine example of Carbonide’s concern for the environment and the quality of life. Its beneficial efforts will be permanent Disadvantages Enormously expensive. The problem of the lorries in the town centre would remain.

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Possible solutions 4 Move Project 73 to another country Advantages Easy, and even profitable, at least in the short term. Remove public fear of lead poisoning; would silence criticism in the national press and make Mrs Radovanska a much less conspicuous figure Disadvantages Local complaints about dirt and lorries would continue, Laurensen would lose a major prestige project, which would certainly damage his career prospects