Instructions:
You are the CEO of SunPower, Inc. The job of implementing the Board of Directors' decision to move the company to New Mexico has been delegated to you. Before anything can be done in carrying out the decision, the consequences of implementing the decision must be evaluated.
Stakeholders are vital to the organization and it is necessary to consider how the decision will impact them. Also, the decision will impact the business concern so be sure to consider all aspects of how the decision will impact the business.
Then create a plan that will address the changes that will occur as a result of the decision's implementation. The reasons for the choices you have made in the plan should take into account the material discussed in class and focus on communicating and creating change.
Step 1: Review "How to Analyze a Case Study"
Step 2: Double-spaced, 12-point font. The final product will be between 5-6 pages in length excluding the title page and the reference page.
Step 4: Follow this format:
Introduction paragraph in which the decision process is described and its significance in business.
Body Paragraphs
Summary paragraph. A summary paragraph restates the main idea(s) of the essay.
Step 5: In writing a case study, the writing is in the third person.
Step 6: students are asked to support the reasoning using in-text citations and a reference list in APA.
Step 7: students are expected to paraphrase and not use direct quotes.
Step 8: Read critically and analyze the scenario
Step 9: Write down key points in the paper.
Step 10: In your paper, respond to the following elements:
· Identify and discuss consequences to stakeholders and the business concern that will be impacted by implementing the decision;
· Develop a plan for implementation that addresses the change.
· Use a model of change as part of the Implementation Plan
Decision History:
SUNPOWER, INC. is a medium size company that makes solar panels. Located in Oakland, California,, the company has been doing well financially but its growth rate has declined by 3% in the last two years. Projections indicate that the next two years will bring the decline to 5.4%.
The Board of Directors carefully reviewed all the business factors to determine what was responsible for creating the decline. It was determined that over 72% of the problem arose from expenditures in the areas of governmental compliance costs due to a new California environmental regulation in the manufacturing process, state tax increases, leasing and property costs of company buildings, utility expenses, insurance and employee benefit costs.
Concerned that the cut in profit and potential growth will continue, the Board entered into discussions with the State of California to see if reduced tax rates could be effected because of their green status. The company also opened a dialogue with the leasing company and utility companies to see what possible reduction in costs could be obtained. Initial responses seemed to yield little movement.
Talks with the Governor of California showed that the state was willing to reduce the company's tax load by 10%.
Leasing, utility, and insurance creditors said that they could not decrease the costs and that in some cases the expenses were likely to increase by 6%. Further research by the Board suggested that if the company moved to another state that was solar-friendly, SunPower would be able to receive major benefits.
SunPower went into discussions with the State of New Mexico. New Mexico is willing to give SunPower a 20% tax reduction and employees a cut by 5% to 3% (graduated by highest/5% to lowest/3% salary base) on their personal income tax for three years as a relocation credit. The cost of doing business in New Mexico is 30% less than in Oakland.
After consultation with the CEO the Board decided to move the business. In making the decision the Board set three major objectives as their priority:
1) they wanted as many of the present employees as possible to come with the company;
2) the costs of moving would be minimized so incentives to move could not be given;
3) the move would happen within the current tax year (10) months and;
4) customer orders would be fulfilled with absolute continuity.
After the review of various alternatives and weighting objectives the following decision was made by the Board for the Company.
Decision:
SUNPOWER, INC. will move to Sunland Park, New Mexico by December 31, 2016.