Schukra Case Analysis
Schukra Workshop Applied Case Analysis
Table of Contents
Case Overview Pages 3 – 4
Question 1:
Do we want to hire short term employees? Pages 4 – 7
Question 2:
Advantages and Disadvantages! Pages 7 - 9
References Pages 10
Case Overview
Schukra of North America Ltd., is an international leader of seating components, which is a wholly owned subsidiary of Leggett and plat S&P 500 Company. As its headquarters is located in the North American market, it has the ability to impact the worldwide automotive components market, so the company itself has to obey the rules and regulations mostly embraced by Northern American countries.
The auto parts manufacturing industry has been through a sharp downturn due to the worldwide financial crisis. Due to the impact caused by the crisis, the company has to apply cost cutting measures and cut down the numbers of non-core staff to maintain a profitable situation. Based on the economic forecast -optimum but fragile- the company could operate on a profitable level which indicates the company wants to maintain a level of production which it used to, but is worried about the future in this fragile economy. So the company decided to hire temporary / limited term staff.
The headquarters of the North American branch of Schukra Inc. could not be properly operated without the support of the technical and engineering expertise of top management. So they trying to accommodate them their best in order to maintain the core function of the company. This decision is implied by two commitments: maintaining the wage rate and health and welfare benefits, and job security.
To coordinate the decisions which benefit the core workers, the company decided to increase the production level by hiring temporary workers who are introduced by an outside agency. Most of the temporary workers they hired were shown to be unemployed or worked in a manufacturing environment in
Table of Contents
Case Overview Pages 3 – 4
Question 1:
Do we want to hire short term employees? Pages 4 – 7
Question 2:
Advantages and Disadvantages! Pages 7 - 9
References Pages 10
Case Overview
Schukra of North America Ltd., is an international leader of seating components, which is a wholly owned subsidiary of Leggett and plat S&P 500 Company. As its headquarters is located in the North American market, it has the ability to impact the worldwide automotive components market, so the company itself has to obey the rules and regulations mostly embraced by Northern American countries.
The auto parts manufacturing industry has been through a sharp downturn due to the worldwide financial crisis. Due to the impact caused by the crisis, the company has to apply cost cutting measures and cut down the numbers of non-core staff to maintain a profitable situation. Based on the economic forecast -optimum but fragile- the company could operate on a profitable level which indicates the company wants to maintain a level of production which it used to, but is worried about the future in this fragile economy. So the company decided to hire temporary / limited term staff.
The headquarters of the North American branch of Schukra Inc. could not be properly operated without the support of the technical and engineering expertise of top management. So they trying to accommodate them their best in order to maintain the core function of the company. This decision is implied by two commitments: maintaining the wage rate and health and welfare benefits, and job security.
To coordinate the decisions which benefit the core workers, the company decided to increase the production level by hiring temporary workers who are introduced by an outside agency. Most of the temporary workers they hired were shown to be unemployed or worked in a manufacturing environment in