new regulations?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
icon
Concept explainers
Topic Video
Question

 

Questions for Discussion:

 

What motives would the a company have to install the new technology?

 

What motives would the company have to delay installing the new technology?

 

Why might the companies in this region prefer for the government to impose new regulations?

 

 

The Polluter's Dilemma: A Short Case Study
Mrs. Ryanne Backson is the environmental compliance manager for a small plastics
manufacturing company. She is currently faced with the decision whether or not to spend money
on new technology that will reduce the level of a particular toxin in the wastewater that flows out
the back of the factory and into a lake.
The factory's emission levels are already within legal limits. However, Backson knows
that environmental regulations for this particular toxin are lagging behind scientific
evidence. In fact, a scientist from the university had been quoted in the newspaper
recently, saying that if emission levels stayed at this level, the fish in the lakes and rivers
in the area might soon have to be declared unsafe for human consumption.
Further, if companies in the region don't engage in some self-regulation on this issue,
there is reason to fear that the government – backed by public opinion –may force
companies to begin using the new technology, and may also begin requiring monthly
emission level reports (which would be both expensive and time consuming).
But the company's environmental compliance budget is tight. Asking for this new
technology to be installed would put Backson's department over-budget, and could
jeopardize the company's ability to show a profit this year.
Questions for Discussion:
What motives would the company have to install the new technology?
What motives would the company have to delay installing the new technology?
Why might the companies in this region prefer for the government to impose new
regulations?
Note: Names/location were changed to hide the identity of the characters
Transcribed Image Text:The Polluter's Dilemma: A Short Case Study Mrs. Ryanne Backson is the environmental compliance manager for a small plastics manufacturing company. She is currently faced with the decision whether or not to spend money on new technology that will reduce the level of a particular toxin in the wastewater that flows out the back of the factory and into a lake. The factory's emission levels are already within legal limits. However, Backson knows that environmental regulations for this particular toxin are lagging behind scientific evidence. In fact, a scientist from the university had been quoted in the newspaper recently, saying that if emission levels stayed at this level, the fish in the lakes and rivers in the area might soon have to be declared unsafe for human consumption. Further, if companies in the region don't engage in some self-regulation on this issue, there is reason to fear that the government – backed by public opinion –may force companies to begin using the new technology, and may also begin requiring monthly emission level reports (which would be both expensive and time consuming). But the company's environmental compliance budget is tight. Asking for this new technology to be installed would put Backson's department over-budget, and could jeopardize the company's ability to show a profit this year. Questions for Discussion: What motives would the company have to install the new technology? What motives would the company have to delay installing the new technology? Why might the companies in this region prefer for the government to impose new regulations? Note: Names/location were changed to hide the identity of the characters
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Inventory management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.