Discussion
I.
Introduction
Global Energy Services, Inc. is facing three major challenges that could hurt its future. The first challenge is declining oil prices. This means that the company’s revenue will be negatively impacted and it risks not meeting the expectations of its stakeholders for the next quarter or year. The second challenge is the contamination of its freshwater supply as revealed by a report from the Environmental Protection Agency (EPA). This is a challenge that it must fix immediately and it is likely to be very expensive. The third challenge is making organizational changes to reduce costs and cater to cleaning the contaminated water supply. This is a significant challenge that will interfere with its human resources. For instance, it will affect the morale of its employees and reduce the number of staff needed to accomplish tasks. With employees on the edge for fear of being laid off, productivity will significantly plummet.
II.
Recommendations
a.
How to balance the performance objective of revenue growth and increased market share
The company needs to diversify its revenue streams so that it balances the losses from falling oil prices. This can include investing in renewable energy and other energy-related services. Revenue diversification will reduce its financial vulnerability and increase financial autonomy to handle challenges (Guan, Tian & Deng, 2024). It should also consider cost optimization by cutting unnecessary expenses across departments. This includes negotiating better deals with suppliers and improving the supply chain to save money without hurting operations. It should initiate transparent communication channels to keep employees informed about the company’s challenges, planned actions, and future outlook. Clear communication helps reduce uncertainty and rumors, maintaining trust and morale among employees (Kalogiannidis, 2020). Engaged employees are more likely to contribute positively, even in difficult times.
b.
Remediating the costly environmental issue caused by the company
To balance environmental remediation and company growth, the company should first leverage green technologies and sustainable practices in remediation efforts. This approach aligns environmental responsibility with long-term growth strategies, potentially opening new markets and revenue streams focused on sustainability. This strategy will significantly enhance the company’s competitive advantage (Tu & Wu, 2021). Secondly, the company should seek partnerships and grants for environmental projects, which can reduce the financial burden while demonstrating a commitment to corporate social responsibility.
c.
Addressing the hard decision to downsize at a critical time
Before considering layoffs, the company should prioritize voluntary options such as early retirement for employees backed by lucrative packages. If this is not feasible given the company’s financial situation, it should retain critical talent to maintain operational continuity. While cost-cutting, the company should demonstrate commitment to the welfare of its employees so that it does not lose their trust or negatively affect their productivity. It should also ensure transparent communication throughout each phase of downsizing so that employees are not overly anxious about their fate (Smith, 2020). The company should implement flexible work arrangements and cross-training programs to maximize productivity and employee satisfaction during transitions. It should also establish support programs for affected employees, including outplacement services, job fairs, and career counseling. Supporting employees through transitions enhances the company’s reputation as a responsible employer and mitigates negative impacts on morale and productivity among the remaining staff. Additionally, fostering a culture of innovation and inclusion, where employees are encouraged to contribute ideas for cost-saving measures and process improvements, can lead to innovative solutions and a sense of ownership in the company’s success.
III.
Priority order of Focus
a.
Environmental (Planet)
It is extremely important to consider immediate remediation to uphold the integrity of the environment and public trust.
b.
Economic (Profit)
The company needs to grow in terms of revenue and market share so that it can become financially stable.
c.
Social (People)
It must safeguard its employees’ morale and well-being throughout all organizational changes.
IV.
Criteria
To balancing environmental remediation and company growth, the company needs to follow the following steps:
a.
Proposed Step 1:
In order to integrate environmental responsibility with long-term growth objectives, remediation operations should make use of green technologies and sustainable practices. This may lead to the opening of new markets and sustainable income sources.
b.
Proposed Step 2:
Seek collaborations and funding for environmental initiatives to lessen the financial strain on the business and show that you are committed to corporate social responsibility.
The following are the suggested actions to take into account the needs of the business and employee concerns:
a.
Proposed Step 1:
Incorporate adaptable work schedules and cross-training initiatives to optimize efficiency and satisfaction among employees amid changes. This strategy preserves operational effectiveness and aids in talent retention.
b.
Proposed Step 2:
Encourage employees to offer suggestions for process enhancements and cost-cutting strategies by fostering an innovative and inclusive culture. Getting staff members involved in problem-solving can result in creative ideas and a feeling of pride in the company’s accomplishments.
References
Guan, S., Tian, S., & Deng, G. (2024). Revenue diversification or revenue concentration? Impact on financial health of social enterprises. In
The Third Sector, Social Enterprise and Public Service Delivery (pp. 122-142). Routledge.
Kalogiannidis, S. (2020). Impact of effective business communication on employee performance.
European Journal of Business and Management Research,
5(6).
Smith, K. D. (2020).
Strategies for retaining talented employees during downsizing (Doctoral dissertation, Walden University).
Tu, Y., & Wu, W. (2021). How does green innovation improve enterprises’ competitive advantage? The role of organizational learning.
Sustainable Production and Consumption,
26, 504-516.
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