If I would be about to handle the situation of Speedy Motors, there are some things that I would consider first before making decision especially the crucial ones like this. I think it would be best to solve this problem by finding the equitable welfare for all the stakeholders of the company. Given there are only a few more time before the company shuts down, I would call for a meeting for all of the employees and workers of the company and explain to them the real situation of the company.
Moreover, I would also stressed out that they would be receiving additional separation pay for the damages that will be done by the company regarding the short notice of shutting down of operation. I could also possible give them educational plans for their siblings and refer some of them to other close companies of Speedy Motors to enable them to find a job right away. With the said structure of giving information of the company as with the current situation of the operation, there is a big possibility that they would understand the urgency and need to shut down the operation.
Although there is a lot of stakeholder that would surely be affected by the said shutting down of the operation of Speedy Motors, at least, the management did made efforts not to happen the worse for all of them. One of the stakeholders of the company would be the workers, of course. With the additional separation pay and other benefits, I think it would be enough to compensate the welfare loss of the workers.
Aside from the workers, the community is also part of the stakeholders of the company especially those community that relies on the jobs that are being offered by the company to them. Well, for them, through referring the employees coming from these communities to other close companies of the Speedy Motors, then, in one way or another, the possible loss in the welfare of the community will now be compensated. The last but not the least part of the stakeholders of the company would be their stockholders.
With the shutting down of the company, there is a possibility that these investors would earn less from their investments in the company which could pissed them and lost trust on the domestic companies and in order to prevent this kind of scenario, one possible way of compensating the losses of this investors would be to give additional dividend rate for them. The funds that will be used in this strategy are the funds that were produced from the liquidation of the fixed assets of the company like land, building and machineries.
The reason why I come up with this kind of solutions would be for the primary reason that it is the responsibility of the company to put the right things into place since in the first place the management of Speedy Motors did made wrong for not disclosing to the stakeholders of the company the financial condition of the company on the right amount of time (O’Toole, 2005). Although competition is already a natural phenomenon in the market, still, the financial aspect of the company, which is an internal matter, should be disseminated to the stakeholders especially to the workers that rely most on their job to the company.
One way of informing the workers or disseminating the information would be to release a memo to various department of the company stating the current status of the company and that the management did done its best to prevent the shutting down of the company but unfortunately it did not work out. As for the media, press release would be an effective ways of disclosing the information of the shutting down of the company. With the mass coverage of media, disseminating the said information would be now easier especially in tapping the community that relies on the company and also the loyal customers of the company.
Aside from press release, another way by which the company would inform the community regarding the shutting down of the company would be through public announcements to be posted on locations that mostly visited by the members of the community. With this kind of strategy, the welfare of the stakeholders of the company is all considered and I do believe that the efforts of the company to somehow compensate the losses of the identified stakeholders are already enough.