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Incident at morales
Fred is a chemical engineer hired by Phaust Corporation to design and make operational a new chemical plant for the manufacture of their newly redesigned paint thinner. Under financial pressure from the parent French company, Chemistre, they have decided to locate their new plant in Morales, Mexico to take advantage of lower costs and more flexible government regulations. You are well on the way toward designing this new plant when news comes from Chemistre that all budgets are being cut 20% to finance Chemistre's latest takeover acquisition. You are Fred and are now faced with a series of difficult financial-engineering decisions. Should you hold out for the more expensive Lutz and Lutz controls or use the cheaper ones produced locally? Should you continue with the current plant size or cut plant size and capacity to keep within budgetary constraints? You have also been made aware of the environmental and health risks associated with not lining the waste ponds used by the plant. Do you advocate lining the ponds or not, the latter being within compliance for Mexican environmental and health regulations. Prepare a STS analysis to help you make and justify these decisions. Make a series of recommendations to your supervisors based on this study.
Puerto rican projects
- Your company, Cogentrix, proposes a cogeneration plant that uses coal, produces electricity, and creates steam as a by-product of electricity generation process. Because the steam can be sold to nearby tuna canning plants, your company wishes to study the feasibility of locating its plant in or near Mayaguez, Puerto Rico. (Co-generation technology has become very popular and useful in some places.) Carry out a STS analysis to identify potential problems. Make a recommendation to your company. If your recommendation is positive, discuss how the plant should be modified to fit into the Mayaguez, Puerto Rico STS.
- Your company, Southern Gold Resources, is interested in mining different regions in central Puerto Rico for copper and gold. But you know that twenty years earlier, two proposals by two international mining companies were turned down by the PR government. Carry out a STS study to examine the feasibility of designing a different project that may be more acceptable to local groups. What does your STS analysis tell you about social and ethical impacts, financial promise, and likely local opposition. Can profitable mining operations be developed that respect the concerns of opposed groups? What is your recommendation based on your STS analysis?
- Windmar, a company that manufactures and operates windmills for electricity generation has proposed to locate a windmill farm in a location adjacent to the Bosque Seco de Guanica. They have encountered considerable local opposition. Carry out a STS analysis to understand and clarify this opposition. Can the concerns of local stakeholders be addressed and the windmill farm still remain profitable? How should the windmill project be modified to improve its chances of implementation?
Source:
OpenStax, Corporate governance. OpenStax CNX. Aug 20, 2007 Download for free at http://legacy.cnx.org/content/col10396/1.10
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