Every part of the United States has specific laws that the country’s main government officially accepts, and companies that want to expand should adjust to unique rules. Detroit is one of the fast-developing cities located in Michigan state, and some businesses believe that the ability to stand out in a competition is the key component of survival. On the example of the King Company, such business aspects as technology implementation and diversity of labor market will be described from positive and negative sides.
The King Company’s background makes experts believe that managers can overcome all problems that slow down the development of the organization and generation of profit. The company’s initial aim was to produce high-quality mechanisms for the IT and computing area. The founder of the organization has a professional experience in the IT industry, and it helped him to create one of the first computing manufactories. This startup was in high demand, and sales revenue was higher than average. However, with the increasing competition and fast-changing IT environment, King Company started to lose its revenue. Consequently, the spending far exceeded sales revenue, and the organization started to experience a colossal decline in its performance. The current aim of the CEO of the King Company is to analyze how external changes influence the organization and what actions should be undertaken to return the former success.
Organizational performance depends on many external factors as he current labor market and its future perspectives. The initial location of the King Company in Detroit and this part of the United States is one of the most controversial (Colby, 2019). The high unemployment rate and enormous demand for workers create a paradox, and the working environment in the city does not have stability. Highly qualified employees leave Detroit to find stability in the workforce and salary. Consequently, many organizations suffer from a lack of reliable staff. People are constantly looking for perspective offers by leaving Detroit. This tendency increases the unemployment level of the city (Livengood, 2019). another problem related to the labor market of Detroit is a national border with Canada. The city is close to such innovative cities of Canada like Toronto and Ottawa, and a high percentage of specialists are moving to increase their profit and have a stable increase in their working positions (Marjorie et al., 2019). Consequently, local government and small businesses should change their regulations and law to keep professionals inside the city and provide them with stable career growth.
As mentioned in the background information of the King Company, the owner of the organization understands that the accounting system is one of the key parts of the maintenance of any business. Professional and passionate accouter is one of the main components of every successful organization. The CEO managed to build reliable communication with the main finance manager, and the trust level currently takes high positions. However, the decline of the demand for products and rapid changes in the market negatively affected King Company’s finance sector. Even highly qualified accouters cannot set cost efficiency plans. Nevertheless, the organization still has a chance to survive if the state’s laws oriented on the improvement of the labor market will be changed. One of the main reasons for this change is a long term in the business area and experience gained throughout the years.
With unstable changes in the labor market, HR specialists should create various support systems to ensure that workers will not leave their workplaces. The recruitment manager of the King Company produced a bonus plan which was oriented towards the staff encouragement when they complete their daily or weekly goals. However, this strategy failed, and employees started to feel iniquity, causing a decrease in technology production. According to Caurant and Lambert (2018), the technological area of Detroit could have success, and this city of the United States is one of the most advanced in innovations. However, the local laws’ low stability and negative effect decrease the chances of saving the business. Consequently, the HR manager and the owner should understand that workforce diversity might not be at a high rate. It is important to collaborate and find all potential ways of improving technological components without the employees’ strong experience and skills level.
The owner of the King Company should also look for other places to move the business, as Detroit might take all efforts and give no output. Leaving an ordinary place is always difficult, and managers have to develop new approaches to adjust to the local labor market and specific rules (Lau et al., 2019). The King Company might struggle in creating a diverse atmosphere because of the low average skill level of specialists in Detroit, and moving to another city or country would be the best option to create technology component. One of the developed cities which are located close to Detroit are Chicago and Washington. Furthermore, the company has all chances to be relocated to Canada’s cities like Ottawa and Toronto.
To conclude everything that has been stated so far, such city as Detroit has many perspectives to become one of the most innovated in the United States. However, local government is not ready to change their laws cause various problems like unemployment and a low number of highly professional specialists. The King Company, which was one of the first in the innovation industry selling technical supplies, has an ability to survive, but external factors that are not under management control push business out of the market. Consequently, harsh measures must be taken to help this business survive.
References
Caurant, G. and Lambert, T. (2018). The lighting technology od Detroit: Become Human. Game Developers Conference.
Colby, K. (2019). A different perspective on post-individual labor market restructuring in Detroit and Pittsburg. Journal of urban affairs, 43(2), 1-20. DOI:10.1080/07352166.2019.1645569.
Lau, S. Y., Chen T. and Zhang J. (2019). A new approach for the project process: prefabricated building technology integrated with photovoltaics based on the BIM system. IOP Conference Series: Earth and Environmental Science, 294. Web.
Livengood, C. (2019). Detroit’s labor market could attract more businesses in coming year: Nicole Sherard-Freeman executive director – workforce development, City of Detroit. Crain’s Detroit Business, 35(50).