Introduction
Prostay Limited Company, a company, based in Triccky Town in the UK deals with the production of paints. Historically, the company has been in its present location for over 30 years. The company has grown over the years to attract more customers across the UK and other European Union countries due to the quality of its paints. The growing demand of the product, therefore, needs to addressed by the company through extension and expansion of its production facility. However, there has been an outcry from the public living in the factory's neighborhood due to pollution caused by the factory to the natural environment. Therefore, in my presentation, we shall examine why the company needs to balance between expansion and extension of their facility for the growing demand of their product and the growing concerns about pollution by the public. (Quizlet, 2019)
As the biggest Paints manufacturing factory in the UK, Prostay needs to expand and extend its facilities to deal with the growing demand of their product amid already existing public uproar against the idea. From the onset, the company must endeavor to expand and extend its facility to address the growing need because of the following reasons.
First, the company produces quality products that do not march with those from similar industries both in the UK and entire Europe. Though the company is a private entity, it has marketed the UK as a country which produces quality products. It is because they produce quality paints that gained recognition not in the UK but also across most European countries.
Second, Prostay Limited company has created employment opportunities to many people, with the majority being the UK nationals. There are many people employed to work in the various department of the factory. Therefore, expansion and extension of the facility will result in the creation of more jobs hence become one of the solutions to the growing unemployment in the country.
Third, in terms of Corporate Social Responsibility, Prostay company has played a very big role in improving the lives of the people living around the factory. The company has built various health facilities and schools in the neighborhood to better the lives of the people. It also played a very big role in improving talents by building a sports academy for various disciplines like soccer, swimming, basketball, gymnastics among other disciplines.
Again, the company has contributed a lot to the growth of the UK economy by contributing to the GDP of the country. Because of its large volume of goods, the company trade in, they pay a large amount of taxes which is a source of government revenue. Therefore, an expansion of the facility will amount to more taxes to the government.
Last but not least, Prostay Limited Company is situated at the industrial park of Triccky Town and thus has legal grounds to grow its facility within the park. That is why the company, location is in the area for the past 30 years. Like most towns, Triccky Town created an industrial park for the stationing of industries, and that justifies why Prostay company location is in the industrial area of the town.
The second part of my presentation is on the identification of risks associated with the expansion and extension of the Prostay company. (Anon, 2019) The expansion of business presents some risks. For Prostay company, there is a risk of being engaged with more legal cases against their expansion from interest groups and the people living in estates close to it. Already, the company has a case to answer against the effects of water pollution on the River Antiero which has negatively affected fish and fishing in the river. The pollution originated from flooding which caused the factory's fuel tanks to leak and an explosion in the factory in the year 2018 which spread toxic fumes causing respiratory diseases to the local population.
Moreover, there is a risk of increased pollution of the natural environment. Expansion of the facility will likely lead to more emission of toxic gases to the air and more leakage of fuel tanks. Thus, adversely affecting the marine life of the River Antiero and the lives of the local population. (Vidal and Gersmann, 2019)
The company will also likely suffer operation inefficiency. As the company expands it will need new workers and therefore commit more money to recurrent expenditure. The new employers might be untrained therefore take them a lot of time to learn about the operations of the company.
The company will face the risk of compromising the quality of the paint products. Most often than not, when a company increases its output into a large scale the quality of the products might get lowered. The expansion will mean hard work for the management. Poor management affects the quality of goods produced.
Nonetheless, the company will likely face the risk of encroaching into the riparian land. The expansion works of the factory can lead to encroaching into land close to River Antorie. The encroachment could worsen the current situation of pollution. Therefore, the company must look for alternative ways of getting a new land for expansion other than encroaching into the riparian land.
The following register illustrates the description of the risks associated with the expansion of the company, "the likelihood of it to happen, the impact of the risk, the mitigating action" and finally the status of the actions. (Quizlet, 2019)
Quantitative Risk Analysis Register
SN | DATE | RISK DESCRIPTION | PROBABILITY | IMPACT | ACTION | STATUS |
1 | 11/11/2018 | There is a risk of an increase in legal cases against the company | Very high | High | Involve locals in the plans to expand | Ongoing |
03/01/2019 | There is the risk of operation inefficiency | High | High | Train new workers before they start to work | Complete | |
3 | 12/02/2019 | There is a risk of compromise of the quality of goods to be produced | Low | High | Solicit modern technology in paint production | Not started |
4 | 14/03/2019 | There is a risk of increased environmental pollution | Significant | Low | Set up a big sewerage system | Ongoing |
5 | 19/03/2019 | There is a risk of the encroachment of riparian land due to expansion | Medium | Low | Purchase of new land | Ongoing |
Identification of hazards was made through various methods of consulting experts in environment and expansion of business, conducting interviews, issuing of questionnaires, and analyzing existing historical data about hazards. (Quizlet, 2019) The identified hazards which are likely to occur are; toxic wastes, poisoning of fish in River Antoire, air pollution, technological accidents, and soil contamination.
In profiling the hazards (Dwgateway.library.unr.edu, 2019) we found out that toxic wastes release from factories producing lives of plants and animals. The wastes if not treated before being released into the environment have long term negative effects on the environment.
The marine life which includes the fishes will be contaminated in case of oil spillage or leakages from the factory and therefore destroy the fishing industry. When oil spills to the river, it blocks oxygen from getting into the water and therefore marine life die because of lack of oxygen in the water. (Anon, 2019)
Air pollution is common from any factory system. (Dot.ca.gov, 2019). Increased levels of carbon dioxide in the air leads to the destruction of the ozone layer which in turn contribute to global warming.
"Contamination of the soil" (Dot.ca.gov, 2019) is likely to occur from fuel and paint spillage from the factory equally. Soil contamination also destroys the lives of organisms living in the soil. The company should undertake to put in place measures of ensuring soil protection from the contamination.
Technological accidents hazards like machine failure can be devastating hazards. (Global Disaster Preparedness Center, 2019) When a machine fails, they result in low or poor production of paints or nothing at all. The consequence is cutting off supply to the consumers of the product.
The last part of my presentation is the contingency plans and response strategies the company is planning to use to deal with the hazards. It is a very important stage for the company as it shows its preparedness to disasters likely to occur as it continues its work of expansion. "Project managers should work to eliminate threats before they happen" (Greycampus.com, 2019)
Firstly, the company is committed to the protection of the environment and therefore to reduce pollution, it is planning to initiate a modern waste management program that is friendly to the environment. (Issuu, 2019) In the current budget, the company has committed a huge amount of money for the establishment of the project. However, in case the situation goes out of hand, the company is planning to enter into a partnership with an established company that solely deals with waste management, to manage Prostay's waste.
Secondly, the company is planning to dig trenches fixed with pipes to channel any waste or leakages into the established sewerage systems. The action is to divert any toxic waste from the factory to avoid contamination of fish and other water organisms in River Antoire. The company has already responded to protecting the aquatic organisms through rapid cleaning of the river. It has set up a department to address the problem caused to the fish and fishing industry in River Antoire.
Thirdly, the company plans to initiate a program of dealing with air pollution by planting trees around the industrial park. The company is seeking support from the government to roll out the project within five years. The company seeks to plant 1 million trees every year for five years.As for technological accidents, the company plans to invest heavily on safety measures. The measures include training of workers to deal with any eventuality arising from machine breakages in the factory. Training of workers on safety reduces the intensity of technological accidents. As a response, the company has again insured its workers and insured the entire company assets against any damages likely to hit the firm.
Moreover, the company plans to invest heavily in research about which machines should replace the old system and which type of machines should buy when expanding their facilities. The company has contacted a German firm dealing with machinery for factories dealing with the production of paints. As a response, the company is auditing its current equipment they plan to replace the old machines with modern ones. Also, the company shall ensure "cleaning, oiling, adjusting, repairing or having maintenance done on a machine when the motion that could endanger the worker is stopped" (Labour.gov.on.ca, 2019)
Conclusion
In conclusion, we have discussed need verification for the expansion and extension Prostay company in its current location and even to other European countries. We have also discussed the identification of the risks associated with the expansion of the company. We have again analyzed the risks quantitatively with the aid of a risk register and talked about hazard identification and profiling. Last but not least, we have gone through the contingency plans and the response strategy the company is planning to initiate to deal with any eventuality arising. All of them are necessary as the company ventures into expansion work.
Works Cited
Quizlet. (2019). Strategic Management Sample Text Flashcards | Quizlet. [online] Available at: https://quizlet.com/16536002/strategic-management-sample-text-flash-cards/ [Accessed 9 Apr. 2019].
Greycampus.com. (2019). Plan Risk Responses | Project Management Professional (PMP). [online] Available at: https://www.greycampus.com/opencampus/project-management-professional/plan-risk-responses [Accessed 6 Apr. 2019].
Labour.gov.on.ca. (2019). Manufacturing Hazards | Ministry of Labour. [online] Available at: http://www.labour.gov.on...
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