Welcome Pharmaceuticals

Welcome Pharmaceuticals was a joint venture between North China Pharmaceutical Corp. and Hong Kong Triple Well International and is a leading producer of vitamin C in China. The company's general manager had just returned from an industry wide meeting, and was disturbed by what he had learned: there was a worldwide oversupply of vitamin C and already sagging prices had not yet hit rock bottom. The general manager knew the only way for Welcome to survive was to reduce costs, and because Welcome's material costs were already among the lowest in the industry, the only area left to trim was labor costs. The management team was called together to decide whether this was, in fact, the company's only option. If so, the management team had to quickly decide how to go about effecting what was bound to be an unpopular change among several tiers of workers.