Case Study- Malden Mills Essay Example | Topics and Well Written Essays - 500 words

Case Study- Malden Mills - Essay Example The $25 million payment in payroll was bad for the company because it forced the firm to pay additional debt in the long run which raised the fixed costs of the company (Fina-lib, 2011). A good aspect about the decision was that that company built a reputation with the government, private industry, and general public that helped the company in the future land a $19 million U.S Department of Defense manufacturing apparel contract. My decision after the fire would have been either to retire or to move the operations to a foreign country that offered lower operating costs. Feuerstein did not consider the implications of the potential of losing a lot of customers after the fire. Many of the customers that left could not be recovered because they entered into contractual obligations with other manufacturers. If one of the vision’s of the company was to keep the operation in America I would have followed the firm’s vision, but the operation would have been reopened at a smaller scale through the implementation of a downsizing initiative. The firm would have lost between 20-40% of its employees and under no circumstance would I have turned the firm into a social agency by paying free salaries from the money that should have been used to reconstruct the business. Feuersteins philosophy of human resources was that the employees of the company were the most valuable asset the firm had. Retaining and developing human capital was a top priority of the firm. The company had a human resource philosophy that is aligned with the Japanese philosophy of lifetime employment. Feuerstein’s believed that the well being of the employees was his responsibility. 4. Before the fire, Malden Mills was a privately held company, owned by Feuerstein. After the fire, Feuerstein had to borrow money from different creditors in order to rebuild his business. Please answer the following: The difference between a privately owned company and a publicly owned