Business Regulation Simulation

Business Regulation Simulation

Length: 1387 words (4 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
Business Regulation Simulation


Introduction
According to the BNET business dictionary, regulation is “the use of laws or rules stipulated by a government or regulatory body, such as the Securities and Exchange Commission, to provide orderly procedures and to protect consumers and investors.” (BNET, 2008) Business regulation is not limited to these sorts of issues, though. As is the case with Alumina, the Environmental Protection Agency (EPA) also sets standards that need to be enforced to protect the business as well as the community in which it operates. Because the employees at Alumina adhere to the regulations and standards set by the EPA there is little risk to them when issues arise. However, Alumina’s unfortunate experience with the water pollution five years ago earned them a violation of the EPA rules. Now Alumina is targeted as the cause of a young girl’s case of leukemia. Despite the incident five years ago, executives at Alumina are confident that they are in compliance with all the rules now. The negative publicity incurred by the allegations could be detrimental to the future of Alumina. Cautious decisions need to be made whenever a case of this nature is initiated. Legal counsel should be consulted in reacting to any such allegations and decisions should be made that maintain the best interests of the company while preserving the community relationship.
Key facts, regulations, and legal issues
The mission of the EPA is to establish and enforce standards that must be followed in order to maintain a clean environment. They have set regulations to limit such pollutions as air and water. Alumina had a spill five years ago into a local waterway. This violation of EPA regulations and its aftermath earned Alumina unwanted negative publicity that proved embarrassing. As Alumina is getting past that incident, accusations of inadequate emissions being the cause of a newly diagnosed leukemia case threaten to mar their reputation yet again.
The legal issues associated with this case include whether or not they are in compliance with the regulations and whether or not they should disclose the business records being requested in part or in their entirety. According to the simulation, “citizens can request information from the records of government agencies and their private enterprises, under certain conditions, to bring contentious issues to their rightful conclusion.” (Business Regulation Simulation) In the simulation the records were requested to find a link between any violations Alumina may be guilty of with the development of the leukemia.

How to Cite this Page

MLA Citation:
"Business Regulation Simulation." 123HelpMe.com. 18 Jun 2019
    <https://www.123helpme.com/view.asp?id=163994>.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Alumina: Business Regulation Simulation Essay

- Alumina: Business Regulation Simulation Abstract This paper identifies the key facts, regulations and legal issues in the Business Regulation Simulation regarding Alumina, a global multibillion company. It identifies several of Alumina's values and stakeholders and discusses the conflicts among the competing stakeholders according to the simulation. In addition, a summarization on the basic issues on how the internal counsel handles the regulatory issue. Three alternative solutions are also discussed using the risk analysis matrix and summarizes how these align with Alumina's values....   [tags: Business Management Analysis ]

Research Papers
1804 words (5.2 pages)

Business Regulation Simulation Essay

- Business Regulation Simulation Introduction According to the BNET business dictionary, regulation is “the use of laws or rules stipulated by a government or regulatory body, such as the Securities and Exchange Commission, to provide orderly procedures and to protect consumers and investors.” (BNET, 2008) Business regulation is not limited to these sorts of issues, though. As is the case with Alumina, the Environmental Protection Agency (EPA) also sets standards that need to be enforced to protect the business as well as the community in which it operates....   [tags: Business Management]

Free Essays
1387 words (4 pages)

Business Regulation Simulation Essay

- Business Regulation Simulation Many firms have growth opportunities to invest in profitable projects. (Ross, Westerfield, & Jaffe, 2005). The new millennium brought in fierce competition, aggressive marketing and strategic alliances; the extent to which a business succeeds or fails often depends upon that business's ability to be in n sync with states, federal, governmental and environmental regulations. This paper will identify the key facts, regulations and legal issues in Alumina’ company; the conflicts among the competing stakeholders will be discuss, the handling of the regulatory issue by the internal counsel will be analyze and alternative solutions will be discussed by using the ris...   [tags: Business Corporate Management Analysis]

Free Essays
1800 words (5.1 pages)

Business Regulation Simulation Essay

- Business Regulation Simulation Situation Analysis Issue and Opportunity Identification Alumina Inc. is $4 billion manufacturing company operating in eight different countries around the world with the United States accounting for nearly 70% of their sales. Based in Erehwon near Lake Dira they manufacture packaging materials for the automotive industry, bauxite mining, alumina refining and aluminum smelting. The key players of the organization are Roger Lloyd Chairman, Chris Blake COO, Diane Richards Head of Public Relations and Arthur Todd Legal Council....   [tags: Business Management Finance Analysis Strategy]

Research Papers
1947 words (5.6 pages)

Business Regulation Simulation Essay

- Introduction There is a complex legal issue that has the attention of senior management at the Alumina Company. How that issue is handled will affect the way the company does business and its standing in the community. The purpose of the next few paragraphs will be to describe the company and its stakeholders, determine the values of the company, set the current situation, analyze the risk factors in possible solutions and present a best solution for Alumina to follow. The company/stakeholders/values Company info Alumina is a four billion dollar company based in the United States of America; it has operations in eight countries and seventy percent of its business is in the United States....   [tags: Business Management Analysis]

Research Papers
1148 words (3.3 pages)

Business Regulation Simulation Essay

- Alumina Inc. is an aluminum maker that operates in eight countries worldwide. Accounts in the United States make up 70% of the companies $4 billion worth. Located on Lake Dira, in the state of Erehwon, Alumina has business interests in automotive components and manufacturer of packaging materials, bauxite mining, aluminum refining, and aluminum smelting. The company falls under the jurisdiction of region 6 of the EPA. Five years ago, Alumina was in violation of environmental discharge norms in a routine EPA compliance evaluation....   [tags: Environmental Compliance EPA]

Free Essays
1886 words (5.4 pages)

Essay Simulation for Fisheries

- The Common Property Resource Problem The situation portrayed in the Fish Bank Simulator is one shared across common access resources: a situation where long term sustainability is sacrificed for short term gain. This problem is shared across the Northern Atlantic where fish populations have declined rapidly due to overfishing. To combat this problem area, new policies need to be put in place that use multiple strategies to combat the issue, use local resources as well as federal and state oversight, and have room to adapt to changing situations in our environment....   [tags: Regulation, Business, Policies]

Research Papers
1114 words (3.2 pages)

Essay on Alumina Inc Regulation Case Study

- Introduction Alumina Inc. (AI) is a U.S. based international aluminum company with eight locations worldwide, worth of $4 billion. Its business markets include “automotive components and manufacture of packaging materials, bauxite mining, alumina refining, and aluminum smelting” (University of Phoenix simulation, 2008) and the company falls under the following regulatory agencies and acts: The Environmental Protection Agency (EPA), Occupational Safety and Health Administration (OSHA), and Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)....   [tags: Environmental Business Regulation]

Free Essays
2215 words (6.3 pages)

Company Profile of a Clinical Simulation Training Facility Essay

- BACKGROUND The company is a clinical simulation training facility specializing in hands-on training for healthcare practitioners. Realizing the necessity to help the healthcare industry and seeing the trend of hospitals aiming to become internationally accredited by Joint Commission International (JCI), its goal is to help close the gap from academe to industry by training healthcare professionals in up-to-date international standards as well as providing healthcare practitioners a venue to hone their skills and competency development....   [tags: healthcare, development, tuition]

Research Papers
1591 words (4.5 pages)

Business Regulation Case Essay

- The challenges that surrounded Alumina, Inc. could have been detrimental to the corporation. Areas the management team needed to concentrate on were the corporation's image to the general public as well as competitors, current customers and potential customers. Management's duty was to manage the crisis by preventing extensive losses to the company while at the same time preserving the image of the company and doing right by the community. As a team we agreed upon the strategies and recommendations to solve the challenges for Alumina, Inc., although the timing of how the events would play out was slightly different....   [tags: Business Regulation]

Free Essays
1996 words (5.7 pages)

It is important for their image for Alumina to disclose limited information to maintain an appearance of cooperation in the investigation. They have the right to withhold information that may be deemed privileged or confidential. They should do so carefully to avoid any future problems.
Values and Stakeholders
Alumina has an image to uphold as being environmentally conscious in their operations and adhering to the rules and regulations that govern their existence. Mistakes and errors in judgment should be kept to a minimum, as too many will lead to the demise of the organization. They need to establish and maintain an impeccable image within the community in order to survive. When issues arise, many people have a lot on the line. This group of people includes the executives and employees at Alumina as well as the members of the community in which they operate. In this particular case, the Bates family is a primary stakeholder in the investigation. If a link is found between the two entities, the other community members are at risk as well. Alumina has the potential to lose significantly.
Basic issues for counsel
Alumina has to be cautious as to how they react and address the issues with which they are faced here. They will want to seek the advice of their legal counsel before making any decisions or going public with any remarks concerning the allegations. Arthur Todd is well versed in the practices of Alumina and offers valuable advice as to how to handle the situations as they arise. Following his advice can help Alumina maintain a poised and confident public image. He recommended releasing a news story indicating their compliance with the environmental regulations and their state of the art technology.
In May, Arthur Todd assisted in the determination of which bits of information could be deemed privileged information and could be withheld when the results of the environmental audit report were disclosed. His expertise in this area proved beneficial to Alumina as they were able to remain competitive throughout the investigation. Because no link could be determined between Alumina and the leukemia, Arthur Todd was quick to advise that they could defend themselves in the case with confidence.
Solution
Refer to Table 1 which compares the alternatives that Alumina had in dealing with this situation. It also indicates the risks and consequences of each alternative. They could choose to litigate in the courtroom which could take a significant amount of time and money. The duration could negatively affect the productivity levels of the employees, as their moral could decrease while the stresses of the court case create undue tensions in the workplace. The financial burden with which Alumina could be faced could further create unnecessary tensions. With the high costs of attorneys and court fees as well as the expert witness fees and the uncertainty of the obligation possible at the end of the case, Alumina could be incurring a financial disaster. (Alumina Legal Process)
Their other alternative would be mediation. Third party mediation is often a faster way to resolve issues, so the costs are significantly less. This quicker resolution would limit the tension at work and allow for a more productive employee base. This could be partly due to the fact that mediation is often private so there is less public scrutiny. Because of these reasons, Alumina should opt with suggesting a third party mediation process.
Effectiveness of solution
Third party mediation is better for both parties involved in any dispute, because it is much faster and each party has a greater opportunity for input into the decision. (Alumina Legal Process) Another advantage of this is that the public image of Alumina can be maintained, so they can retain their competitive edge over other organizations within the industry. This is very important because negative publicity could be detrimental to their future success. Alumina was able to settle the dispute without much publicity while maintaining control of the time commitment and financial obligations incurred.
Conclusion
Regulations have been established and put into place to control the operations of businesses. When companies are not in compliance with these rules and regulations, they are responsible for correcting their mistakes and facing the consequences of their actions. It is important for management teams to be aware of the rules and regulations associated with their industry and ensure that they are adhered to. Allegations can be made against an organization despite their compliance with the laws. It is necessary for the management to respond and react to these allegations professionally to maintain public support. The support of the community is often important to the success of the business, not only with the issues at hand but also with their future success.

Table 1
Risk Analysis Matrix
Alternative Solution Risks and Probability Consequence and Severity Mitigation Techniques and Strategies

Litigation • Financial Costs - High
• Time - High
• Publicity - High Expert witness fees, Attorney’s fees, Loss of productivity, Court Costs…. Depending on the duration, the severity could be grave. Sensitive information or trade secrets could become public knowledge which could be detrimental to the business. • Object to disclosing confidential or privileged information that could be considered trade secrets.

Mediation • Number of Cases - Medium
• Principles - Medium
• Nature of Cases - High
Could become time consuming if an exorbitant number of cases go to mediation. Important precedents may not be able to be set if significant issues are settled out this way. • Limit the cases to be resolved by mediation to those that seem elementary and will not be needed to set a precedent for future cases.


References
Alumina Legal Process. (2008). University of Phoenix Online. MBA 560.
Business definition for regulation. BNET business dictionary. Retrieved on November 27, 2008 from http://dictionary.bnet.com/definition/Regulation.html.
Business regulation simulation. (2008). University of Phoenix Online. MBA 560.
Return to 123HelpMe.com