Question
Assume an alternative scenario where the Creative Furniture Division has been incurring losses for a couple of years. The CEO of Creative Decoration Products has
Assume an alternative scenario where the Creative Furniture Division has been incurring losses for a couple of years. The CEO of Creative Decoration Products has threatened Peter by saying that, if the division does not show a profit in the first quarter of next year, it will be sold to a private equity investor. In case the division is sold, a restructuring program is expected, which would include massive layoffs. Peter asks Susan to increase the estimate of direct labor-hours to 480,000. Explain why Peter would make such a request.
Assuming the alternative scenario described in the previous question, should Susan accept the request from Peter and potentially save hundreds of jobs, including her own? Explain your answer.
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