Question two (1): Read the case below and answer the questions on it.

In company X, the union proposed a 20 % wage hike to the management. However, the collective bargaining process was still going on. The Industrial relations manager was clever, so he called for an immediate meeting with the union. He tried to put the state of affairs in front of the block and asked them to find a solution. This is what he presented to the union: The input prices (cost of raw material, electricity, water etc.) have gone up by 10 % Due to competition, the company has to reduce the product price by 10% At the same time, the shareholder also expects 5 % more returns than the existing 15 % The IR manager put the above circumstances in front of the union and asked them to give a solution.

1. Demonstrate how to develop a strategy to respond to the situation.

2. Identify and elaborate on the areas you can explore to find answers to the situation.