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Rocky Hills Quarry (RHQ) is a rock quarry located outside of Springfield, Illinois which produces gravel for the local area (most customers are within

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Rocky Hills Quarry (RHQ) is a rock quarry located outside of Springfield, Illinois which produces gravel for the local area (most customers are within 100 miles of the quarry, due to high transportation cost). The quarry sells to individual homeowners with gravel driveways, as well as contractors, other commercial customers, and local road departments. The quarry has been in operation for nearly twenty years, and is currently planning on expanding due to the purchase of an additional 230 acres of land. This expansion will allow the quarry to operate longer into the future, and will create around fifty additional jobs. The expansion is being financed using earnings that were retained in the company, as well as a loan from a regional bank. The gravel business is somewhat competitive, and consumers typically buy based on price. RHQ is able to deliver gravel at a lower cost (and price) to local customers, since the other quarries are further away and must bear higher transportation costs. Likewise, RHQ is a at a cost disadvantage when servicing customers who live closer to another competing quarry. Thus, one could describe the business-level strategy of RHQ as a cost focus strategy, since they are the low-cost producer for a relatively narrow segment of the market (those living geographically close to the quarry). When the quarry first became operational twenty years ago, it sat in the middle of a cornfield. As the suburbs of Springfield Illinois have expanded, the quarry finds itself in a more developed area. One side of the current quarry is a subdivision, and the new expansion of the quarry will border a golf club. The management of RHQ has never systematically thought about what sort of social responsibilities they have as a firm. Generally, the managers believe they have always focused on trying to make money for the shareholders who own the quarry, so that a high dividend can be paid each year to the shareholders (however, no dividend has been paid for the past couple of years, since the money was saved for the expansion). At the same time, they do not believe they have taken actions in the past that were unethical, or had any substantial adverse impact on the community. Recently however, there has been some community backlash toward the expansion of the quarry. The members of the golf club have been one of the most vocal critics of the expansion. They believe that the expansion will make the golf course less aesthetically pleasing, since the quarry will be putting hills of gravel on the border of the golf course. Those living in the bordering subdivision have complained about the expansion as well. While they already border the quarry and are not directly affected by the expansion, they believe that the expansion will allow the quarry to operate for longer. They were hoping that the quarry would close in about ten years, but they know that with access to the additional real estate, the quarry may be able to operate for another thirty years. Those in the neighboring subdivision complain about the visual aspects of the quarry operations, the dust that it generates, and the occasional shaking due to the quarry blasting (dynamiting rock). Some homeowners believe that the frequent blasting at the quarry may cause the foundation of their homes to start to crack over time. Also, having the quarry as a neighbor keeps the values of their homes from rising as quickly as other homes in the area that do not border the quarry. Based on this narrative discuss the following: 1. List the internal and external stakeholders of Rocky Hills Quarry (RHQ). Based on the narrative and logical reasoning, state what these stakeholders want (or likely want) from RHQ. 2. Discuss which stakeholders have wants that conflict (or likely conflict) with one another. 3. Discuss how RHQ should resolve these conflicts among stakeholders. Resolutions could occur by finding a solution likely satisfactory to both parties or by prioritizing which stakeholders the firm views as most important to satisfy.

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