Scenario:

Munder Difflin Paper Company has been operating for five years, selling paper and office supplies. As the Assistant to the Regional Manager, your job is to oversee day-to-day business operations. You are currently noticing that the warehouse management needs to be more efficient, especially in terms of processing orders and speeding up delivery dates to meet the market demand. You have six full time warehouse employees but you need four more to expedite the packaging and shipping process. Hiring four more employees requires additional investments such as additional hourly wages, employee benefits (medical insurance, 401K retirement packages, paid sick-leave, and paid vacation time), as well as purchasing more furniture, computers, printers, and renting additional vehicles.

Assumptions:

• Yearly revenue is $300,000 but will increase by 40% as the capacity increases.
• The company is outsourcing an average of 100 hours of work with a cost of $50 per hour to another packaging and shipping company.
• Team productivity will increase by 10% with a more manageable workload.
• The company has a famous brand with a large distribution network on the East Coast, and opportunities to expand their market. Their company was made more prominent by production of a reality show following the employees of their Franklin, Pennsylvania branch.

1) What does a cost benefit analysis look like for the above scenario including calculations of the payback period?

2) What does a SWOT analysis look like for the above scenario?

3) If I were the Assistant to the Regional Manager, what would be the presented findings to get more support to increase efficiency and help expand the growth of the company?