Problem Definition:

Russ McDonald is a man who was 49 years old with 24 years of experience with GM.
He was given an opportunity to take early retirement with offer of nines months' pay plus lifetime health benefits. Otherwise, it would be only a
matter of time and he would be pushed off, because GM faced serious erosion in its market position due to its slow response to change and the
increased foreign competition which resulted that GM decided to take many actions; GM made huge cut in staff. McDonald opted for the
companys offering rather than staying in the company for next 2-3 years before being pushed out. His experience wasnt relevant to work place
on that time, there were no opportunities in large companies, small companies wanted people who are flexible, and they considered corporate
types like Russ as mentally rigid. Either he would have to take at least 50percent cut in pay, moreover employers were very uncomfortable
offering such relatively low salary; they figured Russ would be demotivated and likely to jump ship at the first opportunity. This is why Russ
has been out of job for nearly 30 months after taking the companys offer.
Justification of the problem:
Russ faced this problem because he accepted the company offering without any planning. He thought that he can find another job in a big
company as he had experience; he rose in GM to assistant vice president of finance and his salary was very high, but this experience was not
relevant to the workplace, there were no opportunities in large companies and the small companies wanted people who are flexible. Even if
there was a job he would have to take at least a 50 percent cut in pay. Accordingly he stayed long time without job.
Alternatives:
123123-

Accept the offer and start his own business.

Stay with General Motors for extra years till he arranges himself.
Planning for retirement.
Accept the offer and start his own business :
Using the end of service compensation and start his own business by opening a consultancy office
Using his experience and communication skills contacting GM and other competitors to provide his consultancy service as a
freelancer or part time.
Develop an advertising website to provide online consultancy service and to offer this service worldwide.
Seeking for partnership with other consultancy agencies in the same field of his experience.
Stay with General Motors for extra years till he arranges himself :
Stay with GM for extra 2-3 more years till he arranges himself and looks for another job using recruiting agencies while he still
having a monthly salary.
Asking his manager to move to another branch.
Offer to reduce his salary and continue with GM.
Planning for retirement :
Keep track on the income and expenses.
Start saving early.
Create a financial plan.
Retire from the debt.
Build a budget.

My final answer
Problem Definision :
McDonald being 49 and with 24 years of experience with GM, he was given an
opportunity to take early retirement with offer of nines months pay plus lifetime
health benefits. Otherwise, it would be only a matter of time-maybe a 2 or 3 years at
best and he would be pushed off.
After taking the companys offer Russ has been out of job for nearly 30 months.
Justification of the Problem:
His experience wasnt relevant to todays work place and there were no opportunities
in large companies, small companies wanted people who are flexible, and they
considered corporate types like Russ as mentally rigid.
Either he would have to take at least 50% cut in pay, moreover employers were very
uncomfortable offering such relatively low salary; they figured Russ would be
demotivated and likely to jump ship at the first opportunity.
Alternatives:
1. Accept the offer and start his own business.
2. Stay with General Motors for extra years till he arranges himself.
3. Work as a Consultant and offer his online service.
Accept the offer and start his own business in another field:
Using the end of service compensation and start his own business related to
one of his hobbies like a restaurant or a flower shop.
Seek a partnership with one of acquaintances who are facing same issue
and have technical experience of the other field.
Stay with General Motors for extra years till he arranges himself:
Stay with GM for 3 more years till he arranges himself
Looks for another job using overseas recruiting agencies.
Asking his manager to move to another branch or country.
Seek self-actualization not targeting high salary and offer to reduce his
salary and continue with GM till retirement.
Ask the company to provide him a pension plan rather than any other
benefits.
Start a personal saving plan by preparing a budget of his expected income
and expenses and keep track of them.
Work as a Consultant and offer his online service:
Build a website and offer his consultancy service worldwide.
Using his large career experience and provide consultancy service to GM,
their competitors and other small and large companies.
Seeking for partnership with other consultancy agencies in the same field of
his experience.
Provide a freelance practical training to the startups and growing companies
who can benefit his large experience.
Recommendation:
McDoland can stay with GM while start to promote himself as a freelance or
part time consultant and trainer.

He has to promote himself as an updated, adoptable and flexible person and

can offer hands on solutions not a theoretical one by using his large
experience.
By using the new website can reach lot of companies worldwide which will
maximize his income.

Case Study Three:

Thanks for 24 Years of Service. Now Heres the Door!
Russ McDonald graduated from the university of Michigan with his MBA in 1969. He had numerous job offers but chose General Motors for
several reasons. The automobile industry offered terrific career opportunities, and GM was the worlds number one car manufacturer. Salaries at
GM were among the highest in corporate America, and a job at GM provided unparalleled security. A white-collar job with GM was the closest
anybody could come to permanent employment, outside of working for the federal government.
Russ began hi career at GM as a cost analyst at the companys Fisher Body division in Detroit. From there he proceeded through a long
sequence of increased job responsibilities. By his 20 th anniversary with the company he had risen to the position of assistant vice president of
finance in the corporate treasury department. His salary was $124,000 a year, and, in a good year, he could expect a bonus of anywhere from
$10,000 to $25,000. But those bonuses had become increasingly rare, because GMs profitability had declined throughout the 1980s. Increased
foreign competition, aggressive action by Ford and Chrysler, and GMs slow response to change has resulted in a serious erosion in the
companys market position. When Russ joined the company, nearly one out of two new car sold in the United States was a GM product. By the
late 1980s, that number was down to one in four. As a result, GMs management was taking drastic action to try to stop its decline in market
share. It was closing inefficient plants, reorganizing divisions, introducing new production technologies, and making huge cuts in its staff. Tens
of thousands of white-collar positions were eliminated. One of those was Russ McDonalds job. In the summer of 1993, less that a year short of
his 25th anniversary with GM, he was given the opportunity to take early retirement. Russ saw the handwriting on the wall. If he didnt take early
retirement, it would only be a matter of time maybe a year or two at best and he would be pushed out, and with a less attractive severance
package. So he took the companys offer: nine months pay plus lifetime health benefits for him and his family. Russ tried to put a positive spin
on the situation. Maybe this was a blessing in disguise. He was only 49 years old. He had 24 years of experience with on of the worlds foremost
corporations. He would land on his feet with a company that was growing and offered opportunities that no longer existed at GM.
Russs optimism had pretty well faded by New Years Day of 1996. He had been out of work for nearly 30 months. He had responded to dozens
of employment ads. He had sent out more than 200 resumes. He had talked with several executive recruiting firms, and he had spent more than
$7,000 on employment counseling. All for naught. What he kept hearing was that his experience wasnt relevant to todays workplace; there
were no opportunities in large companies; small companies wanted people who were flexible, and they considered corporate types like Russ as
mentally rigid. Even if there was a job for which Russ was qualified, he would have to take at least a 50 percent cut in pay, and employers
were very uncomfortable offering someone such a relatively low salary; they figured Russ would be demotivated and likely to jump ship at the
first opportunity.
Problem definition
Justification of the problem
List of alternatives
Evaluate alternatives 30
Recommendations 25