Roweil Company Is a Manufacturer of Agricultural Chemicals Located in Eastern

question 30

Essay

Roweil Company is a manufacturer of agricultural chemicals located in Eastern North Carolina. Roweil sells its products directly to farmers in the Atlantic states the company is known for the quality of the product, its packaging, delivery and customer service. The production process at Roweil involves several steps, one of which involves the cleaning of each vat before a batch of a new chemical is added. This is done so there is no contamination of chemicals. Currently the cleansing of the batch is time-consuming, requiring a good bit of water and additional chemicals, to ensure that the vat is appropriately cleaned. The waste of the cleaning process is itself treated carefully, as many of the chemicals Roweil produces can be harmful to plants and animals if not properly handled. Roweil is considering an investment in new equipment that would speed up the cleaning process and would require less water and fewer additional chemicals. The new process would involve the application of heat and high air flow. The new cleaning equipment would however be quite expensive.
Required:
(a) Comment on the strategic issues facing Roweil concerning the potential investment in the cleaning equipment.
(b) What are the ethical questions, if any, that should be addressed in the above decision?

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Definitions:

Annual Meeting

A yearly gathering of the members or shareholders of an organization to discuss its performance, elect leadership, or make decisions on corporate issues.

Directors

Directors are individuals elected to a corporation's board to oversee and guide the organization's policies and direction.

Fiduciary Duty

A legal obligation of trust requiring an individual to act in the best interests of another party, often seen in the context of trustees, guardians, and financial advisors.

Shareholders

are individuals or entities that own shares in a corporation, giving them partial ownership and possibly the right to vote on corporate matters.