Module 8-2

Intro

Global Energy Services, Inc. is facing several major problems that could hurt its future. The main issues are that oil prices are dropping, which means the company is making less money and might not meet shareholder expectations. The Environmental Protection Agency (EPA) found that the freshwater supply near one of the company’s oil fields might be polluted, which needs to be fixed immediately and will be expensive. To cover these costs, the company will need to cut jobs, causing worry and low morale among employees.

Recommendations To deal with these challenges, the company should focus on a few key areas. First, economically (profit), the company needs to find new ways to make money to balance the losses from falling oil prices. This can include investing in renewable energy and other energy-related services. Cutting unnecessary expenses in all departments is crucial. This includes negotiating better deals with suppliers and improving the supply chain to save money without hurting operations.