Leaves Some Questions Unanswered. For Term Paper

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Moreover, even with these changes Verve will remain subject to government's heavy hand -- will this limit their profit potential no matter what other changes are made?

Response to Nash. The conclusion about subsidy being necessary is one element of insight that I liked, and that wasn't really outlined in the other posts. Verve has an ongoing lack of sustainability in its budget. I fail to see, however, how "cost analysis" would achieve anything. Granted, the company's hands are somewhat tied with regards to other solutions, but must of the firm's inefficiency is tied more to its burdensome regulatory environment than managerial incompetence.

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Old, inefficient plants cannot be made efficient without a serious infusion of capital. Cutting costs through other means is also difficult. Layoffs involved short-term spending on severance, for example. The author is right about the goal conflict being a major contributor to Verve's problems. It is the prescription for success I question. Not only does it not address the goal conflict that underlies Verve's profitability problems but it requires an infusion of short-term spending, something will be a challenge for a company that is….....

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