What affect will the FedEx buyout have on the Memphis Economy? Pearlie M Thomas, Candice Johnson, Frances Marshall, Jonathan Parker, Terrance Clements QNT/561 February 14, 2013 Professor Emiel Barrett What affect will the FedEx buyout have on the Memphis Economy? FedEx is one of the largest company in the City of Memphis and probably employee more employees than any other company. The slow economy and the high cost of fuel have affected the company’s budget.
In order to make the company more profitable, the company has decided to restructure and offer a voluntary buyout to its 100,000 plus employees worldwide, with about 30,000 of those in the Memphis area. The buyout leads to one question, the affect it will have on the local economy. Problem This buyout is projected be much bigger than the one the company offered in 2004 and the last one. Those employees electing to take the buyout will receive a lump sum payment. Economists view this as an opportunity to boost the Memphis economy.
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Those with, what is being called new money are projected to spend it on real estate, investments, new business, automobile purchases etc. This may very well boost the local economy over a short-term period, but the bigger picture is the affect it will have long-term. Over time, it will affect the economy because it will lower the median income in the city, which affects consumer spending because they are going to replace the jobs with lower paying jobs. There will also be an influx of employees who need a job, but unable to obtain one.
Research Design The research design that is appropriate for this dilemma is a Casual Study Design. Causality studies can be thought as the understanding of a phenomenon in terms of conditional statements in the form of, “If X happens, and then Y is the result” (USC, 2011). This type of research is used to measure what impact a specific change will have on existing norms and assumptions (USC, 2011). The casual design research study occurs when a variation phenomenon and independent variable result to a variation in a ependent variable (USC, 2011). In this case, there is variation with FedEx employees and retirement payouts that could affect the community of Memphis. The independent variable is the FedEx Corporation, and the dependent variable is the response from employees about the payout. Data Collection Sampling Data collection sampling is a method of gathering information about a subject so that the data collected can be analyzed to determine the type of data that you are collecting.
It needs to be determined whether the data is quantitative or qualitative. Quantitative is data that can be measure on a numerical scale and is put in to subcategories known as nominal or ordinal. Nominal data cannot be measured in any numerical order. For instance, a person’s preference of fruit flavors used in candy. This data can be coded with a Y or N answer or maybe or categories that darken your choice, but cannot be added or subtracted. On the other hand ordinal data can have a numerical value or can be put on a scale.
An example of this is ranking how useful a person feels the internet is. This can be done by stating, “On a scale from 1to 5, how useful is the internet to you? 1 is the lowest ranking, and 5 is the highest ranking. A Survey in the form of a questionnaire is an ideal form of sample design to use for this particular subject. With a questionnaire, inferences can be gathered about the effects that changes with FedEx will have one the general public.
Demographical questions can be asked to understand how this change will impact the different age groups, different economic groups, educational groups, race groups or any group that makes up the social classes in Memphis. Using a questionnaire can give the person responsible a chance to ask questions that will cover all of the issue involved. It will also give the citizens a chance to express their feeling and concerns about the changes with Fed Ex.