Operations Decision - Essay Example

The company has got systems and strategies which assist their clients meet their goals and objectives. XYZ Inc. has in the past adopted a partnership approach to ensure that they work closely and optimize customer contact strategies to live their clients satisfied, increased revenue and with advanced competitive advantage. The company has assisted a number of businesses to develop software’s that fits their operations and also get them new markets. With the designed outbound solutions the company helps cover full spectrum of the clients products with the mind that there are the voice of the clients’ products.

Evaluation of Performance Through its various products, the company aims ensuring customer satisfaction through well managed reduced costs by optimizing the business process to support clients. XYZ Inc. has also developed mechanisms to help customers adopt those strategies that ensure valuable long term relationship with their clients. All these strategies have helped XYZ Inc. to remain on top of the game and high speed expansion to a number of countries across the globe. Environmental scanning involves study and in-depth interpretation of factors such as political, economical, political, social and technological events which impact the performance of a business.

The analyses of these factors are very important as they help determine whether the company should remain in operation or not. Some of the political factors which can influence manager’s decision include taxation policy, trade regulations, government stability and unemployment policy. Given that XYZ Inc. operates in many countries the management is always keen about various regulations. The instability in Syria currently influenced the closure of the offices in that country. Economic factors are also very important in influencing management’s decision.

Some of these are inflation rate, recession and customer liquidation. These factors usually influence the way performance as it dictates the company’s sales. Socio-cultural factors that influence the management’s decision include age distribution, religion, education levels, life expectancies, population, and income level. The social factors are important as it dictates the purchasing power amongst the clients. When the socio-cultural factors are healthy and favorable in an economy then the power of the targeted clients to buy will be higher.

Technology is very important given that XYZ Inc. deals a lot in technological related services. It usually dictates whether the company is in a position to meet the client’s needs. Some of the technological factors include technological changes, improved distribution channels, improved communication skills. Finally the legal and environmental factors which can also be important to the management include; health and safety law, product safety law, advertising regulations law and the labor laws.

All these factors are very important in influencing the management’s decisions on either to shut or remain in operation. Total Variable Cost = (Number of Employees X Employees Daily Wage) + Other Variable Costs = (100 X 70) + $2000= $9000 Total Cost = Total Variable Cost +Total Fixed Cost = $ 9,000+ Fixed Cost Worker Productivity = Units of Output per Day / Number of Employees 6,000 units in 20 days= 6,000/20=300 per day 300/100= 3 Total Profit/Loss = Total Revenue –