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Management - Operations Decision - Assignment Example

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Operations Decision Name of Author Author’s Affiliation Author Note Author note with more information about affiliation, research grants, conflict of interest and how to contact Operations Decision Introduction: The fictitious business considered for this assignment is a plant operation company named AXEL, located in California US…
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Management - Operations Decision
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Download file to see previous pages These professionals converge as a team to develop and enhance production outcomes to achieve the required level of profitability. Business organizations require outside research to estimate the demand for products and services and will have to entailing information to explore access and capture market places. My role here is as managing consultant to this company, to offer advice that will help them to arrive at a decision as to whether it should shut down totally or continue its operations. The plant operation sector is extremely fragmented in nature, characterized by a large number of small and micro companies. The capacity to react rapidly to emerging opportunity is an absolute necessity to achieve success in the sector. In a swiftly altering atmosphere, it can be complex for small and medium sized companies to cope up with market developments Current Environmental Scan Factors: Current “environmental scan” (Environmental Scan, 2005, Pg.1) factors of this company include an analysis of both internal and external environmental factors that affect the overall functioning of the company, as experienced below: Internal Factors: · Organization of equipment and machinery · Capacity of the technological · Culture of the organization · Management systems · Worker morale · Financial management External Factors Competition Behavior of the customer Economy Political interference and movement Social atmosphere Technological alterations General environmental alterations All these factors have great impact on plant operations and the management’s decision to continue or discontinue their operations. Both internal and external environment are the foundation in which the organization operates. Environmental scanning also concerns the gathering of relevant information about conditions that affect the business. Appropriate information about internal and external factors of the company will help in understanding the overall performance of the company. It is also a process of using information of the environment in decision making. This has to be seen from the perspective of improving the overall organizational capability to deal with quick changes. The external environment of plant operation company refers to both its operational atmosphere such as competition, consumers and suppliers, and general atmosphere such as regulatory, economic, technological, and socio-cultural aspects. A firm scans the environment in order to recognize the external factors of change so that they may build up effective responses, which can improve or secure their position in the future. Scan will also help in avoiding surprises, recognizing opportunities and threats, increasing competitive advantage, long-term and short-term planning of performance. The organization's capability to adapt to its outside atmosphere is dependent on knowing and understanding the external alterations that are taking place. Environmental scanning forms a primary means of organizational learning. Evaluate the financial performance of the company using the information: The firm presently employs 100 workers to produce 6,000 units. The daily wage is $70, and the price of the firm's output is $32. If the firm continues to work in this capacity, its total revenue will be $192000 = $32 times 6000 units of output. This is the advantage of operating the facility. The price of operating the ...Download file to see next pagesRead More
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