Briefly describe the details of the fictitious business

Reference no: EM1394862

Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units of output per month (working 20 days / month). The daily wage (per worker) is $70, and the price of the firm's output is $32. The cost of other variable inputs is $2,000 per day. You are told that the firm's fixed cost is "high enough" so that the firm's total costs exceed its total revenue. The marginal cost of the last unit is $30.

This assignment allows you to determine the specific details about this fictitious company in order to conduct an environmental scan of this company.

Write a three to four (3-4) page paper in which you:

Briefly describe the details of the fictitious business that you created for this assignment.

Assess the current environmental scan factors that are relevant to the decision making process. Determine the factors that will have the greatest impact on plant operations and management's decision to continue or discontinue operations. Provide a rationale for your determination.

Evaluate the financial performance of the company using the information provided in the scenario. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term and how each factor influences managerial decisions. Be sure to show the calculations that helped you reach your conclusions.

Recommend how the company can improve its profitability to deliver more value to its stakeholders. Then, develop a brief plan to implement the recommendations.

Assess the circumstances in which the company should discontinue operations and how management should react when confronted with these circumstances. Provide a rationale with your response.

Reference no: EM1394862

Questions Cloud

Examine implications of global and domestic economic systems : Examine the implications of global and domestic economic systems for efficient decision making and problem solving.

What is the r-squared value : If the sum of squares total is 800 and the sum of squares error is 170. What is the r-squared value?

Article review for statistics students : Critically evaluate the article by examining the worthiness of the survey. In your discussion, cover the following items: purpose of survey, why was it conducted, for who was it conducted, and was it based on a probability or nonprobability sample..

Essay about the increased consumption of bottle water : He devotes several sentence to explaining exactly what he means what he means by driking water

Briefly describe the details of the fictitious business : Briefly describe the details of the fictitious business and evaluate the financial performance of the company using the information provided in the scenario

Comparing the two models having r-squared : Compare two models. Model #1 has an r-squared of .25 and an adjusted r-squared of .10. Model #2 has an r-squared of .20 and an adjusted r-squared of .14. Given this information, what model should you use?

Discrete random variable : What is a discrete random variable and how does it differ from a continuous random variable? Give examples.

Examine implications of ethnic and cultural diversity : Examine the implications of ethnic and cultural diversity for effective decision making and problem solving for managers.

Estimate relationship in two alleles controlling grasshoper : A new species of grasshopper is discovered, varieties are found with red stripes, another with yellow stripes, and a third with orange stripes.

User Account

All Pages