Capsim Case Study Answers

Satisfactory Essays
. Look into your toolkit, what alternatives are available for dealing with each problem? How would you evaluate the alternatives if you were presenting them to William and his boss?
• Alternative 1 Lower level of Concentration, First of all, William and his team should study and evaluate the market. As it is Perfect Competitive Market, they should calculate total, average and marginal revenue. In the short run, cleaning product and services cost should be higher than average variable cost and by doing so they can earn a positive profit. But in long run, profit will be zero.
• Alternative 2- Reduce Operating Cost- 1. They can reduce operating cost by embracing technology they should consider to automate their accounting, payroll, and marketing system.2. Outsource advertisement and marketing system to outside consultants to increase ROI 3.They should find available options to buy cleaning products. Evaluation price and buy from most affordable option 4.They should pay invoices to vendor early on time to avoid late fees.5. They should identify inefficiencies in their company to decrease cost. 7.They can save cost by canceling unused service for example international call service.8. They should consider the option to use green products as they are cost-effective and help to goodwill.
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• Alternative 4 Robotic Technology and Labor Laws William and his peers should carefully identify a financial and nonfinancial advantage and disadvantages to introduce robotic technology and evaluate labor laws.They should make sure that their new idea/technology is not arising any legal problems they should take legal advice from a business
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