Eco 550 Assignment 2 Essay

1987 WordsMar 16, 20138 Pages
Assignment 2: Operations Decisions Eco 550 Managerial Economics The purpose of this paper is to discuss the reasons why I, as a hired management consultant, would suggest a fictitious company either shut down operations or continue them based on its operational health. In order to do this I must first describe, in brief, the basic details of the company I have created to provide some tangibility to this assignment. Then I will assess the current environmental scan factors relevant to the decision making process, focusing on those which have the greatest impact on both the overall plant operations and the managerial decision of whether or not to discontinue operations. After which I will evaluate the company’s financial performance…show more content…
In contrast, the manufacturing of the units has changed a lot, as it has in all of manufacturing these past decades. With the advent and growth of robotics and computer aided manufacturing Greatneck’s work force has steadily changed from rough laborers to trained and educated operators. Distributing their products as they do through retail stores, Greatneck only recently – as in the last few years – began offering internet sales where they sell and ship their heaters directly to the consumer. On the direct environment front, Greatneck is a manufacturer and therefore it needs to ensure its plant is meeting, or exceeding, all EPA regulations. While it does not burn coal or perform other potentially volatile acts it still needs to be aware of, and on top of, its carbon footprint. The biggest issue being its handling of any mercury. It must be able to account for every drop of the potential poison. As for the generalization of the environmental aspect, Greatneck has managed to build a strong brand name through its offering of safe, quality products at reasonable prices. Its track record provides it with a strong competitive advantage, and even allows them to sell their products at a slightly higher cost due to their known quality. It has also garnered a reputation as a responsible community member and makes a great effort to recycle the unused copper wire, metal,
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