Mt435 Unit 3 Assignment

1497 Words6 Pages
Question One
Based on the information presented in the scenario/case study discuss Albatross Anchor’s competitiveness in relation to (please address all items in the below list and provide support for your conclusions):
1. Cost a) Cost of Production: To understand the cost of production we must first understand what two costs are valuable to company along what can make a company gain or lose profit. First we look at Variable cost which “depends on what materials and labor are needed for the company” and in this case it is anchors which can vary with the volume of anchors that is produced (Russell & Taylor, 2011). The fixed costs are “those that do not vary with output and typically in rents, deprecation, insurance,
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When it comes to the flexibility of filling order Albatross only sells their anchors at wholesale price and it is mainly to companies and not the general consumer/public. Another factor to consider is the way the building is set up along with the limited amount of space that is available in the warehouse between each department. Many items depending on the size and quantity can take weeks in order to fill that particular order.
4. Technology. When it comes to our current world and as much technology that is used one may think that they would have found a way to put it use within their company but that is not the case. Albatross Anchors only tend to changes as they go along causing them to fall behind when it comes to technology. The machines are older which has me wondering about the added cost that it may cause to keep them going.
5. Capacity and facilities. After reviewing the video I see that their facilities are in poor conditions making it harder for many to work that type of environment. The administrative office have no space/order to them along with their shipping or receiving department affecting how the company flows on a daily bases. Not having enough space along with clean, organized facilities can affect the produce and output of a company.
6. Service to customers. Albatross Anchors only sell to wholesalers not really having a relationship to their consumers. Because many of products are sold by distribution companies or OEM companies usually have

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