Essay on Operation Decision

1772 Words Jul 9th, 2012 8 Pages
Assignment 1: Operation Decision
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. It also tells us 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
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4. Technological environment – The range of technological events, trends, and solutions available or on the way that can improve the capability of your enterprise for creating value. This includes the study of the developers of new technologies and their likely behavior, the technology itself, and the trends associated with the application of the technology.
5. Social environment – The cultural patterns, values, beliefs, trends, styles, preferences, heroes, villains, and conflicts that form the reference system of people’s behavior. These may include the effects of national cultures, individual ethnic cultures within a country, and various social segments such as teenager and people with various lifestyles,
6. Political environment – The processes of national, regional and local governments, as well as various power groups that can affect the rules for doing business. This can include government intervention in particular industries, tax policies at all levels, government expenditures for certain causes, legislation aimed at implementing social policy, and regulation of various industries and trade practices.
7. Legal environment – The pattern of laws, lawmaking activity, and litigation that can affect the success of the enterprise. This can involve legal considerations of patents, copyrights, trademarks, and other intellectual property; anti-trust consideration ; trade protectionism; product liability; environmental liability; and
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