Mega Ltd manufactured water heaters. In the first year of its operations, the revenue earned by the company was justsufficient to meet its costs. To increase the revenue, the company analyzed the reasons behind the fewer revenues. Afteranalysis, the company decided:1. To reduce labor costs by shifting the manufacturing unit to a backward area where labor was available at a very lowrate.2. To start manufacturing solar water heaters and reduce the production of electric water heaters slowly.This will not only help in covering the risks but also help in meeting other objectives.a) Identify and explain the objectives of management discussed above.b) State any two values which the company wanted to communicate to society.

Management is the process of performing the work or tasks necessary to fulfill an organization's…

Answered: Mega Ltd manufactured water heaters. In…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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ABC Ltd. is a large transnational company having diversified business activities with a hugeshareholder base. The company is continuously expanding and generating employment. Thecompany, in its expansion and diversification programme, decides to establish a new plant atVikaspuri, an area which is underdeveloped. The new plant is designed to use energyefficient technology that will help the company to save production cost by 20%. Thecompany’s decision goes well with the Government policy of attracting investment todevelop such underdeveloped regions. The government has also announced tax holiday forfive years for the companies that invest in underdeveloped areas. However, the new plantmay bring chaos for the inhabitants of Vikaspuri region, which is otherwise tranquil. Thenew plant may result in increased cost of living, aliens migrating to the region, disturbingthe social and economic order. The company sensing the possible protest tried to educate thepeople of Vikaspuri region and…
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