Business Operations (T-Shirt Company)

1223 Words5 Pages
Operations Decision Shannon S. Valentine Professor Saad Khalil ECO 550: Managerial Economics Strayer University November 18th, 2012 Executive Summary In today’s economy, many corporations that have been around for over a hundred years are either laying off several hundred employees (Aetna, Inc), or shutting its doors all together (Hostess). Some corporations can avoid letting go of trusted employees and eliminating jobs and avoid closing its doors if a few tweaks are made in operations costs and variable costs. As a managing consultant of any company, suggestions can be made to these struggling companies in order to try and turn business around. Once the company listens to the managing consultant and makes the necessary changes, profits can be made once again. Q1). Briefly describe the details of the fictitious business that you created for this assignment. As a consulting manager of the Happy T-Shirt company, sales are not good. The price of cotton is at an all-time high, the economy is bad and keeping full-time employees on the books along with their health benefits is extremely difficult. Currently there are one hundred workers, and we put out about six thousand T-shirts per month, working only twenty days out of the month. I pay my employees seventy dollars per day, and the price of our output is around thirty-two dollars. Other variable input costs are about two thousand dollars per day. Happy T-Shirt‘s fixed cost is high so the total costs exceed the total revenue with marginal costs being thirty dollars of the last unit. Happy T-Shirt has been in business for about seventy years, with the main selling T-Shirt being the happy face, as the originator of the design. Q2). Assess the current environment scan factors that are relevant to the decision making process. Determine the factors that will have the greatest impact on plan operations and

More about Business Operations (T-Shirt Company)

Open Document