Eco 550 Week 2 Operations Decision Analysis

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Running head: Operations Decision Operations Decision ECO 550 – Managerial Economics and Globalization In today’s uncertainty of economic success, one must carefully conduct an economic scan of his or her company. This paper will describe a mock company and assess the current environmental factors that impact the company’s operations and management decisions. This paper will also evaluate the economic performance and recommend how the company might improve profitability. Finally, this paper will discuss any circumstances in which the company should continue or discontinue operations. Briefly describe the details of the fictitious business that you created for this assignment. Genius Inc.…show more content…
Second, an inventory of the companies fixed cost needs to be developed to inventory these costs and make a determination as to which of these costs could be lowered or eliminated. • Consider lowering employee wages, reducing the number of employees, or removing and hiring new employees at a lower wage. • Evaluate production costs to determine if these can be lowered by substitution of products, lower the number of units produced per day, or explore modifying the product. Assess the circumstances in which the company should discontinue operations and how management should react when confronted with these circumstances. Provide a rationale with your responses. As Managing Consultant for Genius Inc., I wouldn’t discontinue operations because they are making a profit. If I was in management, I would sit down with employees and show them the numbers that if we don’t do something, the company is going to go under. I would first ask them to voluntarily negotiate their contracts. If they weren’t willing to do that, I would consider implementing new technology in which we didn’t have to have as many workers or letting people go and hiring new folks at lower salaries so the company could stay in

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