Which method would lead to the best decision when a competitor is submitting a lower bid for your product? The absorption cost method will show the profitability and will provide the best references concerning how much money the company will make as compared to the bidder who has the lowest bid. Absorption costing will be more useful to companies that do not sell all of its products manufactured during a certain period. By using absorption costing the cost of the product, is not going to be shown until the time that
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.
“For instance, the fall in the wage lowers people’s income and thereby reduces demand. That reduction may feed back to firms and reduce the demand for their goods, which might reduce the firms’ demand for workers” (Colander, The Limitation of Supply/Demand Analysis, 2010). “If these effects do occur, and are important enough to affect the result, they have to be added for the analysis to be complete. A complete analysis always includes the relevant feedback effects” (Colander, The Limitation of Supply/Demand Analysis,
Crystal Diaz MGT 451 Professor Widman June 13, 2010 1)What does customer satisfaction mean to you and how could you measure that in the stimulation? As Anderson, Fornell, and Rust state, “To compete in such a world, firms must strike the right balance between their efforts to compete efficiently and their efforts to compete effectively.” Two arguments were discussed, one that customer satisfaction and profitability are well-matched. For example, customers that are satisfied can decrease, “the time and effort devoted to handling returns, rework, warranties, and complaint management, while at the same time lowering the cost of making future transactions. The second theory believes that, “ increasing customer satisfaction should increase costs, as doing so often requires efforts to improve product attributes or overall product design.”
Keep the whistle included but add a separate replacement Any solution that we choose should consider the highest customer satisfaction and thus provide our customers with the care, consideration, and ultimately value that they have come to rely on our company to provide. It should consider our business and shareholders and minimize the total cost to the company. I will talk about each option separately before my final recommendation. To remake the toy that has failed standards and repackage the whole collection, would provide our customer with what they ordered and keep intact the current relationship. On the down side, it is a significant enterprise and would cost a great amount of labor and time.
It also shows some other possible objectives for the firm. Sales revenue maximisation, for example, occurs when marginal revenue is equal to zero, as the next unit produced would carry a negative marginal revenue and hence reduce total revenue. The point where the volume of sales of the good are maximised subject to making at least normal profit is also shown (at the point where AR=AC). An Diagram Possible objectives of the firm I Profit maximisation may become
Being that the investment in the area is low they should use the cash earned to move the questions mark to the cash cows (BCG Matrix, 2012). They should continue what they are doing in the appliances department but they should consider doing a portfolio analysis for both departments as well. This analysis is similar to the BCG Matrix. The portfolio analysis would allow an organization to analyze the products that is in a business portfolio. A portfolio analysis help a company with making decisions on what products that they must considered to be the main focused and which one they should get rid of.
QT’s strategy is to be the dominant convenience/gasoline retailer by taking a lower gross margin on gasoline sales than its major competitors do, but makes up for the lower margins with greater volume. (Forbes 163, 1999) This paper will focus on the attitudes, emotions and ethic of the QuikTrip staff by answering the following questions: 1) How would you describe the attitudes and emotions of the typical QuickTrip employee? How do these attitudes and emotions influence the employees’ work behaviors? 2) How would you describe the attitudes of Chester Cadieux regarding QuikTrip’s employees? What implications do Calieux’s attitudes have for how he manages the company and leads the employees?
Mantkelow (2014) explains lean manufacturing as based on "finding inefficiencies and removing wasteful steps that don't add value to the end product." Lean operations helps to reduce waste in production by using resources to only produce what the customer is demanding. A company that is using lean operations has measurable throughput. “Every minute that a product is not sold the cost accumulates and the competitive advantage is lost, this is the manufacturing cycle time” (Heizer and Render, 2010) this analysis could have been used to scale down production in the third and fourth quarter when it became obvious there was excess inventory. For starters, there is no value in holding 60 days' worth of inventory, to adopting lean principles would immediately help us to commit to inventory reduction and better alignment between production and demand.
I. Unionization a. Unionization in its simplest form is the collaboration of a group of workers in a certain industry. b. Motivations for unionization — Personal job dissatisfaction usually leads to the need for Collective Bargaining  Collective bargaining includes: o Salary improvement o Retirement requirement and benefits o Better working conditions o Management misbehavior against employees o Effective conflict resolution — Belief that unionization will lead to concrete improvements as a result of Collective Bargaining II. Economists have two different views of the effect of unionization in the economy: First view is that unionization is good for the economy and the other view states the contrary. A According to the organizers of the American Worker Project, David Madland and Karla Walter, whose goal is to conduct research on the increase of wages, benefits, and security of American workers – “the essence of labor unions is to allow workers to reap the benefits of the economic growth they help create.” i.