ABC ABC manufactures high quality safety equipment, such as automaticfire extinguishers, for the chemical and oil...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ABC ABC manufactures high quality safety equipment, such as automaticfire extinguishers, for the chemical and oil industries. Although it has an excellent reputation for quality and customer service it is experiencing falling capacity utilisaiton. The Operations Director of ABC has made the following comments: 'Because of falling demand our factories only worked at 75 percent capacity utilization last year. With a recession affecting the chemical and oil industries this year I don't see things getting any better. We have closed one production line but this will only delay a solution to the problem, not solve it. We are experiencing increasing competition in the market for high- tech safety equipment. The directors discussed the problem of falling capacity utilization and the rising average costs resulting from it. One director suggested cutting the costs of the HR department by outsourcing nearly all of its functions to a business in a low cost country 3000KM away. Unsurprisingly, the HR Director argued that this would be a huge mistake, especially if demand increased again and with it the need for more employees. The following figures give the trend in production: Last year 24 000 32 000 Output Capacity Q1 Analyse possible reasons for the trend in capacity utilization. This year 12 000 24 000 2 ABC ABC manufactures high quality safety equipment, such as automaticfire extinguishers, for the chemical and oil industries. Although it has an excellent reputation for quality and customer service it is experiencing falling capacity utilisaiton. The Operations Director of ABC has made the following comments: 'Because of falling demand our factories only worked at 75 percent capacity utilization last year. With a recession affecting the chemical and oil industries this year I don't see things getting any better. We have closed one production line but this will only delay a solution to the problem, not solve it. We are experiencing increasing competition in the market for high- tech safety equipment. The directors discussed the problem of falling capacity utilization and the rising average costs resulting from it. One director suggested cutting the costs of the HR department by outsourcing nearly all of its functions to a business in a low cost country 3000KM away. Unsurprisingly, the HR Director argued that this would be a huge mistake, especially if demand increased again and with it the need for more employees. The following figures give the trend in production: Last year 24 000 32 000 Output Capacity Q1 Analyse possible reasons for the trend in capacity utilization. This year 12 000 24 000 2
Expert Answer:
Answer rating: 100% (QA)
The answer provided below has been developed in a clear step by step manner Step 1 Economics focuses ... View the full answer
Related Book For
Global Marketing management
ISBN: 978-0470505748
5th edition
Authors: Masaaki Kotabe, Kristiaan Helsen
Posted Date:
Students also viewed these organizational behavior questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Part A: The following departments of activities are recorded in the City of Atlantas Comprehensive Annual Financial Report in the appendix to this chapter. Indicate the type of fund that most likely...
-
During the past several years the annual net income of Avery Company has averaged $540,000. At the present time the company is being offered for sale. Its accounting records show the book value of...
-
The data file csi contains the Consumer Sentiment Index (CSI) produced by the University of Michigan for the sample period 1978M1-2006M12. a. Perform all three Dickey-Fuller tests. Are the results...
-
During the sales interview, the following objections are raised. How would you deal with them? 1 Im sorry, I have an urgent meeting in ten minutes time. Can we make it quick? 2 We havent had any...
-
Pauls Book Warehouse distributes hardcover books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of May, Pauls inventory consisted of books purchased for...
-
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter Budgeted unit sales, 12,000 2nd Quarter...
-
Norr and Caylor established a partnership on January 1, 2019. Norr invested cash of $100,000 and Caylor invested $30,000 in cash and equipment with a book value of $40,000 and fair value of $50,000....
-
" a practitioner is never finished contracting "... What do you think are some of the challenges are when re-contracting, when situations change, and how would you respond?
-
Arithmetic versus geometric average. (a) Let a 1 , a 2 > 0 a 1 , a 2 > 0 and show that a 1 + a 2 2 a 1 a 2 a 1 + a 2 2 a 1 a 2 (b) Use Jensen's inequality applied to the log function to show that...
-
Infections Can Lower IQ A headline in June 2015 proclaims "Infections can lower IQ." The headline is based on a study in which scientists gave an IQ test to Danish men at age 19. They also analyzed...
-
The chapter provides sample goals for an initial sales call on a prospect. (a) What other goals can you come up with that might be appropriate for an initial sales call? (b) Develop three or four...
-
There were 970 movies made in Hollywood between 2007 and 2013. Suppose that, for a documentary about Hollywood film crews, a random sample of 5 of these movies will be selected for in-depth...
-
An immersion heater operating at \(1000 \mathrm{~W}\) is in the form of a rectangular solid with dimensions of \(16 \mathrm{~cm}\) by \(10 \mathrm{~cm}\) by \(1 \mathrm{~cm}\). Determine the heat...
-
Read the example and determine whether it is a decisional, interpersonal, or informational role. Example of manager role Once a month, the CEO presents a plaque to employees who are celebrating a...
-
A liquid flows upward through a valve situated in a vertical pipe. Calculate the differential pressure (kPa) between points A and B. The mean velocity of the flow is 4.1 m/s. The specific gravity of...
-
What do you understand by the term "hypercompetition?" What, according to hypercompetition, are the various arenas of competition?
-
Enumerate some of the legal issues that international business managers need to take cognizance of in host countries.
-
What mechanisms can firms use to protect themselves against ill-fated partnerships?
-
Convert 52 nm to sm.
-
A helicopter has a rotor diameter of 30 ft and it is being operated in a hover at 286.5 rpm. Find the tip speed Vt of the rotor.
-
The airplane in Problem 6 starts from a brakeslocked position on the runway. The airplane takes off at an airspeed of 200 fps. Find the time for the aircraft to reach takeoff speed.
Study smarter with the SolutionInn App