current environmental scan factors

Operations Decisions

Paper instructions:
Assume you have been hired as a managing consultant by a company to offer some advice that will

help it make a decision as to whether it should shut down completely or continue its operations. it

currently uses 100 workers to produce 6,000 unites of output per month (working 20 days/month).

The daily wage (per worker) is $70, and the price of the firm’s output is $32. The cost of the other

variable inputs is $2000 per day. You are told that the firm’s fixed cost is “high enough” so that the

firm’s total costs exceed its total revenue. The marginal cost of the last unit is $30

This assignment allows you to determine the specific details about this fictitious company in order

to conduct an environmental scan of this company.

Write a three to four (3-4) gapes paper in which you:

1- Briefly describe the details of the fictitious business that you created for this assignment.

2- Assess the current environmental scan factors that are relevant to the decision making process.

Determine the factors that will have the greatest impact on plan operations and management’s

decision to continue or discontinue operations. Provide a rationale for your determination.

3- Evaluate the financial performance of the company using the information provided in the

scenario. Consider all the key drivers of performance, such as company profit or loss for both the

short term and long term and how each factor influences managerial decisions. Be sure to show the

calculation that helped you reach you conclusions.

4- Recommend how the company can improve it’s profitability to deliver more value to its

stakeholders. then, develop a brief plan to implement the recommendations.

5- Assess the circumstances in which the company should discontinue operations and now

management should react when confronted with these circumstances. Provide a rationale with your

response.

6- Use at least three (3) high-quality academic resources in this assignment. Note: Wikipedia and

other websites do not qualify as academic resources.

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