OCR CASE STUDY F297

As there is much more space available in the new factory, rent would be much higher, as well as increased overheads. They would also lose out on quality while the new employees were getting used to their new jobs and how it all works, this would also mean less customer satisfaction. To avoid this, and be able to achieve their objectives, they would have to consider raising prices, and depending on the Price Elasticity of Demand of APSL, this would likely mean they start to lose sales. Also managerial staff would be able to cover a wider area, reducing the need for them. This would mean increased overheads, and a higher breakeven point. It would be much simpler and cost effective to expand the company by renting another unit close to the original three and use them all, or even just by introducing a third night shift.

You are commenting using your WordPress. This would mean an increase in productivity, and therefore sales and profits. You are commenting using your Facebook account. They then would have to pay for a large recruiting and training programme to replace these employees. You are commenting using your Google account. This however would open up the business to many more threats, such as a takeover, or having items repossessed when they were unable to pay. Notify me of new comments via email.

This means the business would have to pay redundancy payments to many of its staff. It would be much simpler and cost effective to expand the company by renting another unit close to the original three and use them all, or even just by introducing a third night shift.

They would also lose out on quality while the new employees were getting used to their new jobs and how it all works, this would also mean less customer satisfaction. To avoid this, and be able to achieve their objectives, they would have to consider raising prices, and depending on the Price Elasticity of Demand of APSL, this would likely mean they start to lose sales. This would also mean that while they are recruiting there staff, they would have a loss of production again, as they choose not to you temporary staff.

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The business would also have to wait until the lease of their current units are all up, as they are three separate ones they would end at different times, meaning they may still have to pay rent on one or two of the old units, as well as the new one. You are commenting using your WordPress.

Possible SHL Questions F297

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ocr case study f297

Meaning even more cash flow issues for that month. Apsl are considering mobbing their factory to Hull, 40 miles away, in order to improve their capacity. This could be done by getting a bank loan, or maybe they could consider becoming a PLC, and selling some of their occr. The company would then make less profit for each sale, and along with increased overheads, may even make none.

ocr case study f297

However, APSL currently has cash flow issues, and therefore will be unlikely to have the finance available to move units. You are commenting using your Twitter account. Also managerial staff would be able to cover a wider area, reducing the need for them.

By continuing to use this website, you agree to their use. You are commenting using cxse Google account. It would also mean that problems in the past with JIT could be removed, saving many hours of production time, and money.

Therefore APSL would have to look into ways of financing the business during this time. Although APSL currently has great working conditions, and employees are happy working there, they may feel annoyed by the prospects of a move of 40 miles. As there is much more space available in the new factory, rent would be much higher, as well as increased overheads. This however would open up the business to many more threats, such as a takeover, or having items repossessed when they were unable to pay.

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This site uses cookies. This would mean increased overheads, and a higher breakeven point. As they currently have cash flow problems, this would help to improve this, and then have more money to complete the objective of boosting dividends.

Leave a Reply Cancel reply Enter your comment here During the move, production would also have to come to a halt, as the machines will need to be dismantles and then reassembled at the new unit.

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Therefore moving factories to Hull would be an expensive move that even if they manage to survive, would be unlikely to benefit the company in long run. However only in the long run, as before they can do this they lcr incur several new expenses that they may be unable to pay, without financial help.

Costs would also be introduced by any building work that needed to be done on the new unit, to make it suitable to them to use. Moving would increase this workspace, meaning they would have more room to expand their products. This creates fase problems for the business including cramped workplace conditions, lowering motivation of employees.

Many employees may choose to go leave the company dase than face traveling 80 miles each day.

ocr case study f297