Fundamentals of Decision Support Essay Example | Topics and Well Written Essays - 1500 words

Fundamentals of Decision Support - Essay Example Some more problems arise which may be linked with increasing the size of the facility. Consequently the cost of operation of the facility will shoot creating another problem. Industry siting may be regulated the existing state regulations’ and local laws. ‘This imposes another problem due the technique of increasing the size of the facility in each region in order curb diseconomies of scale. (Watzlawik) Completion for raw materials by other companies which are related to plastic manufacturing company may also impose another threat. In this case growth of different facilities in different regions may be returded. (Michael, 2009) Technological change can also affect manufacturing and also the utilization of the plastic product hence affecting the growth of plastic manufacturing companies in different regions The increase in the size of the company or organisation leads to the overload of management team due to large scale operations which draw the attention of the managers all through. (Guttmann, Michael, & John). A larger number of employees are employed which requires maximum supervision to ensure smooth operation of the company. Managers should ensure that company resources and materials are not wasted. As a result of overworked management, minimal supervision and control of staff operation emerges leading to laxity of cost of production control. Scale enlargement of the facility in an region of the world could lead to decreased attention on customers individual taste .goods of the same quality are produced consequently as a result of large economies of scale. Fall in demand of the plastic product follows. Hired employees controls the operation of the large sized business in absenter of the owners There usually be loss of personal interaction between the employer and employees which can later lead to staffs strikes and lack outs .This

International Finance and Financial Crisis Case Study

International Finance and Financial Crisis - Case Study Example They should oversee if the sources of funds have an undisrupted flow and if they are able to pay their creditors. Having a clear understanding, the company should try to maximise the cash positions. In 2008, Woolworths had net cash flow of 39.2 millions in comparison to 27.1 millions in 2007. In due contrast to it, the company had 2.2 millions of net cash flow in 2003. So, it can be said Woolworths took required measures to have the increased cash flow during the time of crisis. Identify and aggressively minimise operational risks - The companies, amidst financial crisis, should try to identify and reduce all sorts of avoidable day-to-day risks. During crisis, it is desirable that the companies follow the basics. The operations generated over 61.7 millions in 2008, a drastic increase over the previous year. Conduct rigorous scenario planning - During crisis the companies should also take a proper stock of the economic scenario. They should strategise on the basis of the GDP growth, currency depreciations, etc. Woolworths Group scrapped the idea of paying interim dividend in 2008 considering the net loss it has incurred and the global meltdown. Review business performance and prepare for divestitures - The c... They should strategise on the basis of the GDP growth, currency depreciations, etc. Woolworths Group scrapped the idea of paying interim dividend in 2008 considering the net loss it has incurred and the global meltdown. Review business performance and prepare for divestitures - The company, to sustain and survive the crisis, should continuously review its performance and take necessary steps, as and when required. Also, the company should prepare itself for necessary divestments to increase the cash inflow. As the cash inflow was great for Woolworths, so we can say that the company took regular assessments of its business performance. Maintain the confidence of key stakeholders - Any company that wants to stay floated for long term, knows the value of its stakeholders. Relationship with shareholders, suppliers and customers if once lost can not be regained. The revenue has increased in 2008 compared to 2007 for Woolworths Plc and also there are no bank overdrafts in the year. Dividend Policies, Capital Structure and the Shareholders' Wealth Share-holders are the true owners of any company. And the dividend is the earning of the owner because of his stock holding on the basis of the company's profit. Apart from the capital yield (which a share-holder might earn, if he sale away the share), earning of dividend is the reason of purchasing shares by the shareholder. If a company earns profit from its professional and operational activities, the management can either retain the profit or future investments (called retained profit or retained earning) under the head of 'reserve and surplus' in the balance sheet or the management of the company can distribute the profit among its