Eco 550 Managerial Economics
The purpose of this paper is to discuss the reasons why I, as a hired management consultant, would suggest a fictitious company either shut down operations or continue them based on its operational health. In order to do this I must first describe, in brief, the basic details of the company I have created to provide some tangibility to this assignment. Then I will assess the current environmental scan factors relevant to the decision making process, focusing on those which have the greatest impact on both the overall plant operations and the managerial decision of whether or not to discontinue operations. After which I will evaluate the company’s financial performance …show more content…
On the cultural front, Greatneck needs to be aware of who its consumers are. While their main purpose is to heat some specified space, Greatneck’s heaters are purchased for two different spaces and usually by two different types of consumers.
The first consumer is someone living on a fixed income, usually residing in cheaper apartment or home with little or no insulation. This consumer is looking to keep their overall heating bill low during the cold winter months and they used a space heater to warm a specific room – or part thereof - during a certain time. This may be their bedroom while they are sleeping through the night or the area surrounding their chair as they watch their evening television programs. The space heater allows them to heat only this smaller area while keeping their furnace set low and not wasting money heating the entire home.
The second consumer is an office or cubicle worker. These consumers have bosses who are also keeping their eye on the bottom line and know they can save a few dollars by not overheating a large cubicle-filled area or a large plant area that happens to effect the area of the front offices.
These two groups represent a cross section of ages, and