ECO550 Operations Decision

Topics: Costs, Cost, Variable cost Pages: 8 (1463 words) Published: April 17, 2015

Operations Decision: Wireless Technology


The writer of this paper allows you to take a look inside AW’s global world of wireless technology. As a wireless technology company that focuses on voice communications, networking, tracking of items, remote controls and much more. A theory is created developing the basic short-run and long-run actions of its market economy. The writer of this paper evaluates the current environment scan factors as whether to continue or discontinue operations, evaluate the financial performance of the company looking at the profit or loss for both the short and long term, recommend how the company can improve profitability and evaluate the circumstances in which the company should terminate operations.

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

The fictitious business that I have created is a wireless technology business called AW’s Wireless Technology (AWWT). AWWT is one of the primary providers of consumer businesses in wireless technology. AWWT offers services and products related to entertainment, item tracking, navigation, remote, networking, and many more. Products related to entertainment are wireless headphones, speakers, microphones and home theatres; Item tracking involves Radio Frequency Identification (RFID) tags that allows the tracking of items in the store, vehicles or other products; Navigation entails the Global Positioning Systems (GPS) that helps direct the consumer to where they need to go; Remote which consists of TV remote controls, ceiling fan remotes, garage door openers, and video game controllers; and lastly Networking such as the Local Area Network, better known as LAN which allows multiple laptops and/or computers to share one internet connection. AWWT currently employs 100 workers and has hired a managing consultant to give suggestions that might assist in helping make a very important company decision when it comes to moving forward with its operations or shutting down indefinitely. AWWT is a partnership that was established in 1980. Customer service, sales and productivity has played an important role in the business for many years contributing to its success. AWWT uses 100 workers to produce 6,000 units 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 other variable inputs is $2,000 per day. 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. Assess the current environment scan factors. Determine the factors that are relevant to the decision making process. Determine the factors that will have the greatest impact on plant operations and management’s decision to continue or discontinue operations. Provide a rationale for your determination. With the Assessment of the current environment scan factors, it can be decided as to what the greatest impact would be on business operations and what management decides as to whether to go on with its operations. According to the Society for Human Resource Management (SHRM) (2012), “Environmental scanning is a process that systematically surveys and interprets relevant data to identify external opportunities and threats. An organization gathers information about the external world, its competitors and itself. The company should then respond to the information gathered by changing its strategies and plans when the need arises” (para.1). AWWT’s financials, operations and the market will include the biggest impact on the operations of the business and the decisions management makes as to continuing or discontinuing its operations. The businesses finance office is in charge of making sure they contain the resources available to give competitive prices in their favor and distribute those funds throughout the business....

References: Balle, L. (n.d.). What Is the Operations Segment of a Company? Retrieved November 17, 2013 from
Michaels, R. J. (2011 1st Edition). Transactions and Strategies: Economics for Management. Upper Saddle River, NJ: Cengage Learning
Robinson, J. R. (n.d)., Market. Encyclopedia Britannica. Retrieved November 17, 2013 from
SHRM (2012) Strategic Planning: What are the basics of environmental scanning?    
Retrieved November 15, 2013 from
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