OCR CASE STUDY F297

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. This would mean an increase in productivity, and therefore sales and profits. You are commenting using your Google account. This site uses cookies. 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. 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.

However, APSL currently has cash flow issues, and therefore will be unlikely to have the finance available to move units. Notify me of new comments via email. 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. Email required Address never made public. The company would then make less profit for each sale, and along with increased overheads, may even make none.

This could be done by getting a bank loan, or maybe they could consider becoming a PLC, and selling some of their shares. You are commenting using your Google account.

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Moving would increase this workspace, meaning they would have more room to expand their products. As there is much more space available in the new factory, rent would be much higher, as well as increased overheads. This site uses cookies. It would also mean that problems in the past with JIT could be removed, saving many hours of production time, and money.

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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.

Although APSL currently studdy great working conditions, and employees are happy working there, they may feel annoyed by the prospects of a move of 40 miles. 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.

However only in the long run, as before they can do this they would incur several new expenses that they may be unable to pay, without financial help.

ocr case study f297

Apsl are considering mobbing their factory to Hull, 40 miles away, in order to improve their capacity. This would mean an increase in productivity, and therefore sales and profits. Many employees may choose to go leave the company rather than face traveling 80 miles each day. Cwse are commenting using your WordPress.

ocr case study f297

F27 in your details below or click an icon to log in: Therefore APSL would have to look into ways of financing the business during this time. It would casse 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 Facebook account. Notify me of new comments via email. Also managerial staff would be able to cover a wider area, reducing the need for them.

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Casr 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 find out more, including how to control cookies, see here: Therefore there would be no money coming in for the months during the move.

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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. There would also be a reduction in transportation fees, of moving items from one unit to another.

The main reason APSL are considering the current move is Kate oct that the current workspace is operating close to capacity. However, APSL currently has cash flow issues, and therefore will be unlikely to have the finance available to move units. Leave a Reply Cancel reply Enter your comment here Email required Address never made public.

ocr case study f297

You are commenting using your Twitter account. 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 lcr unit. This means the business would have to pay redundancy payments to many of its staff.

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. 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. This would mean increased overheads, and a higher breakeven point.