Assume you have been hired as a managing consultant by a company to offer some advice that will help...

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Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently 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. You are told that 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.
This assignment allows you to determine the specific details about this fictitious company in order to conduct an environmental scan of this company.
Write a three to four (3-4) page paper in which you

Robert · Accepted Answer

BACKGROUND 
ABC Ltd. (ABC) based in Atlanta, is a full service Electronics Contract Manufacturer. ABC offers a range of services--PCB Design for Manufacturability and Contract Manufacturing Design for Testability. Their clients are spread across industries-- medical, military, aerospace, computer, telecommunications, GPS, commercial/industrial and health/fitness.
With the current state of US economy ABC is at a cross roads as business is down. The management needs to take a call whether to shut down or continue the operations. ABC currently employs 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 with the marginal cost of the last unit being $30.
ANALYSIS OF THE ENVIRONMENT
Environmental scanning is a scan/assessment of the external environment at the economy wide level as well as the firm level. In describing external analysis, Fahey and Narayanan (1986) mention, “organizations scan the environment to identify changing trends and patterns, monitor specific trends and patterns, forecast the future direction of these changes and patterns, and assess their organizational impact”. Internal analysis of the organization's concept, duty, assets, and limitations, along with an external analysis allows management to formulate guidelines and strategies. 
The scope of such a scan reaches areas of “operational effectiveness, marketability and modernization, economic factors, and competition” (American Competitive Initiative, 2006). 
Operational effectiveness is an important aspect in maintaining price affordability. This requires that a business maintains state-of-the-art products or services as they pertain to global markets.. The web allows users to compare price data and product features; this compels companies to develop marketing mechanisms that are geared towards customer satisfaction, and their ability to markets its products or services can contribute to overall success or failure.
Financial factors affect the ability to acquire financial resources at favorable rates and distributing resources throughout the corporation. 
Competition allows businesses to create strategies based on the performance of other businesses and gain an increased market share as this satisfies shareholders.

Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It...

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