OCR CASE STUDY F297

This means the business would have to pay redundancy payments to many of its staff. As there is much more space available in the new factory, rent would be much higher, as well as increased overheads. 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. Also managerial staff would be able to cover a wider area, reducing the need for them. This would mean increased overheads, and a higher breakeven point.

Notify me of new comments via email. This means the business would have to pay redundancy payments to many of its staff. This site uses cookies. Leave a Reply Cancel reply Enter your comment here Therefore APSL would have to look into ways of financing the business during this time. 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.

The business would also have to wait until the lease of studt 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. 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. Many studyy may odr to go leave the company rather than face traveling 80 miles each day. Also managerial staff would be able to cover a wider area, reducing the need for them. As there is much more space available in the new factory, rent would be much higher, as well as increased overheads. 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.

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The main reason APSL are considering the current move is Kate believes that the current workspace is operating close to capacity.

ocr case study f297

This means the business would have to pay redundancy payments to many of its staff. 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.

Therefore moving factories to Hull would be an expensive move that even if they manage to survive, would be unlikely to benefit the company in long run. This would mean an increase in productivity, and therefore sales and profits.

You are commenting using your Twitter account. This stuudy mean increased overheads, and a higher breakeven point.

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

The company would then make less profit for each sale, and along with increased overheads, may even make none. Moving would increase this workspace, meaning they would have more room to expand their products. You are commenting using your WordPress. They 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. Apsl are considering mobbing their factory to Hull, 40 miles away, in order to improve their capacity.

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ocr case study f297

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.

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Email required Address never made public. During the move, production would also have to come to casr halt, as the machines will need to be dismantles and then reassembled at the new unit.

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. 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.

Possible SHL Questions F297

Therefore there would be no money coming in for the months during the move. This stuyd would open up the business to many more threats, such as a takeover, or having items repossessed when they were unable to pay.

ocr case study f297

Leave a Reply Cancel reply Enter your comment here This sgudy several problems for the business including cramped workplace conditions, lowering motivation of employees. They then would have to pay for a large recruiting and training programme to replace these employees.

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OCR A-Level Business Studies Past Papers – Revision World

Meaning even more cash flow issues for that month. There would also be a reduction in transportation fees, of moving items from one unit to another. To find out more, including how to control cookies, see here: By continuing to use this website, you agree to their use.

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