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Eco 550 Operations Decision

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Operations Decision

Students Name
ECO 550
Managerial Economics & Globali

Professor: NAME
Date: 19-July-2012
Operations Decision This paper will describe the details of a fictitious business and will assess the current environmental scan factors while determining the factors that will have the greatest impact on plant operations and management’s decision to continue or discontinue operations. Thirdly, this paper will evaluate the financial performance of the company using the information provided in the scenario; consider all key drivers of performance, such as company profit or loss for both the short term and long term. Also, it will recommend how the company can improve its profitability and develop a brief plan to implement the recommendations. Lastly, this paper will assess the circumstances in which the company should discontinue operations while providing a rationale with its reasoning’s.

Describe the details of the fictitious business that is created for this assignment Edmonds Equipment Inc (EEI) headquartered in Richmond, Virginia is a leading provider of consumer, business-to-business, and industrial digital imaging solutions. Edmonds products include: cameras, binoculars, camcorders, printers, scanners, calculators, facsimile machines, office software, and projectors. EEI currently employs 150 workers and has hired a consultant to offer some advice that will help it make a decision as to whether it should shut down completely or continue operations. Originally, EEI was established in 1986 by Robert Edmonds and as his business grew, he employed up to 250 employees. The forces of global competition and technological advancements have caused profound changes within his business organization. In addition, EEI uses 100 of his workers to produce 6,000 units of output per month (working 20 days...

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