Production in relation to other factors and decisions

Other factors and decisions

A business' production method has an effect on the type of decisions that managers are likely to make. Equally, managers can make decisions that have a big impact on the production department.
It's hard for some businesses to grow if they're committed to using job production.
If a decision is made to try to increase market share, a company might choose either to increase production or to switch production methods so that it can manfucature a new product alongside its existing range.
In periods of economic downturn, survival is often a company's main aim. In these periods, the company is unlikely to invest in new machinery or switch production methods. They might even have to consider closing a factory for a few weeks or temporarily shutting down certain areas of production.
A business that's trying to increase its long-term profitability might well switch to batch or flow production. If it's trying to improve its short-term cash flow, it probably won't invest in new capital (machinery).

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