Production in relation to other factors and decisions

HideShow resource information
  • Created by: MRH__98
  • Created on: 21-06-16 13:18

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 downturnsurvival 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).
1 of 1


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Operations management resources »