OCR CASE STUDY F297

They then would have to pay for a large recruiting and training programme to replace these employees. 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. 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. This site uses cookies. 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.

This however would open up the business to many more threats, such as a takeover, or having items repossessed when they were unable to pay. As they currently have cash flow problems, this would help to improve this, and then have more money to complete the objective of boosting dividends. You are commenting using your Google account. Also managerial staff would be able to cover a wider area, reducing the need for them. Many employees may choose to go leave the company rather than face traveling 80 miles each day. Fill in your details below or click an icon to log in: The business would also have to wait until the lease of their 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.

This would mean an increase in productivity, and therefore sales and profits. Many employees may choose to go leave the company rather than face traveling 80 miles each day.

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However, APSL currently has cash flow issues, and therefore will be unlikely to have the finance available to move units. As there is much more space available in the new factory, rent would be much higher, as well as increased overheads.

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

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. 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. The company would then make less profit for each sale, and along with increased overheads, may even make none. This means the business would have to pay redundancy payments to many of its staff.

By continuing to use this website, you agree to their 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. Leave a Reply Cancel reply Enter your comment here Fill in your details below or click an icon to log in: However only in the long run, as before they can do this they would incur several new expenses that they may be unable to pay, without financial help.

ocr case study f297

As they currently have cash flow problems, this would help to improve this, and then have dtudy money to complete the objective of boosting dividends.

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The business would also have to odr until the lease of their 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. You are commenting using your Google account. This creates several problems for the business including cramped workplace conditions, lowering motivation of employees.

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ocr case study f297

During the move, production would also have to come to a halt, as the machines will need to be dismantles and then reassembled at the new unit.

Therefore there would be no money coming in for the months during the move. 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. Also managerial staff would be able to cover a wider area, reducing the need for them.

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You are commenting using your Twitter account. Therefore APSL would have to look into ways of financing the business during this time.

ocr case study f297

Moving would increase this workspace, meaning they would have more room to expand their products. This site uses cookies.

Possible SHL Questions F297

Meaning even more cash flow issues for that month. Apsl are considering mobbing their factory to Hull, 40 miles away, in order to improve their capacity. You are commenting using your Facebook account. It would also mean that problems in the past with JIT could be removed, saving many hours of production time, and money.

You are commenting using your WordPress. This would mean increased overheads, and a higher breakeven point. There would also be a reduction in transportation fees, of moving items from one unit to another. Icr required Address never made public.