Operation Decision



Operation Decision

Business Overview

Labama is a private limited company formed in the year 2005. The owner of the company is Bama. The company produces water shoes which are meant for all purpose. They become cool in summer and hot in chilled winters. The shoes are also water proof .The main strength of the company is its high quality. The shoes are becoming popular in youngster and old people. Sales are held by company on certain discounts in which the customers purchase around 3 shoes per customers. The shoes have the feature of temperature control and are very durable. The youth love the attractive look and consistent quality of the product. The company regularly tries to cope up with the latest fashion, and is very successful in doing so.

The factors having greatest impact on the plant operations and management decision

As mentioned by Augilar the environmental factors scan factors refer to the macro environment. It interprets and deals with the pest analysis which is political, economic, social and technological. It is concerned with the information acquiring concerning the event and relationship of the external environment of the company (Reilly 2009). This is also useful in designing the policies of the company. It impact on Labama is great, like sudden change in weather would influence people purchasing decision. It can result in increase or decrease demand of the product. The Macroeconomic judgment will also have a huge impact on the purchasing decision of the consumers because general inflation in the environment can increase the cost the cost of the product and thus reducing the purchasing power of the customers.

Financial Performance of the company

Produce where the marginal cost equals the market price. We will have to analyze the fixed and variable cost of the company. This we will do in the context ...