This website uses cookies to ensure you have the best experience. Learn more

Macro And Micro Economic Factors That Influence Plant Activity

1366 words - 5 pages

This paper will first discuss factors that describe and analyze the macro- and micro-economic factors that could directly or indirectly influence plant operations here at ABC Complete Kitchens. Next, it will explain legal considerations that our organization must be prepared for, which are also relative to obtaining credit, having reliable market conditions, and avoiding product liability
Capital Investment
One of the most important concerns to our organization is capital investment. By investing profits back into our machinery we can stay competitive by increase productivity. Each worker must have available to him/her the proper equipment to complete tasks with ease. The newest technology available to the industry must also be provided to workers in order to compete. Training for our employees (as mentioned in a memo sent earlier this year) will increase human capital which is an invaluable asset. (Riley, 2006)
Economies of scale
Therefore, by updating plant equipment ABC Complete Kitchens can gain competitive advantage through scale economies. Scale economies are caused by lowered cost of production due to an increase in output. By investing in machinery our company can increase production, lower cost per unit, and therefore gain higher profits. Pricing for our industry will be determined by price elasticity of goods needed to for production.
Price Elasticity
Prices on goods needed for production will strongly influence prices of goods produced. Supply and demand determines how elastic prices will become. When supplies become minimal and demand stays regular prices are forced upward.
According to Smith, T., 2010:
Consumers will buy more of a product when its price declines and less when the price increases. The sensitivity of consumers to a price change is measured by the products price elasticity of demand. Demand is elastic if a specific percentage change in price results in a larger percentage change in quantity demanded. Demand is inelastic if a specific percentage change in price produces a smaller percentage in quantity demanded. (p.3)
Supply and Demand
As mentioned previously supply and demand play very important roles involving the pricing of goods and services. Economic conditions play a large part in supply and demand because when there is a shift in economic growth; consumers are weary of purchasing goods. This inevitably leads to a never-ending vicious cycle of prices rising and sales dropping. Here at ABC Complete Kitchens, supply-chain management will be based on lean –manufacturing with a “just–in–time” approach.
Just-in-time or JIT is a term dealing with a system that “gets raw materials, parts, and components to the buyer “just in time” for use, sparing companies the cost of storing large inventories.” (Business Strategies, 2012) This approach will save our company the cost of warehousing large quantities of inventory and will also cut down on waste.
Along with the JIT...

Find Another Essay On Macro and Micro Economic Factors that Influence Plant Activity

Factors that influence Social Change Essay

1088 words - 5 pages radically increase. The impact of technology will move past new equipment and quicker communication, as skills and educated workforce, are redefined and reorganized. McKiernan (2012) states that “Without college-level learning, American workers simply won’t have the knowledge and skills they need to succeed in today’s global economy.” (para.1). The country’s lasting economic recovery will depend on getting a larger number of high-class degrees in

Explain the main factors that influence the rate of economic growth

477 words - 2 pages Explain the main factors that influence the rate of economic growth Economic growth will be different in M.E.D.Cs than it will be in L.E.D.Cs. The reason for this is that M.E.D.Cs are already developed and vast improvement may not be possible but in L.E.D.Cs they have a long way to catch up so it is easier for them to expand vastly. Economies like China and India have potential for vast economic growth because of a huge population. If

Sociol economic factors that can affect health and illness

1645 words - 7 pages In society today there are many social-economic factors that may influence an individual's health and illness. Thinking about health, it is acceptable in today's society that health is not a fixed thing. More aches and pains come as people get older and this is accepted as a normal part of ageing, but these aches and pains for a younger person are not accepted as normal."It has been argued by many sociologists that what has been considered to be

Employee Relations - Discuss the political, economic, social and technological factors that have had the most significant influence on employee relations over the last 25-30 years

3005 words - 12 pages The last 25-30 years has seen major changes in the context of employee relations within UK organisations. The factors that have had the most significant influence on these changes are political, economic, social and technological of which I will be discussing to identify what particular influences these factors have had on employee relations over the last 25-30 years. To do this I first need to define the meaning of employee relations, which can

identify internal factors and external factors that influence national production fluctuations

2072 words - 9 pages example, government spends more on education and development areas. This is to ensure that good infrastructures are there. Thus, there are four factors that influence economic growth, namely natural resources, human capital, entrepreneurship and capital goods. Firstly, natural resources mean the gifts of nature. It is something that can be found in or on the earth. Examples of natural resources are agriculture, minerals and oil. Countries that

Factors that influence the Academic Performance

1494 words - 6 pages . (ED521708) Full Text from ERIC , Database: ERIC Zhai, Lijuan; Newcomb, L. H.. Factors That Influence Transfer Student Academic Performance and Retention. 2000 16 pp. (ED474482) Full Text from ERIC , Database: ERIC Schmulian, Astrid; Coetzee, Stephen. Class absenteeism: reasons for non-attendance and the effect on academic performance. Accounting Research Journal. 2011, Vol. 24 Issue 2, p178-194. 17p. DOI: 10.1108

Analyzing Factors That Influence Infant Birth Weight

3272 words - 13 pages , marital status, socioeconomic status, genetic factors and place of residence 2 The objectives of this study were to determine the factors that influence birth weight and to establish which of these factors can be used to estimate birth weight. The aims were to ascertain the individual effect of each of these factors and their effect as a group. This is an important research question, and findings from the research can be used to inform policy

Factors That Influence a Monetary Policy

1833 words - 7 pages whereas the solid lines are the estimated impulse responses. The response horizon is given in the horizontal axis in quarters. In diagram 1, the response of output to monetary policy shock shows that output increases on impact for a short period and then gradually decreases, it maintains a lower level. The VAR estimates of real GDP is found not be significant. The initial response is contrary to expectation; economic theory shows that a rise in

Factors That Influence Violence in Children

642 words - 3 pages . This reality show teaches children that it may be cool to fight. Children view the winning wrestlers receiving attention and getting rewarded for their behaviours. The children then think this idea of fighting with others is cool and they to may be rewarded. Sometimes even the News on television can influence violence in children. Everyday, the News shows that it is a violent world out there and that violent behaviours are a way of protection

E-mail Receiver and Sender Factors That Influence Emoticon Perception and Use

2336 words - 9 pages E-mail Receiver and Sender Factors That influence Emoticon Perception and Use As mentioned previously the use of emoticons is not being used wide-spread (Rezabek & Cochenour, 1998). Although emoticons are not used widespread, there are some differences in use based on sender and receiver characteristics and settings of the communication. Factors such as gender, age, and sender-receiver relationship can all have an effect on how e-mail is used

Solar Cells and Theory of Factors that Influence PV Cell Output

1281 words - 6 pages excites electrons and create current flow. There are various factors that can affect the power output of the PV cell. In this experiment we are going to exam the effect of changing irradiance, which is the density of radiation incident on the surface, and temperature on the voltage and current output of the PV cell. In this report we will look at the theory related to factors that influence PV cell output and then two experiments designed to test

Similar Essays

Economic Reform/Policy Mix, Covers Macro And Micro Economic Reforms In Australia

1710 words - 7 pages Question:What role do governments have in modern mixed economies such as Australia? Using appropriate indicators (macro economic aggregates) outline the present state of the economy. In what ways is the Commonwealth government using fiscal and monetary policies to influence the Australian economy? What are the main features of the government's micro economic policy? Why is the government concerned about microeconomic reform?Synopsis:The role of

Economic Reform/Policy Mix, Covers Macro And Micro Economic Reforms In Australia

1450 words - 6 pages should furnish the economy with regulations, legislations, and means that ensure product quality.2. Maintaining competition: Since competition is the optimal and efficient market mechanism that encourages producers and resource suppliers to respond to price signals and consumer sovereignty, the government should fight monopoly power and non-competitive behaviour.3. Redistribution of income: The government should strive to provide relief to the poor

Select An Industry Discuss The Macro And Micro Environments That Are Currently Impacting On This Industry

2662 words - 11 pages Environment'The economic environment consists of factors that affect consumer buying power and spending pattern. Markets require buying power as well as people. Total buying depends on current income, prices, savings and credit. Marketers should be aware of major trends in income and of changing consumer spending patterns' (Kotler et al. 2006, 91).The central parity rate of Renminbi against the US dollar is to break 6.8 by the end of June and

An Analysis Of The Key Macro And Micro Economics Factors Which Impact On The Current Uk Housing Market

3233 words - 13 pages An analysis of the key macro and micro economics factors which impact on the current UK housing marketIntroductionThis paper explores the current situation in the UK housing market. Fundamentally, the paper argues that the current situation in the housing market is a legacy of the way in which the housing market developed over the early 2000s into the 2007 and 2008 financial crisis. As the fall out from this crisis has taken two or three years