Management Decisions - Maladroit Cosmetics Company
Not what you're looking for?
Maladroit Cosmetics Company
The plant manager of the Maladroit Cosmetics Company must replace several of her filling machines that have become obsolete. She is about to take delivery of six machines at a total cost of $4 million. These machines must be installed and fully tested in time to be used on a new production line scheduled to begin operation in six months. Because this project is important, the plant manager would like to devote as much time as possible to the job, but she is currently handling several other projects. She thinks she has three basic choices: 1) she can handle the project informally out of her office; 2) she can assign the project to a member of her staff; or 3) the company that manufactures the machines can handle the installation project for a fee close to what the installation would cost Maladroit.
Questions: Which of the three choices do you recommend, and why? If the project was one small machine at a total cost of $4,000, would your answer be different? Discuss the relative importance of the capital investment required versus the role of the investment in machinery.
Purchase this Solution
Solution Summary
Which of the three choices do you recommend, and why? If the project was one small machine at a total cost of $4,000, would your answer be different? Discuss the relative importance of the capital investment required versus the role of the investment in machinery.
Solution Preview
In my opinion, the best option will be to handle the installation to the company that manufactured the machine, as they are in the best position to know the intricate details about the installation and are expert at it. Further, the cost of hiring them for the installation is the same as doing it on the own. Therefore, it makes economic as well as business sense to delegate the task to the manufacturers of the ...
Education
- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology
Recent Feedback
- "Thank you. "
- "Thank you"
- "Thank you. I got 20/20 last week for my discussion you help me out with."
- "Thank you. Great Job. "
- "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.