Mega Ltd manufactured water heaters. In the first year of its operations, the revenue earned by the company was just sufficient to meet its costs. To increase the revenue, the company analyzed the reasons behind the fewer revenues. After analysis, the company decided: 1. To reduce labor costs by shifting the manufacturing unit to a backward area where labor was available at a very low rate. 2. To start manufacturing solar water heaters and reduce the production of electric water heaters slowly. This will not only help in covering the risks but also help in meeting other objectives. a) Identify and explain the objectives of management discussed above. b) State any two values which the company wanted to communicate to society.
Mega Ltd manufactured water heaters. In the first year of its operations, the revenue earned by the company was just sufficient to meet its costs. To increase the revenue, the company analyzed the reasons behind the fewer revenues. After analysis, the company decided: 1. To reduce labor costs by shifting the manufacturing unit to a backward area where labor was available at a very low rate. 2. To start manufacturing solar water heaters and reduce the production of electric water heaters slowly. This will not only help in covering the risks but also help in meeting other objectives. a) Identify and explain the objectives of management discussed above. b) State any two values which the company wanted to communicate to society.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:Mega Ltd manufactured water heaters. In the first year of its operations, the revenue earned by the company was just
sufficient to meet its costs. To increase the revenue, the company analyzed the reasons behind the fewer revenues. After
analysis, the company decided:
1. To reduce labor costs by shifting the manufacturing unit to a backward area where labor was available at a very low
rate.
2. To start manufacturing solar water heaters and reduce the production of electric water heaters slowly.
This will not only help in covering the risks but also help in meeting other objectives.
a) Identify and explain the objectives of management discussed above.
b) State any two values which the company wanted to communicate to society.
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