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Decision Analysis: Task 3 Shuzworld Name Instructor University Date Memorandum To: Executive management (Shuzworld Inc) From: Business Analyst Date: 18 Jan 2012 Subject: Analysis of Business Operations Shuzworld Inc Introduction Shuzworld faces a number of options in producing its Samba Sneakers and these options have to be properly analyzed…
This memorandum provides information that will assist the company in making decisions, forecasts and controlling production processes. Part A The three options that are available to Shuzworld are as follows: Buy new equipment for the Shanghai facility; Recondition the existing equipment at the Shanghai facility; or Outsource production to a vendor in China. The purchasing of the new equipment will definitely cost the companies a lot but that will have its own benefits in terms of its long term usage and reliability, which is the main concern of many of the companies. The second option to use reconditioned equipment is another source through which the companies can start their business in a new location or in their headquarters. The reconditioned equipment will be available from the market at a lower cost and will give the start-up companies or the emerging companies an opportunity to start work with the lesser amount of investment. The companies will be able to follow their cost effective measures that they have thought about and then will be able to work on the other tasks after the first task of cost management has been effectively done as the reconditioned equipment will be cheaper in rate. However there will be one issue of the reliability of the machines, as they might need repairs often. ...
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