Unprofitable Operation

Running head : PROJECT ANALYSIS

Project Analysis

Name

University

This company , as I suggest , should not close down even though it is operating at losses and deficits on a daily basis , rather , management of the company should look into the problems and try to address them one at a time to minimize these losses

First of all , one of the problems I see is the work force . Considering that the company hires so many workers , it should lay off some of its workers to at least break even with the revenues

generated . The company if it cannot work on less people , should at least try other different strategies . First of all , wage cuts are inevitable in this case , seeing that 80 per person per day only generates 20 in revenue is not efficient . To operate effectively , I propose that the returns per person should be at least 40-50 of their daily wage

If laying-off of workers is not feasible at this time , the company should reduce the wages following the returns that I have stated above High wages can also be offset by outsourcing labourers from countries which offer cheap labour such as Bangladesh here , the workforce can produce the same output at lower wages . Another option that can be explored will be the opposite of the cutting of wages the company should try to look for ways to increase its production , let 's say from 250 ,000 units to at least 500 ,000 units so as to still stick with...