Wednesday, August 28, 2019

Operations Management course. Memo Case Study Example | Topics and Well Written Essays - 500 words

Operations Management course. Memo - Case Study Example Although CX Technologies has been able to maintain its position in the market, growth has plateaued and with the incoming recession, business is set to go down further. Bhole states that the company’s expansion into the Asian market recently and considering the positive outcomes of this expansion, the probability of succeeding into the automotive industry is high (7-8). According to observers, the automotive industry faces a bleak future, considering that many people are more apprehensive about rising gas prices, a factor that has led to lower vehicle purchases. The situation has been aggravated by the fact that the largest three manufactures have approached the government in search of caution against the recession. According to Bhole, possibilities for success are raised by the sheer size of the industry in the United States is a major motivating factor in this expansion (7). This allows for CX Technology to penetrate the market and offer competitively lower prices, since the company’s personnel are enough to provide the needed labor. With branches in Asia already, the company is in a good position to tap into the Chinese market and take advantage of the growing economy and demand for automobiles. This is a risky project because it puts the entire future of the company at stake. If the decision is made to follow up with the plan, then the company risks running bankrupt, especially considering the current recession. If the proposal into expand to the automotive industry is passed, then feasibility studies need to be undertaken as soon as possible. The company’s entire workforce is to be notified about the new enterprise, so as to be prepared to provide the necessary labor. In conclusion, every business needs to take a risk once in a while and test new opportunities; otherwise it risks stagnation and monotony. Venturing into the automotive industry seems like a worthwhile risk for CX Technology, in an effort to grow the company’s

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