CAPISM SIMULATION What are the reasons for expanding or selling capacity? How did your team’s Marketing...

CAPISM SIMULATION

What are the reasons for expanding or selling capacity? How did your team’s Marketing decisions impact your capacity decisions?

Expert Solution

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What are the reasons for expanding or selling capacity?

Following is the key reason why capacity is extended or selling capacity:

1. If a organization expects that their profits will rise significantly in the future and they do not have the resources to boost demand, they will extend their resources.

2. If a organization is seeking new product production and the business is still working at its performance limit then their capability can be increased.

3. When the company has surplus capacity and they don't have any of the goods for a full assembly line, a corporation will sell its capacity in this situation.

4. Additionally, expanding capacity can be seen as a strategy for weeding off non-serious players and maintaining market superiority. For example, in case any of its rivals go out of business, car firms increase their resources before consumer demand so that they can retain their dominance in the industry.

How did your team’s Marketing decisions impact your capacity decisions?

These choices are profoundly influenced by every company's Marketing division. Any company's marketing division has full customer knowledge, and the analysis will indicate how customers will react to any changes in the formula or any new product. Hence, providing growth plans or sales capacities in conjunction with every company's marketing team is highly necessary.

keosha answered 4 months ago

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