Question

YOU HAVE BEEN APPOINTED THE GENERAL MANAGER OF FRUIT PROCESSING COMPANY.

STATE AND ELABORATE WHAT DECISION YOU WILL MAKE REGARDING

1. MARKETING
2. PRODUCTION
3. FINANCIAL
4. STRATEGIC AND FINANCIAL

SO AS TO ENABLE THE FIRM ACHIEVE OPTIMUM UTILIZATION OF ITS CAPITAL AND RESOURCES

Answer 1

Being the general manager if fruit processing company, below will be decisions taken for each activity-;
a) Marketing-: Sales incentives which promotes the revenue of the company should be launched. Sales incentives should includes discounts, volume discounts, other trade rebates etc.

b) Production-: Production cost should be streamlined so that gross profit margin should be increased. If required fruit processing should be outsourced to other parties. Necessary cost cuts must be initiated in the company.

c) Financial -: Financial statements must be true and fair and must include all the required disclosures. There should not be any qualification of the external auditors on the financials of the company.

d) Strategic and Financial -: Peer Comparisons should be done to see the areas where the company has the potential to improve. This may improve variable or fixed cost of the company. For inflow of capital, necessary arrangement should be in place with the bankers.

Overall profitability of the company will improve after initiating above actions.