Operations decision

Company Overview

Over the year, Power United has created a name in the industry of power backup tools. It has been into existence since many years and has a strong backing of the expert professionals who are working tediously to attain results and give the company profit. Another objective of the company is to satisfy the needs of the customers who are looking for power backup at their home and offices. Power United has been working with a base of hundred employees and has an output of nearly six thousand units per month. The workers are getting a good salary and the working environment is healthy and safe for the employees. However, there have been certain changes in the development process because of which Power United is facing the problem of higher costs in comparison to revenue.

The changing pattern in the company

Small enterprises or Power United differs from multinational corporations in several ways, in phrases of funds, liability, knowledge, fund supply and technology, and much more. Marketing strategies, for a small business may vary at the same time, numerous issues are considered ahead of composing a strategy to get a small or even medium company. However, Power United in the USA is considered a boon for the economy as they play a major role in the growth and generating new jobs. Although Power United units are lacking in technology because of funds, they are generating more innovative work along with generating patents similar to big firms. (Hastie & Dawes, 2001)

However, the Power United in USA is not able to flourish more after the recession, which struck in the year 2008. Because of the recession, USA has lost more than 2.5 million jobs, which includes jobs generated from the small-scale industries. Even during the presidential polls, the agenda for fueling the small-scale sector was taken into consideration because of the contribution, which the small companies are making in the economy. During a research, it was found that, small-scale firms have the capacity to double their income potential along with various other aspects in every four years. As the land of small-scale industries is vast, it is developing like wild fire.

Evaluating the financial performance of Power United

Below mentioned are some facts, which are related to the financial position of Power United.

Growth Prospects: It is a wrong notion that has come in the mind of big firms that every small industry wants to grow big. Even though there are some facts in this concept, but actually, Power United love to be as they are. Reason behind this is that, Power United is able to contribute more in the economy and generate job with ease.

Equally Valuable: In USA, Power United plays an important and equal role like the big players in generating jobs. Job opportunities being flexible and valuable, small industries generate forty percent of the total jobs.

Taxes and Laws: Taxes and laws related to starting a business is not a constraint for Power United. The lack of market demand and problems related to obtain finance is the main concern for the small-scale industries. (Levin & Cross, 2008)

How Power United will be able to generate more profit and work on stability

As business of Power United has potential to develop and contribute to the economy, different ways has been opted to promote them, which are mentioned below.

Changing the way of thinking - Changing the mindset related to Power United is important. Big firms should not take them as competitors and instead take their assistance in completing the tasks and projects together.

Mentoring: With proper ways of mentoring from the experts, Power United can flourish and grow. Big firms can adopt different and innovative means of mentoring the Power United, which can help them in the growth process.

Impel Demand: Once big firms plat their hand in augmenting Power United, the demand of products manufactured by them would enhance. Once the demand will scale, it will induce new and innovative ideas and will even generate jobs.

Better financing: For helping in the growth of Power United, more finance options should be set up so that Power United as a company is able to enhance their business performance.

Even though recession has hit the US market, Power United is striving hard to sustain. With new and innovative measures, small-scale units should be encouraged so that they can flourish and grow with ease. (Levin & Wyckoff, 1988).

Tips to handle the changing scenario

The working of Power United is running smoothly, because of different reasons, there are still some circumstances because of which the company might have to shut down the entire operation. If any such change is happening in the company, several steps should be taken by the management so that the employees do not feel left out and cheated at the last moment. Below mentioned are some of the key points that Power United as a company should keep in mind to handle the situation of discontinuing the operations. (Keren & Teigen, 2004)

Prior Intimation: If Power United is closing down the entire working, they should intimate and inform all the employees of the organization beforehand so that they can make some other arrangements. The time of intimation should at least be one to two months.

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