Cost Scenario Essay Example | Topics and Well Written Essays - 1000 words

Cost Scenario - Essay Example A feasibility study has to be conducted so that the management can take a decision as to accept or reject an order. Consultants Judy Capko and Rebecca Anwar suggested in an article for American Medical News. It will provide the objective information to evaluate existing services and strengths. An understanding of the competition and marketplace indicators that affect the business is possible. This is the best way to grasp the impact of future decisions which can be considered. The feasibility study will help to accurately anticipate what will and will not work in varied situations. The company will be able to determine what resources are essential to complete varied There are different alternatives which a company can choose from in order to solve its problem of whether or not to accept an order for a product which requires displacing another product from production. One alternative choice would be to hire someone who could take care of all the issues the company has. The company can hire someone who will discern whether the company will accept an order for a product which requires displacing another product from production. Another alternative action is to form a team that will find simple but efficient ways that can help in solving the company's problem. The team will develop an analysis that will choose between the ordered product and the products that might be displaced. The third alternative action for the company is to lessen its product offerings to give way to the new order. By lessening the product offering of the company, it will have lesser financial problems and lesser concerns but it can give the company lesser clients (Dallas Busi ness Journal, June 23, 2000). Risk analysis Quantitative risk analysis is a very useful instrument for considering risk, but it can only conduct risks that have been identified. There is always some confusion between the notion of identification and assessment. In many cases, managers and decision makers 3 presume that if quantitative risk analysis has been carried out then most possible risks have been addressed. They thus avoid engaging in a critical evaluation of the procedure. A good example of the lack of alertness of human factors within the risk assessment procedure caught up an organization that dealt with nuclear processing and subsequent storage of nuclear waste. The project concerned the design and development of an appropriate repository for the waste, which had a potential for high risk to society over a substantial timescale. Within the initial phase of the project development at the design and conceptual phase, quantitative risk analysis focused on the failure rate of technological issues. No provision was made for conducting risk assessment on the project team or any other people involved in the process, except in terms of technology. The risk for hiring someone to solve the problem is too much use of time. One person will have difficulty in providing solutions to a uni que problem. The risk for forming a team will be the differing views of each member of the team that might lead to inconsistent analysis of the problem.