Case Scenario

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Case Scenario- Decision-Making Name: Institution: Operating a successful business requires both realistic and profitable strategies and commitment to the strategies. Any business person who is faced with a business decision must be committed to ensuring he or she comes up with the best solution possible, a solution that will ensure the business gains profit and remains sustainable in the market. In this regard, this paper responds to questions from a case scenario where the owner of small printing company is faced with a number of business decisions to make for the sustainability and profitability of her company. Diagram summary of the projected profits Projected Profits When sales are high When sales are low Purchased Equipment $90,000 $40,000 Un-purchased Equipment $70,000 $50,000 Question 1: Apart from the purchase of extra equipment, there are other options that the owner of the small printing business should consider when choosing to expand or grow her business. However, before considering any options, it is important for her to put into perspective the demand for the products and services rendered in her company. Purchasing extra new equipment only gives her the ability or capability to handle the increase in sales. But, having the ability o capability to handle increased sales does not guarantee an increase in revenue for the business. The most important thing is to consider the demand probability- if it is low or high for her products and services. Therefore, the owner has three other options at her disposal. First, she should consider keeping the existing equipment and refrain from making any decisions to expand. Second, she should consider

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