9 MGT-20131-XH128 Prioritize for Decision-Making 20DA08

Business Plan > 9 MGT-20131-XH128 Prioritize for Decision-Making 20DA08

Southern New Hampshire University MGT 20131 Options and Risks ● TOP OF THE LINE: One risk is staffing. This machinery will require double the staffing and extensive training for the current staff. The cost of this equipment is high and fund raising will be needed to afford this machinery and the additional labor. (SNHU, N.D.) ● MIDDLE O ...[Show More]

Southern New Hampshire University
MGT 20131
Options and Risks

● TOP OF THE LINE: One risk is staffing. This machinery will require double the staffing and

extensive training for the current staff. The cost of this equipment is high and fund raising will be

needed to afford this machinery and the additional labor. (SNHU, N.D.)

● MIDDLE OF THE ROAD: The cost of maintenance for this equipment is very high. This option limits

the company’s growth due to the medium level of output. (SNHU, N.D.)

● LOW END: This option allows no room for growth. Because the very limited output this machinery

requires fewer employees which would result in company layoffs. (SNHU, N.D.)

● REFURBISHED: The risk for this option is frequent malfunction. Each time the equipment breaks

down it causes a halt in productions. (SNHU, N.D.)

(Potential) Negative Impacts

● TOP OF THE LINE: It could take significant time to get the team up to speed with this equipment.

NHM would need to hire and extensive training would be needed for new and existing staff which

may cause delays in production. However, if revenue spikes as expected these are pain points

NHM will be faced with regardless of now or later. The initial financial results may not be

favorable which could impact fund raising however, over time the Company would overcome this

challenge, reach maximum output, and see the return on investment.

● MIDDLE OF THE ROAD: As NHM grows this machine may not have the capacity to increase

production to the levels of demand. This could result in the need to reinvest in top-of-the-line

equipment within a year or two. This would put us in the same position as the 1st option. In the

event of a break down repairs would be very expensive and depending on the financial state of

the company at the time could financially strain the business and mean additional fund raising.

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