IMBA 6430 Cohort - A Justin Coffman, Adam Lewis, DaMon Mayers
Assignment 2 J.R. Reid, Jonathan Stamberg, Venu Pamulapati With looming EPA regulations on the horizon, Mihocko, Inc. is faced with quite the dilemma. Do they reduce production, employ the use of technological advancements, or simply battle the regulations in congress? All businesses are impacted by government regulations in some fashion, and competitive manufacturing companies must be especially progressive in leveraging the most cost effective solutions or these regulations could drive them out of the marketplace. As we analyze the potential strategies available for Mihocko, Inc. over the next five years, detailed benefits …show more content…
Looking at the projected profit impacts by production limitations by not installing the equipment, they should wait a year to install the equipment since the first year has no limit on emissions. The new annual operating cost increase to operate the equipment in the first year would be paid with no benefit. From a five-year view, they should install between the first and second years since the operating cost increase of $50,000 would be well below the potential profit loss starting in year two. This would save them potential profit loss from the new regulation without the equipment. Additionally, the newly installed equipment would allow for production to remain at full scale and would not limit future growth that would involve increasing production costs. Not having to scale back on production would also prevent potential impacts from lowering product supply to the market when heavy competition is …show more content…
If a favorable outcome is reached they will be able to maximize profits without a new investment in PP&E, thereby increasing ROI. The opportunity to gain clarity as lobbyists, gather information, review and analyze the data across similar industries in the group and explain the advantages and disadvantages of the EPA regulations in a better way. Lobbyists provide expertise on mobilizing local interests and engaging the public to support needed regulation changes. Lastly, lobbyists have the expertise and experience needed to influence EPA policy makers. These offline discussions are where regulations will be crafted, to suit Mihocko and other lobbyist group
Assignment 2 J.R. Reid, Jonathan Stamberg, Venu Pamulapati With looming EPA regulations on the horizon, Mihocko, Inc. is faced with quite the dilemma. Do they reduce production, employ the use of technological advancements, or simply battle the regulations in congress? All businesses are impacted by government regulations in some fashion, and competitive manufacturing companies must be especially progressive in leveraging the most cost effective solutions or these regulations could drive them out of the marketplace. As we analyze the potential strategies available for Mihocko, Inc. over the next five years, detailed benefits …show more content…
Looking at the projected profit impacts by production limitations by not installing the equipment, they should wait a year to install the equipment since the first year has no limit on emissions. The new annual operating cost increase to operate the equipment in the first year would be paid with no benefit. From a five-year view, they should install between the first and second years since the operating cost increase of $50,000 would be well below the potential profit loss starting in year two. This would save them potential profit loss from the new regulation without the equipment. Additionally, the newly installed equipment would allow for production to remain at full scale and would not limit future growth that would involve increasing production costs. Not having to scale back on production would also prevent potential impacts from lowering product supply to the market when heavy competition is …show more content…
If a favorable outcome is reached they will be able to maximize profits without a new investment in PP&E, thereby increasing ROI. The opportunity to gain clarity as lobbyists, gather information, review and analyze the data across similar industries in the group and explain the advantages and disadvantages of the EPA regulations in a better way. Lobbyists provide expertise on mobilizing local interests and engaging the public to support needed regulation changes. Lastly, lobbyists have the expertise and experience needed to influence EPA policy makers. These offline discussions are where regulations will be crafted, to suit Mihocko and other lobbyist group