All entries for Monday 25 February 2013

February 25, 2013

high risk high profit

today in the class, we need to choose a location of Wave riders new factory.

we face to two potensial choises.

The first one is named as Lymington.

it is a old place with old equipment

Thus, we can only produce less advanced product in lymingtom.

however, it spends us less money and convient for delivery.

choose this one, Wave riders will face to less risk.

Exmouth is a new place.

you can build new factories with very advanced equipment.

it can build the boat which is more suitable for customers needs, for example safety, GPS systems.

however, it costs almost 24+6.4 million at the beginning.

it is a hugh cost, which is almost double cost than in lymingtom.


So it is the time for us to make a decision

as far as i considered, building the factory in Exmouth must will bring lots of profit to company in long term. Because it can produce the product which is more suit for customers needs. But due to high cost, it may bring company to delimma at the beginning.

building the factory in lymingtom has low risk and low return in long term

if you are a risk lover, Exmouth is a good choice for you

if you do not like taking risky things, lymington is a better choice.

for me i prefer Exmouth.


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