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Quist Ltd is considering whether to bid for a major new contract. Discuss the factors it would need to consider before deciding whether to go ahead with making a bid for the contract.
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Quist Ltd is a component manufacturer with a single factory that is currently operating at close to full capacity. It is considering whether to bid for a major new contract. Discuss the factors it would need to consider before deciding whether to go ahead with making a bid for the contract. (40 Marks) In this essay I am going to be discussing the factors that are involved in Quist Ltd decision to bid for a new contract. The factors are all mainly related to capacity utilisation. Capacity utilisation is proportion of maximum capacity that is being used. It is measured by (current output/max possible output) x 100. For most businesses 90% capacity utilisation is an ideal. Quist Ltd is close to full capacity; if they decide to take on this new major contract there can be many advantages and disadvantages. The advantages would be that they are utilising their fixed assets more...
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