Question

Company Z, in the manufacturing industry, was established 40 years ago and was very successful until recently. The company started experiencing a decline in its profitability. Assume that you are employed in this organization and have been requested to carry out research to determine the problem affecting the organization. Develop a brief description of the problem that demonstrates causality.

Answer 1

The problem Company Z is facing is a decline in profitability due to poor management, unproductive workers, tough competition, and shifts in market conditions.

Step-by-step explanation:

The problem that Company Z in the manufacturing industry is facing is a decline in profitability. This decline can be attributed to several factors such as poor management, unproductive workers, tough competition, and shifts in market conditions.

Poor management can lead to ineffective decision-making and overall inefficiency within the company. Unproductive workers can result in lower productivity levels and higher costs. Tough competition from other companies, both domestic and foreign, can make it difficult to maintain market share and profitability. Lastly, shifts in market conditions, such as falling prices for outputs or rising prices for inputs, can negatively impact a company's profitability.