Prostay Ltd: Quality Products, Rising Market Share, & Customer Satisfaction - Essay Sample

Introduction

Prostay ltd is a company which has specialised in the production of beauty products. Over the years, its productivity has been in rising due to the quality of their products and the technology employed in producing these goods. As a result of this, the market of property ltd products have been in rising for a couple of years, and this is attributed to the satisfaction which the products have been providing to its customers (Woodcock, 2003). One the major product which has conquered the local and international market is O.P.I Infinite Shine. This is a nail polish from Prostay limited which has been received positively in the international market, and due to its increase in demand, prostay have thought of expanding its manufacturing plant to ensure that the products produced can meet the growing market (Rubin, & Rubin, 2010). According to the rules in UK governing industries, before setting up a new plant or expanding an existing plant, it is a necessity to write a proposal to the concerned body providing details of the plant and ensuring that all the procedures are adhered to.

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Due to the evident increase in the demand of O.P.I Infinite Shine, the company has attracted various investors who have come up with a various proposal to the company concerning how to meet the increasing market demand of the products (Yadav, 2017). Furthermore, the stakeholders of the company received the proposals from the investors, and therefore, it was agreed that the company is going to expand its current manufacturing facility and after a year another manufacturing plant will be established in Eastern Europe.

Benefits of the Expansion and Cost

The consensus was reached expand the plant as this will ensure that the company achieves the following benefits:

It is meeting the increasing demand for products (Luo, 2000). The O.P.I Infinite Shine demand has been in the rise in Europe and even in the middle east countries, this has seen the current products produced being insufficient to fully satisfy the growing market, with this in place, expanding the current plant will ensure that market demand is met. When the product is positively received in the market, it becomes very crucial and important for the company to ensure that it capitalises in this opportunity since the market is dynamic and one cannot anticipate the future innovation hence expanding the plant to ensure increased productivity will increase the profitability of the company hence reaping more benefits.

Revenue to the government. With the expansion and set of the new manufacturing plants, it is worth to note that the revenue to be collected by the government from the plant will rise due to the rise in the volume of products manufactured (Ang, Benischke, & Hooi, 2018). Globally, the economic development of the advanced nations has been attributed to the industrial developments which ensured the government generates enough revenue to run its various products. For example, China is one of the countries whose economy have been in the continual rise, and this is due to industrial development. Hence it becomes important to support the expansion of this manufacturing plant as it will create more revenue to the nation.

With the expansion of the industry, the cost of producing O.P.I will significantly reduce. Over the years, the financial analysts have been able to prove that, producing goods in bulk have the ability reduce the cost of production by at least 10% as compared to producing it in small scale. This is because the cost of transporting the raw materials to the factory is reduced, and the cost of transiting the finished products from the factory to the market is also reduced significantly. For example, Prostay Ltd largely depends on a train in transporting most of its raw materials. In the UK the cost of transporting products using train costs averagely $70 regardless of the weight of the products. With this in mind, it means transporting materials weighing 2 tonnes and another weighing 500kilograms will cost the same. Having an expanded company will ensure that more raw materials can be transported at the same time, unlike where a small volume of products will regularly be transported hence attracting more cost hence expensive to transport the raw materials. With this knowledge in place, the expanded industry will make it possible to transport goods in bulk hence cutting down the cost of transport.

The expansion of the project will be more valuable as it will ensure that the company enjoys the benefits of mass production of products. From the expanded company, there will be the benefit of employment opportunity creation and increased revenue allocation hence it the company is justified to expand its plant as this will come with benefits to the government, company shareholders, and citizens.

Risks of Project Expansion

With the expansion of the plant, there are various risks which always accompanies the new set up of the plant (Denrell, 2008). As it had been experienced in the past, the plant, caused harm to the people living within the plant and also the aquatic life was adversely affected. The accident occurred when the flood occurred does breaking some of the sewage lines of the plant, making wastes to spill into the surrounding environment hence causing harm. From the previous accidents, we can depict that the plant is facing various risks which have a different degree level of them happening depending on the environmental factors, management, and climatic conditions.

Risk Table and its Probability and Rating

Upon the expansion and set up of the new plants, there is a possibility that at some point, it is likely to face certain risks which might jeopardise the operation of the manufacturing plant (Maurer, 2007). As it had been witnessed initially, there was flooding which affected the plant, causing harm to the surrounding. After the set up of the new plant and expansion of the existing, the analysis depicted that the probability of floods affecting the plant is 10%. This is because, from the last experience, various lessons on how to mitigate this vice were learnt (Ward, 2004). The materials used in constructing the sewerage system should be made of strong metals. This will ensure that, in case of the flood occurrence, the piping will be strong enough to withstand the force of floods hence avoid breakage. In the previous system, the investigation revealed that the pipes used were not welded by profession hence weak thus the force of floods broke it with ease.

In the current society, technology has proved to be very dynamic, and it keeps changing at an alarming rate (Recchia, 2000). With this knowledge in place, the machines used in the manufacturing plant is likely to be obsolete. The likelihood of the technology being obsolete is 10%, the society we live in has witnessed various innovations which renders the existing technologies obsolete if they are not modified to fit into the current changes. For this risk to be reduced significantly, the company should ensure that the technology employed gives a chance for its modification to ensure that they are modified to fit into the new technology in the market (Greening, Barringer, & Macy, 2007). With this flexibility in place, the company will be able to save funds which it could have spent in changing the whole technology since the cost of modification is low - for example, installing facilities which allow incorporation of computers on its operation when needed.

As the machines run, it has been noted that, at one point, they fail in operation. After analysis on the machines used by Prostay company, it was found that the rate of them failing is 3/10. This failure is likely to be caused by fatigue which the machine experiences; hence, there is a need to ensure that technician to repair these machines upon failure is available (Abalo, Varela, & Manzano, 2007). During the repair, the machines are not operational; thus can cause a shortage in supply, to curb this, the machines installed should be redundant. Redundancy will ensure that the productivity in the industry is continuous even when some of the machines are out for repair.

The studies have shown that the market demand for various products is always dynamic (Barber, 2005). From this knowledge, it was predicted that the chance of O.P.I preference changing in the market is 2/10. This is because the market for this product is a free market; hence, there is the free will of entry and exit from the market. With this in place, a more sophisticated product can get into the market and out-compete O.P.I hence reducing its sale hence loss to the company (Sarasvathy, Simon, & Lave, 2006). To curb this vice, a body has been formed to ensure that they regularly conduct market research to determine customer requirements which will help in improving the quality of products thus reducing the chance of it being out-competed in the market.

Technological and Environmental Hazards

With the instalment of the manufacturing plants in place, there are various hazards which accompany the industry; the hazards can either be a technological hazard or environmental hazard (Porfiriev, 2012). When the industry is set up, the by-products produced are harmful and hazardous if they get into the environment without proper treatment. Within Prostay Limited, the wastes will be adequately treated before being released into the environment.

The running of machines results in vibrations, which causes noise, which will adversely affect people living around the industry (Solecki, 2000). This is hazardous, and if the noise is left uncontrolled, it will affect people surrounding the plant and those working in the plat and can lead to hearing impairment (Arakawa, (2014). For the environment to be human-friendly, the noise should be mitigated, and this will be achieved by ensuring that the factory is made with soundproof materials and those working in the premise supplied with earplugs to prevent them from loud noise.

Due to the wear and tear of the machines, regular maintenance will be carried out of the machines; hence, worn out parts will be thrown away (Arito, 2015). The thrown parts will be hazardous. For this menace to be controlled, the worn-out part should be taken part in other recycling industries to ensure that these parts do not fall into the environment, thus being hazardous.

In the running of an industry, there are various metallurgical reactions which take place, causing the release of radioactive sources (Hornbogen, 2000). With this in place, people working and those living around the plant will be affected, and such products have high chances of causing diseases like cancer. For this menace to be mitigated, it becomes crucial to ensure that, such parts of the machines avoided and if it is necessary to run them, protective gears should be provided to those operating within the facility.

Conclusion

To sum up, we have noted that, when the product of a company is received positively in the market, it results in the expansion of the industry producing it. The expansion in the industry will attract various challenges in which numerous methods should be employed to mitigate the challenges and ensure that the facility runs profitably. The plant set up has got various risks which it attracts, the chances of the risk of occurring vary from risk to risk, and there is a need to formulate ways of curbing these risks. Most of the by-products from industries are always hazardous, and if not well treated before releasing them into the environment, they can cause harm to human bein...