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Business and Management IA Research Proposal -How Should Afrisians Ginning Limited reduce the increased costs in production that arise due to power cuts in Mwanza and ensure consistent pricing from farmers to increase output and profitability for the firm

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  • Essay length: 701 words
  • Submitted: 09/07/2012
  • Awarding body: Not known/Not applicable
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International Baccalaureate Business Studies

The first 200 words of this essay...

Aleem Ahmed IB1

Research Proposal

How Should Afrisians Ginning Limited reduce the increased costs in production that arise due to power cuts in Mwanza and ensure consistent pricing from farmers to increase output and profitability for the firm?

Rationale for study: The rationale for choosing this specific topic is because currently Afrisians Ginning Limited is facing high production costs, as the city Mwanza is facing a lot of power cuts, which requires the company to use generators on a daily basis which thus increases their production costs. The operation in Mwanza began in early 1997. 6-7 years ago the company opened another branch in Shinyanga where they have less power problems. Recently, they only work in Mwanza for 3-4 months where as before the power cuts prevailed, they used to work in Mwanza for at least 6-7 months. This has been a problematic situation for the company as they have invested a lot in fixed assets in Mwanza and they are unable to move the operations to another facility as they will lose a lot of money. Moreover, farmers in Mwanza have been charging higher prices in fear of commodity prices fluctuations and they also tend

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