Essay: Selling Old Machinery at a Throw Away Price
Notwithstanding, We Are Big, Inc. may chose to sell its old machinery at a throw away price just to avoid unnecessary loss. It can also donate them so as not to pose environmental threats of pollution by dumping (Kraemer, 2008).
Alternative 2: maintain status quo. The first and most important risk here is unprofitable competition. We know quite well that advance technology enhances productivity. In a fast growing economy, it is risky to reserve olden methods of production and IT. Such a company may soon be pushed out of business for lack of creativity and appropriate technology. Thus, the firm ought to appreciate new business systems that are time tested to be environmentally acceptable (Kraemer, 2008).
Alternative 3: Renewable energy. The idea is commendable and economically sound. However, the risk comes in when we think of payback time. The cost of purchasing new technology, equipment and resources may prove quite expensive. Whereas these may form part of capital investment, it might take We Are Big, Inc. a very long time to recover the cost thereof. Worse still, maintaining this renewable energy technology could even increase operational cost of production (Jones, 2006).
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