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Industrial Studies

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Task no 1

The profit before installing the new equipment


Variable cost per unit:    6.7

Annual fixed cost:       138300

Current Selling price:    15.1

Annual Sales:          51700

Profit = Price × quantity – Total cost

= (15.1 × 51700) – (138300 + (6.7 × 51700)

= 780,670 – 484690

= 295980 profit before installing a new machine

A)  After installing new Machine

Variable cost per unit:    11.1

Annual fixed cost:       138300

Current Selling price:    15.1

Annual Sales:          51700

New Profit:

Profit = Price × quantity – Total cost

= (15.1 × 51700) – (138300 + (11.1 × 51700)

= 780,670 – 712170

= 68,500 profit after installing new machine

The New equipment should not be installed as the effects of installation of the new machine is not good and decrease the company’s profit by 227,480

B) Old profit = 68,500

Variable cost per unit:  6.7

Annual fixed cost:  138300

Current Selling price:  14.4

Annual Sales:  23300

New Profit

Profit = Price × quantity – Total cost

= (14.4 × 23300) – (138300 + (6.7 × 23300)

= 335,520   –   294,410

= 41,110 profit after installing the new machine and increasing the selling price to 14.4 per unit and

The annual sales volume would be limited to 23300 units.

The company should not buy the new equipment and raise the price of the item and limited the sales volume.

C) Second Alternative

Old Profit in First alternative = 41,110

Original Profit before installing machine = 295980

Second Alternative revision

Variable cost per unit:  6.7

Annual fixed cost:    138300

Current Selling price:  14.6

Annual Sales:       31300

New Profit

Profit = Price × quantity – Total cost

= (14.6 × 31300) – (138300 + (6.7 × 31300)

= 456980   –   348010

= 108,970 profit after installing the new machine and decrease the selling price to 14.6 per unit and the annual sales volume would be limited to 31300 units.

Contribution Margin In both alternatives

First Alternative

Contribution Margin = Price × quantity – Total variable cost

= (14.4 × 23300) – (6.7 × 23300)

= 335,520   –   156,110

= 179,410

Second Alternative

Contribution Margin = Price × quantity – Total variable cost

                      = (14.6 × 31300) – (6.7 × 31300)

= 456980   –   209,710

= 247,270

The contribution margin in the Second alternative is greater than the first alternative. The pricing strategy in the second alternative is more profitable than in the first alternative  (Grant, 2016).


Task NO 2

International Airport Layouts

Airports as among the greatest projects in terms of their spacing as well as their structures and need a hell lot of effort to be planned and implemented to execute them properly better. For an international airport, there would be huge planning and execution required to meet the objectives. There could have a different processor layout through which an international airport can be laid out. The systems specially incorporated with international airport layouts would require high effectiveness and efficiency. In modern times, one of the prior requirements in dealing with the high air traffic and loads of passengers at the airports  (Hammad, et al., 2016).

Focusing on the Airport production layout, the requirement for security would be fulfilled very easily because of the fact that one process will lead to another. The scrutiny would be so much easier with this job. However, the drawback of process layout will pave the debt here, especially when in certain situations; there would be a hurdle of a stoppage at any point. In emergency situations, which can occur at any time within the airports, the dealing will become difficult. Similarly, the process layout will also follow the transportation and its management to similar extents to which the production layout works. However, the process layout is considered more effective, especially since they can only manage the smaller extent jobs  (Li & Branch, 2015).

The heavy transportation and controls will be difficult to manage through process layouts. The drawback of the situation is that the process layout will be expensive and fail in need of time. There are certain drawbacks of fixed layouts as well. For an Airport to work effectively well, there would be a need Hybrid layout which is a mixture of all the other three layouts. In situations where an emergency will have to be dealt with, the flexibility of operations would help to resolve the situation better. Therefore, the hybrid layout will be the most preferable and effective one  (Santos, et al., 2017).

Capital Investment

Capital as being one of the major factors for the layouts and process while designing and planning, the factor will also be incorporated as a significant one. Though it will take a bit more costly, however, the returns especially operations would be easier to control. Moreover, with more investment, when there would be more focus to automate the system, the results will be great and excessive wastage of resources would be easy to avoid (Cuny, 2017).

Material Handling

The material handling at airports will include dealing with the flight schedule and managing the counters, passports, clearances, and other such tools including the passenger languages traveling inside and outside the country. The material handling would be a concern to manage a great deal. It would be preferred that the system remain effectively working in any of such conditions (Cuny, 2017). The hybrid system will benefit to an extent that during normal burden, the process layout will remain at disposal. With a few specific activities or situations especially involving some high-profile movement, the product layout would be acquired. Fixed will be common in a high burden situation while extreme emergencies will be dealt with through a mixture of all these depending on what is required.


Flexibility can be observed mostly in the situation where the hybrid layout will be implemented. The above various situations also discuss to what extent flexibilities would be required to deal at an airport that is working internationally and dealing with flights from various parts of the world. Therefore, it is definite that the process layout of Hybrid would be best for implementation at hospitals  (Amar & Abouabdellah, 2016).

B) Layouts of Nationalized Banks

Nationalized Bank

Considering National Bank and its layout, the first thing which is needed to know at prior focus is the operations that are to be performed by the bank. Mainly, the nationalized bank will have very limited and contained domains in terms of the requirements of the operations. In banking operations, the number of products offered by banks is a major concern that defines banking functions  (Shuchi, et al., 2018). While concerning the national bank, there would be fewer products for the people and operations will remain specific to certain extents. Each of the individuals would travel to a specific counter they need to deal with the query and solution of it.

The best layout plan for such a bank can be a Fixed Layout. Mainly, if consider the common operations, then there will be certain accounts for pensioners as well as salaries account. Nationalized banks also issue certain bonds while they do have operations related to clearances and bank drafts. The visitors at nationalized banks move from department to department and do each individual activity by their selves (Xiaoyun, et al., 2015). There are no trends of customer protocol being given to them as it is a common practice in private banks. Therefore, considering all this in mind, the best practice for them would be a Fixed Layout.

Capital Investment

The capital investment for the process would be very low. There would be some counters set up in the banks against each activity. There would be operations at each of them and possibly no need to develop excessive or extra departments or counters. The capital would therefore be less and most significantly and appropriately used with this approach  (Qin, et al., 2016). If any extra effort would be required to do, the visitors or customers will do it themselves.

Material Handling

The material handling would be appropriate because each operation would be done by the individual counter  (Chen, et al., 2014). The resources, documents, and necessary information, as well as material, will lay on specific counters of it. The query replies will also be dealt with through this. In this way, everyone would know their jobs and duties, and more efficiency would be observed.



There is no need for flexibility in the operations when it comes to the nationalized bank. The system remains stiff on the regulations and people have to adjust according to the requirement of the system. There is no approach and philosophy of generating profits and therefore triggers of the system work in their own ways  (Chen, et al., 2014). The fixed layout will remain better at this level as well  (Qin, et al., 2016).

The parking lot of Malls

In the malls of parking lots, there would always remain auto vehicles entering and exiting the parking. Though there is not much definite and specific time for a stay of any car. However, the approach which can assume is that the car which will come early will leave early. Despite this fact, the parking space will remain at the point which is fixed. A process, as well as a Fixed Layout, will be better to deal with the situation accordingly  (Xie, 2015). Fixed layout is irrespective of the pattern while Process Layout is not much concerned with philosophy as well. However, when it comes to flexibility, the Fixed Layout is less flexible than the Process Layout, and therefore, the system would be properly working Process Layout.

Capital Investment

The Capital investment would be low because there would be fewer duplicates in terms of Human or Equipment resources required. Only one machine would be needed to procure for entry while in case of very ease for the customer, one automated system on the exits. This automated system can easily be avoided with efficient use of space as well. Process Layout will therefore benefit as the sequence is not much required in this and the system provides low capital spending as well  (Chen, et al., 2014).

Material Handling

Material handling is too much required in process layout but it will be at the disposal of the customer. The system and layout should only focus to ensure basic standards to avoid drastic situations (Amar & Abouabdellah, 2016).


The flexibility would be required to a great extent and it is possible to manage by Process Layout. This is because the system provides flexibility without following the steps in series and that is among the key aspects of Process Layout  (Cuny, 2017).


The human resource or HR department of any organization will largely be dependent on intangible and tangible situations. The department must be focused to deal with the issues of HR which will never be in specific domains. However, there will always be certain protocols and standards to be followed. At certain levels, there would be a need for standards to be followed. However, at certain levels, these standards would have to be ignored as well. Requiring the mixed features of Fixed, Process, and Product Layout, the best system for the HR system of MNC would be a Hybrid Layout  (Smith & Zheng, 2016).

Capital Investment

The cost will definitely be higher in the process however it would be required to deal with the bulk and especially with multiple wide domains (Qin, et al., 2016).

Material Handling

Material handling among the major aspect will be dealt with easily as well. This is because the system would be able to deal with low as well as medium and high burdened situations (Santos, et al., 2017).


The flexibility will remain moveable and variant as well which increases the significance of the hybrid system as well (Chen, et al., 2014).

Task No 3

On Excel Sheet

Task 4

Introduction of Product

In Oman, one of the brands which have created tough entry competition for telecommunication brands is Omantel. The company is the first as well as the primary providing internet service company in Oman. The company is a semi-private institution that is led by the government with 51% of its shares. The company provides internet services all over Oman while they have launched television as well as certain packages for mobile internet as brand services as well. Omantel Company is a subsidiary of Oman Telecommunication SOAG which does have certain dominant brands all over Oman and Even in Pakistan  (Zahra, 2016). World Telecom Limited, one of the major stakeholders of the Pakistan Telecommunication Sector as well as Oman Data Park and Omantel France SAS are the bigger names of Omantel SOAG which is a manufacturer of Omantel. There is the various price in different packages available which ranges from 2 OMR – to 200 OMR and above that in prepaid and postpaid packages  (McDonald & Wilson, 2016).


Potential Market Segment

When it comes to targeting the customers, Omantel has widely opened the doors to welcome different segments of the market. The data bundle packages are assisting various youth as well as business professionals along with unlimited Omanis all over the country especially women who had to talk for long hours. Omantel has also focused to deal with the needs of women through Oman Television+  (Petersen, et al., 2015). The target market of the company mainly involves all the sectors in Oman based on religions, ethnic groups, age as well as social groups. The company has had immense growth and development over a period of time. The company has also focused on and targeted people in different parts of the world mainly in France and Pakistan. The wide range of products has enhanced and rapid the company’s growth over the period of time  (Petersen, et al., 2015).

Marketing Mix – 4P’s


Omantel mainly focuses on three major products for the customers. Firstly, they are providing internet services all over Oman as well as countries outside Oman. Moreover, their second product is mobile data services which they give in terms of data bundle usage, as well as various social media packages, use i.e. Unlimited Whatsapp Call. The third and major product of the company is Oman TV+ which is also one of the significant products in terms of customer usage. The products of Omantel are highly significant and appreciable in terms of marketing strategies  (Beach, 2014).


When it comes to price, Oman tell has also led the market with its various exceptionally effective packages. There are various categories of packages. Some of them were made by individuals while various were made to develop group packages. An example of the packages offered by Omantel is

  • Silver package
  • Gold package
  • Platinum package (Beach, 2014).

The company has used the major aspects and domains of the Price skimming strategy as well as the Price Penetration Strategy. Both of these strategies have paved a bunch of profits for the company and made its growth exceptionally stable. Omantel has categories and considered where they need to be price-sensitive and where they need skimming to make their product better and effective as well as acceptable to the market  (Ottman, 2017).


The placement of the product of Omantel is also improved with time. They have placed in almost every corner of Oman to provide excellent services to their customers. This has also made their products highly acceptable in the world. One of the best examples of this would be Oman TV+  (Pappas, 2016).


To promote its products, Oman TV has attained excellent marketing strategies. From the publication in magazines to displays in malls and billboards as well as online and electronic advertisements have made their product evitable in the market  (Pappas, 2016).

Website Cost Effective Tool

One of the most effective tools for the advertisement of Omantel is its website. The website has all the features which can make their product vital and customer friendly. From the information on packages to the location of the nearest Omantel to the latest promotions, everything is available on the website of Omantel  (Toffoletti & Thorpe, 2018). This has reflected a Push and Pull strategy for Omantel. Overviewing the website, there are Multilanguage Arabic and English is available for the assistance of their customers. The website allows feedback which makes it user-friendly and allows them to do betterment than customer demands  (Pizarro Milian & Davidson, 2018).

Advertising Objectives

  • The company has the objective to increase its market share in the upcoming 5-10 years.
  • The company is striving for more brand and customer loyalty.
  • The focus is to ease the display of the needs of customers and how Omantel has accommodated them (Pizarro Milian & Davidson, 2018).
  • Comprehensive development in Mobile phone venture packages and Oman TV+.
  • Expanding them to the extent where it could become evident as a customer-friendly network (Pizarro Milian & Davidson, 2018).

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