Tat Hong Holdings (THH) was established in the 1970s and has now true into one of the largest companies in the region, providing sales and term of a contract of cranes and heavy equipment. Recently, THH go through a 66% growth in its first cast earning and an 83% increase in its overall profit compared to kick the bucket year. The crane rental segment contributed significantly to this as at that place was a global crane shortage caused by the widely distributed construction and infrastructure boom. With the global demand for cranes, the sales and rental estimates of cranes leave alone also escalate. This will in criminal cause THHs revenue to exceed the amount it achieved in its financial year ending 31/03/2007. (Refer to Appendix A to D for the articles.) In this report, the implications to stakeholders of THH will be discussed in lighten up of this recent news.
Stakeholder: Management
The guidance consists of a group of people who entice and coordinate other employees for the purpose of directing them towards achieving a reciprocal goal. This involves the deployment of human, financial, technological and natural resources.
Reasons for Implications
THHs profit increase will lead to higher expectations for the management. To meet the growth demand for cranes, the management needs to find methods to increase supply.
Since the crane rental discussion section is doing exceptionally well, there may also be competition from other departments to outperform them.
Implication
The management faces the pressure to improve or at least maintain the profit growth rate of THH.
How the management may potentially respond to safeguard their pursuance in light of the identified news items
To meet the growing demand, they will focus on improving production efficiency. magnification of manpower and machinery will be done to boost the phone number of cranes. The management also needs to get more suppliers of black materials to equalise the demands. If they do not do so, customers may be unhappy and cease to buy cranes...If you want to get a full essay, order it on our website: Orderessay
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