Management in global Economy Management Essay Paper

Management in the Global Economy
Student’s Name:
Institution:
Professor:
Unit Name & Number:
Date of Submission:
 
Management in the Global Economy
Start-up costs 
Our business will revolve around constructing greenhouses and selling them to potential customers. Because we don't want to expose our trade secrets, we will have a factory with administrative offices for the business's operations and management. The following are start-up costs.
 Cost of land and factory
The land is necessary because this is where the premises of the business will be located. We have leads of existing factories being sold together with land, and the factories are modern and meet our specifications. We are considering this option because it is cheaper and saves us construction time. The average market price for the facility and land is $112,000.
Equipment costs
 The factory requires equipment to be used in production and day to day operations. The offices also require a computer and other office-related equipment for administrative and selling purposes. The average cost of the equipment is $ 10,000.
Cost of greenhouse materials
Because we are selling greenhouses, we are constructing them. Therefore, we shall incur construction costs, such as the cost of materials and labor. The average cost of a modern greenhouse is $18,000.
Operational costs
That is the cost be incurred for the day to day running of the factory. It includes overhead costs, stationery costs, and utilities. We estimate this cost to be $ 8,300 per month.
 
Transportation, selling, and administrative costs
These are costs to be incurred on official travels, selling and marketing expenses, and normal administrative costs. We estimate this to be $ 8,500 per month.
Labor costs
These are the employees’ salaries. We shall employ eleven staff, Factory manager earning $ 7,000, Sales manager earning $5,000, Marketing officer earning $6,500, Chief Technology officer earning $ 4,000, customer service representative earning $ 3,300, factory worker earning $3,800, and construction worker earning $3,600 per month.
Summary of Costs
Cost of land and factory

$112,000

Greenhouse materials

$18,000

Equipment cost