... unit and using assets more effectively mean that profits are higher. Also high capacity utilisation will give the company a good reputation as being a successful firm. Internally this will motivate employees to work for Quist, and externally customers will feel the company is manufacturing good quality components. However there are many disadvantages if Quist Ltd decides to take up the contract. If they decide to take on the order they will have to consider the size of it. If they are able to take it up without being too highly utilised it would be effective use of assets, however if this order makes them too highly utilised there may be problems incurred. Such as demand may rise again and extra orders may have to be turned down. This may mean that customers will take your money to competitors, which will affect you brand name and their customer loyalty. If at ...

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