The Extent to Which Economies Can Be Achieved in Production Decisions, Within the Framework of the Market Economy Policy - A Case Study in the General Company for Electrical and Electronic Industries for the Period from (2012 - 2021)

Abstract

The research aims to evaluate the possibility of transforming the General Company for Electrical and Electronic Industries from central planning to the market planning for what the market needs, which requires to identify the economic, administrative and technical capabilities of the company, and employ them to achieve economies in its production decisions, which is represented in reducing costs in exchange for an increase in profits, by coordinating and integrating these decisions with marketing decisions in response to the rules and principles of the market economy and the changes in the movement and trends of its economic and social elements. The research results of the evaluation process for the main production decisions of the company are: 1. The company was not able to achieve economies of scale in its production decisions of the electric heater product (120) liters, in terms of reducing its production costs and achieving increased profits. Rather, it kept setting a fixed and high selling price for it in its local markets throughout the calendar period (2012-2021), which contradicts with the requirements or methodology of dealing with the market economy. 2. The company lacks a marketing and sales plan that takes into account the requirements of the market economy policy in directing its production decisions of the electric heater (120) liters, which led to its accumulation in its stores for many years, as shown by the results of the analysis of the tables of quantities from the accumulated annual production. Accordingly, the researcher raised a number of recommendations in this regard, the most important of which were: 1. Finding specialized administrative leaders in their workplaces, possessing experience, knowledge and understanding of the conditions of the market economy, and aware of its importance and its influential role in guiding production and marketing decisions, as well as other decisions such as finance and human resources .. and others. 2. It is very necessary to create an economic/technical unit specialized in studying and analyzing indicators of market economic forces and working continuously to follow up the competitors’ movements and analyze the reactions of the company’s customers, and then choose the best productive decisions that respond to the needs of the market and the consumer (the company’s customers and clients), with the aim of working to achieve a balance between the requirements for implementing production decisions and the requirements of dealing with the market economy rules.