Capacity is a key element in a firm’s production strategy; all resources (manpower, facilities, machinery) impact strategic capacity planning. Strategic capacity planning involves many variables, which provides flexibility in targeting specific production objectives. Conversely, poor strategic capacity planning can negatively affect a company’s production process; for example, it would be detrimental to a company that produced perishable or time-sensitive products to maintain excessive warehousing space, since the product has very little shelf life. The opposite would also be true—if a company had insufficient warehousing for nonperishable or non-time sensitive goods, it would not be able to store sufficient product to meet customer demand during surge periods. In supply chain management, strategic capacity planning controls the demand of new opportunities at minimal cost (Chase, Jacobs, and Aquilano, 2006).
This is threatening because it creates a fear of the unknown future as well as failures. Change can also be annoying if someone else is trying to tell us how to do our job better when the existing way of doing business may have suited us just fine. To effectively and efficiently implement change, it is therefore important to understand the reasons why individuals resist change. I will briefly describe the four common reasons for resistance to change and then discuss methods for overcoming resistance to change2. Reasons for resistance to change Resistance to change is a reaction.
However problems could quickly occur if the budget is not controlled and monitored effectively. Poor cash flow is extremely likely to bring the outcome in Debenhams not been able to shelter costs which may lead to bankruptcy; in a circumstance where a business has a poor cash flow produced by more outflows than inflows. In a case of poor cash flow due to poor budgeting, the business would have to lease the products and gather unresolved payments in order for the cash flow to recover. I would suggest for Debenhams to make better use of its premises. For example other stores have restaurants or cafes maybe they could add one to theirs to attract more customers and make more money.
1. How would you define “Frozen Preferences” and what is the impact of this concept on strategy formulation, alternative analysis and recommendation? • Managers don’t like to make major strategic changes once decisions have been made (except in the case of overwhelming evidence) as they will look unprepared and ineffective and their creditability is damaged • Frozen preferences o Management has made a decision and over time analysis shows that their decision may not be the best choice o However they feel compelled to maintain their current strategy even if it is not the best course of action. • As management preferences becomes a larger part of the organization (personnel changes, budgets etc), it becomes more and more difficult to change direction. o A tendency to avoid reversing changes even if it was not the best choice o In reality, past expenditures are sunk costs and the organization should use a clean slate to look at new choices, but to the manager, this will come at great personal loss.
E. Usually when operations get close to capacity limits, costs go up. Bottlenecks are more common, there may be congestion in the plant, and production could slow down. These costs need to be considered when setting a price for a special order that will move an organization out of its normal operating range (relevant range). In addition, managers need to think about whether the business will lose some customers because demand cannot be filled. ------------------------------------------------- 4.42 Make or Buy, Qualitative Factors - The Vernom Corporation A.
Without prior market penetration of an organization’s competetitors, the usefulness and effectiveness of properly marketing a new product or service can be quite burdensome. This is due to the fact that an organization runs a major risk of constantly striving to maintain its customer base, as the new type of product or service has not yet been introduced into the maintstream. Additionally, pricing may be an issue based upon: Should pricing be very low to attract new buyers?, or Should pricing be set high to offset initial entry into a new marketplace? These are the questions that an organization must face, but for the most part, being a
Functional area information system will provide data to assist lower and middle level managers in the function area. * Will be time consuming to fully implement and the system can be complicated. 3. Transaction processing system will assist the company with selling the product and making sure service is easier for the consumers. * System is complicated and difficult to maintain for small businesses.
* It is more difficult to maintain consistent product quality, which may lower the customer satisfaction and sabotage the brand image. * Tariff is an uncertain factor which has to be taken into consideration. US government may impose extra tariff to protect domestic
One of the problems is booking in and putting away of the stock, as this is new the guns do not seem to be fully compatible with the Duty Management system in place already, this in turn is causing system errors, stock not recording correctly, Po’s (which are programs that allow you to see what stock has been delivered and enable you to correctly book in stock onto the duty management system, these are generated by the customer) not being excepted on the Guns, not being able to shut down Po’s once opened. This has made booking in very difficult and long winded. Also one major problem as well is that the Guns are losing signal strength due to either all the metal in the building as we have mezzanine floors or the signal boxes are not in the correct place and not the correct
If a company’s internal controls are not working properly customers and investors will be more doubtful and have second thoughts on their investments and money being safe which will lead to having less investor and the stocks will drop. It is very important for companies to have their internal controls up to date and making sure they are working properly because this can cause major setbacks financially. But there are some instances were internal controls cannot even stop unethical behavior from happening such as shoplifting in a shopping mall or even a bank