Feng MO PL 810 Operations Management 10/09/2015 1. Explain the challenge Elizabeth faced in meeting her capacity needs. What should she have considered before moving into the larger facility? Elizabeth started the business of Biddy Bakery as a hobby with several friends. At first, the company experienced a period of deficit.
4.) The primary problem for the company in this case is moving to a new location because the current location is too small. 5.) These problems have emerged because the current location right now is too small to meet the growing demand. The ingredient prices are high because she sells higher end breads that cost more, and the labor costs are high due to hand production techniques, and possible increase of debt would be due to whether or not she expanded and bought another location.
So they believed that local market would not have need in as much services and complexity as contrary markets. Also they believed that the local markets would give to company much higher margins and other benefits. But by being small company, Logoplaste for faraway locations needed a huge number of senior managers to control new firms at new markets. Unfortunately Logoplaste did not have enough senior managers to enter new markets. And as well, it was very difficult from financial perspective due to financial crisis, when banks were not giving out loans and funds for every single company.
One of the marketing strategies that ensure the company of long-term profitability is the personal relationship built with the customer base. Customers will not have the same shopping experience with large grocery stores. If there are items that customers would like to have available in Kudler stores they are able to communicate that to management. Management can then relay the data to Kathy Kudler who will search the world for the best available items to satisfy the customer. People will not have the loyalty they get from Kudler at other grocery marts.
As a company try to grow and expand their business, the proper team must be in place that specialize in key areas they want to expand in. Korvette was not able to contain the proper team to specialize in new business areas. Lack of knowledge in these new areas cause those businesses to shutdown and lose more profit. The inability to cope with the amount of stores opening up in further locations from the original in New York made it very difficult for them to oversee the particular activity that was going on. Weak channels of distribution were very poor and made it difficult for them to transfer merchandise.
1. What were the key learnings / surprises realized during the implementation of the first phase of outsourcing to DHL? • Even though there were huge savings due to consolidated services such as reducing the number of transportation companies, there was increasingly more complexity created by e.g. phasing out other DC’s around Europe à Key learning: Managing complexity is crucial • Organizational flexibility was needed as not all specific requirements could be formalized within the tender process à Key learning: Flexibility is important as some cases are not predicable • Cost allocation was initially based on orders placed by customers. However, customers were asked by Lego to change their order behavior.
A pair so passion about bakery business who straggled at the beginning but soon after become a successful company but not after so long the company had to expand it market according to the demand so they had to develop and go through different process that thy have not experience therefore problem start to happen and the solution dos not seem to be effective and not getting the company any good. Oppose to Ivanovics concerted effort to know and communicate with all of their employees, the new management team under McRae did not effectively communicated with Iggy’s employees. Also McRae failed to communicate with Ivanovics by not seeking their opinions while hiring key new management personnel. nikola took a big part of the business for awhile and Change a lot of thing it igor and ludmilla where in direct involved in the process. Behind that , nikola couldn’t managed it and both of them turned to their informal board of directors.
Introduction: Zara the leading fast fashion low quality and affordable trendy brand owned by Inditex, are focusing on how they can improve efficiency in managing their store network through various possibilities such as; cutting down on personnel labor/payroll costs. If Zara cuts down on labor/payroll costs by having the company replace store personnel for third-party logistic providers they could create improvements to increase labor productivity in the stores. Cutting down on personnel labor/payroll costs could create various implications such as having the company stay successful and keeping profit high by maximizing sales. Having a strong emphasis on improving labor productivity could possibly hurt other aspects of the stores operations. Analysis: Zara is famous for the way its responsive supply chain can quickly deliver collections of highly fashionable products to meet ever changing customer demands.
“If you can sell your employees on the company's future and the importance of their role in it there are numerous advantages people are more likely to generate their own ideas, to contribute with enthusiasm, to keep slogging when it becomes unpleasant, and also to experience a sense of camaraderie and togetherness” (Spiro 2010) Another significant error that was made was in the HP story in which the vision was never communicated, step four. From the very start of the merger Walter Hewlett was not on board with it and therefore Fiorina also had a problem with step one. Although it seemed like she did try to implement change, and
It makes since, instead of always wasting the sales person time. If everyone is going to be going into stores just to check barcodes and see where they find the product cheaper or even shop online all the time it doesn’t make sense for a company to be paying employees for unnecessary work. Or work their not able to do at all. It will save the company money instead of paying for such big space that not a lot of consumers are going to. The only downfall I see or disadvantage I see is depending on where those lower rent locations are because some uppity people don’t feel secure in lower rent locations.