CVP analysis allows management to use variable cost to identify future performances within the company. This can also show disadvantages of managers not looking thoroughly through the companies performances. These managers tend to be ones who do not record their records thoroughly. CVP analysis tends to be a beneficial tool to management, but it is limited in the amount of information that can be provided for product operations. This analysis gives a hypothesis of what the question is made of, to give an advantage to management but continues to not be an exact procedure for management.
If the customer service is bad it is more likely that in the future customers will not come back therefore there will be no repeat purchase and when no repeat purchase the income of the business would vary and would be unstable, unstable finance would mean that the business would not be able to operate normally eventually this will lead to close down of the business. This shows that customer service is very important within the business that is why many businesses set customer service as one of their objectives as there cannot be a successful business with poor customer service. This also includes Boots as they state that “our customers are the heart of our business” which shows that they are fully aware that customer service is important to all businesses, but do they really do as they say. Pre- Transactional The Pre- transactional service that Boots gives is
Put simply, a business that does not plan how to deal with this information is a business much more likely to fail. The Scenario A medium sized business organisation has identified that communication within their organisation is poor. This has resulted in the calling in of a management consultant (you) to help but together a communication strategy. You will be expected to offer guidance on: • How and why different types of information need to be communicated in different ways. • Where information comes from.
The UPC is a number that uniquely identifies the product on which it appears. Currently, Alliance is using the UPC information to update inventory records for each item. Although the system has greatly improved the company’s ability to replenish inventory promptly, the company still has some problems. For example, sudden changes in demand for a particular item can catch the company by surprise as it bases inventory replenishment on historical demand patterns. Further, demand patterns and preferences may vary from one store to another depending on the customers served by each, but the inventory system groups all demand information together and treats each store equally.
This will make Tesco more motivated to achieve their targets and objectives. If Tesco didn’t have a budget within their business, the team wouldn’t have anything to aim for and won’t have any way of knowing how the business is doing. However, if Tesco’s budget is unrealistic or too aspirational then they are likely to give up and not hit the target. Furthermore, if Tesco didn’t have a budget then it’s likely that they’d produce too much stock which most it will be thrown away leading to an increase it waste products and this shows that Tesco is spending way too much money on stock that isn’t needed which is why it’s vital that they create a budget and control their costs. Without a budget, Tesco won’t know how much they spent in
Align needs to find the correct mixture of demand and supply within its own manufacturing process. Challenge The challenge for Align is that their sales demand is not as high as they had originally forecasted. As a result Align is overproducing their product, thus losing profits. The company sees the potential for growth however, Align is currently over producing a product at tremendous cost with few orders coming in. The problem is Align’s capacity is too high and has to be
Yet although planning for, and controlling capacity is a major responsibility of operations managers, it should also involve other functional managers.” (Slack, 2008). Kuiper Leda does not currently have an effective Inventory Management Plan in place to handle the extended demand of stock and production. “An Inventory Management Plan may or may not be specific to an order. It considers the forecast error, service levels required by the client, cumulative lead time for manufacturing each unit or a batch of
What changes, if any, should be initiated to address the critical issue(s)? The high level of dissatisfaction customers have with the order information process could be reduced with the implementation of the total quality management philosophy. TCM includes top management commitment and support, a maintained customer focus in product, service and process performance, integrated operations within and between organizations, as well as commitment to continuous improvement. Dealing with industry over capacity WCC is already getting into specialized products that will help to stand them apart to confront the issue of over capacity. It is still important however that they streamline and perfect processes to lower cost and raise overall customer satisfaction.
This technology can help both firms reduce inventory expense, improve stock out performance, and respond more quickly to the customer’s demand. The system is very flexible and able to handle a variety of replenishment styles. In my opinion, this strategy benefits both companies; however, there are some major concerns. Besides the large investment on technology, it will take time to set up and familiarize with the system. Therefore, it requires a close relationship between two companies.
But they still need to evolve, to reengineered its supply chain to improve their business. Now with the differentiation strategy, every process of Best Buy is related to the customer needs. Whenever the customers walk into the store, they will have support from Best Buy’s employees. As Mr. Anderson said “The closer you get to the customer, the better your ability to see what the needs of business are”. Differentiation strategy, which offers unique features that are valued by the customer is such a great strategy for Best Buy to adopt.