Operating efficiency was improved using just-in-time and lean operations techniques. I used sales predictions to estimate how many units a sales person would be able to sell each day. This number determined how many units were to be produced each day. Therefore, limiting the number of inventory left over at the end of the quarter, and in turn eliminating waste. I also used marketing surveys to determine what customers wanted in the products RIE Tech was producing.
Planning and Measuring Performance for Costco Corporation Roger Scmidt MGT/521 February 25, 2012 Roberto Guzman Planning and Measuring Performance for Costco Corporation My week 3 Organizational Plan Assignment was the Costco Wholesale Corporation. I identified its current goals as 1) control costs by reduction of inventory and careful selection of high quality goods and services and careful expansion of its’ domestic market. To elaborate, Costco has been very successful at keeping costs down by minimizing waste and storage expenses with a rapid turnover of its’ inventory. This is at least in part due t0 its’ ability to sell high-demand goods and services for very low prices. Additionally, Costco has a goal of 3) maintaining its employee workforce, as high employee job satisfaction has translated into exceptional customer service and low employee turnover (Costco, 2012).
| ANALYSIS VIA PORTER’S FIVE FORCES MODEL The threat of new entrants in the online grocery business could lead to the company having to lower their prices and also, may have to lower their delivery fee just to compete with the newer companies that are trying to start out in the online business. They will also need to advance their technology within the company. The bargaining power of buyers allow for the customers that purchase loyalty from the company to pick and choose the products they need for the best price. This helps with the growth of the company; the company depends on customer loyalty to stay in business but this allows for the competitors to compete against one another. The bargaining power of suppliers hurts
First, additional workers were hired to keep up with the high demand of orders. The high demand has lead to a cash flow and capacity problem. Secondly, they have been approached by a national supermarket chain that would like to put all four cakes made in their stores. I feel that this is a good idea as the company name is being marketed (additional outside orders) if the proposal is agree upon to supply the supermarket. Last, a national restaurant chain would like to sell McGee Cakes in its establishments without using the brand name.
Other key factors are to maintain a record of the inventory that is being sold so the store can better equip products in all three locales and provide for better product placement within all Kudler stores. The design trade-off approach for the project is as follows. A trade-off for the company to increase revenue will be the expenditures for the frequent buyer program, because essentially the company will not see a return profit for an allotted time. The implemented program will allow the company to see a small profit after the first year of the program being implemented. Another trade-off for the company will be the stores performance.
With ABC, it will help us see where our costs are going so that we can respond to increases in orders without increasing (unduly) our overall cookie costs. It will, overall, help us see where we are spending our money and how to use it more efficiently to the most cookies and customer served for a larger profit. If Cosmic Cookie switches to backflush costing, Just In Time inventory systems can help insure that not only do we not have excesses of inventory lying around but that we are at our breakeven point consistently. We do not want unsold cookies/cupcakes/etc lying around that could have been sold. By using backflush, however, we can add back in any excess inventory as opposed to buying more than we needed initially.
In a couple of sentences or so, discuss how you would improve the Deli Depot questionnaire? From what I earned in chapter 8, I find the deli depot questionnaire is suitable, but there are some unsuitable or wrong questions for example: 1. Is your annual household income $20,000 or more? __ Yes __ No * This is a sensitive question they should delete it from the survey. * Moreover, it is not clear if they do screen equations or not because it is important to do it as
9). The rotation of perishable goods can be improved by conducting a survey and a questionnaire to the customer to indicate the needs of customer. Analyzing a turnover ratio per capital of each product will minimize the perishable rates. If a proper turnover ratio were set for the operation of buying and stocking of a product, KFF can easily expect what to expense and when to allocate the budget cutting the loss of excessive supply of the product. Specialty Shops Because KFF offers sophisticated professions such as butcher, baker, and wind steward, “payroll of these specialty positions is higher than that of the clerks and stock personnel” (KFF strategic plan, p. 9).
Competitive environment for Colombo Independent shops: Colombo mainly distributed through independent shops in the early 1980’s. However, in the early 90’s, the emergence of franchise operations such as TCBY and Freshens put many of the independent shops out of business. This situation raised red flag for GMI, indicating that its sales would be damaged if shops could not survive from the competitive environment. In the late 90’s, Shops began to increase sales by product innovation and made their living from the soft-serve business. Impulse locations: The market changed as Foodservice operators added soft-serve yogurt to business in the early 90’s.
Recession occurs when people involved in business become more cautious and: * Customers cut back on spending, and start to save more * Manufactures and sellers cut back on their orders, produce fewer goods and start to cut back costs in general, including by laying off workers. Availability and cost of credit: People spend more when there is high demand for goods/services. In this case etisalat has the advantage of expanding their business. Many people will want to purchase numbers and different offers provided. A higher sales revenue will occur for etisalat which means the income the company receives from business activities, usually happen from sale of goods and services to customers.