Modern Business Operation
1. Analyze the strategic position. What are the key characteristics of the situation and the product? Is the production process appropriate?
Because of the wide needs for readily available snack foods for on-campus apartment students, the Kristen’s Cookie Company started a production operation wherein they plan to sell cookie snacks for starving students late at night. This strategy manifests to be an effective business approach as there is indeed a rising need for this product and the service will cater special and personal requests to be picked up personally by the customer as the venue of the operation and the target market are both in the student apartment. Indeed, this business will serve the specific needs of the student for immediate snack during their needs anytime of the day.
2. Draw the process flow diagram of the operation and answer the case’s six key questions. What are the effects of adding a second oven?
The flow diagram of the business operation will start mainly with the order of the customers, which will be prepared for pickup within an hour or less. Each cookie product will be cooked fresh for each order and packed in their respective boxes. Through this process, the products are given at their best possible conditions to the customers who are waiting for their release. It is very important that the quality of the products be given fine attention in the process to allow customer loyalty to be attained by the business organization. Through this, the business does not only assure themselves of the growth that they are supposed to have in term of production, but they also assure their business of the rightful share of customer loyalty in the market.
3. How much would you charge for the cookies, and would you be willing to offer discount for two-dozen cookies, three-dozen cookies? If so, how much discounts?
Cookies are given at least a market demarcation line of $.60 per pack. The said demarcation line of pricing has actually been noted to be based on the procedural implications made on the production of the cookies. However, to promote possible increase in sales, the cookies could be given at least 10% discount for every two packs bought by the customer. Through suggestive selling, the process of giving discounts could be able to get the same demarcation rate of profitability of the business and the products at the same rate. This is expected simply because of the fact that the market would buy more of the products because of the discount promotion However, discount promotions are only to be given as a form of ‘gift’ to the customers at certain specific times.
4. How would you handle the delivery time? When a student calls when would you tell?
The time of delivery should always be accurate. Pointing to the possibility that the product would still and must reach the customer in considerable warmth, it should be noted that cookies are to be prepared closest to the time of delivery. This shall aim to particularly present the product in a high acceptable quality that is suited best for the demands of the customers.
5. Any suggestions to improve the process. How would you expand the capacity or the overall business?
Delivery expansion procedures are of utmost concern. Not all customers are expected to got to the establishment just to buy the cookies. It is then an important process of progress to focus on the possibility of increasing the number of deliveries through promotional procedures such as discounted prices for bulk purchases on delivery basis.
Kristen’s Cookie Company Case Presentation