Professional Documents
Culture Documents
I.
PROBLEM STATEMENT
The Lew-Mark Baking Company owned by brothers Mark and Lew
has a goal of finding potential improvements for the bakery. One of the
proposals for improvement is to automate packing the cookies into boxes.
Another possible key for development would be to transact with suppliers
located closer to the plant.
Despite different opportunities to change their suppliers in the
recent years, the owners rejected them in fear that the quality of their
products might suffer. The owners also resisted the idea of shifting to
automated packing for they feel an obligation to their community to employ
30 women to do the boxing manually.
This study will analyze the factors affecting the resistance of the
company to possible improvements and the effectiveness of its current
policies.
II.
III.
AREAS OF CONSIDERATION
One of the most significant strengths of Lew-Mark Baking Company is
using the batch processing system. The batch processing system can best be
described as the execution of a series of programs ("jobs") on a computer
without human interaction. This method helps with quantity management
because Lew-Mark Baking Company only makes cookies according to demand.
The high quality of cookies has enabled the company to develop a strong market
niche for its product. The bakery also runs efficiently and has minimal amounts
of scrap. Rejected batch of mixes are sold as dog foods and broken cookies are
used in producing oatmeal cookies, thus generating extra income.
Due to making only one product, the Lew-Mark Baking Company
customers are often people over 45 years of age, young children and health
conscious segment of the market.
The most obvious opportunity for Lew-Mark Baking Company is that they
gained a good reputation on their soft cookies. Creating a new line of products
will attract a bigger market.
The biggest threat for Lew-Mark Baking Company is that larger companies
such as Nabisco, Sunshine and Keebler are dominating the market because they
are producing hard and crispy cookies which attract a lot of consumers, mostly
youth and adults.
IV.
ASSUMPTIONS
The study is conducted based on the following assumptions:
A. The owners lack knowledge in advanced machineries
B. There is an outstanding contract between the company and
their suppliers.
C. The owners are contented with their present outcome and
would not risk it for new developments.
V.
The company should try new suppliers that are closer to the plant.
The company should move closer to the location of the supplier.
The company should shift to automated packaging
The company needs to introduce new types of cookies specifically
ANALYSIS
ACA A. The company should try new suppliers that are closer to the
plant.
Advantage/s:
Disadvantage/s:
ACA B. The company should move closer to the location of the supplier.
Advantage/s:
Disadvantage/s:
Disadvantage/s:
Termination of workers
Negative impact to community
Additional expenses for new machines
Disadvantage/s:
Disadvantage/s:
VII.
CONCLUSION
Table 1. Decision Matrix
Factors
ACA A
ACA B
ACA C
ACA D
ACA E
Cost
Quality
Time
Consumers
Satisfaction
Profit
Total
17
11
21
14
12
Factors
ACA A
ACA B
ACA C
ACA D
ACA E
Cost
Quality
Time
2.2
4.2
2.8
2.4
Consumers
Satisfaction
Profit
3
3
General
Weighted
3.2
Average
After computing the weighted average of the decision matrix, ACA C is still
the best course of action to be implemented by Lew-Mark Baking Company.
Although automating the packing of cookies will increased the companys
efficiency and productivity, Lew and Mark is making the right decision to not
implement it. The company is displaying its commitment to the community and
investing in the employment of local workers instead of machineries. This allows
a company to have a stake in the community and thus foster good relationships
with the local government, political officials and members of the community.
Business and individual who see the company has good intentions to employ and
stimulate the community will also help them to improve their business.
Developing these types of relationships can also be beneficial when it comes to
future plans or expansions.
The fact that the current location of the company is a small community
proves that the obligation of Lew and Mark is even bigger and probably the
reason to not shift to automation. If it were a larger city, faster production would
be the focus of the company and would probably favor automation.
VIII.
PLAN OF ACTION
Continue with the Current Strategy
Lew Mark Baking Company has effective policy implementation and
therefore can continue to expand with the existing strategies but should be open
to possible development that will match with the conventional one. Generally, the
business sets emphasis on quality-based strategy and time based strategy.
Their approach and role in the market is to produce preservative free, healthy,
soft, great taste in quality for the healthy conscious consumers. The company
does a great job delivering the product as demanded. Because cookies are made
according to using a batch processing system, the company has continued to
see high productivity levels while keeping a tight control on inventory levels, and
also considering the well-being of every employee boosting up their moral value.
Invest on Community Commitment
Continuing to employ local workers to pack the cookies by hand allows the
company to be seen as morally concerned about the well- being of the
community and its citizens. Valuing the welfare of every consumer gives them the
opportunity to build a good relationship with the customers.
Maintain the Companys Reputation
Although it would give more profit, it is only wise for the company to
continue to produce preservative and additive free cookies which consumers
have loved through the years. The company sets a good example not only to
future businessmen but also to their competitors the way they stick firm to their
commitment to produce healthy cookies.