Home-Style Cookies Essay Example

company? From a profit maximization point of view, I do not believe that the company is making the right decision by not automating the packing of cookies.

The automation may be costly initially but will offer major cost savings in the long run. The machines do not require lunch breaks, can work for multiple hours on end, don’t require, a wage, benefits, or vacation time. Additionally, the machines can package a larger volume in a shorter period of time. The company has an obligation to its employees and community. The employees and community have supported this company for a number of years and their wellbeing probably depended on the success of the company. So these individuals probably dedicated their lives to the success of the company.

The company owes it to the individuals to make sure that they are taken care of and not just merely replaced by a machine and kicked to the curb. If the company were to automate the packing process then they could make the current packagers operators of the machinery or move them into different positions within the company. The size of the town does play a role in the obligation the company has to the community. If it is a small town then the majority of the workforce is supplied by the town. The economic health of the town depends on the success and profitability of the company.

Any time a company that employs a large number of a town population makes a big decision that involves employment, that decision will have a major impact on the economy of that town. Now if it is a large metropolitan city then the employment

decisions will not make such a large impact on the city’s economy. The percentage of employees from the city in which it employs would be just a small percentage of the total population. The size of the company is another factor. A company, which employs thousands, will have a larger economic footprint on a city than that of a company with employs a few hundred employees. What factors cause the company to carry minimal amounts of certain inventories? What benefits result from this policy? There are many factors, which will cause a company to carry minimal amounts of certain inventories. One such factor is constant change in industry policy. If an industry is known to have constant change in its regulations, it would not make sense for a company to carry mass quantities or an extended supply of an inventory with the chance of a change at any given day. Another factor may be the perishability of goods. A company should not store more of an inventory than they can use over a given period of time.

For example, if the shelf life of milk is seven days, there would be no good reason to have a two-week supply on hand. What every is remaining after the seven days would just spoil. There are benefits to keeping a minimal supply of certain inventories. The cost of materials would be cut because there would be little to no waste due to having just enough supply for production. Also in the event that they is a change in industry policy where a certain container or ingredient cannot be used anymore, then the lost incurred from unused inventories would be

minimized. . As a consumer, what things do you consider in judging the quality of cookies you buy in a supermarket? There are a few things that I consider in judging the quality of the cookies I buy in the supermarket. The quality of ingredients is a major factor in determining the quality of cookies I purchase. A cookie that has less perseverates, less additives is more appealing. A cookie with healthier ingredients and less sugar is also seen as a higher quality cookie. The nutritional facts of the cookie play a big part in the quality of a cookie.

Better quality would have less sugar, salt, calories, fat, and cholesterol than other brands. What advantages and what limitations stem from the company’s not using preservatives in cookies? Some of the advantages of not using preservatives in cookies are a better tasting and healthier products. Some of the disadvantages of not using preservatives in the cookies are limited self-life and limited distribution range. The cookies would have to sell fast or they will be good bad. This will be a loss in revenues due to an unusable product.

Since the cookies have a limited shelf life, they could only be sold in areas close in proximity to the factory. Cookies could not be sold on a national level because they would go bad in transit or would have to sell immediately upon delivery. It would not be feasible to distribute the product on a national scale. Briefly describe the company’s strategy. The strategy of this company is simple. They are a small-scale operation, which targets a specific niche and produces a great quality cookie. They sell to

a market niche for which their product is properly suited. They target middle-aged individual who prefers not to sugary soft cookie. Their product also services a market of health conscious parents of young children. It looks like the company has chosen a high-quality organizational strategy. This seem to be the case because of their attention to detail, use of quality ingredients, and small company size. According to the Operations Management text, “Quality-based strategies focus on maintain or improving the quality of an organization’s products or services” (pg. 50).