Case Study on Natural Designs
Jim Master is faced with the everyday dilemma of keeping his business running smoothly by conducting presentations to students to capture their enthusiasm on birds and wildlife. Within the few years Mr.. Master became extremely busy in doing school presentations at various schools as well as running nature camps at his home. This led him to quit his Job as a fourth-grade teacher and concentrate on the expansion of his business, Natural Designs Inc. On the long-term, Mr..
Master and is wife Sheila produced bird feeders off of their garage but have to expand due to the increasing customer demands. For this long-term structural decision to be realized, It requires careful and thorough planning which could entail more time and a larger capital from them. On the expansion planning, the Masters might come to recognize that using of new technology could present a big difference to increase production and shorten its timeline plus improve the quality of the bird feeders. Furthermore, they have to stabilize sourcing to guarantee that shortages would not come an Issue In the production.
Suppliers have to be able to satisfy Natural Designs’ increasing demand of raw materials for the bird feeders. The operations strategy for Natural Designs is faulty due to the significance of the profit range from the customization of the bird feeders and the production timeline to meet customers’ orders. “First, he Is not sure that the customization Is profitable–he charges an additional $10 per bird feeder, but he is not sure how much extra labor is involved in fulfilling the customization proportion of the order” (Borer & Versa, 2010, p. 6).
Before the business increased, they maintained being on time with the ready-made stock and there was not delay In meeting customers’ orders. But when the demand Increased, Natural Designs faced a dilemma of speed In producing bird feeders on time. Things might have been done differently if Jim Master gave intensive orientation to new employees as far as the customization of the bird feeders and regulating the dispensation of the stocks. They should make options for the customers whether they want a plain order or customized one to make things lighter ND yet maintain the profit increase of the company.
By doing this, Natural Designs can streamline customers’ demands and not be focused only on the customized order. With the thought of the expansion, the Masters should hire marketing designers as well as more production employees and HRS trainers who will help him create concepts of new varieties of bird feeders that can be much easier to produce and still generate profit range for the company. These might bring a positive change to the company and minimize chaos in the operations and production that might eliminate, If not lessen customer complaints and merchandise return.
There must be structural and infrastructural considerations for the company’s expansion. While trying to execute the long-term planning of this enlargement, the original facility should not be deterred in its operation. It might be smarter if Jim and Sheila would choose to move to a single but larger facility so they are able to oversee the operations properly while they are still planning on the larger facility. It Is absolutely risky on their part to take in something bigger than what they are able to handle as of
Natural Designs has to get a feel first on how business will go if they stick to a single but larger company before they open a second plant. It is always good to stabilize business before proceeding into a bigger venture to prevent Natural Designs Inc. From crashing should the second facility doesn’t work. Following this procedure, the business could withstand the future modification without compromising its integrity to be able to bring quality products to the consumers.
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