Home-Style Cookies Case
- Briefly describe the cookie production process.
The batch processing system immediately begins management gets orders that schedule for production from distributors. The mixing person feeds the list of ingredients electronically into the computer to determine the required ingredient amount. Afterward, ingredient mixing occurs in giant machines with the exact amount of eggs, flavorings, and water. Cookies go through a conveyor belt after cutting into individual pieces and pass through an oven (William). Cookies that require an additional filling step get separated. The cookies’ cooling occurs in spiral cooling racks and undergoes manual packaging done by the oven workers. Deformed or broken cookies are set aside, and the rest undergo automatic wrapping, sealing, and labeling.
- What are the two ways that the company has increased productivity? Why did increasing the length of the ovens result in a faster output rate?
The company cuts the cookies diagonally rather than round to take up less space and thus increase productivity. Furthermore, it added each oven’s length by 25 feet to ensure maximum production (William). When the company increases the oven’s size, there is a faster output rate since it allows more cookies to pass through the range in a short period.
- Do you think that the company is making the right decision by not automating the packing of cookies? Explain your reasoning.
The company’s decision to maintain employees to do manual packing is a significant move as it employs individuals around the community. Furthermore, the company will prove to be a unique brand in the whole world by taking responsibility. Assuming that the company treats its employees well, they can help advertise and market its brand by spreading word of mouth. The company’s brand will become strong since offering employment to individuals helps cultivate a community sense. According to Ukaj, a company’s brand image is its powerful and vital asset (2016).
What obligation does a company have to its employees in a situation such as this?
The company must ensure that it meets all the labor standards locally and in the world. The company’s responsibilities towards its employees include ensuring remunerations to the employees, providing an elaborate and safe work environment, issuing workers with insurance covers, and providing stipends to workers for motivation. Investing in human resources would be a good move by the company because it is directly proportional to maximum production Parthasarathy, Murugasan, & Vasan, (2018).
What obligation does it have to the community?
The Home-Style Cookies Company plays an essential role in the community since it’s its directly affected environment. The company’s obligations towards the community include providing employment to the locals and ensuring that it takes part in corporate social responsibilities like offering education about its business. Furthermore, the company has to guarantee the community a conducive environment throughout its stay in the locality. The company can also provide capacity building classes to the people in the community.
Is the size of the town a factor?
The size of the town is a factor that companies should consider since more sales happen in bigger towns as compared to the smaller ones. A company should consider factors such as demographics during its inception. However, the cookies company has a readily available market for its products, and therefore, the town’s size does not matter entirely.
Would it make a difference if the company was located in a large city?
If the company could be in a bigger city, there could be a difference as it would have made more sales. The company could have acquired more customers as bigger cities are often densely populated. The company’s market could expand due to the population. However, it will also incur expenses due to the high costs of production.
Is the size of the company a factor?
The size of a company is a factor depending on the type of products the company manufactures. For Home-Style Cookies Company, its size does not matter as they have an established available market for their products. A small-sized company would still allow for the production of the cookies.
What if it were a much larger company?
If it were a large company, then a broader market should be established to propel the cookies’ selling. The company will also have to acquire large scale machines for production and consider the appropriate economies of scale for producing the cookies.
- What factors cause the company to carry minimal amounts of certain inventories?
The company’s products have a short shelf life, and thus the company makes sure to have few inventories. Those stored in the warehouse must therefore get shipped shortly. Furthermore, the FDA’s labels are subject to change, and the company has to ensure it does not get stuck with labels not in use since they get ordered in small batches. For this reason, the company has to ensure that it has fewer inventories.
What benefits result from this policy?
The benefits of minimal inventories include more straightforward upgrade into digital systems due to the small scale nature. Moreover, the company has a readily available market for the few stocks and does not record negative productions. The company has a lesser chance of encountering fraud and does not engage wastes easily.
- As a consumer, what things do you consider in judging the quality of cookies you buy in a supermarket?
As a consumer, I consider cookies quality, brand, and price. A quality cookie often has higher prices compared to one with less quality. Furthermore, an excellent brand makes quality cookies in that it ensures that it adheres to all the health measures and standards. Profitable brands also provide that they have a variety of flavors that suit various customers. Good brands also ensure that the baking of cookies takes place to an appropriate degree.
- What advantages and what limitations stem from the company’s not using preservatives in cookies?
The advantage of using preservatives is that it increases cookies’ shelf life and therefore the company may not incur losses. The disadvantage of using preservatives is that some customers prefer natural made cookies as they lack chemical constituents. Aside from that, preservatives may also reduce the cookies ‘quality.
- Briefly describe the company’s strategy.
The company’s strategy is to minimize losses by making fewer inventories as per customer requests. The advantage is that the company has an already-established market for its products. It also brands its name by using manual packaging employees instead of automating packing systems. The company targets customers above 45 years and children by preparing preservative-free cookies.