Analysis of the Process Flow and Layout
MSCM 552 – Operational Processes – Individual Case
Case Investigation Outline
Confetti Italian Ice & Custard is a new company located in Costa Mesa in Orange County. Confetti is a twist on a classic treat, combining Italian Ice and Custard to create uniquely flavored frozen dessert. Always open to consumer requests, and with sixteen interchangeable ice flavors paired with frozen custard, the options are limitless.
In 2012, Confetti Italian Ice & Custard opened their doors to create an innovative yet simple concept that focuses on a customizable frozen dessert. Confetti aims to feature creative, or even exotic, flavors and combinations unique to other competitors’ dessert options, while still focusing on customer preferences. Cofounder Thomas “Swisha” Vu says, “Everyday we try to create new flavors with popular desserts that typically aren’t ice cream options.” (Confetti, 2013). Upon entry of Confetti, the customers are greeted by contemporary design elements and a unique aesthetic that complements their unique flavors. Their ingenious interior decorating is very reminiscent of an “old school” or traditional ice cream parlor, symbolizing Confetti’s goal of individuality and self-expression.
Industry Overview (Porters Five Force)
Threat of new competition
The slow economy has constrained the growth for new entrants into the market. With limited growth in the food industry, Confetti’s competitors have created a loyal customer base that has not abandoned their favorite restaurants.
Threat of substitute products or services
There is a large threat for substitute products for Confetti’s customizable frozen dessert. These include their direct competitors Yogurtland, Baskin Robins and Pinkberry. Competition is not limited to frozen dessert restaurants, as competition could come from a taco shop or a Burger restaurant. Additionally, buying ice cream from a grocery could be a substitute.
Bargaining power of customers
With the slow economy, consumers are spending less, thus limiting a customer’s ability to bargain leverage in an industry with fixed cost. The buyer is price sensitive with available substitute products. Confetti’s differential advantage and uniqueness limits the customers’ bargaining power.
Bargaining power of suppliers
The economy provides Confetti with additional bargaining power over the suppliers. However, switching suppliers has costs associated with these changes. The bargaining power lies in the contractual agreement over their competitors.
Intensity of competitive rivalry
The frozen dessert industry is dominated by large franchises, such as Baskin Robbins and Yogurtland. The majority of these franchises are a household name, while Confetti is a newcomer to the industry. They must use their creative flavors to compete in a very competitive industry.
Operation is observed on weekends from about noon to 2:00 pm. Every customer that walks to the counter is assumed to order 1 serving of dessert no matter the dessert size. Each order will consist of Italian ice paired with a custard flavor.
Process Flow and Process Layout
Process flow and process layout is the operations of organizing people, equipment, and other resources to optimize a company’s output in order to satisfy their customers needs. In order to meet their customers’ needs, a company’s operations must ensure processes are detailed with productions plans, policies, report and services to meet their end goal. Confetti is “committed to creating the most unique desserts available” with an efficient production process and ordering system. Confetti’s operations must produce a mixture of unique desserts and customer service in order to establish loyal customers....
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