MGMT7.04 Strategic Operations Management
Case Study 1
Due Date: 20.03.2015
Hagen Style’s important operations resources
Hagen Style’s market requirements
Courses of action
Three alternative courses of action
Evaluation and justification of courses of action
List of figures
Hagen Style was a firm which sold kitchen equipment, tableware and small gadgets. It was a very strong and lucrative company in Europe. Selling its products through department stores, Hagen Style developed as a trendsetting firm with regarding to direct marketing operations. Hagen Style engaged a number of tactics which allowed them to work al lot of representatives selling their products from door-to-door or at community centres. Hagen Style had two distribution centres in Germany where the orders of the representatives could be processed in a certain sequence. The representatives orders passed through the centres: filling, sealing and addressing the boxes. The journey of an order was always the same. It is advantageous that Hagen Style sold affordable products of acceptable quality. Standard design labelled the products. Hagen Style run a worldwide expert order fulfilment operations. Because of years of expertise and know-how, the company accomplished a perfect process of distribution. Over time, the policy got a little bit outdated. The problem was that most of consumers were modifying their communication channel between Hagen Style and themselves. 2. Hagen Style’s important operations resources
Operations resources are funds and tools which a company provides to combine with market requirements to have an excellent operations strategy. The process of operations has to find the balance between the external market and internal resources. (Roy, 2015) At first, Hagen Style’s operations resources offered a superior sense of being good at what they did. The kitchen equipment company provided an excellent fulfilment operation. With their two distribution centres, one in the north of Germany and the other one in the south, they are well positioned regarding a fast processing chain. The good locations made it possible to have shorter dispatch routes from the distribution centres to the representatives. A shorter distance between the distribution centres and the representatives helps to make the entire throughput faster and more economical. In addition Hagen Style had a very modern and highly developed packing and information technology. This unique technology helped to make the process easier and faster. At first, orders were entered in an information system and transmitted to the warehouse. After packing consumers processed the order, the boxes were addressed and sent on their way by truck to the representatives. The largest part of the packing process was standardized and automatic. That is also a reason why the whole process was fast. Nearly everything worked automatically; that was a benefit of Hagen Style’s operations strategy. Only when a mistake happened, were the boxes then supplied to a manual sector where the boxes were filled by operators. They could profit from their optimal coordinated processes of traditional representatives. Using this kind of sales channels, Hagen Style was very successful with its big network of local representatives. They sold Hagen Style’s products from door-to-door, at places at work, at community centres and at many other localities. A network of 10,000 representatives was responsible for selling the products and bringing the ordered items to the consumers. Hagen Style’s direct marketing business was successful until the market changed. A slow but steady decline in Hagen Style’s marketing strategy was the reason for thinking over their marketing policy. Due to their excellent distribution skills, Hagen Style’s processes were very cost efficient. Hagen Style’s...
References: Nigel Slack, M. L. (2008). Operations Strategy (2nd Edition ed.). Edinburgh, England: Pearson Education Limited.
Nigel Slack, M. L. (2011). Operations Strategy (3d Edition ed.). Edinburgh, England: Pearson Education Limited.
Roy, R. (2015).Operations strategy – developing resources for strategic impact [PowerPoint].Retrieved from Eastern Institute of Technology EIT online Website: http://eitonline.eit.ac.nz/course/view.php?id=576
List of figures
Figure 1: Hagen Style ' s important operations resources 4
Figure 2: Hagen Style 's market requirements 5
Figure 3: Three alternative courses of action 5
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