Chad's Creative Concept

CENTRAL PHILIPPINE UNIVERISTY

School of Graduate Studies, College of Business and Accountancy

A CASE ANALYSIS

ON

CHAD’S CREATIVE CONCEPTS

Presented to

JOHN E. TAMPO

Professor

In Partial Fulfilment of the Requirements

In

MBA 723 – Production and Operations Management

Submitted by

JEVY ANN D. BEGAS

November, 29, 2014

CASE No.: OM- 1

TITLE: Chad’s Creative Concept

I. TIME CONTEXT

The case is analyzed when problems affecting the company’s operation took place, inventory cost rises, and lead time for manufacturing custom and standard product line increases. It was then that Thomas decided that it’s about time to take a careful look at the overall impact the new standard furniture line is having on his operation.

II. POINT OF VIEW

Chad’s Creative Concept started with a good vision of producing custom-made wooden furniture for vacation cabins bringing “a bit of outdoors inside”. Gaining popularity, evidenced by the increasing demand for their products, they’ve proven themselves and earned the trust of their clients with subtle and elusive tastes. Opportunity came for the company to venture into the production of a more standard line of furniture. This endeavour could have been great but such affected the company’s operations, marketing and finances. Alterations could have been done in the overall manufacturing process of the company or conducting a marketing analysis could provide insights and working out the marketing segmentation on the potential demand for the standard line products. Most likely, the company was not that much ready to embark on this new line of furniture making in terms of their managing their resources and making the most out of them. Consequently, problems arose and if this situation will continue, additional investment in product cycle will be low or even zero at some point of time. If this will not be given much attention and proper solution...