Operational Management Case Study 2

Nickolas Giorgione

MGT 124

Case #2

1) Hazel’s competitive advantage over professional law care services exist in the form of her personal references and referrals from her own neighbors and her ability to charge less, due to less overhead in comparison to that of a larger company.

2)

a. Increased productivity would enable Hazel to perform more tasks in less time. This would open up space in her work schedule to take on new clients and/or offer new services. This would in turn generate more profits based on increased volume alone.

b. To increase productivity Hazel could do a number of different things. She could buy better machinery and equipment, which although would have a high cost initially would allow her to do yard work faster and more efficiently. She could also hire an associate, which theoretically would allow the business to service nearly twice as many clients in the same time frame. In addition to these ideas, Hazel could schedule clients who live in nearby areas to each other on the same days, eliminated travel time and expenses, allowing for a more productive workday.

3) When considering purchasing side-walk edgers, Hazel must evaluate the cost of the machinery, and determine whether or not the increase in the productivity of that task would justify the cost of the equipment. If the machinery allows Hazel a significant increase in efficiency or quality, it will add value to her service. If the machinery’s function can be done with another piece of machinery already owned, or does not necessarily offer a firm increase in productivity, it will add no value, thus being unnecessary. In regards to the purchase of a chain saw, Hazel must analyze the pros and cons of taking on tree pruning as an additional service, and whether or not a chain saw is the most efficient way to perform the task.

4) By enlarging her geographic sprawl of her business, Hazel opens herself up to a number of pros and cons. She will have a much...