Submitted by: Submitted by clorox1234
Views: 23
Words: 670
Pages: 3
Category: Business and Industry
Date Submitted: 03/31/2015 11:48 AM
Business Brief
An opening paragraph briefly introducing the case situation.
Chad’s Creative Concepts began as a small custom made furniture shop that has a good reputation for creative designs and high quality. The company grew larger and boasted the opportunity to diversify operations. A standard furniture line was manufactured and is now sold to popular retailers. This standard line has added a price-sensitive consumer segment that is keen on fast delivery times. However, the custom line still takes priority in the workshop because of the higher prices and the time consuming work of putting together custom designs and wood orders.
The issue that Chad’s Creative Concepts is being affected by is that both of these furniture lines are being manufactured at the same plant. There simply are not enough resources to allow both lines to complete their work on time if the machines and staff were shared equally. The custom line has been taking priority because it claims 75% of dollar sales (Krajewski, L., Ritzman, L., & Malhotra, M., 2013). The standard line has products that are left in the warehouse raw or not completed because of the wait times to use the machines and man-power. This causes the orders to take longer and customers become dissatisfied. This brief will analyze these issues by using critical thinking and decision making processes.
Analysis
Chad’s Creative Concepts is having an issue with capacity restrictions because there simply is not enough space in the warehouse and machines to produce 100% of both the custom and standard line. The demand for the standard line is steadily increasing even with the delays of shipping. This shows that the standard line has potential to be successful, given the proper tools. Creating a separate business plan for the standard line could be a potential solution for the business. The standard line markets a completely different customer base than the custom line and it should be treated as such. New branding, location,...