In: Operations Management
Owen Mills Limited began its operations on Trumpet Land, a
beautiful island in
the Caribbean with a very diverse population in terms of age,
gender, ethnicity,
religion, disability, sexual orientation, education, and origin. In
1970, at the age of
twenty-eight (28), Owen Mills a progressive thinking young man
decided to start
his own business. His father had worked as a Manager at a large
department store
in the city of Trumpet Land for as long as Owen can remember, and
his father
would share his daily experiences. The idea of operating his own
business was
always at the forefront of Owen’s mind. After gaining four (4)
Advanced Level
subjects (Mathematics, Geography, English Literature and Spanish),
Owen got a
job at a large Credit Union where he moved up the ranks from a
Customer Service
Clerk to Supervisory level within four (4) years and then onto
being a Credit
Officer.
During his time at the Credit Union, Owen attended a number of
short
management courses. This built his confidence that someday soon he
will achieve
his dream of being a big business man. At age twenty-eight (28)
Owen thought
that he had saved sufficient money along with his wife who worked
at another
Credit Union, so that they could purchase a small one-story
building in the heart of
the city. The building was at the corner of French Street and John
Street, the main
street in the city. The building was refurbished and painted in
bright red, and blue
to suit the liking of Mr. Mills. He thought to himself “No one
could miss this
building” and he also thought of a tag line. Business started in
February 1970.
2
From the inception of the business to date, the tagline emblazoned
at the front of
the store “We have all that you want!’ has remained.
The Early Years
Owen Mills Limited operated as a sole proprietorship for many years
selling
almost every item that a household could want, staying true to his
tagline. The
business began with five (5) employees: his wife serving as the
cashier, two store
clerks, one driver and a cleaner. The store was well sectioned with
a variety of
items as shown in Table #1 below.
As a forward-thinking entrepreneur, Mr. Owen Mills is pondering
going into
manufacturing something, but he has to think carefully about the
product to
be manufactured. Therefore, he needs to understand what the Value
Chain
is about as well as the types of strategies that he could utilize
to gain a
competitive advantage.
1.What information would you provide to Mr. Mills and his family
regarding
the Value Chain as they think seriously about going into the
manufacturing
sector?
Importance of Value Chain
The value chain is a process with which an organization identifies the activities that add value to the finished product and analyze these process to reduce cost or to created differentiation. The value chain helps to bring numerous benefits including the improved flow of products as well as materials, better management of finances and easy flow of information
Strategies To Gain a Competitive Advantage
Strategies for Manufacturing Company
The Strategic Role of Employee Training
The idea of going into the manufacturing sector is right as per the value chain and business must change according to the changing demands of the environment as the Owen mills were into the trading business but due to changing conditions it was right decision to expand the business.
The possible strategies that could be taken once the manufacturing company becomes established are as follows-
1.the company must try to gain more knowledge about other high demand products so that they can be produced as per demands
2.the balanced investment approach must be taken so that more profit can be achieved in limited resources
3.the strong bonding and links with the market and clients must be maintained so that we can achieve more profit and get aware of the latest trends
4.the proper work must be provided to labour according to their effeciencies