Question

In: Operations Management

Until recently, Woodbest Limited has been the leading producer of wood furniture in Malona coty following...

Until recently, Woodbest Limited has been the leading producer of wood furniture in Malona coty following the arrival of a major competitor in the city. Woodbest is seeking to explore innovative ways of maintaining its position in the market. In the meantime, it is relying on its competencies in the acquisition of materials, production, transportation of furnished products and installations. The perfect coordination of these activities and its five-year maintainance-free policy for customers have so far kept the company in competition but it has to use strong strategic initiatives to stay ahead of the new competitor.
As a consultant in operations management, you are to:
1) Describe with an example each any three(3) competitive operations strategies that can be used by Woodbest to stay ahead of the competition.
2) Describe any two(2) growth strategies that can be used by the company to increase its capacity of operations.
3) Draw a value chain to illustrate the activities of Woodbest Limited.

Solutions

Expert Solution

1. The following three competitive operations strategies that can be used by the wood best

a. Develop new products and improve the value proposition of the product: With the help of design innovation in furniture making the wood best can gain its competitive advantage.

b. Optimization of the supply chain in terms on better management of backward as well as forward integration in the supply chain. The time to delivery and installation of the product to customers must be shortened to enhance the customer satisfaction level. A relook orientation on further improving the quality should be taken up.

c. Reduce the inventory cost by optimization of the inventory level. Furniture products are very high-value inventory as well as they are costly to hold therefore company must look at ways to improve the inventory level. Such as optimization of sourcing of raw material in the least possible time when the order is received. More make to order the type of manufacturing processes that need to be adopted.

2. The following two growth strategy can be adopted:

Organic growth: The company should adopt the possibility of organic growth by increasing production capacity and trying to sell more with the help of the marketing of the product.

In-organic growth: In order to achieve short term growth strategy the company should look forward for the acquisition of some other good quality manufacturing units and use them to increasing the production level and the time to deliver the product to the customer can be shortened.

3. The value chain at the wood step would consist of the following elements as drawn below which begins once the customer order is received:


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