1. Factor · Those factors which directly

 

1.      
Identify,
with reasons, the order winning factors and the order qualifying factors for
the company based on the five competitive objectives introduced by Slack et.
al. You may make assumptions on the market segment(s) and those assumptions
should be clearly mentioned.

Five
Competitive Objectives & what are the Benefit to Business

Internal
Benefit

5 Competitive Objective

External
Benefit

Minimum Cost
Maximum Value

Cost

Minimum Price
Highest Value

Fast throughput

Speed

Quick Delivery

Error Free Process

Quality

Error free products & Service

Ability to Change

Flexibility

Frequent new products
Maximum Choice

Reliable Operation

Dependability

Dependable Delivery

                    Current situation of the company                          What Should
be important for the success

                                             Cost

 

            Speed                                             Dependability

 

 

 

 

            Quality                                                      Flexibility

 

 

 

 Competitive
Factors & Performance Objectives

Competitive factors – If the
customer value

Performance Objective – Then the
Operation will need to excellent at these

Law Price

Cost

High Quality

Quality

Fast Delivery

Speed

Reliable delivery

Dependability

Innovative Products & Service

Flexibility

The ability to change the timing
or quality of products & service

Flexibility

 

Order
Wining Factor

·        
Those factors which directly &
significantly contribute to wining the business.

·        
Regarded by customer as key reasons

·        
Ex- Price

Qualifying
Factors

·        
Those competitive factors where the
performance of operation needs to be above a minimum level for customers to at
least consider the product.

·        
Ex – Quality

How
achieve business performance by Order Wining & Order Qualifying factors

Identified
Challengers of Westlake Lane Business

Order
Wining Factors of Westlke Business

·        
Westlake Lanes financial health Issues – (
Cost )

Between 2004 and 2009
revenues declined by 40%, while operating costs greatly increased Givens tried
to increase the sales and minimize the cost of business by negotiate with
existing suppliers to lower their prices and research some new suppliers who
could provide services at a lower cost. Lastly, Givens has to determine the
best way to attract new customers by creating improvements that either appeal
to kids or young professionals. The business does not find a way to rapidly
reduce its costs or increase revenue, then it would not be able to continue
operating. This business that is not creating enough revenue to at least cover
its expenses will not be able to remain open in the long-run. Unable to pay
back loan, which has taken by director’s personal accounts.

 

·        
Increase expenses – ( Cost )

Westlake Lanes is their
declining profitability and increasing expenses. The declining profitability
and increasing expenses are the main problem with this business, because a
business that is not generating a profit will not be able to continue
operating. Therefore, profitability is the core determinant of a business’
success and longevity.

 

·        
Customer unsatisfactory & not deliver
good service – ( Speed & Dependability )

Westlake employees’ concern about the
business’s potential bankruptcy and their potential job loss may have decreased
their motivation to work hard. As a result, these unmotivated employees may
have played a role in decreasing customers’ satisfaction and, consequently,
reducing the business’ revenue. In addition, the financial challenges may have
prevented the board members from trying new marketing strategies, because they
were simply trying to keep the business afloat month by month.

 

Above
mentioned all factors are can be identified as Order Wining Factors, because of
those are need to win the business, success, profitable, sustained and continue
the business for the future.

 

 

Qualifying
Factors of Westlake Business

·        
The Westlake Bowling Lanes business is
facing a number of different leadership and managerial challenges. – ( Quality
)

The major challenge
revolves around the employees. Lack of 
communication between the board of directors, So full time employees
feel undirected, unappreciated, and dissatisfied and as a result they leave the
jobs. Full-time employees have no job descriptions, receive feedback about
their performance, or have the ability to make decisions or changes. As a
result, the employees do not take ownership in their jobs, and instead check
their phones or read magazines during work. When employees feel unappreciated
then they will not work as hard nor care as much about helping the customers,
which could cause the business to lose the customers.

 

·        
Origin of Managerial Changes Issues (
Quality )

Business has moved and
changed between different Ownerships since beginning, So the board of members’
distance from the daily operations could have caused the full-time employees to
feel undirected and unappreciated.. In addition, the board of directors might
not have business backgrounds nor the proper knowledge to manage employees and
run a business as well. On the other hand the 
board of directors may have been so far removed from the daily
operations that they were unable to make rational decision based on accurate
information. The decline in revenue could also have been the result of
increasing competition and greater customer expectations within the bowling
industry.

 

·        
No new machinery for the operation – (
Flexibility)

Westlake’s lane machinery was from the 1970s; scoring technology was added in the late 1980s. With a life expectancy
of 30 years, machine maintenance and replacement costs had begun to spike in the late 1990s. Machinery for 11 of 16 lanes was replaced at a cost of $19,000
per lane, and in early 2007, Sugar upgraded
scoring and screen technology for all 16 lanes at a cost of $120,000. Spalding expected at least three additional
machines to expire by the
end of 2010.

 

·        
The increasing competition in the industry
( Flexibility )

Increasing competition in
the entertainment industry probably contributed to the declining popularity and
shrinking customer base of Westlake Lanes. The board of directors to make poor
decisions in regard to the business , because of they haven’t knowledge &
experience of business. They were doing full time another jobs , so didn’t have
time to involve to day to day operation. So they hadn’t enough time to spend on
the business to improvement.

 

·        
Less job efficiency – ( Quality / Speed /
Dependability)

The employees did not know how to use
their time effectively and instead waste time reading magazines or looking at
their phones. So unable to deliver speed, quality & dependability service.

Those
mentioned competitive factors can be identified as Order Qualifying Factors of
the business, because of those help to improve, perform, efficiency &
consider the business in the market.

 

2. Identify the specific challenges
faced by the company in terms of its current operations.

 

Managerial Challengers

The
Westlake Lanes bowling alley is dealing with several changes. Most of the
challenges that Givens was faced with originally occurred due to poor decisions
from previous managers and lack of initiative on the part of the
employees.  The previous manager did a
poor job in ensuring that Westlake Lanes was operating at minimal costs.  They had secured previous services and
refused to change them simply for the reason that it would be too much trouble
to change.  The employees, overall,
showed a lack of initiative in that they did not try to be active and
constantly change their duties for the better. 
The example of the peeling wall paper is a good representative of how
Westlake Lanes began to decline when bowling lost popularity.  Givens is able to save the bowling alley because
she proactively sought to cut costs and at the same time, make the bowling
alley more attractive.  She did this by
revamping the various aspects of the alley and actively doing marketing
research.

 

Leadership challenges.

            The
leadership challenges that Givens faced were quite difficult.  She faced the problem of motivating her
subordinates and changing the systems and ways they did things.  First off, she faces a challenge of
establishing her authority.  As a new
leader, especially a young one, she has no credibility when it comes to
managing the bowling alley.  The workers
could possibly see her as a threat to the ways they like to do their work. The
only way Givens can work through any biases the workers may have is through
gaining their respect. The key is to demonstrate to them her capability while
at the same time, balancing the needs of the workers.  This is an incredibly difficult situation to
be in; it requires charisma and perseverance in order to properly win over the
workers.  Even if she does gain their
respect, all of her efforts would be in vain if Westlake Lanes fails as a
business.  So, not only must she balance
her authority with the needs of her workers, but also with making the company
successful.  Givens understands that being
a manager is not about bossing people around, rather, it is about how you can
use both yourself and the skills of your workers to bring about results.  This brings about many situations where
compromise may be necessary, requiring Givens to know herself well in order to
make the decisions confidently.

 

Financial challenges

The
second major challenge for Westlake Lanes is their financial health. Between
2004 and 2009 revenues declined by 40%, while operating costs greatly increased
(Hamermesh & Zalosh, 2012). Shelby Givens has to determine if the business
is worth keeping open and, if so, how she can cut expenses and increase
revenue. In order to achieve this Givens has to analyze the business’s
financial statements and unpaid invoices in order to prioritize the business’s
payments as well as determine how to cut costs. In addition, Givens has to
negotiate with existing suppliers to lower their prices and research some new
suppliers who could provide services at a lower cost. Lastly, Givens has to determine
the best way to attract new customers by creating improvements that either
appeal to kids or young professionals.

One
implication the employee and financial challenges of the Westlake Lanes
business is that the employees’ concern about the business’s potential
bankruptcy and their potential job loss may have decreased their motivation to
work hard. As a result, these unmotivated employees may have played a role in
decreasing customers’ satisfaction and, consequently, reducing the business’
revenue. In addition, the financial challenges may have prevented the board
members from trying new marketing strategies, because they were simply trying
to keep the business afloat month by month.

 

3.
Critically analyse the operations strategy of the company using the conceptual
models you have learnt and evaluate whether the operations strategy has been
aligned with the factors identified in (1) above.

 

The
main operational goals of the company are

·        
Reducing cost

·        
Increase the
revenue

·        
Investments

So
Given had the operations strategy first to control finance in the company, then
employee development. Quality of the service increased through proper maintain
ace and providing good customer service. Finally the suggestions available to
increase the sales.

As
we understand there is not slack in the system of the company so Given’s
implementation had simultaneously. The major concern is towards the financial
benefits. Increasing the dependability, flexibility, quality and speed while
reducing COST is the hardest part which Given hopefully accomplished.
Flexibility improved by the new suggestions to the board to increase the sales
like adding kid-friendly arcade games and a private space for parties and  urban bowling lounge  that contained a full-bar, tapas-style appetizers,
table service, and room for events.

The
service quality and speed of the service improved through the employees. She
tried to develop employee morale creating good picture about the company and
the job security. Given expected motivated employees (improved morale) may have
played a role in increasing customers’ satisfaction and, consequently,
increasing the business’ revenue.

 

Reducing cost

First
of all Givens focused on decreasing expenses by organizing Westlake’s invoices
and categorizing expenses as fixed or variable which allows her to identify
exactly where the business’s greatest expenses were coming from and where she
needed to cut costs. Seeking competitive rates from suppliers, renegotiating
contracts, and canceling nonessential services she did cut fixed expenses by
8%.

Concerning
the insurance cost she switched to a less expensive health insurance plan for
employees so the plan by 13%.-Given then Joined Bowling Proprietors Association
of America which enables which enabled her to receive “pre-negotiated,
discounted prices on nearly every small business service as a another cost
reduction strategy of the company.

Moreover
she would able to implement following actions which result major impact on the
cost.

·        
Changed
cleaning services for half the price

·        
Began
using Government sponsored rebate for lightbulbs

·        
decreased
electricity bill by 30%

·        
saved
$11,000 annually from membership discounting

 

Increase the revenue

She
has increased the  revenue by 6 % and
Shelby helped generate first month of profit in 2 years.The demographic
survey  allowed Givens to learn more
about customers’ average income and age as well as how often they bowl and why
they do not bowl more often. Using the survey results decision made to reduce
the 32-week requirement to eight weeks for bowling leagues and she began
marketing this new bowling league to local offices as a way to build
camaraderie among employees.

Given’s
considerations also about

·        
increasing
customer base and the retention through

·        
20%
increase for shoe rental

·        
Opening
hours on weekdays shifted from 12pm to 2 pm

·        
Open
until midnight are also had an direct impact on the revenue.

 

 

Increase
employees’ competencies

The
first major challenge revolves around the employees. It seems the employees do
not take ownership in their jobs, and instead check their phones or read
magazines during work because of there is a lack of communication between the
employer and the full-time employees, which leaves the employees feeling
undirected, unappreciated, and dissatisfied.

It
should increase the effectiveness and efficiency of the all full – time
employees for the contribution to the company and employee satisfaction is a
significant role in the declining revenue of Westlake Lanes.

 

Expansion through investments

To
increase the sales and profits any company must follow some growth statergies
to its services including new features. When small companies employ a product
or service expansion strategy, also known as new service, they continue selling
within the existing market. A product expansion growth strategy often works
well when technology starts to change. A small company may also be forced to
add new products as older ones become outmoded.The research details of the
survey showed two new business plans that would either cater to families with
kids or to young single professionals .The first one involved adding
kid-friendly arcade games and a private space for parties. The second business
plan focused on creating an  urban bowling
lounge  that contained  a full-bar, tapas-style appetizers, table
service, and room for events.

 

4.
Could the challenges identified in (2) above have been avoided. Had the
operations strategy been designed or implemented differently? ( Shashika)

 

The
issues and the challenges were identified after Givens arrival. Mainly the
Westlake Bowling Lanes business was facing a number of different leadership,
financial and managerial challenges. The Westlake Lanes’ core problem is their
increasing expenses and declining profitability. Therefore, Givens had to
address the solution for these problems by decrease expenses and increase
revenues. She shortlisted one by one and took strategic decisions and
initiations accordingly. In order to decrease growing expenses, Givens analyzed
their current fixed and variable costs to find out the possibilities to cut the
expenses. After understanding their financial situation by referring to annual
income statements givens identified different areas where to reduce costs.

Givens
organized Westlake’s invoices and categorizing expenses as fixed or variable.
This allowed her to identify exactly where the business’s greatest expenses
were coming from and where she needed to cut costs.  She thought, Westlake should focus on
decreasing fixed costs by either reducing salaries or benefits of full-time
employees or by expanding the responsibilities for each job and hiring fewer
employees. Next she searched competitive rates from suppliers, renegotiated
contracts, and terminated nonessential services. These strategies enabled her,
cut 8% of Westlake’s fixed expenses in one year. Givens switched to a less
expensive health insurance plan for employees since the current plan was
increasing by 8% each year. Givens joined the Bowling Proprietors Association
of America, which enabled her to receive pre – negotiated, discounted prices.
After analyzing the attendance, she altered the operation during the week by
opening at 2pm rather than 12pm due to low customer attendance during this time
of day. Overall, Givens was able to decrease expenses by 8.5% between 2009 and
the first quarter of 2010.

 

In
order to increase revenue, givens needed to find out who the majority of their
customers and how they can better be served. To increase Westlake’s revenue,
Givens first decided to find out more about her customers by passing out a
demographic survey. This allowed Givens to learn more about customers’ average
income and age as well as how often they bowl and why they do not bowl more
often. Using the survey results, Givens decided to reduce the 32 – week
requirement to eight weeks for bowling leagues and she began marketing this new
bowling league to local officers as a way to build camaraderie among employees.
Givens also researched the Raleigh area to find out what types of new customers
she might be able to attract and what other forms of entertainment are
competing with the company.

 

 Then she started thinking increase revenues,
requires a new business plan to change its operations or services to more effectively
meet customer demand. Givens used the information she gathered from her
research and customer surveys to design two new business plans that would
either cater to families with kids or to young single professionals. The first
business plan involved adding kid-friendly arcade games and a private space for
parties. The second business plan focused on creating an “urban bowling lounge”
that contained “a full-bar, tapas-style appetizers, table service, and room for
events.

Therefore
challenges identified in westlake, have been avoided through the operations
strategies implemented differently by Givens.