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The company will not necessarily shift to a make-to-stock operation completely; freshness, after all, is always a concern when it comes to a food product such as cookies. In terms of order taking, more orders can be accepted if the cookies are to be standardized.
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Having said that, the operational effects of putting up the cookie company without the assistance of a roommate would include:
- reduced capacity to accept orders
- increased preparation and production time
- extended waiting time (between the time an order is placed and subsequently accepted to the time the order is delivered)
- losing the capability to attend to other matters while the roommate is addressing a particular stage of the production process, particularly the baking and post-baking steps (oven-baking the cookies, cooling, packing, and accepting payment)
- reduced man-hours = reduced output within a given period
Other forgone benefits if one were to push through with a solo operation include ideas that would not have been generated if one were to brainstorm with a business partner (with regard to process improvement, marketing/advertising strategy, etc...
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Case: Kristen’s Cookie Company (A)
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Outline The Main Benefits And Costs To Society From Advertising. Does Advertising Necessarily Lead To A Higher Price For The Product?
Solution To Kristen'S Cookie Company
Using any company with which you are familiar with, identify some of the social, cultural and ethical issues relevant to its operation. Comment on how it has, or might, adapt its policies to deal with these issues
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