Developing Good Business Sense Free Essays

Choose three companies and observe how employees do their tasks. These can be three different fast-food restaurants or three entirely different types of companies, such as a fast-food restaurant, a department store, or the emergency room of a hospital. In doing this research paper I was able to observe businesses in three different fields. We will write a custom essay sample on Developing Good Business Sense or any similar topic only for you Order Now I observed an Electronics Store where the employees were paid on commission, a clothing store that paid their employees an hourly salary and a shipping company that paid its employees an hourly salary. While visiting the electronics store that paid their employees a commission salary based on their sales, I noticed that the employees were extremely polite and helpful. I was greeted by a lady as soon as I walked in the building. She welcomed me by informing me that they were happy to have me in and they were readily available to assist me with any questions I had. I also noticed that the employees in this company were very knowledgeable and took pride in their appearance as well as the appearance of their store. They were also very aggressive in their efforts to convince me to buy something. The second establishment I observed was a clothing store that paid their employees an hourly salary. While in this store I noticed that the staff was not as strong with the level of their customer service. They had a greeter at the door that was responsible for greeting customers as they entered the building. The store had a more laid back atmosphere to it and the employees were more focused on folding clothes and packing the shelves instead of assisting the customers and providing customer service. The third business that I established was a shipping company that pays its employees an hourly salary. The employees in this business were focused on providing excellent customer service while processing transactions in a speedy manner. The employee that greeted me was very polite but she was also trying to service me in a speedy manner so she could move on to the customer waiting in line. I was pleased with her service because she remained polite and she was very knowledgeable which made it easy for her to answer all my questions. Think about the differences in the operations involved in the input, operations, and output stages of these companies. Try to identify the nature of their operating systems. Are employees organized in different ways? If so, why? If possible, talk to the managers and employees in these operations to further your analysis. Based on my observations of the three businesses I used for this research paper I was able to generate three different theories about their operations and how their employees are organized. The electronics store that pays their employees a commission salary has a specific culture that is determined by their pay structure. After speaking to the store manager I discovered that the company strives to create an incentive based culture where employees are rewarded based on their sales. The company uses these sales incentives to motivate their staff in every manner for example. After an employee is hired they are taught that their sales and commission are directly affected by their knowledge level, their level of customer service and the look and appearance of their store among other things. The company informs the employees that they can make more money by being knowledgeable and focusing on customer service because knowledge and customer service builds credibility and trust with customers which leads to customer loyalty and repeat business. They are also taught that the appearance of their store directly impacts the customer and their commission because if the store looks good, the customers will be comfortable and more likely to buy (Smith, 2010). After observing the employees and speaking to supervisors in the clothing store with the hourly employees I found out that the company focuses on motivating the staff through consistent recognition and high accountable. When an employee is hired, the managers discuss the company policies and standards while setting expectations with the employee. The manager then spends a majority of their time teaching the employees how to work effectively. After training the employees, the managers put themselves in positions to observe the staff members so they are able to provide feedback. They make every effort to catch the good behaviors so they can provide recognition and boost the employee’s morale but they are also willing to provide developmental feedback when necessary. The manager informed me that this approach works for their company because it creates a fun and positive environment and the employees know they will always be treated fairly (Thomas, 2010). The shipping company had a completely different manner of operation because of the business they were in. The manager informed me that their company is more focused on working fast and efficient. The company’s goal is to deliver packages before deadlines and they train their employees to execute all their operations in the same manner. The company gives the employees goals and deadlines for every aspect of their job. For example, they have a specific time that they have to report to work, stock the delivery truck, inspect the truck and deliver packages. The company makes everything time bound and the employees are expected to do as much as they can with as little as possible (Holmes, 2010). How to cite Developing Good Business Sense, Essay examples Developing Good Business Sense Free Essays Developing Good Business Sense Axia College of University of Phoenix BUS 210 Developing Good Business Sense June 29, 2008 The three companies I selected for this assignment are McDonalds, Bose Corporation and Motorola. From the reading I was able to determine the employee’s organizational structure within this company’s by which they complete their jobs. I will review and outline the main kinds of Operations and Materials Management (OMM) processes these companies use, and how it affects their operations. We will write a custom essay sample on Developing Good Business Sense or any similar topic only for you Order Now Also, I will discuss how companies design their operating systems to give them a competitive advantage. I will identify which components of operations and materials management costs and the methods companies use to reduce them. McDonald’s is a highly successful and well recognized brand leader of fast food restaurants located around the world. They sell hamburgers and french fries as their primary products, and they work with many different food suppliers such as hamburger bun manufacturers, beef producers, produce suppliers and many others, to ensure their foods are as fresh as possible. McDonald’s sells franchise rights to local owner/operators which allow them to keep costs low and avoid high capital and plant investment costs. Since a great deal of McDonald’s service is reliant on delivering customer’s food fresh, McDonald’s use the Just in Time (JIT) inventory management system. This system reviews stock inventory levels available against product usage, and arranges delivery and restocking to the restaurants just as inventory items are needed. This allows inventory to be kept to a minimum in each franchise location. Foods for the restaurants are not warehoused for days or weeks, and are efficiently managed under this system so they are used quickly and, freshness is guaranteed. Each franchise owner keeps labor costs down by managing store staff schedules against the peak customer periods when the restaurant gets busy. Another technique McDonald’s uses to keep distribution costs low, is to have soft drink company’s ship only the soda syrup mix needed for each brand, which is then mixed with carbonated water at the soda fountain in the store. McDonalds has also begun to employ the use of robotics to complete routine, repetitive tasks such as filling soda orders for the drive through window and dumping fries into the fry maker, as a means of making their food quicker and less expensively. Over time the return on investment for these developments will pay off greatly in saved labor costs. Of course, the most important element in any McDonald’s restaurants is that employees must be organized and communicate effectively. Wasted food equates to wasted money and if a special order is needed, staff must talk to each other to make sure it is done right the first time. By working together as a team the cooks, preparation staff, and cashiers help to keeps the orders organized and production is kept high. The Bose Corporation is a world renowned manufacturer of high-fidelity speakers and audio equipment. The company’s ability to meet customer demand for their products is dependant on the supply chain and availability of components needed to complete customer orders. The company uses a supply chain network that is spread across the globe, with their primary source of over 50% of purchased components coming from the Far East. Logistics managers within the company bear the responsibility of moving the vast amounts of equipment into production, based on a real-time inventory management system called â€Å"ProterLink†. This system is able to locate supplies that are needed anywhere in the shipping chain, and divert them if necessary to meet an accelerated production schedule if necessary. This operational system gives Bose the advantage of meeting large customer’s orders without missing a beat. Transportation costs associated with material movement and management from suppliers to their Bose’ production facility would be a key cost consideration for the company. If supplies needed to fill orders are transported efficiently and are timed to correspond to production schedules, costs would be lower because unnecessary components would not take valuable inventory space away from items that are in need to complete orders, thereby maximizing production effectiveness. Motorola, a global communications leader, is using a unique forward thinking production plan to bring their services and products to market. In their self-named, â€Å"factory of the future†, custom made communication devices can be produced very quickly for customers, giving Motorola a competitive advantage. The process starts with sales person who receives the order and inputs all of the customer’s customization preferences. This information is provided as a barcode and relayed to the production facility, which uses automation technology (robots) to produce the phone in accordance with the customer’s wishes. Using robots gives Motorola a competitive advantage because they are able to mass produce large volumes of customized phones, with only a two-hour turnaround window. The universal operational strategy in any business is to meet the goal of customer satisfaction. The company’s reviewed accomplish that goal through improving quality and efficiency, and ultimately reducing costs. [pic] How to cite Developing Good Business Sense, Papers Developing Good Business Sense Free Essays Developing Good Business Sense Jennifer Lapaix BUS/210 February 28, 2010 Joanna Gierak The most over looked functions in any successful company is the Operations and Materials Management, commonly referred to as OMM activities. Operations are the functions or services that convert the input to a company into finished products and services. Materials management is the process that resources into and out of the operating system. We will write a custom essay sample on Developing Good Business Sense or any similar topic only for you Order Now To develop a good business sense you must understand how operations and materials management differ in various types of companies. The three companies I have chosen to examine are part of different industries, but Microsoft, In-N-Out Burger, and Dillard’s all share the success of a good business sense. Microsoft’s employees are selectively chosen and are programmed with prior advanced knowledge of software creation. They are expected to be pioneering and proficient with the software they create. Microsoft strives to bring user-friendly and efficient software to its customers and can only do so with employees who are team-oriented and motivated to challenge the competition (Microsoft, 2010). Microsoft’s operating system is complex but revolves around a simple idea of staying ahead of the curve in software production. The company maintains a high competitive edge over competition by supplying operating systems to almost all PC’s. The company has also branched into game console sales and will soon open individual retail locations. The downside to monopolizing the software industry and driving out competition due to incompatibility with other providers is the amount of capital spent on lawsuits and government fines. Microsoft’s reputation in the computer world may be tarnished by overly competitive operating system (Microsoft, 2010). Microsoft’s OMM costs include high salaries due to the very advanced and experienced nature of their employees. Employees are teamed and given specific goals to reach. With a challenging, but loosely controlled atmosphere, Microsoft gives its employees the room and materials to create groundbreaking software at a calm but rapid pace. Other, less expensive costs might include suppliers for equipment. Because so much of our technological items are imported, Microsoft can instead place production costs into advertising and distribution. E-commerce has further lowered the cost of distribution for Microsoft, who can now sell full operating systems and software over the Internet without the need for packaging expenses (Microsoft, 2010). In-N-Out Burger, established in 1948, is a fast-food hamburger and fries restaurant that specializes in personalized and extremely efficient service. The business philosophy is simple: â€Å"Give customers the freshest, highest quality foods you can buy and provide them with friendly service in a sparkling clean environment. † (In-N-Out History, 2010, para. 2) Employees of In-N-Out Burger can be trained from scratch, are energetic, customer service oriented, and expected to deliver high quality food. Employees are polite and friendly at all times and maintain a clean environment in the entire restaurant thus following in the founder’s business philosophy. The nature of In-N-Out Burger’s operating system is one of quality, since its inception in 1948 the menu and recipes have not changed. While other fast food restaurants use processed food or frozen food, In-N-Out Burger makes everything the old fashioned way. Also, another signature key to all In-N-Out stores is windows all around showing employees cutting vegetables for the burgers and potatoes for the fries right in front of the customers. In-N-Out’s menu only consists of burgers and fries, nothing more because the quality is so fresh and good that customers come back time and time again keeping the stores packed all day long. In-N-Out Burger’s OMM costs include mostly food and salary. Employees at In-N-Out burger, unlike other fast food chains, have a low churn rate and are paid above the industry average with full benefit packages. Employees are extremely team-oriented. As opposed to working in smaller groups, all employees on the clock are considered one team, relying on one another to eet In-N-out Burger’s reputation for rapid service and correct, quality orders. By using this type of one-mind employee organization, the restaurant runs smoothly and more efficiently from all angles even when in a small, enclosed environment. The training systems used are vigorous and motivational with a substantial amount of time and attention given to newly hired individuals. Since all branches are franchised, advertising expenses are much lower and help a franchisee to build his or her branch without becoming overwhelmed (In-N-Out Burger, 2010). Dillard’s, one of the leading high-end retail chains in the nation, specializes in exemplary customer service and brand name clothing. Dillard’s employees are extremely professional and sales-oriented. They are expected to dress cleanly and attractively to further the reputation of the company. Service at Dillard’s is top of the line and employees must be knowledgeable in their area. They must have a friendly, but not overpowering demeanor (Dillard’s, 2010). Dillard’s functions with an operating system designed for high-end customer service and fashion. Their success and reputation since 1938 has given them a competitive edge over newer high-end retail outlets. With a history of intelligently acquisitions, Dillard’s has expanded its presence across the United States rapidly. Catalogue sales and credit card options have also furthered the company’s competitive edge (Dillard’s, 2010). The OMM costs of Dillard’s are almost exclusively inventory costs and salaries. Though their clothing is marked up for consumers and can be purchased at low mass costs, such large quantities of clothing still amount for a good portion of spending. Employees at Dillard’s are given higher than average pay and extremely competitive benefits. Many of the employees are sales-driven with high commissions available to the best sales-people. The company prefers to hire individuals who have past retail or sales experience, and a flair for professional style. Similar to Microsoft, Dillard’s has also benefited in lower distribution costs due to E-commerce (Dillard’s, 2010). Employees are the backbone of these successful business and their operating systems are very dependant and focused on them. Even though they are yet again similar, these companies have very different ways of organizing their employees to improve profit and reputation. Because of the dramatic difference in industries and services offered, these companies have varying operating and materials management (OMM) costs. Costs such as those mentioned above effect a company’s overall profit. In order to deflate the OMM costs, companies like Microsoft, who are spending large percentages of capital on salary and benefits, may look to lowering production and distribution costs. Since software is easily downloaded from the Internet, Microsoft drives Internet sales to avoid packaging and delivery of their software. Other ways that Microsoft has cut down on employee expenses is outsourcing. Technical support is handled by cheap labor in other countries while software creators, who are highly paid and demanded, remain in the United States. Customer service may decline due to language barriers. The weight between savings and reputation must be carefully weighed in order to sustain a semblance of service with the customer base (Microsoft, 2010). In-N-out Burger cuts costs by using distribution centers that are nearby and even sometimes in the same city. By not purchasing foods that too far away, In-N-out Burger is able to hold a standard of quality food for customers but also can keep food fresh longer, reducing the amount of spoiled surplus and dissatisfied customers (In-N-Out burger, 2010). Dillard’s may cut OMM expenditures by under-ordering clothing. The high-end nature of the business means that sales can be slow and therefore clothing must be sold, once out of season, to other retailers at lower costs. Although selling the clothes gets back a portion of the initial costs, selling at the mark-up price is more advantageous (Dillard’s, 2010). References In-N-Out Burger. (2010). History. Retrieved March 1, 2010, from http://www. in-n-out. com/history. asp In-N-Out Burger. (2010). Employment Restaurant. Retrieved March 1, 2010, from http://www. in-n-out. com/employment_restaurant. asp Wikipedia. (2010). Microsoft Corporation. Retrieved March 1, 2010, from http://en. wikipedia. org/wiki/Microsoft Dillard’s. (2009). Career Options. Retrieved March 1, 2010, from http://www. dillards. com/sec/SecHeaderServlet? secflag=c How to cite Developing Good Business Sense, Papers