Question

Healthy Foods is a restaurant that is located in the centre of Hana Town. It provides a variety of delicious food that customers can choose from. Competition is very intense in this area of town so, Healthy Foods has to ensure that its customers are provided with an excellent product at all times. This would ensure that they return regularly. The operations manager is aware of the level of competition and knows that he has to make sound decisions to ensure that customers are satisfied. Along with other Operations Manager decisions, the Operations Manager makes the following decisions on a regular Basis.

What are the factors that he should consider before choosing a strategy?

Answer 1

answer-

The factors that Operations manager must consider before choosing a strategy are-

Cost of inventory-

Cost of inventory plays very important role because if Operations manager choose a strategy in which demand is less and production is constant or over capacity then cost of inventory will increase and restaurant will face loss in business.Inventory level should be optimum to meet demand while keeping ordering and holding cost low.

Quality of Food-

Quality is very important because every customers likes to have quality food in a restaurant. If this restaurant is able to provide high quality food then customer satsifaction will increase. They can do having proper quality control of food before going to customer table, have frest ingriedients to cook food etc.

Level of competition-

Competition always considered threat to business so if restaurant wants to choose and implement an effective strategy then consider competitors in the market. Find out thier strategy like they provide food at low cost with poor quality, low cost at high quality or high price at high quality. then see factors why customers go there and how we can attract to our restaurant.

Market condition-

Operation manager must consider market condition like proximity to market, infrastructure, availability of resources like menpower etc these would help restaurant to make its delivery strategy if customer want food at thier home. so more close to market then less supply chain cost and high customer satisfaction.