Case Study

Read the case presented below and answer the question that follows.

Bethel had worked for the Fortune Company for almost 15 years. Although the company had gone through some tough times, things were starting to turn around. Customer orders were up, and quality and productivity had improved dramatically from what they had been only a few years earlier due to a companywide quality improvement program. So it came as a real shock to Bethel and about 400 of her coworkers when they were suddenly terminated following the new CEOs decision to downsize the company.

After recovering from the initial shock, Bethel tried to find employment elsewhere. Despite her efforts, after eight months of searching she was no closer to finding a job than the day she started. Her funds were being depleted and she was getting more discouraged. There was one bright spot, though: She was able to bring in a little money by cutting grasses for her neighbors.

She got involved quite by chance when she heard one neighbor remark that now that his children were on their own, nobody was around to cut the grass. Almost jokingly, Bethel asked him how much he would be willing to pay. Soon Bethel was cutting the grasses of five neighbors. Other neighbors wanted her to work on their grasses, but she didnt feel that she could spare any more time from her job search. However, as the rejection letters began to pile up, Bethel knew she had to make a decision.On a sunny Tuesday morning, she decided, like many others in a similar situation, to go into business for herselftaking care of neighborhood grasses. She was relieved to give up the stress of job hunting, and she was excited about the prospect of being her own boss. But she was also fearful of being completely on her own. Nevertheless, Bethel was determined to make a go of it.

At first, business was a little slow, but once people realized Bethel was available, many asked her to take care of their grasses. Some people were simply glad to turn the work over to her; others switched from professional grass care services. By the end of her first year in business, Bethel knew she could earn a living this way. She also performed other services such as fertilizing grasses, weeding gardens, decoration and groundcover. Business became so good that Bethel hired two part-time workers to assist her and, even then, she believed she could expand further if she wanted to.

Questions

Bethel is the operations manager of her business. And hence, all responsibilities of an operation manager are now the responsibilities of Bethel. Explain the major ones in relation to her businesses?

In what ways are Bethels customers most likely to judge the quality of her lawn/grass care services?

The town is considering a new regulation that would prohibit putting grass decoration at the curb or on the side of the road for pickup because local landfills cannot handle the volume. What options might Bethel consider if the regulation is passed?

Bethel decided to offer the students who worked for her a bonus of $25 for ideas on how to improve the business, and they provided several good ideas. One idea that she initially rejected now appears to hold great promise for competitors. The student who proposed the idea has left, and is currently working for a competitor. Should Bethel send that student a check for the idea? What are the possible trade-offs?

All managers have to cope with variation.

What are the major sources of variation that Bethel has to deal with?

How might these sources of variation impact Bethels ability to match supply and demand?

What are some ways she can cope with variation?

Bethel is thinking of making some of her operations ethical and sustainable. What are some ideas she might consider?