Company Name: Avantor

This section will be revised for those teams doing a service company. While the basic arguments are the same, the methods will be different. Consult with your instructor before beginning this section if you are doing a service organization. The objective of the operations function is to increase productivity. Are they achieving this objective? This is also the functional area where you can best evaluate whether your company is following the logic of re-investing in itself (the logic of the managerial enterprise)?

1. In order to achieve improvements in productivity, the company must be re-investing itself. What is the trend in capital spending? What is the trend in productivity improvement?

2. In combination with the marketing section, has this company emphasized product development, or diversification, for growth (the Chandler argument)?

3. Operating leverage: How has the mix of people to capital changed over time--are fixed costs rising? What are the trends in costs per unit of labor, inventory control, etc.?

4. Research and Development: What return is the corporation receiving from its R&D investment? Is the company technologically competent? How well does the company's investment compare with similar corporations? What is the bang for the buck! Provide a conclusion to this section. I suggest using a decision matrix. From your analysis, what are the strengths and weaknesses of this function?