Chapter 02 - Case Analysis Home-Style Cookies PDF

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Summary

Summary This case study revolves around Home-Style Cookies, produced by the Lew Mark Baking Company, it is run by two brothers and started in a small town located in New York State. It is said that the company has around 200 employees throughout the establishments. The types of processes that I noti...

Description

1. Summary This case study revolves around Home-Style Cookies, produced by the Lew Mark Baking Company, it is run by two brothers and started in a small town located in New York State. It is said that the company has around 200 employees throughout the establishments. The types of processes that I noticed the company focuses on is efficiency, down to the way they handle waste, and their preparation of the products, they operate on a very high standard and cut much of the costs by efficiently using everything at their disposal. Their main selling points within the market are their only product, soft cookies, which have close to over 50 variants made with care and quality in mind. These cookies are boasted to contain no additives or preservatives and have proven to be popular among those over 40 and those who like their cookies flavorful but not too sweet.

2. Questions a. Briefly describe the cookie production process. The production process starts out at the giant mixing machines which are automated to send out the proper amount needed for each order and type of the cookies. The computer of the mixing machines is handled by the employee that checks the master list for the amount of orders and adjusts the settings as needed. The ingredients are then mixed with the proper amount into a batter that is then cut up into the individual cookies. The cookies are then separated into filled and non-filled cookies and are transported to the ovens for baking. Once the baking is done, the cookies are placed in the baking racks where once cooled, are placed individually into their boxes.

b. What are two ways that the company has increased productivity? Why did increasing the length of the ovens result in a faster output rate? The company has made efforts into increasing its efficiency and productivity by expanding the sizes of its ovens and by sequentially baking their cookies. The increased size of their ovens greatly benefits the number of cookies they bake because of the batch processing system in place which increases the number of batches they can make at a time. And they also bake their cookies in a sequence that allows them to minimize the downtime for cleaning by making it so that after each batch of a type of cookie, they don’t need to clean everything up to prepare for the new one. c. Do you think that the company is making the right decision by not automating the packing of cookies? Explain your reasoning. What obligation does it have to the community? Is the size of the town a factor? Would it make a difference if the company was located in a large city? Is the size of the company a factor? What if it were a much larger company? Not automating the packaging of the cookies help does not help the company directly but they are able to employ the people that need it. Giving jobs to the local workers and help in lowering the unemployment rate of their community, especially in women. The company’s obligation to the people that work there and the surrounding community is to continue on with giving the people jobs, for the company would receive backlash for firing people just to cut the cost, and their reputation would suffer in their local area. If the town was maybe a bigger one or a large city, these decisions would be much more common and therefore wouldn’t receive as much backlash. The company also being a somewhat small one with most baking companies having over 300 employees also benefit a lot of praise from the community for staying true to its roots.

d. What factors cause the company to carry minimal amounts of certain inventories? What benefits result from this policy? The company keeps minimal inventory of their labels for they order them frequently and in small batches as to not let their labels go to waste for the FDA requirements are always subject to change. And to stay true to the promise of having no preservatives added, they have to be shipped out after a short while if not immediately due to the cookies’ short shelf life. The company makes the most of the situation and what they have along with the efficient means of their handling with their packages. e. As a consumer, what things do you consider in judging the quality of cookies you buy in a supermarket? As a consumer that often puts quality over quantity first, often what I look at first is the packaging, how well it’s made, how well the designs are executed, and so on. The packaging isn’t really a major factor but oftentimes the high-quality products you find in convenience stores are packaged in a nice way, it doesn’t have to be pretty or flash or well-made but I think it should be pleasing to the eyes. Another factor as well as the ingredients used in the cookies, some cookies being sold in the market are oftentimes just dough with coloring and flavoring. f. What advantages and what limitations stem from the company’s not using preservatives in cookies? The company capitalizes on it being “good food” to the consumer channel, and as I’ve stated before ingredients do matter when it comes to what cookies the consumer will buy. But of course, it isn’t the case with everyone and some might even be turned away from the cookies by the fact that they use preservatives and additives. Some that don’t care about the ingredients much mainly look for taste and by not adding additives, the taste is being held up on a foundation of natural sweeteners as well as

pure cocoa. There being no preservatives can also limit many things, especially since the shelf life of the cookies would not be too good. g. Briefly describe the company’s strategy. The strategy of the cookie company is to remain a town-oriented business that keeps its employees on even at the cost of improved production. The company means to market their cookies to a limited tristate area. The cookie company strives to make health-conscious cookies that are marketed as “Good Food” because they do not use preservatives in the production of their cookies....