Introduction In the current world of business it’s not common to mention that one is commercializing without operations management. Perhaps this is because of the nature of environment that the businesses operate in. It’s always obvious that any person that has worked or served in the operations management capacity must have applied one or two operations management tools. It is important to realize that operations management is one the critical functions of any business today that must be recognized and practiced by every firm. Operations management techniques are particularly important when a business is operating in a very competitive environment and more especially where the return on capital investment is relatively low.
The primary aim of using operations management therefore is to ensure that the business is competing favorably and that is able to sustain its activities (Aksin 2006). Many of the world companies today are operating in very different environments which pose a little bit more complex challenges as opposed to the past. In order to survive, firms are expected to put their focus on how to improve quality of their service delivery, proper management of time, and at the same time ensure effectiveness and efficiency alongside creating good relationships with the customers.
The new focus on operations management has placed businesses on the limelight because that is the only way high level of competitiveness can be attained. Let’s consider some of the world companies that have come out be very successful such as Wal-Mart, Southwest Airlines, and Toyota, Proctor and Gamble and many others. These companies have managed to expand from local status into global status because of the persistent focus on good operations management practices (Easton, and Goodale 2005).
The purpose of this analysis is to critically evaluate, the problem that exists with Fred and Gillian Giles who have chosen to go beyond mixed farming to the paying public where individuals who enter the firm will have the entry fee of $4. At the same the partnership has gone a step further to start a dairy ice-cream just behind the firm. The aim of these changes is to increase the company’s returns and make it more profitable.
The partnership between Fred and Gillian Giles was established in 2006 with the primary aim of working in mixed farming. However, following the low returns from the venture, the two had decided to expand their activities as part of the operations management in order to improve on their diminishing profits. Initially the two had put more emphasis on milk production and marketing of cereal produce which as time went continued to do poorly at the market and could not sustain the business. Following the new design by the operations, the duo decided to establish a farm viewing area where individuals who visit the farm can have the best place to view the activities within the farm at a price.
The area was redesigned to allow for different parking by the customers. The area for parking was designed in such as away to allow parking for personal cars, coaches and trailers. The farm was kind of an exhibition and was aimed at improving the performance of the business. In addition, to the beautiful milking parlours, the site was also composed of the playground for children as one way of enticing people to come to the site.
Further, the enterprise went further to establish a new dairy ice-cream factory as part of the company’s effort to boost its performance and general returns. This factory was also used by the duo for viewing by the visitors. Even though the business has made several efforts to realize its objectives of making good profits and sustain the business, it has not managed to achieve that following a number of challenges as discussed below.