BUSINESS
- Giving of priority
One of the most essential things to note in every corporation and its activities, especially from a financial and resources perspective is the fact that it should be based and focused on investing in the areas that will be most productive and give room for maximum returns. At the same time, it should also focus on investing in the areas that have the most room for growth. In this case, it will be necessary for Jeff to consider and give priority to the facility that will not only promote effective business, but also, maximize on the corporation’s returns (Armstrong & Kotler, 2008). According to the case study, one of the most essential observations to note in this case include the fact that the corporation has been developing consistently in its service provision, with over 200% increase in its service provision. For example, Data Tech has increased its product delivery from 10,000 pieces to 30,000 pieces of mail daily. This shows that there has been an increase in the delivery of products and services, which consequently, has enhanced the corporation’s business. Considering the fact that the company has increased the number of mails to be delivered from 10,000 to 30,000, this makes it necessary for it to develop a strategy through which it will cope with the increase, without laying an extra burden to the employees, as well as the resources that the corporation has, in order for it to achieve and offer effective outcomes and services, respectively. In order to, therefore, determine whether or not the corporation should give priority to the smaller or larger facility, it will be necessary to focus on each of the facilities’ productivity, as well as expenses, especially in terms of investment. In this case, therefore, it will be economically wise to move to a larger facility, since the company will still maintain $1,000,000 profitability on the higher end and that of $600,000 during the off-peak season, as compared to a small facility, which will have lower demands and services, and a consequent profit value of US$500,000, which is lower, considered to a large facility. The only difference between the two facilities if the fact that a large facility will have higher investment demands, compared to a small facility. In this case, therefore, a large facility is more ideal in this case.
- The best alternative and choose weights for the two capacity factors
It is necessary to note the fact that Jeff has been banking on having loyal customers in the provision of his services. In this case, therefore, retention of his customers is one of the most essential aspects to note in this case, and it should be a major tenet in determining the company’s growth capacity. At the same time, it is necessary to note the fact that Jeff’s core goals in this case is achieving high returns, as well as increase in his delivery capacity per output, since this will ensure that he maintains high profitability levels. In this case, therefore, the large facility is the best alternative, considering the fact that it only has an initial cost of investment, and consequent high profits (Crane, 2011).
- Selection of a new location for Data Tech
It is necessary to note the fact that the location that the business will be established should be considered, especially before relocating a business entity, based on several aspects. In order to select a strategic location for a business entity, including the size of the same, there are several factors that should be put into consideration. These include the selection strategy, and this case will look at factor rating.
- Determining the criteria and goal for an ideal outcome- Considering the fact that Jeff seeks to establish a strategy through which the company will achieve high delivery in terms of numbers, the location will have to be a strategic point, especially for the transport of the mails and other products such as bills.
- Success factors- Jeff and Data Tech Inc. will have to look at the goals that he seeks to achieve for the corporation as success factors, and these include high level productivity 9with an optimum goal of US$1,000,000) as this will guide him in ascertaining whether or not the new location is ideal.
- Difference in factor analysis
The factor analysis would be different, especially if Jeff selected the small facility alternative. This is due to the fact that the corporation would have different goals, especially from a financial perspective in terms of profitability and returns. This will, consequently, affect the weighted ratings and the overall results for the factor analysis, and consequent achievements and returns for the corporation. Considering the fact that the corporation would register lower returns in terms of profits, this would consequently affect the corporation’s effective service delivery, especially, from a service perspective, since less products and items (such as letters and bills) will be delivered (Crane, 2008). This might, in severe cases, end up negatively affecting the 30,000 number.
References
Armstrong, G. & Kotler, P. (2008). Principles of Marketing. New Jersey: Prentice Hall, p. 208.
Crane, C. (2008). Marketing. New York: Harvard University Press, p. 78.
Crane, F. (2011). Marketing with Connect Access Card, 8th Canadian Edition. New York: McGraw-Hill, p. 90.
