Strategic Operations Management Case Study

1788 Words Apr 17th, 2015 8 Pages
MGMT7.04 Strategic Operations Management
Case Study 1

Due Date: 20.03.2015

1. Introduction 3
2. Hagen Style’s important operations resources 3
3. Hagen Style’s market requirements 4
4. Courses of action 5
4.1 Three alternative courses of action 5
4.2 Evaluation and justification of courses of action 6
5. Recommendation 6
References 8
List of figures 8

1. Introduction
Hagen Style was a firm which sold kitchen equipment, tableware and small gadgets. It was a very strong and lucrative company in Europe. Selling its products through department stores, Hagen Style developed as a trendsetting firm with regarding to direct marketing operations. Hagen Style engaged a number of tactics which allowed them to work al
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Hagen Style was delivering the final product packed in a box back to the representatives and the representatives were handing down the orders to consumers. The upside to this was that Hagen Style’s carriers did not need to deliver directly to individual costumers.
The company could also provide a fast throughput regarding their packing technology. Hagen Style distinguished themselves in their fulfilment operations. They provided a fast processing chain with far fewer packing errors, where mistakes were soon revealed through weighing of the packed boxes. All in all they were offering a really fast pass through their process chain from ordering to dispatch. (Nigel Slack, Operations Strategy, 2008) (Nigel Slack, Operations Strategy, 2008)

Figure 1: Hagen Style' s important operations resources

3. Hagen Style’s market requirements
Hagen Style’s sales tactic was to work with a big network of representatives who were personally selling kitchen products to consumers in their homes or at public places. The market changed and the tactic did not work anymore.
The target market made it clear that traditional representative sale channels were declining in popularity. New channels were born and selling with representatives was no longer as profitable as it was at the beginning for Hagen Style. Even though this selling process was very cost efficient and provided a fast delivery, it no longer worked well when the market changed. Consumer demand