Summary Of The Operational Failures Of Whittaker's Chocolate
1162 Words5 Pages
Operations management (OM) is critical for the successful output of products and services. At the core of OM are efficiency, quality and cost, which should be administered well to generate efficiency at all levels of production (Kaplan & Norton, 2015). But when a company experiences internal or external challenges that impede the execution of the three fundamentals of OM, then the business may experience adverse effects. This is what was experienced by Whittaker’s Chocolate in 2015 when the company’s sales declined due to a drastic increase in the prices of chocolate that reduced the rate of demand (McConnell & Clayton, 2016). For a company that has established a brand that thrives on economical and quality chocolate, the increase in prices reduced the sales. In addition, the lack of communication with the customers added to situation as the prices had been stable for a while. Although the increase in prices is attributed to a more refined taste – through a supply of expensive ingredients – the company would have still maintained the cost and averted declined sales. This divulges an operational problem to do with supply chain and customer relations. This report analyses the operational failures of Whittaker’s Chocolate and provides recommendations for improvement.
2.0 Whittaker’s Operational Failures
This sections discusses the operational failures that led to the sales decline of Whittaker’s chocolate. The failures are linked to product and service