End Term Questions-OS
End Term Questions-OS
Unit 1
Case Study 1: Expansion Challenges at QuickServe Inc.
QuickServe Inc., a leading fast-food chain, has built its reputation on fast service and dependable
delivery in densely populated urban areas. With increasing market saturation in cities, the company
is considering expanding into rural regions. However, this presents significant challenges:
maintaining consistent delivery times, adapting to the logistical difficulties of less-dense areas, and
allocating resources effectively. Urban operations rely heavily on clustered store locations and
centralized supply chains, which may not work efficiently in rural settings. Additionally, the
company fears losing its competitive advantage if it cannot uphold its promise of fast delivery. The
leadership is now at a crossroads, debating whether to strengthen its urban presence further or take
calculated risks by entering rural markets.
Questions:
1. Analyze how QuickServe's operational goals align with its strategic objectives.
2. Develop a recommendation for managing operational challenges during expansion.
Answers:
1. QuickServe's operational goals of reducing delivery times and ensuring reliability strongly
align with its strategic objective of offering unparalleled speed and dependability.
However, rural expansion could disrupt these goals due to increased delivery distances and
scattered populations. To align operations with strategy, QuickServe must adopt a tailored
logistics approach, such as micro-hubs for faster delivery, to preserve its service promise
while expanding its reach.
2. QuickServe should pilot rural operations in regions with moderate density to test logistical
adjustments. Implementing smaller, localized production units or food trucks could
mitigate delivery delays. Partnering with local suppliers reduces transportation time and
costs. Gradually scaling operations allows QuickServe to refine its model while ensuring
operational efficiency and preserving its brand reputation.
Unit 2
Case Study 1: Capacity Management at Green Energy Inc.
Green Energy Inc., a solar panel manufacturer, has seen exponential growth due to increased
demand for renewable energy solutions. Currently, the company employs a lag capacity strategy,
expanding production only after demand exceeds capacity. While this approach minimizes
financial risks, it has resulted in delays during peak seasons, damaging customer satisfaction and
leading to lost sales opportunities. To address this, the management is considering transitioning to
a lead capacity strategy, which involves building additional production facilities in anticipation of
demand growth. However, this strategy carries significant risks, including high upfront investment
and the possibility of overcapacity if the demand forecasts are inaccurate. The leadership team
must decide on the best capacity strategy to meet future growth needs while balancing financial
and operational risks. The decision has far-reaching implications for Green Energy’s market
reputation, operational efficiency, and long-term profitability.
Questions:
1. Analyze the trade-offs between lead and lag capacity strategies for Green Energy Inc.
2. Recommend a capacity strategy that balances growth with financial stability.
Answers:
1. A lead capacity strategy positions Green Energy as a proactive market leader, ensuring it
can meet customer demands during peak seasons. This reduces the risk of losing customers
to competitors and enhances delivery reliability, boosting customer loyalty. However, the
high upfront costs of building new facilities and the risk of overcapacity could strain
financial resources. Conversely, a lag strategy minimizes financial risk by avoiding
investments until demand is confirmed. However, it risks damaging the company’s
reputation due to delays and unmet customer expectations during high-demand periods.
Both strategies have trade-offs, and the choice depends on the company’s market position
and financial health.
2. A hybrid approach, such as a match capacity strategy, would best balance Green Energy’s
growth and financial stability. This involves incremental capacity expansions in response
to short-term demand trends while using subcontractors or temporary facilities during peak
periods to prevent delays. To further mitigate risks, Green Energy should invest in
advanced demand forecasting tools and flexible production systems that can adapt to
fluctuations. By adopting this approach, the company can ensure scalability, preserve
customer satisfaction, and manage financial risks effectively.