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Transcript of 187
To prevent the depletion of Hazel's financial resources by having a continuous source of income.
Hazel is to choose from the most income-generation method to have continuous financial stability supporting her basic needs.
Statement of the Problem:
- Prompt customer service and good service.
- Health of the lawn: green grass, shrubberies, neatness and cleanliness of the lawn, foliage.
In what ways are Hazel's customers most likely to judge the quality of her lawn care services?
- possible increase/decrease in market share
- cost of inventory, equipment , and other related materials
What kinds of things would likely require forecasts?
Hazel is the operations manager of her business. Among her responsibilities are forecasting, inventory management, scheduling, quality assurance and maintenance.
Equipment: lawn mower, grass cutter, rake, blades
oil and lubricants, seeds, fertilizers
What inventory items does Hazel probably have? Name one inventory decision she has to make periodically.
Fertilizers have to be supplied periodically.
Service is done periodically and not leave idle days.
Application of fertilizers should not be done during rainy days.
What scheduling must she do? What things might occur to disrupt schedules and cause Hazel to reschedule?
Seasons affect the scheduling.
Continuous customer loyalty
How important is quality assurance to Hazel's business?
- Maintenance of equipment
- Good customer service
What kinds of maintenance must be performed?
What are some of the trade-offs that Hazel probably considered relative to:
Minimal risks Vs. Flexibility
Working for a company instead of for herself?
Higher risks Vs. High income
Expanding the business?
expenses, hiring, equipment
but will reach more potential customers
Launching a website?
The town is considering an ordinance that would prohibit putting grass clippings at the curb for pickup because local landfills cannot handle the volume. What options might Hazel consider if the ordinance is passed?
Hazel could cut the grass more frequently.
Pro: The grass would be healthier and have a better root system.
Con: Too much clippings would damage the lawns.
Hazel could gather the grass clippings and make compost out of it.
Pro: Reduce the cost of buying fertilizer
Con: It would take time, effort and add costs to make compost fertilizer
Hazel decided to offer the students who worked for her a bonus of $25 for ideas on how to improve the business, and they provided several good ideas. One idea that she initially rejected now appears to hold great promise. the student who proposed the idea has left , and is currently working for a competitor.
Should Hazel send that student a check for the idea? What are the possible trade-offs?
She should send a check, and give credit.
- increase trust and set an example.
All managers have to cope with variation.
What are the major sources of variation that Hazel has to contend with? How would they impact Hazel's ability to match supply and demand? In what ways can she cope with variation?
Additional services like fertilizing lawns, weeding gardens require more staff.
To compete, she could give service packages, and do custom jobs like make gazebos, fountains etc.
Seasons also affect Hazel's business.
Staff should be in full capacity during summer, spring and autumn.
In winter, she might need to hire people.
Hazel needs to have contingency plans during sudden weather changes.
Contractual and seasonal workers would also affect the business function.
She should also make a strict timetable.
Hazel is thinking of making some of her operations sustainable. What are some ideas she might consider?
Through the use of lawn mowers that do not emit any pollutant chemical or the use of fuel or electricity.
Hazel had worked for Fortune 500
for 15 years.
Hazel, along with 400 other workers were
terminated due to the new CEO's decision
to downsize the company.
Hazel decided to put up a lawn
mowing service business.
Review of Hazel
What competitive advantage does Hazel have over
professional lawn service?
Hazel would like to increase her profits
but she doesn't believe that it would
be wise to raise her prices considering
the current state of local economy. Instead,
she has given some thought to increasing
A. Explain how increased productivity could be an
alternative to increased prices.
B. What are some ways that Hazel could increase productivity?
- Redesign/ Improve system for efficiency
- 2:1 Customer ratio
- Workforce training
- Incorporate technology
Hazel is thinking the purchase of new
equipment. One would be power sidewalk edgers. She believes edgers will lead to an
increase in productivity. Another would be a
chainsaw, which would be used for tree
pruning. What trade-offs should she consider
in her analysis?
If Hazel purchase the edgers and chainsaw would mean:
Additional services to be offered to customers.
Increase in customers which could mean
increase in profit.
Increase the company's flexibility in terms of
Additional expense for buying the equipment
(more than $1000),maintenance and depreciation cost.
Increase productivity because of the equipments' capability.
Edgers and chainsaws help speed up the
services which could have additional customers per
Additional workforce, additional labor expense.
If Hazel did not purchase the edgers
and chainsaws would mean:
No expenses for additional equipment, maintenance and
depreciation costs, labor expense.
No additional profit. (Company is conservative)
Efficiency of services remains.
Hazel has been fairly successful in her
neighborhood, and now wants to expand to
other neighborhoods, including some that are five
miles away. What would be the advantages
and disadvantages of doing this?
Difficulty in finding people, equipment, supplier
Prices of service ecomes less flexible.
More difficult to manage/handle the business.
High net loss(if expansion was not
Threat of new entrants
Hazel doesn't have a mission statement or a set of objectives. Take one of the following positions and defend it:
B. She definitely needed a mission statement and a set of objectives. They would be extremely beneficial.
The mission statement serves as guidance for
the entrepreneur and employees to identify and
clarify the business' purpose and direction. Researchers
have found that high-performing organizations have
more thorough mission statements than do low-
The company will have a tangible goal
that is SMART, since they'll be the
ones who will impose it.