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Prompt: Complete a Strategic and Operational Analysis of your Organization – Part III: Unlike products stored in warehouses for future consumption, a service is an intangible personal experience that cannot be transferred from one person to
another. Instead, a service is produced and consumed simultaneously (Bordoloi, p. 301). Whenever demand for a service falls short of the capacity to serve, the results are idle servers and facilities. Further, the variability in service demand is quite pronounced, and, in fact, our culture and habits contribute to these fluctuations (Bordoloi, p. 301). There are three strategies for capacity management: (1) level capacity (marketing-oriented strategies such as price incentives), which helps to smooth customer demand, (2) chase demand (operations-oriented strategies such as
work shift scheduling) which matches changing levels of customer demand and (3) yield management which uses sophisticated real-time information systems to maximize revenue (Bordoloi, p. 301). Using Chapter 11 (pp. 301-320) as a guide and its associated examples, develop a strategy and system/process for managing capacity
and demand within your organization. Before you begin, review this article by The
Systems Thinker https://thesystemsthinker.com/systems-thinking-what-why-whenwhere-and-how/ to help you think about the purpose and benefit of designing and
implementing systems within your Strategic and Operational plan.
The capacity planning decision involves a trade-off between the cost of providing a
service and the cost or inconvenience of customer waiting (Bordoloi, p. 301).
Capacity planning is a challenge for service firms because of the open system nature
of service operations and, thus, the inability to create a steady flow of activity to use
capacity fully (Bordoloi, p. 301). The capacity decision is complicated further
because customers are participants in the service process, and the level of congestion
impacts the quality of the service experience. Capacity decisions in services have
strategic importance based on the time horizon in question. Failure to plan for short term capacity needs, such as staffing for the lunch hour, can generate customers for the competition (Bordoloi, p. 301). On the other hand, forecasting is the process of making predictions on past/present data and through trend analysis. When used together, the organization can better predict the demand and plan accordingly. Using
Chapters 13 and 14 (pp. 357-418) as a guide and example, develop a Capacity Plan and a Forecasting Demand for Services in your organization. You may want to consider researching tools and techniques outside of the textbook for this assignment.
In MBA-667, we did some forecasting from a financial perspective, but what does this look like from all areas of your organization?
Include your perspective of operations management in the modern economy and how
a Christian worldview affects organizational decision-making. How might a Christian worldview be used to assist in the strategic and operational analysis discussed in this paper?
o Requirements: This is the continuation of the development of a Strategic and Operational Analysis for your organization. The Strategic Analysis is a piece of your final deliverable which is to complete a Strategic and Operational Analysis that identifies your organization’s competitive environment, how your organization will be organized to operate (processes, metrics, quality, capacity) within this environment
and how you will allocate resources to meet the demands of this environment. This assignment is a continuation of the Strategic and Operational Analysis that you created in Unit 2 and continued in Unit 4. This assignment will include an additional 4-6 pages of content (required Cover Page, Executive Summary, and APA References Section not included in this page count), which includes the tools listed above and
your explanation of what these tools mean for your organization.
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