Question
Respond to the person below in a business manner. Person 1: I have worked in the food industry since I was 14. I think operations
Respond to the person below in a business manner.
Person 1: I have worked in the food industry since I was 14. I think operations play a major role in this industry as finance, marketing, and sales are all very important for these companies to succeed. The food industry must find ways to compete with the hundreds of thousands of other companies wanting their customers whether that be by decreasing costs of foods, increasing food service, or promoting new products. Operations wants the companies to succeed at the highest possible level by bringing efficiency into the companies. They want to decrease costs and increase profits. The companies find the fastest ways to serve customers to get more customers in, increase prices, and lower their costs. For example, a Chick-Fil-A medium cup of sweet tea costs the company less than a cent to make, charge the customers about $2, and takes about 5 seconds to pour it. This brings in a tremendous amount of money for the company as the mark up price is drastically higher than their costs and more customers can be served just as fast. Firms compete in this industry by adjusting their prices primarily. In this example as we talk about sweet tea Chick-Fil-A charges about $2 while McDonalds charges a $1 for any size drink. For a company like Chick-Fil-A, they are more concerned with their service to customers to keep bringing people back rather than lowering their prices and this strategy has continued to work. Operations management looks the companies and can determine where enhancements can be made to increase efficiency in order to sell more products. In the fast food service industry, this can done by having machines that pour the drinks for the workers and having them prepared for the customers coming through the drive-thru. This can be done by creating a door rather than a window in the drive-thru so that customers can be served faster and can get out of the drive-thru line so more people can be served.
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