Concepts
Operations management refers to the business practices to create the highest level of efficiency possible within an organization (Stevenson, 2015, pg. 5). Operations management is concerned with converting labor and materials into goods and services as efficiently as possible, therefore, maximizing the profit of an organization by utilizing forecasting, capacity planning, scheduling and inventory management (Stevenson, 2015). Wegmans offers about 700,000 products per store; forecasting is used to stock the company 's central warehouses correctly. Wegmans’ low pricing has reduced product demand volatility, which makes inventory planning easier (Stevenson, 2015, p. 674). Capacity requirement planning is the process of determining …show more content…
Wegmans average supermarket size is roughly 100,000 square feet; it doubles or triples the size of an average supermarket in its same market sector (Stevenson,2015, pg. 33). Potential customers may find the store very big. It may also seem very overwhelming during their first experience shopping at Wegmans. It may appear to the customer that it will be too time-consuming in looking for particular goods or products within the store. Customers can at times be under a self-imposed time constraint or in a rush to finish shopping quickly. Also, Wegmans will incur the high cost of its utility, maintenance, and other miscellaneous expense in an attempt to meet individualized service needs or …show more content…
One major problem is the fact that the company is a small-scale chain compared to other national competitors. A competitive disadvantage for Wegmans is the relatively small size of the organization in relation to other competitors in the same market share. It is currently primarily in the Mid-Atlantic region of the United States. It currently only has seventy-nine stores in its organization (Rohde, 2012). This makes its ability to be flexible to customers’ needs more rigid than other larger retailers. It is more apt to stay with common or well-known brands and goods. This limits the company into selling more known products rather than try other brands making them more risk adverse than competitors. The lack of risk is based on potential profit loss and not meeting perceived basic needs of customers that are at the core of their selling and production strategy. This leaves them behind competitors until new brands or product are more familiar to consumers. Planned expansion can be costly, and the company prides itself on taking care of employees, and they may be risk adverse if it would affect jobs (Rohde, 2012). This also makes it hard for the company to deal with price increases, thus making it more vulnerable compared to its competitors. Wegmans faces competition from two types of companies. High-end grocers that are more favorable compared to a smaller chain such as
Operations management refers to the business practices to create the highest level of efficiency possible within an organization (Stevenson, 2015, pg. 5). Operations management is concerned with converting labor and materials into goods and services as efficiently as possible, therefore, maximizing the profit of an organization by utilizing forecasting, capacity planning, scheduling and inventory management (Stevenson, 2015). Wegmans offers about 700,000 products per store; forecasting is used to stock the company 's central warehouses correctly. Wegmans’ low pricing has reduced product demand volatility, which makes inventory planning easier (Stevenson, 2015, p. 674). Capacity requirement planning is the process of determining …show more content…
Wegmans average supermarket size is roughly 100,000 square feet; it doubles or triples the size of an average supermarket in its same market sector (Stevenson,2015, pg. 33). Potential customers may find the store very big. It may also seem very overwhelming during their first experience shopping at Wegmans. It may appear to the customer that it will be too time-consuming in looking for particular goods or products within the store. Customers can at times be under a self-imposed time constraint or in a rush to finish shopping quickly. Also, Wegmans will incur the high cost of its utility, maintenance, and other miscellaneous expense in an attempt to meet individualized service needs or …show more content…
One major problem is the fact that the company is a small-scale chain compared to other national competitors. A competitive disadvantage for Wegmans is the relatively small size of the organization in relation to other competitors in the same market share. It is currently primarily in the Mid-Atlantic region of the United States. It currently only has seventy-nine stores in its organization (Rohde, 2012). This makes its ability to be flexible to customers’ needs more rigid than other larger retailers. It is more apt to stay with common or well-known brands and goods. This limits the company into selling more known products rather than try other brands making them more risk adverse than competitors. The lack of risk is based on potential profit loss and not meeting perceived basic needs of customers that are at the core of their selling and production strategy. This leaves them behind competitors until new brands or product are more familiar to consumers. Planned expansion can be costly, and the company prides itself on taking care of employees, and they may be risk adverse if it would affect jobs (Rohde, 2012). This also makes it hard for the company to deal with price increases, thus making it more vulnerable compared to its competitors. Wegmans faces competition from two types of companies. High-end grocers that are more favorable compared to a smaller chain such as