Business Operation Management Report: Plant Productivity Analysis

This report delves into business operation management, analyzing plant productivity and competitive strategies. Part 1 examines labor and multi-factor productivity calculations for two hypothetical plants, comparing their efficiency in widget production. It also explores factors in team management, such as demographics, competition, and accessibility. Part 2 presents a case study comparing McDonald's and Cleveland Clinic, highlighting similarities and dissimilarities in their competitive strategies, and tactics used to gain market share. The report assesses their customer-centric approaches, technology adoption, and strategic differences in the fast-food and healthcare industries, along with their responses to market challenges.

Running Head: BUSINESS IN OPERATION MANAGEMENT
Business in Operation Management
Name of the Student:
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Table of Contents
Part 1..........................................................................................................................................2
Answer to Question no. A......................................................................................................2
Labour Productivity...........................................................................................................2
Answer to Question no. B......................................................................................................3
Multi-Factor Productivity...................................................................................................3
Answer to Question no. C......................................................................................................3
Factors regarding Team Management................................................................................3
Part 2..........................................................................................................................................5
McDonalds and Cleveland Clinic Case..................................................................................5
Similarities in Competitive Strategy..................................................................................5
Dissimilarities in Competitive Strategy.............................................................................5
Tactics against each other..................................................................................................6
References..................................................................................................................................8

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Part 1
Answer to Question no. A
Labour Productivity
As per the case study, it can be seen that plant A possess 10 labours who produce
1000 widgets per week. So, as per the calculation, each labour produces 100 widgets per
week in plant A. On the contrary, in plant B there is 15 labour, and they with the same setup
like plant A produce 1000 widgets per week. So, as per the calculation, each labour produces
67 widgets per week (approx.).
The company want to assign a target for both the plant A and B to 1200 widgets per
week and 1500 widgets per week, respectively. Therefore, it can be seen that plant A need to
produce 120 widgets per labour per week, and on the other hand, plant B need to produce 100
widgets per labour per week. Hence, it can be said that the labours in plant A will find it easy
to produce more 20 widgets as they already produce 100 widgets usually. But the labour in
plant B will find it difficult to produce 100 widgets as they typically produce 67 widgets
weekly.
Therefore, it can be said that plant A will labours will be more productive than that of
plant B and will be able to accomplish the goal that the firm has allocated to them. Thus, the
company can expect plant A to achieve the target, which will be beneficial for the
organization to expand in the marketplace and to achieve the success in the process than that
of plant B of the organization. So, the company can rely on plant A to be more productive as
per the calculation.

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Answer to Question no. B
Multi-Factor Productivity
As per the case study, plant A invests $1600 for all the 10 labours and also spend
$2500 for the steel that the company is using in the widgets making. On the contrary, in plant
B the company invest $1680 for all the 15 labours and also invest $900 for the steel as the
cost of per kilo steel is comparatively less in plant B. Therefore, it is beneficial for the
company to invest in plant B as per the location, labour and expenses. But if the sole interest
of the company is the production, then the company can look forward to plant A as the
production rate is much high in it.
Therefore, the organization should look after plant A so that they can provide the
same facility to them to get the high output in the process. This is critical for the business
firm to understand so as to expand in the marketplace and can obtain the success in the
process. This will automatically assist the firm to generate revenue from the marketplace and
to accomplish the victory in the process. Plant B possess the facility, but the skill of the
labour is comparatively low in it. Hence, the company must understand the capability of the
employees so that they can provide the facility to them, which will assist the company in the
production process and assist them to accomplish the success in the process. So, all the
factors should be kept in mind so that they can accomplish the victory in the process and can
become popular among the customers in the marketplace.
Answer to Question no. C
Factors regarding Team Management
Three main factors require to be understood by the firm so that they can obtain the
success and compete with the other competitors in the marketplace. In selecting a location,

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the company needs to look after the three factors, which will help the firm in expanding in the
market, and they are:
 Demographics: The company need to look after the demographics of the location
so that they can understand who are the potential customers of the company. This
will enable the firm to adopt the tactics in an effective way possible so that they
can address the need and wants of the consumers in the process (Rothaermel
2016).
 Competition: The firm need to look after the competition that is present in that
location and who are they and their financial standing in the market (Dunning
2014). This will assist the firm to flourish in the marketplace and adopt the
strategy so that they can compete with them effectively and will allow them to
accomplish success in the marketplace (Lee et al. 2015).
 Parking and Accessibility: The company need to look after this factor as people
will come there and if the location does not possess any such facility then they
will move away from there due to lack in the facility (Finch et al. 2013). Thus, the
company needs to look after the matter so as to expand in the marketplace and can
accomplish success in the process.
The firm requires to look after these three factors so that they can achieve success and
can generate revenue in the process. So, the organization must address effectively as well as
efficiently.

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Part 2
McDonalds and Cleveland Clinic Case
Similarities in Competitive Strategy
There is a vast similarity that is there between the McDonalds and Cleveland Clinic as
they both deal with the customers and provide service to them. This is crucial for both the
organization to look after the service so as to attract the consumers from the marketplace and
assist them to achieve success in the process. Therefore, the company need to pick up the
strategy which will allow them to lure the consumers from the marketplace so that they can
achieve success in the process. Both the organization mainly look after the procedure which
will be customer-centric as this will help them to perform the victory in the process and let
them gather the information regarding the taste along with the preference of the customers in
the process. This has been rightly addressed by both the companies and that is the sole reason
the firm can gain popularity in the marketplace and to achieve success in the process. Both
the company possess an efficient managerial department, which will help them achieve their
goals and target the company willing to accomplish in the market. Hence, this is the
similarity that is there between the strategy adopted by McDonald's as well as Cleveland
Clinic who are operating in the different sector but possess some of the similarities in the
marketplace. So, it can be noted that both the company take up the strategy which will enable
them to achieve the target that the company is willing to meet from the marketplace and will
allow them to generate revenue in the process.
Dissimilarities in Competitive Strategy
McDonald's use the simple quick-service approach so as to provide fast service to the
consumers, which will help them to achieve the target to attract the attention of the
consumers in the market. This is the main reason the firm requires to take up some of the

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strategies, which will assist the organization to provide the consumers with the better quality
service to them, which will increase the goodwill as well as the image of the organization in
the marketplace and help them to achieve the success in the process. On the contrary,
Cleveland Clinic uses technology-driven strategy as it mainly provides the clinic service to
the customers. This is the main difference that is the company deals with the different
products and service the McDonald’s offers to the customers. Cleveland Clinic mainly deals
in the health care sector; it primarily looks after the health of the consumers, and that is the
sole reason it can be said that the business objective is different of both the companies and
the target market is also differ along with the vision and mission of the company in the
marketplace. This is the few differences that are there in the business model of both the
companies who are there in the market and they are gathering information from the market
regarding the customer's taste and preference so that they can operate efficiently and
effectively in the marketplace. Hence, it is vital for the firm to expand in the marketplace and
to achieve success in the process, which will help them to grow in the process.
Tactics against each other
Mcdonald’s mainly sale the snacks, and the junk food to the customers and they use
the strategy accordingly so that they can lure the consumers from the marketplace. The firm
ensures the customers that the ingredients that they use are fresh and healthy. This is one of
the strategies for the company to flourish in the marketplace and to become popular in it. This
is important for the organization to understand so that they can obtain the success in the
process.
On the other hand, Cleveland Clinic solely deals with the health of the consumers and
enables the customers with information regarding the health care and the service that the firm
provides to the consumers. This is necessary for the organization to expand in the
marketplace. The company uses the opposite strategy than that of the McDonald’s, and that is

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the main reason the target market is different from the McDonald’s and enable them to
accomplish success in the process. The firm might hamper the business of the McDonald’s as
the food that they sale are not so healthy. This is the sole reason there is an invisible clash
which is there between the two company.
Thus, it is noted that both the companies adopt the strategies which will be beneficial
for them to achieve success and to become popular in the marketplace. This is necessary for
the organization to understand their respective target so that they can obtain what they intend
to make from the marketplace.

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References
Rothaermel, F.T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Dunning, J.H., 2014. Location and the multinational enterprise: a neglected factor?.
In Location of international business activities (pp. 35-62). Palgrave Macmillan, London.
Lee, M.K., Kusbit, D., Metsky, E. and Dabbish, L., 2015, April. Working with machines: The
impact of algorithmic and data-driven management on human workers. In Proceedings of the
33rd annual ACM conference on human factors in computing systems (pp. 1603-1612).
Finch, D.J., Hamilton, L.K., Baldwin, R. and Zehner, M., 2013. An exploratory study of
factors affecting undergraduate employability. Education+ Training.