Theoretical Perspectives In Operations Management

OPERATIONS MANAGEMENT

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PROBLEM IDENTIFICATION......................................................................................................3
Introduction and issues...........................................................................................................3
ANALYSIS AND EVALUATION.................................................................................................4
Swot and BMC.......................................................................................................................4
MANAGEMENT RECOMMENDATION...................................................................................10
Basic strategies.....................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is the process of identifying the problems which targeted customers are facing
in their daily life and resolve it by providing solution of it through product (Heizer, Render and
Munson, 2017). Main purpose of entrepreneur is to solve the problem of people by their product
so that they can earn profitability on it (Reid and Sanders, 2019). In this report, Jim Pose case
study is taken for consideration and owns Seahorse Power Company which deals in solar power
compactors. Main issues which are faced by Jim and how it could be removed in future will be
discussed in the latter part of the report. SWOT analysis and Business model Canvas model will
be implemented on company’s product so that strategies would be made by considering its
internal and external strengths and weakness. At last, various recommendations which could be
implemented on company business process will be given.
MAIN BODY
PROBLEM IDENTIFICATION
Introduction and issues
Jim Pose is an entrepreneur who has his own engineering start up called Seahorse Power
Company and recently launched their first product Solar Powered Trash compactor in the
market. Main idea behind SPC is to adopt those products or services which are environment
friendly, cheaper and efficient in nature so that society and environment would remain safe.
According to case study, in United States of America, 180,000 trucks which are used in picking
and dropping garbage’s consumes billion dollars gallon of fuel thus leads to reduction in fossil
fuel. Increase in usage of fossil fuels has various negative impacts on society like decrease in
natural resources, increase CO2 and other lethal gases in the environment etc (Hitt, Xu and
Carnes, 2016). To resolve this problem, company has launched trash bin compactor which runs
on solar power and collects garbage’s up to 8 times of normal garbage bin. It also reduces
pickups by almost 400% which is a positive sign for any company as their labour and other cost
decreases with the same rate as well. The first designed which was made for Vail Ski Resorts in
Colorado cost 10,000 dollars for Jim but they have the potential to decrease the cost price by 50-
60% which in turns increase profitability in future.
According to sources, US spent more than 12 billion dollars on trash receptacles in 2000 and 1.2
billion dollars on trash compaction which SPC doing in far lower cost. Besides this, normal trash

trucks cost more than 100 dollars per hours. Main advantage of Trash Bin is number of
customers as they have numerous potential customers which they could target like Hotels and
resorts, at stadiums and events, university, companies, tourist spots, beaches etc (Mahadevan,
2015). All these factors are opportunities of SPC as Jim has the potential and product to resolve
this problem in a cheap and efficient way. There are various issues which is faced by Jim like it
is very hard to explain regarding the profitability of it as clients thinks that why waste thousands
of dollars in trash bin. Price is also one of the issues and Jim and team were trying to reduce
overall price of the product according to customers’ ability to pay as there is no sense of setting
the price high if potential customers are not able to pay it. Other issues faced by SPC and Ski
resorts is weight of the product as it was too heavy to life it and two different bins would be more
comfortable and user friendly than this. Ski resorts also suggested Jim to implement wireless
notification in it so that authorities would be alarmed when trash bin is about to get full or out of
capacity. At last, inside cart should be on wheels so that employees could easily drag it as it is
next to impossible to lift trash bin. For instance, if labour or any small vehicle is use to lift bin
then it will increase the cost of handling trash instead of decreasing it. At last, all the projections
done by SPC team for the companies is kind of unachievable due to high fixed cost of bins so if
team would be able to reduce fixed cost then it could become highly efficient for clients (Choi,
Wallace and Wang, 2018).
ANALYSIS AND EVALUATION
Swot and BMC
It is essential for any company or entrepreneur to list down the business plan according to the
stakeholders and other related aspects of it as after that it becomes easier for them to manage it
more efficiently (Hitt, Carnes and Xu, 2016). So for this, Business Model Canvas or BMC model
comes under strategic management approach which is used by owners to make their strategies
according to its strengths and weakness. In other terms, this model explains how any
organisation creates and delivers value to their customer so that they would be retain for longer
period of time.
 Key Partner: It refers to number of key partners which is essential for Jim to run their
business in the market or in other words, suppliers or vendors. All the vendors which are
providing raw materials to the company so that they can make their products accordingly