Operations in Utopia By:wai chung lam and kiana payne

Utopia, the brand.

It's Unique Selling Point is a once in a lifetime experience for a holiday getaway. Offers top quality service as it attracts mainly celebrities. This includes a private boat and crew for transport.

Location for operations.

Located on Ratu, in the Pacific Islands, Ratu is a tropical island therefore offering a different and unique holiday experience. Neighboring islands can also supply products for operations as seen seen in their cafe, JAC.

JAC Cafe.

Day to day operations were handed over to his children. The cafe centers around a high quality experience with good quality food. It is very product oriented focusing on research and development to offer the best possible product. This therefore creates an effective coffee drinking experience.

Coffee beans and food.

Coffee beans are supplied from Aora. Here, they offer top quality coffee beans allowing quality assurance. Beans are developed under ethically produced fair trade showing their social and environmental responsibility. Along with this, ingredients are delivered under a Just-In-Time basis which allows for effective production planning. Although high quality prices are paid for the beans, they allow top quality fresh beans by the Just-In-Time ordering which is important due to perishability. The coffee beans are then roasted on site and they are able to distribute coffee to neighboring Pacific Islands showing the importance of location.

Ethics.

Utopia demonstrates social sustainability when sourcing their coffee from ethically produced fair trade as part of their operations. Along with this, they help create jobs in the islands for example they employ local craftsmens for their operations.

3D printing in Utopia.

This is the new, innovative idea from Utopia to sell customised souvenirs - falling under job production with the use of their 3D printer. This business has a capital expenditure of $10,000 for the process showing that it is very capital intensive in this component. They also incorporate the use of internet and technology showing the importance of research and development. However, as this resort caters to celebrities, there are concerns about the product being inauthentic and cheap and if there is a target market for this product.

Crisis management.

In 2016, a natural disaster hit Utopia showing the important of location. In addition, the owner decided to set up a crisis management plan and a contingency plan for many different factors. However, although this is very useful, it should have been set up before, when the company first started especially if the location is prone to natural disasters.

Key Terminology

Unique Selling Point-An aspect of a business, product or brand that makes it stand out from the rest of it's compeitiors

Quality Assurance-Refers to the methods used by business to reassure customers that its products meet certain quality standards

Ethically produced fair trade

Social Sustainability-Examines social interactions and structures that are necessary for sustainable development

Just in time production-Is a stock control system based on stocks being delivered as and when they are needed in the production process. This means that a buffer stock is not required

Job Production-Involves customising an individual product from start to finish, tailor made to the meet the specific requirements of the client

Capital Expenditure-Is the finance spent on fixed assets

Capital Intensive-Means that manufacturing or provision of a product relies heavily on machinery and equipment

Crisis Management Plan-Refers to the response of an organisation to a crisis situation

Practice Questions

1. Should Utopia employ a Just-in-Case plan or should it keep it's current method of using Just-in-time? (6 marks)

2. Outline the advantages and disadvantages of Just-In-Time production (4 marks)

3. List the advantages and disadvantages of handing over his job to his children (4 marks)

4. Why is it important for a business to have ethically produced products? (10 marks)

5. Is it a good idea for Utopia to pursue the 3D printing idea? justify (10 marks)

6. What are the costs and benefits of starting a 3D printer service (4 marks)

Potential CUEGIS questions

1. Outline the effects of globalisation on the ethics of Utopia and how that may impact their Operation management.

2. Outline the effects of innovation on the decision making strategy of Utopia.

3. How can change affect business strategy in Utopia?

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