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Operation Management


Discuss about the Operation Management.


Introduction to the organization

Burgmaster Corporation was founded in the year 1944 and was evolved as the machine-tool maker.  The company was engaged in delivering the best quality of the machine making tools to all its respective customers. The company was producing different types of the innovative turret drills which were used throughout the different tasks involve within the metal working and it was one of the most thriving enterprises of the year 1965. The sales revenue for the firm got raised up to $8 million.  There was a crucial need for the backing by which the company could be able to expand its entire business process and it was done with the help of Houdaille Industries Inc (Chapman, 2011).  This paper will help in reflecting the desired business strategies followed by the firm, and will evaluate the different types of the performance objectives required for the development of the business process of the organization. 

Identification and Prioritization

Identification of Its Business Objectives and Strategy

Productions of the different innovative tools such as turret drills were done for the tasks of metal workings. The expansion of the business process was required and therefore company get acquainted with Houdaille Industries Inc.  At the beginning of the business, innovation was supposed to be the most crucial element for Fred Burg, but as soon as the process started it the innovation process required more money and this was supposed to be the most crucial issue (Fabozzi & Markowitz, 2011). Therefore the strategy of the firm regarding the innovation of the concerned products did not work well.  Identification of the desired requirements of the concerned market segments was important. In order to formulate effective business strategies, most crucial is to identify the expectations and the desired needs of the customers (Fabozzi & Markowitz, 2011).  The use of the targeting, segmentation and positioning are of great importance in order to increase the effectiveness and the efficiency of the organization concerned.

Identifying Its Operations Strategy by Analysis of Its Actions

At the beginning, the company used the modern technique to produce the best quality of the innovative products but it did not work well and gets flopped. Then there was crucial need to enhance the entire process with the help of the management team and the infrastructure of the company. As per Holland, the declination in the company's execution was somehow dependent on the policies of a government. The decisions taken by the firm was not overall satisfactory to operate the business process with the desired idea that they had and therefore it affected the expansion and the growth of the organization on a large scale (Gallagher, 2009).  The search for the better formula regarding the production of the desired machine did not bring out the major changes and this action was supposed to be not working for the company. There was the significant requirement of the much-required capital for Burgs and it was then provided by the Houdaile and the price offered was supposed to have a rigid structure and after three years the entire business got takeover by the Houdallie.  It is considered to be very important for any of the firms to look at the desired requirements of its customers and the delivery of the adequate quality of products and services to all its customers and Houdallie was not doing this and therefore the problems significantly started at the firm.

Evaluation and Prioritization

Identification of Its Operations Performance Objectives

There are certain factors which are considered to be very crucial for the identification of the entire business process of the firm.  In order to access the performance of the firm, the most important are to evaluate its speed, quality, cost, flexibility, and dependability. These factors are discussed below:


It is evident to understand the desired cost involved in producing the new machine tools as well as the other products concerned. The differentiation in the cost prices helps in providing the desired competitive advantage to the organization within the competitive market segments.


It is considered to be the most crucial factor as it helps in attracting the customers towards the firm ("Google’s latest accomplishment: refining marketing practice", 2012). Burgmaster was engaged bringing up the new innovative techniques in order to increase the quality of the products but there was a crucial need to identify the cost price along was and also the demands of the clients regarding the products. 


Dependability is another crucial point which affects the growth of the concerned firm in many ways. This particular case reflects the fact that company did not have the required cutting edge which can help in expanding its business process within the concerned market segments.


It is important to be flexible related to the cost and the quality of the products as per the diverse needs of the different clients within the marker segments (Hult, Pride, & Ferrell, 2012). The flexibility in the services and products offered by the corporation helps top bring up the desired competitive advantage for the organization.


Speed and accuracy are needed in order to make the products available to the customers and which Burgmaster lacked and it could be supposed to be one of its main reasons in collapsing within the concerned market segments.

Organization’s Competitive Priorities

The organization has given priority to enhance the execution of the business process successfully by fulfilling the demands of the customers within the concerned market segments (Hult, Pride, & Ferrell, 2014). The foremost priority of the firm was given in bringing up the new and advanced technologies for making the machine tools and the other products innovative. It is important t have the latest advancement in technologies to get the desired advantage for any of the concerned firms but first of all the priority should be given the desired demands of the customers related to the quality of the products and its prices (Ritchie, 2009).  The poor management techniques and the lack in bringing up the appropriate amount of the change in the machine tools along with the products as per the changing trends throughout the competitive market segments affected the business process to a large scale.

Assessing Its Internal Consistency

The disastrous situation was the development of the system for computerizing the production schedule which was crude for the complex tool process of manufacturing. Lack of the interval consistency and poor management techniques eventually affected the organization. The poor management of the entire production and delivery process affected the firm and contributed towards the demising of the firm (Saita, 2007).  Therefore there was a need to manage the entire process successfully and to focus on the desired strength is the firm in order to gain the competitive advantage over the other competitors within the concerned market segments.

Valid Recommendations

Biggest Operations Management Challenges for the Firm

There were some of the key issues related to the economic as well as the trade policy (Sensmeier, 2009). It is evident to know that the lack of the complete knowledge regarding the ongoing process within the current industries significantly affects the execution of the business process within the firm. Gearing more towards the loss and the profit statements by Houadile affected the growth of the firm than at looking towards the shop floor and the respective customers (Shimp, 2010). This was supposed to be the most critical challenge and the decision was not good to increase the effectiveness and the reputation of the firm in front of the targeted audiences.

Advice to the Organization Regarding Its Operational Strategies in the Future

It is important for any of the particular organization to look at their desired strengths and to identify the actual needs of the customers within the concerned market segments. This will help in satisfying the customers with the greatest quality of the products as per their satisfaction. Management the entire work process with efficiency is crucial and it helps in evaluating the desired growth of the organization on the large scale (Yang & Ma, 2013).  There are three most crucial resources which need to be gathered before evaluating the business process, these are financial resources, Human resources, and the physical resources. Blaming the government along with the entire industry will not help in improving the overall performances of the concerned organization. But there needs to be the perfect formulation of effective strategies as per the business requirements which can bring out the positive outcomes for the organization concerned. Bringing up the innovation is a vital process which will help in providing the desired competitive advantage to any of the concerned organization, but before the implementation of the latest technology the funds needs to be gathered and it should be satisfactory as per the customers’ needs. 


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Fabozzi, F. & Markowitz, H. (2011). The theory and practice of investment management. Hoboken, N.J.: John Wiley & Sons.

Fabozzi, F. & Markowitz, H. (2011). The theory and practice of investment management. Hoboken, N.J.: John Wiley & Sons.

Gallagher, R. (2009). How to tell anyone anything. New York: American Management Association.

Google’s latest accomplishment: refining marketing practice. (2012). Journal Of Consumer Marketing, 29(3).

Hult, G., Pride, W., & Ferrell, O. (2012). Marketing. Andover: South-Western/Cengage Learning.

Hult, G., Pride, W., & Ferrell, O. (2014). Marketing. South Melbourne, Victoria: South-Western Cengage Learning.

Ritchie, C. (2009). Marketing. Harlow: Financial Times Prentice Hall.

Ritchie, C. (2009). Marketing. Harlow: Financial Times Prentice Hall.

Saita, F. (2007). Value at risk and bank capital management. Amsterdam: Elsevier Academic Press.

Sensmeier, J. (2009). The latest? A shift from operations to outcomes. Nursing Management (Springhouse), &NA;, 2.

Shimp, T. (2010). Integrated marketing communications in advertising and promotion. Mason: South-Western/Cengage Learning.

Stroke: latest treatment options in acute management. (2015). The Pharmaceutical Journal.

Yang, Y. & Ma, M. (2013). Proceedings of the 2nd International Conference on Green Communications and Networks 2012 (GCN 2012). Berlin: Springer.

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