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Eleni had worked for the same FT Global 500 company for almost 16 years.

Although the
company had gone through some tough times, things were starting to turn around. Customer orders
were up, and quality and productivity had improved dramatically from what they had been only a few
years earlier following a company wide quality improvement program. So it came as a real shock to
Eleni and about 350 of her co-workers when they were suddenly made redundant following the new
CEO’s decision to downsize the company. After recovering from the initial shock, Eleni tried to find
employment elsewhere. Despite her efforts, after eight months of searching she was no closer to
finding a job than the day she started. Her funds were being depleted and she was getting more
discouraged. There was one bright spot, though: she was able to bring in a little money by gardening
for her neighbors. She got involved quite by chance when she heard one neighbor remark that now
that his children had left the family home, nobody was around to cut the grass and water some plants.
Almost jokingly, Eleni asked him how much he’d be willing to pay. Soon Eleni was doing the basic
gardening of five neighbors. Other neighbors wanted her to work on their gardens, but she didn’t feel
that she could spare any more time from her job search. However, as the rejection letters began to
pile up, Eleni knew she had to make a decision. On a sunny Wednesday morning, she decided, like
many others in a similar situation, to go into business for herself—taking care of neighborhood
gardens. She was relieved to give up the stress of job hunting, and she was excited about the prospect
of being her own boss. But she was also fearful of being completely on her own. Nevertheless, Eleni
was determined to make a go of it. At first, business was a little slow, but once people realized Eleni
was available, many asked her to take care of their gardens. Some people were simply glad to turn
the work over to her; others switched from professional garden maintenance services. By the end of
her first year in business, Eleni knew she could earn a living this way. Business became so good that
Eleni hired two part time workers to assist her and, even then, she believed she could expand further
if she wanted to.

Questions
1. In what ways are Eleni’s customers most likely to judge the quality of her garden care
services?
Answer: Their feedback will include things like how long the lawn care service should take to finish
cleaning up after itself, whether or not the grass is too long or short, and whether or not it is in good
health. Eleni oversees all aspects of operations for her company. Among her duties are planning,
scheduling, and maintenance. inventory, quality control, and management.
The presentation of Eleni's lawn care can give an indication of her quality. Customers can tell if Eleni
is doing a good job by looking at the area where she worked and seeing if the unsightly and tall grasses
have been removed, making the yard a more pleasing place to be. Eleni's performance can also be
assessed based on whether or not the instructions she was given were followed. Customers will also
take Hazel's credibility and feedback from other customers into account.

2. Eleni is the operations manager of her business. Among her responsibilities are forecasting,
inventory management, scheduling, quality assurance, and maintenance.
a. What kinds of things would likely require forecasts?
•Eleni's job as an operations manager necessitates her to forecast a wide range of variables
in order to ensure that her company is running smoothly. In the first place, it has to do with her
company's potential for growth. Eleni's business has changed dramatically in the last year alone.
Beginning with a chance encounter with her neighbors' lawns, Eleni now sees her business as a
legitimate one with an impressive clientele. Even so, something that arrives quickly loses its hold
quickly. Because of this, Eleni will need to forecast the potential of this service before deciding whether
to change the types of services offered or keep growing the business as is.

b. What inventory items does Eleni probably have? Name one inventory decision she
has to make periodically.
•Many lists of things Eleni may have if she wants to run a lawn-mowing business. For starters,
agricultural products such as fertilizers, grass seeds, lawn grass, or plants could be included in your
inventory. Additionally, they could be lawn and garden supplies and equipment like a mower or a grass
cutter. Or it could even be vehicles that are used in gardens for a specific purpose. Fertilizer use is a
decision Eleni has to make on a regular basis because fertilizers help the lawn grow and look good.
As a result, it's possible that Hazel will occasionally require the use of.
It's also important to consider the weather and climate, which have a significant impact on the
health of lawns. As the weather and climate change, the demand for Eleni's services may increase or
decrease rapidly. In this case, Eleni hired several part-time employees, so if she can forecast weather
and climates, she will know the demand for her services in order to hire sufficient workers for efficiency.
c. What scheduling must she do? What things might occur to disrupt schedules and
cause Eleni to reschedule?
•Eleni must first take into account the demand for her services when planning her schedule.
Eleni can plan a reasonable schedule for mowing customers' lawns based on demand. She can also
make a schedule that works for her business and her clients, depending on the location. In addition,
the schedule for the use of her employees, the flow of supplies like orders, deliveries, or arrival must
be taken into account.

Eleni has to keep her customers on a regular schedule of appointments. The following factors
will be taken into consideration when making the schedule:
•Assistants took uninformed vacations.
•The mowing machines are breaking down.
• Weather-related factors, such as rain and snowfall, can also throw off the schedule.
• The accessibility of her assistants.
• Scheduling a client's time with those of other clients.
• Cancellation of appointments by her clients.

d. How important is quality assurance to Eleni’s business? Explain.


•It's essential because Eleni just launched her new company, which means she doesn't yet
have a sufficient number of clients to justify her establishment. If she wants to keep her business
going, she must maintain her good name and provide consistently high-quality service in order to
attract new clients. Customers need to know that they can trust Eleni. Customers expect their lawns
to be mowed properly and their shrubs to be properly trimmed. Additionally, customers prefer to use
high-quality fertilizers on their lawns. Eleni must reassure customers by ensuring that the service is
delivered in accordance with the promise, so being late and not having inventory items available would
bring disrepute to the company.
e. What kinds of maintenance must be performed?
•Oil change, blade sharpness, and engine checkups are a few of the maintenance items that
must be completed. The lawn mowing machine, which is used to mow the lawns, must also be
maintained by Eleni. This will help keep the company's costs down. Maintenance of service quality,
i.e. assistants should provide services in the manner of Eleni's performance, and Service must be
delivered on schedule and on time.

3. What are some of the trade-offs that Eleni probably considered relative to:
a. Working for a company instead of for herself?
•When it comes to looking for work, she'll waste no time. Given that she is a salaried employee,
she will not be burdened with as many responsibilities as someone who is self-employed. Eleni won't
have to buy gardening tools or hire part-time help if she works for a company. She'll be able to save a
significant sum of money that would have been spent on investing in the services. In addition, if Eleni
does not run a business, she will have more time to relax. Even if she gets a lower salary than the
profits of her company, she won't be able to manage everything if she's just a regular employee.
b. Expanding the business?
•In this case, she can make more money, but she will need a large amount of capital to do so.
Hazel stands to gain financially as a result of expanding the company, as her services are now
available to a larger client base. However, as a result of the trade-off, Eleni will have to make additional
investments in order to continue expanding her business, which will raise her operating costs. As a
result, customers will look for another service provider instead of Eleni. Furthermore, she may be
exposed to greater risk, which could lead to a loss for her company.
c. Launching a Website?
•When Eleni launches a website, she has a new way to reach a wider audience with the
information of her business. As a result, she expects to see an increase in demand for her products
and services. A website's maintainance is expensive, and it doesn't always work efficiently, resulting
in a financial loss for Eleni. Having a website costs a lot of money. She, on the other hand, may be
able to attract new customers from other areas and platforms.

4. The town is considering an ordinance that would prohibit putting grass clippings at the curb
for pickup because local landfills cannot handle the volume. What options might Eleni consider
if the ordinance is passed? Name two advantages and two drawbacks of each option.
•Advantages:
In addition to her main source of income from mowing lawns, Eleni can generate additional income.
They can also use the products of the recycling process to create a new stream of products for their
main business.

The cost of collecting and recycling is high, and the likelihood of profit is unknown. Furthermore, this
procedure appears to be lengthy, resulting in inefficiency.

•Drawbacks:
It's a new type of service line, so the services grow and make more money. Grass clippings are no
longer a concern for Eleni, as she no longer has to deal with them.

Some customers will no longer require Eleni's lawn-mowing service as a result of the widespread
adoption of artificial grass. Artificial grass can also be used for decorative purposes. For this reason,
it's difficult for Eleni to establish trust with anyone customers on a regular basis.

5. Eleni decided to offer the students who worked for her a bonus of €25 for ideas on how to
improve the business, and they provided several good ideas. One idea that she initially rejected
now appears to hold great promise. The student who proposed the idea has left, and is
currently working for a competitor. Should Eleni send that student a check for the idea? What
are the possible trade-offs?

•In spite of her best intentions, Eleni made the wrong choice because of unforeseen circumstances. If
checking that student's hypothesis comes with no downsides, I suppose finding out is worth a shot.
Considering ethical principles, such as the consent of the competitor and the student's willingness. To
put it another way, Eleni might face a challenge to do better for her business if she doesn't know about
the idea, and her own idea could even surpass or destroy the original. In addition, if she decides to
verify the student's theory. It would put her in a worse position financially because her competitor has
already figured it out.

6. All managers have to cope with variation.


a. What are the major sources of variation that Eleni has to contend with?
•It is true, in my opinion, that all managers must deal with variation, and Eleni is no exception.
Eleni will have to deal with three major sources of variation. They are the level of service Eleni provides
to customers, the cost of her services, and finally, the level of credibility she has.
b. How might these sources of variation impact Eleni’s ability to match supply and
demand?
•Eleni must deal with the process of determining the quantity of supply she needs to meet the
demand from her business as a result of the effects of these types of variation. In some cases, the
combined effects of these three sources prevent Eleni from accurately forecasting the output her
services can provide in comparison to market demand.
c. What are some ways she can cope with variation?
•Eleni can avoid the issue of variation in a number of ways. For example, she must raise the
quality of her services in order to address the quality issue. Furthermore, the rise in quality may have
an impact on credibility and affordability issues. Alternatively, she can develop new business ideas so
that Eleni can gain a better understanding of the situation between her services and the market..

7. Eleni is thinking of making some of her operations sustainable. What are some ideas she
might consider?
Answer: It is important for Eleni to increase the efficiency of her services in order to ensure the long-
term viability of her company. As a result, she will be able to maximize her profits. Furthermore,
maintaining customer relationships is essential. Eleni will not have to spend as much time and money
looking for new customers if she has a good relationship, and these customers will be very important
to her business. In addition, Eleni can consider a variety of complementary lawn-mowing services to
expand her business. With this strategy, the ability to achieve long-term growth can be quickly
improved.

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