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Case Study Analysis

By :Akshay Kumar Jain

Richa Narayan
Sanjeet Walia

C022
C040
C065

PURPOSE AND OBJECTIVES

To indicate the factors affecting the
companys
resistance
to
possible
improvements.
This study also intends to point out the
strength and weaknesses of the company.

BACKGROUND
Lew-Mark Baking Company, the largest Archway
franchise with its exclusive rights in New York and
New Jersey, produces high-quality of cookies is
now.
The bakery is run by the two brothers, Lew and
Mark who formed the company after they
purchased an archway franchise.
The Lew-Mark company is found in a small town
in western New York State.

BACKGROUND
The company is known to produce soft
cookies of which it makes over 50 varieties
of cookies.
Production process of the company has
been very efficient, and the high quality has
resulted in a niche market for these cookies.
Parents with young children and customers
who are over 45 years of age prefer soft and
not too sweet cookies.

SCOPE
The extent covered by the study is on the
effectiveness of the implemented policy by
the Lew-Mark Baking Company, a
franchisor of Archway.
How its strategies affect the high quality
of the cookies they produce and its
advantages from other cookie-producing
companies.

LIMITATIONS
The information covered by study does not
go beyond the confidential zone of the
company that involves financial aspect
and other private information that the
entity intends to keep but rather focuses to
the production process and on its
productivity.

CASE PRESENTATION

1. Briefly describe the cookie production process.

The process is quick and easy. Their production process is called
batch processing system.
The process starts when the management receives order from the
distributer.
Then the assigned person will encode to the computer the number of
cookies to be produce then the computer will determine the right
amount of ingredients to be needed. That information would be
directly send to the storage silos which the ingredients are stored
and those ingredients are automatically sent to a giant mixer for
flavoring.
After that, the produced product will be cut into individual cookies
and place to the oven. The cooked cookies will fed to the cooling
racks, then the workers will place the cookies to the box manually.
The boxes are then wrapped, sealed, and labeled automatically.

2. What are the two ways the company has increased

productivity ?

1. Cutting the cookies diagonally

2. Increased the length of oven
Increasing the length of the ovens will
result to a faster output rate because it will
increase the number of quantity of baked
cookies which directly leads to
higher production.

3. Do you think that the company is making the right decision by not automating the
packing of cookies? Explain.
And what obligation does the company have to its employees and to the community?

Yes, the company is making the right decision by

not automating the packing of cookies. The
company is showing its commitment to the
community and investing in the employment of
the community instead on machinery.
The company morals are reflected in the way
they do business and individuals who see the
company has good intentions to employ and
stimulate the economy may also help improve
business.

Is the size of the town a factor? Would it make a difference if

the company was located in a large city?

The fact that it is a small community

proves that the commitment the company
has is even bigger and possibly the
reason to not automate.
If it were a large city, the focus would be
more on faster production and would
probably favor automation.

4. What factors cause the company to carry minimal amounts

of certain inventories? What benefits result from this policy?

Cookies are perishable goods and if not consumed in

a short period of time the quality decreases.
The biggest factor that causes the company to only
carry small amounts of certain inventories is the fact
that no additives or preservatives are added to the
cookies, which results in the ingredients and the
cookies having a relatively short shelf life.
Products are ordered based on current orders, and
the benefits are the company is not wasteful.

5. As a consumer, what things do you consider in

judging the quality of cookies you buy in supermarket?

The things to be considered in judging the quality

of cookies are : the packaging
the label
the taste
its popularity
the manufacturer
its location
health benefits

6. What advantages and what limitations stem from the

companys not using preservatives in cookies?

Advantages include the end product being

soft and not too sweet, and also the fact
that the cookie is seen by some
consumers as a healthier alternative and a
closer taste to homemade cookies.
Not using preservatives causes a short
life for the cookies which is a
disadvantage.

7. Briefly describe the company's strategy.

Generally, the company sets emphasis on quality-based
strategy and time based strategy. Their strategy and
niche in the market is to produce preservative free,
healthy, soft, great taste in quality for the healthy conscious
consumers.
The company does a great job delivering the product as
demanded. Because cookies are made to order using a
batch processing system, the company has continued to
see high productivity levels while keeping a tight control on
inventory levels.
And also considering the well-being of every employee
boosting up their moral value.

CONCLUSION
The company with the existing policies and strategies is
effective and productive enough to continue and expand. Due
to the quality-based strategy that is being imposed by the
company, the level of productivity is not affected because
production process includes maximizing the production with a
specific technique and they are also practicing time-based
strategy. It has a great internal control ensuring the quality of
every cookie produced. Continuing to employ local workers
to pack the cookies by hand allows the company to be seen
as morally concerned about the well- being of the community
and its citizens. Valuing the welfare of every consumer gives
them the opportunity to build a good relationship with the
customers.

RECOMMENDATION
Lew Mark Baking company has effective
policy implementation and therefore can
continue to expand with the current
strategies but should be open to possible
improvement that will complement with the
conventional one.