The case “Chad’s Creative Concepts” describes a small furniture manufacturing company that has gained a reputation for creative designs and quality by focusing on producing custom-designed furniture. As its reputation grew it began to sell some standard furniture pieces to retail outlets. The overall growth in sales volume and the diversification into the production of standard furniture pieces have caused a number of issues to arise concerning both the internal manufacturing operations and its relationship to the other functional areas of the company.
The major points concerning this case include: a) The range of decisions that are made in designing and operating processes, b) The impact that these operating decisions have on the organization as a whole, such as on marketing and finance, c) The impact that decisions made in other functional areas of the organization have on the operating function, d) The need to go beyond the “functional silo” mentality and manage in an integrative manner.
Questions)
1)What types of decisions must Chad Thomas make daily for his company’s operations to run effectively? Both short term and long term?
2)How did sales and marketing affect operations when they began to sell standard pieces to retail outlets?
3)How has the move to producing standard furniture pieces affected the financial structure of the company?
4)What might Chad Thomas have done differently to help avoid some of these problems?
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