What Are the Issues That Gillian Faces?
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What are the issues that Gillian faces?
expert report is prepared for Holly Farm to improve its future work. In the second part of this report, “Evaluation of current operations and business strategy Gillian” and “Conclusion,” Holly Farm operations will be a critical assessment of the current and future aspects of potential capacity constraints and other operational problems. Also, I will discuss the feasibility of the strategy for the company Gillian Giles there. In the last part, “Recommendations and Action Plan,” Ill show you an alternative strategy for the company and recommended several solutions to mitigate the constraints
Capacity
Gillian is facing the limitated capacity of farm.
Traffic problem
Interest Rate
Sales Forecast
According to forecasts
Gillian, while there will be an increase in sales of 50% agricultural shop, there will be a decline in sales of retail stores by 13.3% in 2004 (Table 1). However, these forecasts are not likely to be achieved. Firstly, its retail stores increased by 75% on average each year, and sales of agricultural store increased 28% on average every year for the past five years. It may be unreasonable it changes dramatically in recent growth trends in its forecasts without factors that could affect both channels. Second, because the ice cream market in the UK is mature and stable (Table 2), sudden changes in trend last only happen with the exception of the entrance solid new players in the region, spoil the reputation of the farm lot and invest heavily on marketing its farm shop. Moreover, in terms of managing Holly Farm visitors on agricultural sudden change in visitor numbers could lead to the collapse of its operations. These reasons discussed above clearly show that the demand forecasts Gillian is not reliable. Therefore, they must provide in the other direction.
3.) What factors should Gillian consider when deciding to increase the number of flavours from four to ten?
Answer 3: Before undertaking a decision to increase the number of ice-cream flavors from 4 to 10 Gillian should weight the advantages and the disadvantages of this venture. The first factor which Gillian needs to consider is whether a market exists for ten flavors of ice-cream or not, and whether it is feasible for the farm to be producing ten flavors.
Capacity :The fact that capital investment is not possible for Holly Farms means that the additional production would be through an increase in the labor force but the overall quantity of the ice-cream produced would still be limited to an inventory