ou are a researcher employed by a topical business discussion television show “Round the Table”. Next week’s discussion is about managing supply to achieve quality and customer satisfaction. Invited guests will be a leading academic, public and private sector senior managers and the chief executive of a car manufacturer. You have been asked to prepare an outline briefing that will give some background information to the show’s presenter. Your research shows that the automobile industry is highly competitive and globally suffers from overcapacity”. In certain countries however, there is unfulfilled demand for specialist makes and models, implying some under capacity “hot spots”. You understand that for any organisation, whether producing goods or services, effective capacity management is vital. It ensures that customers’ needs are more fully met and that there are fewer unfulfilled delivery date promises. There are several ways of dealing with variations in demand and matching production capacity including: 1. concentrating on inventory levels (a “Level capacity” strategy). 2. concentrating on demand (a “Demand” strategy). 3. adjusting levels of activity (a “Chase” strategy). As part of your investigation, you note that distinctive issues exist for service organisations (such as those found in the public sector) compared with manufacturing organisations (such as car manufacturers). Required: As the show’s researcher you are required to produce guidance notes to support the show’s presenter which: (a) Discuss the impact of demand strategies on an organisation’s marketing practices; (b) Discuss the relationship between chase strategies and the flexible organisation; (c) Identify the ways that service organisations differ from manufacturing organisations when considering capacity management. Justify your arguments analytically and support with academic and theories closely related to your explanation. References will be compulsory. (20 marks)
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