BUS57Archway’s Home Style Cookies Case Study Analysis

Title: The Efficaciousness of Archway's Productions Process Resulting to Superior Quality of Home-Style Cookies

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I. Purpose and Objective The study aims to examine the effectiveness of Archway Company’s production process which made them known as a high quality-producing company of cookies. Also, to discuss the implemented policies of the company resulting to higher productivity.

I. Purpose and Objective

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

II. Background

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Lew-Mark Baking Company who produces high-quality of cookies is now the largest Archway franchise, with its exclusive rights in New York and New Jersey. 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. 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 successful, though they are challenged by so many factors in the market in improving their product. A possibility on potential improvement arises, but over years there is fear that leading the company to reject opportunities due to some risks that might occur. The archway cookies made an appeal to the health-conscious segment of the market, due to its no additives and no preservatives cookies. Parents with young children and customers who are over 45 years of age prefer soft and not too sweet cookies.

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III. Scope

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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 it’s strategies affect the high quality of the cookies they produce and it’s 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 it’s productivity.

 IV. 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.

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2. What are the two ways the company has increased productivity?

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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?

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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.

Is the size of the company a factor? What if it was a much larger company?

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 Yes, because if the factory is larger the number of employee needed will increase and that will make automation much better & cheaper. And also, larger company, larger place for work and large capital and production.

4. What factors cause the company to carry minimal amounts of certain inventories? What benefits result from this policy?

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 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?

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The things to be considered in judging the quality of cookies are the packaging, the labels, the taste, if it is known and lastly, the manufacturer and where it is located. The health benefits you can get.

6. What advantages and what limitations stem from the company’s 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. But not using preservatives causes a short life for the cookies.

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 wellbeing of every employee boosting up their moral value.

V. 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 

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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.