How Carlos Gutierrez Used Operations Management To Reduce Costs And Build Kellogg's Competitive Advantage?

966 words - 4 pages

1> How has Carlos Gutierrez used operations management to increase quality and responsiveness to customers and built Kellogg's competitive advantage?In order to look into Carlos Gutierrez's operation management's applications, we should elaborate what are the aims of operation management focuses on in global terms. Operation management has for goal to maximise profit. In order to do so, it looks on ways to maximise efficiency all along the production system; from when the input is acquired to when it has been changed into output and displayed. Efficiency looks at how delivering a low cost made, high quality product within the frame of mind that it reposes on profit making.Carlos Gutierrez is quoted to e a man of creativeness in which he keep a constant look on how the future trends; consumer influence are evolving; p636 "He stays in tune with pop culture by poring over such magazines as Time ..." Creativeness in product development as well as responsiveness to consumer are keys to operational management. The article stated that within the time Carlos Gutierrez came to be a CEO, Kellogg was set-back from its main competitor General Mills by not having a wide range of products that suited the new American lifestyle. Kellogg flowered in many aspects on what it is stated on how the customer's choice is based upon. From the Improving Responsiveness to Customer's paragraph, we see that customers needs are based upon; Low price, high quality, quick services & and quick after sales services, broad range of features and customized products. For once, Carlos Gutierrez had to take steps to improve Kellogg's quality to restore Kellogg's image to the Mexican market when he was set to be head of the Mexican's region dept. he applied TQM that centres improving the quality of an organization's products and services and stresses that all organization's functional activities should be directed towards this goal. This involved a short term no productivity financial risks that were to become beneficial on the long term as the company's image of quality product was recovered. Another point unmentioned in the article could be that restoration of the Mexican factories from those sanitary problem, might have led to better working conditions to accelerate labour efficiency.I believe that the concept of quality is an arbitrary notion in which many attributes are involved including the price of the product on the shelves. Kellogg is a world wide name for quality breakfast cereals and I would personally say that lowering its prices would have a psychological effect on consumers that would lead to a slump in profit as Kellogg's cereals are the most expensive in the market. Customers' would assume that Kellogg's would have become a marginal brand that could only compete with 2ng class brands such as Sainsbury's. This is reflected by the Toyota/Lexus firm that maintain high quality standard to keep prices of their cars...

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