Reference no: EM133650201

Theory of constraints (TOC) is a theory that can be used to identify the operating conditions of businesses and organizations. The TOC identifies weaknesses in a company that harm the company's performance. The TOC is an "organizational change method that is focussed on profit improvement" (Rattner, 2006). This tool helps companies identify weaknesses either in policy or physical operations. With the help of this theory, companies can figure out what they are doing wrong and try to fix the problem. This theory allows companies to figure out ways to be more profitable. Once they identify the issue, they must use this theory to determine what change needs to be made "without undergoing expensive changes or upgrades," (Rattner, 2006). Then, the company needs to introduce new improvements to optimize their performance. Once that is completed, they will then evaluate the constraint, and any "major changes are considered at this step" (Rattner, 2006). Finally, the company can look over any changes that are made and implement them as long as they make sense. One company that I frequently visit is the gasoline station on base called the Exchange. I fill up there because it is typically cheaper than off-post. However, a new company just took over the base gas station, and the prices have skyrocketed. The Shell right outside the post tends to be cheaper now. I have noticed fewer and fewer lines of vehicles going to the post-gas station than before. I recommend they re-evaluate their business and find ways to stay competitive with the off-post gasoline prices. By using TOC they can look through any weaknesses that they have in their company. They may just have to find a new supplier for their gasoline. They can also try to reduce cost by collaborating with some of the gasoline stations off post. Otherwise, they will lose out on a lot of potential profit.

Question: Guided Response

Respond to at least two of your classmates. In each response, address the following:

Compare any feedback discussed, considering especially if the comment seems to ring true for your own experience as well.
Discuss the growth strategy that your peer identified and how it compares to your own.
Your responses should each be about 100 words. Please read all your classmates' posts, whether you are responding or not. You may respond to more than two classmates in this discussion.