Reference no: EM132249422

Remember Eve from week 4 learning activities?

Identify the steps Eve would take to produce her new “economy” cards in an efficient way. Include in your answer the role of production planning, new technology, supply chain, logistics and quality assurance played in identifying the steps.

Eve always liked to write poetry. She was very good at it even when she was a young child. She always did very well in his English classes, especially when they did creative writing. Eve decided to use her creative writing skills in the market-place. She started a business called Everlasting Card Creations. The cards contained a poem written by Eve to the specifications of the customer. The poems were very personalized cards and could be for any or no occasion. Eve would sit down with the people who wanted cards produced and have them indicate what types of things they wanted to say to the person to whom the card would be sent. Eve would create a poem which fit the individual and the situation and then use calligraphy to put the poem in the card. The customers would choose the note cards that they wanted to use from a variety of stock which generally had a sketch or drawing on the front of the card.

Eve had a lot of business. Each card took considerable time since she had to compose the poem and then write it on the card. Since she wanted to be paid for the time that she put into each card, her cards were much higher-priced than those which customers could purchase in the store. The customers really liked the type of service he provided. But the price seemed to be higher than many consumers in her area wanted to pay.

Eve decided if she offered a new line of computerized cards and cut out the calligraphy if the cheaper prices she could offer would bring more customers. That is, the verse would be typed onto the card after she developed it. Also, a computer graphics package could be used to develop the front of the cards and even to dress up the inside of the card. She would then not have to purchase the pre-printed cards - another savings. The problem was that Eve was old fashioned and while she had calligraphy skills her computer skills were not great. Should she bring someone else in as an employee or as a partner?

Eve is really looking at two major decisions. One of them relates to whether she should computerize. The other is whether she wants the form of business ownership to continue as a sole proprietorship or whether she wants his business to follow another form of ownership.