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Operations Management Case Study: Earth's General Store

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Operations Management Case Study: Earth's General Store
Question 5 – Operations Question
Word Count - 983

Earth’s General Store (EGS) is an established organic food store that has been around for 20 years in the Edmonton Community. In 2014, a second store was open in the downtown core of Edmonton. This location was intentionally designed to meet the needs of the people living in what’s called the food desert area of the city. Kalmanovitch is very passionate about sustainable living with healthier and alternative options to living his belief of “consume wisely, consume locally, and consume fairly” (Paulitsch et al., 2017). Unfortunately, the first store location continues to subsidize the new downtown location because the growth of the business is not turning a profit but rather draining the finances of the entire company. In this paper, we look at how operations management is about how organizations create and deliver services and products (Paulitsch et al., 2017), also providing direction to correcting some of EGS’s major performance issues.

Assumptions

• Mr. Kalmanovitch is more concerned about the environment and sustainable living than investing in building a viable business. His dreams and passion on social sustainable living may prevent him from sound financial advice.
• EGS was first to market
…show more content…
Kalmanovitch has two stores that serve different types and styles of consumers, so this requires being flexible and adaptable to new ideas for products and services that best suit the consumers tastes. Employees play a vital role in the business and their input into improving the business should be a cohesive environment that both recognize and reward employees for profit generating ideas. Sustainability for EGS depends on reducing costs and growing revenue and by supporting the employees to act like business owners and passionately take care of the customers by listening and serving them will be a key ingredient that Kalmanovitch needs to invest

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