Learning Team Reflection Case

Learning Team Reflection

OPS/571

September 21, 2015

Darrel Di Fabio

Opening Statement

Team C has discussed chase strategy this week, companies that use this strategy as well as challenges they might face in the process. During our conversations, we have identified companies that provide shipping services, amusement parks, restaurants and seasonal driven retail locations. We have also reviewed a set of challenges, which could occur during the use of chase strategy.

What is the Chase Strategy?

Learning to negotiate the waves of natural highs and lows of a business is an art in itself.  There are seasons that result in the need for more production output that others.  Having the right strategy in place to operate efficiently during these times of high production vs. low demand is vital to success. The chase strategy is defined as when you can match your production rate to your order rate by implementing the correct staffing scenarios during the correct timing.  This strategy may require you to hire and lay off staff based on the variable rate of production.  When implementing the chase strategy, you must also consider how to appropriately motivate your staff to handle this in a manner that works with your plan of action.  Our text suggests that, in the process of the definition of chase strategy that there is the danger of "When order backlogs are low, employees may feel compelled to slow down out of fear of being laid off as soon as existing orders are completed." (Jacobs)  Understanding how to balance the expectations of your staff with the natural ebb and flow of the business will be key to your success in the implementation of this strategy.

Who uses Chase Strategy?

When the team discussed the definition of a chase strategy, we talked about the types of companies that would use it.  Most companies that were identified were retail stores such as; Macy's, Kohl's or Target.  These stores like others tend to hire and lay off staff during peak times of the year.  Stores will seek and hire employees to fill the gap that is necessary to provide the consumer the service and goods sought when they arrive at one of these retailers.  We see the temporary staff during the holidays.  These temporary staff members are hired late September to mid-October to begin helping with the increase of stocking shelves and increase of customers.  Once these retailers traffic from customers are forecast to die down after the holidays, the staff that was hired is laid off.

Another line of business that may use the chase strategy the team discussed, would be amusement parks.  Many amusement parks like Six Flags see an increase in their foot traffic into their parks during the times when kids are out of school and families are out for vacations.  Because spring and summer break are the times of the year families take large vacations together and make use of this time to explore amusement or theme parks, there is a greater need during these times of the year to have staff to handle this traffic.  The amusement or theme parks could not handle the increase in visitors with the same staff that works during off-season when fewer visitors are in the park.