Operation management Case Study Example | Topics and Well Written Essays - 1000 words

Operation management - Case Study Example The crashes caused sales to dropped by 60% and this translates to a drop in revenue that ranges from $1.2 million to $1.8 to a mere $400,000. The business cannot continue losing revenue at this rate. It even nearly folded had it been to $200,000 loan from a friend. The crashes also cause other intangible problems that sabotage the business. Its crashes undermine the brand of its company as it will lose credibility in the market. It is also losing the goodwill of its customers of which it already had hard time retaining them during the height of its technical problems. The website of InsuranceAgents.com is not just a mere website for the company to have an online presence of informing the public that it exists. Rather, its website is the platform where the company conducts its business. It is like its office, its store, that if it crashes, it is tantamount to an office or store to be closed that no business can be done. And since no business can be done, no revenues can be made. Meanwhile, expenses continue to incur even if there is no revenue coming in. it goes without saying that the company cannot afford the website to crash because every time it crashes, it will have an economic impact to the company’s bottom line. There are also other intangible loses that the company incurs that may not register on its financial statements every time it incurs a downtime. This is the tarnished image and brand of the company. It could also drive customers away to the competitor. The company is back on the black and is no longer struggling. It is again a good time to consider growth. And since the tough times seems to be over, the company no longer has to bother with problem and just maintain how things are done. Hiring an experienced and competent CIO who will ensure that the company’s website will be up and running all the time. He or she can also immediately address any issue in the IT department without causing any damage of downtime to the