Byoffering many product lines and options, a company like HP may befaced with a number of challenges. When large companies like HP offermany product lines, there is a possibility that the organization willexperience challenges in operations, as well as management. Providingmany product lines also contributes to complexities in theorganization, and as a result, the company may not manage to tracksales. In addition, many product lines imply that there can beincreased costs of operations, which may reduce the amount of profitsgained by the company. Varieties also imply that the organizationwill experience difficulties in forecasting the needs of thecustomers. Consequently, some products may be produced in excesswhile there is a shortage of other products. Thus, the productsproduced by the company may not meet the demands of the customer.From this analysis, it is worth noting that specialization in acertain line of production is essential since it ensurescompetitiveness in the market as compared to producing a variety ofproducts (Horner, 2009).
Thereis a conflict between the operations department and the marketingdepartment as a result of the differing goals, objectives, andaspirations. While the marketing department advocated for moreattractive features in the products, the operations departmentobjected to this idea. The marketing department wanted to have theproducts configured in such a way that they will attract a hugenumber of customers. On the other hand, the department of operationsconsidered this as additional costs that would increase theexpenditure and reduce profitability. The marketing section arguedthat providing attractive features to customers would drive the salesof the company higher. The operations section, consisting of supplychain managers, always wanted simple features that would notcomplicate the production process (Horner, 2009).
Inmy understanding, the models and algorithms are tools used indecision making in order to make sure that operations within theorganization are improved. Moreover, the algorithms and models helpthe organization to determine the most profitable products andconcentrate in the manufacturing of items that will fetch a lot ofprofit. In addition, they help the organization to track orders anddetermine which products are profitable to deal with. It also becomespossible to put the items into categories and this assists customersin gaining more information about the products they wish to purchasefrom the organization. Customers are also informed of the storeswhere they can get the products and the times when the stores areopen. As such, algorithms and models enhance convenience amongcustomers (Horner, 2009).
Fromthe information available online, algorithms entail the procedures ofconducting a certain activity, or the formula applied in problemsolving. Algorithms are common in mathematics, but they are alsouseful in other fields. The RCO algorithm developed by HP wasinstrumental in evaluating the progress of the sales that the companymakes. More so, the algorithm help the organization in assessing theproduct features and determining the changes that should beimplemented. The concept of the algorithm also helped theorganization to put the products into different classes, as a resultof which the customer service improved significantly. As a computerprogram, the algorithm developed by HP is instrumental in enhancinginteraction between the departments in the organization and ensuringthat each department plays its role effectively.
Theuse of algorithms in an organization is beneficial as it helps thecompany improve its operations in a number of ways. One of theadvantages of algorithms is that they enhance the decision makingprocess in the organization. The algorithms that can be used for suchpurposes include decision trees. They help in the classification ofinformation and as a result, the management can decide what decisionsto implement first and the decisions to implement later. Algorithmsalso enhance accuracy of business operations within the organization.Processes within the organization take place with a lot of accuracywhen these applications are used. This is because there is properassigning of duties among the employees of the organization. Theplanning and allocation of resources also becomes possible throughthe use of algorithms within an organization. The systems documentwhat should be done and who should do it, as well as the timeallocated for each activity.
Theimplementation of the models helped the organization in numerousways the models have been instrumental in improving efficiency interms of management of risks, as well as planning of the resourceswithin the organization. The innovation has also helped the companyto solve technical problems that may otherwise seem complex.Cooperation between various levels of the organization is alsoenhanced. As a result, processes within the company run smoothlysince there is harmonization of activities between the top managementand subordinate employees. With the use of the models, the companycan now manage inventory and portfolios with a lot of ease. Thebrands are also evaluated keenly before they are introduced in themarket, and this has reduced the possible risks of selling goods thatcustomers do not want (Horner, 2009).
Horner,P. (2009). Less is More for HP. MSToday 36(3),40-44.