In Partial Fulfilment of the Requirement for

the Subject: Production and Operations Management

Case Study of Starlight Hardware and Auto Parts Corporation
1st Semester 2016-2017

Team Ignatians
Submitted by:
Edelyn Ebrada Rian
Wencel Mendiola
Abigail Torres
Michelle Nicole Uy
Hanna Joy Uyamot

July 22, 2016

I. COMPANY BACKGROUND AND PROFILE

Starlight Hardware and Auto Parts Corporation is a retail and wholesale of auto
parts and hardware. The persons behind the formation of this company are Jose King,
the owner and Wilson King, the general manager. In 1972, they decided to start a
hardware business because they believe that it is the most in demand store of the
public. According to the owner, Starlight was in a partnership business before with the
name of Davao Star. But when they separated with the other partners, they needed a
new name and named it Starlight. Starlight Hardwares purpose is to be able to offer
good quality products with affordable prices to their customer and clients. The Starlight
Hardware is located and doing their business at R. Magsaysay Avenue Davao City.

II. FINDINGS AND OBSERVATIONS

A. Strategy
The strategy to have a successful business like the Starlight Hardware is they
know their customer needs, and they have a business plan: designing the offer. The
Starlight Hardware knows their customer needs, it is important that the Starlight
Hardware provides a solution to every customer need because they are in a competitive
market. Many stores today are growing their business substantially by creating step
change in what they deliver in their offer every day. The most successful stores have
executed a plan that is customer led and have grown their market share by meeting the
intrinsic needs of their chosen customer more efficiently and effectively than the
competitors. This step change is evident in everything they do and everything the
customer perceives they can deliver for them. The solutions they offer are tangible for
the customer to see and are part of the physical evidence of the stores (hardware) offer.

B. Products and Service Design

The Starlight Hardware provides household hardware and auto parts for house
and automobile improvements. Some of the good quality products of Starlight Hardware
are paints, nails, wires, plywood and car parts. With these products, their target market
will be able to improve, repair and enhance their houses and cars. Since Starlight
Hardware and Auto Parts Corporation is retail and wholesale of auto parts and
hardware, they do not make their products but they order their products in Manila. If the
item or items wanted by the customer is not available, the corporations first step is to
list the customers' wants, needs, specification and requirements of the product and
send it to the manufacturer in Manila. But before ordering them, the Starlight Hardware
knows and understands first its customers. Second, Starlight Hardware tests their
products. They used sample products or prototypes to test or check some defects. By
testing their products, they are able to trust and gain more customers.

C. Strategic capacity design

Starlight Hardware offers a good quality auto parts and hardware products.
Starlight Hardware must be reliable as of the quality and quantity of their products must
be. We like to establish a foundation as to continuity of mission and mission, they
should at least recognize the capacity planning to reach the optimal level of production.
The management should also recognize the effective capacity and the design capacity,
where both can be used to find the effectiveness, efficiency and utilization for Starlight
Hardware. Since Starlight Hardware offers products as service, the management must

be aware to the potential for producing goods over a specific time interval. Capacity
decision must be established by the Starlight Hardware for them to be able to determine
the limit of output and provide major insight to determine their operating costs.
Considering the capacity decision there must be key inputs to considered. Such as how
much of the products will be needed and when will be the product be needed. The
management of the Starlight Hardware must also find a medium between long term
supply and capabilities they can offer and predict the level of long term demand. But
when establishing alternatives in capacity planning they must consider qualitative and
quantitative aspects of the business. The Starlight Hardware may be offered by the
following key inputs to capacity planning such as the kind of the capacity needed, how
much capacity will be needed and when will it be needed thought then forecast are
critical as to the planning process.

III. AREAS OF IMPROVEMENT

In a business, it is important to know which areas are needed for improvement to
help the business achieve its goals. Being a visionary in running a business is important
in order to be more efficient. In Starlight, there are many areas for improvement but
there are three major areas.
First, the Starlight Hardware needs to project a consistent polished professional
image. They need develop a brand identity which will resonate to the customers. This is
important to in order to send a message to the customers that the quality of their
products are high and so that they could attract more customers/clients. In an industry

that has many competitors, it is essential for a company to stand out among the others
to become more profitable.
Second major area that needs to be improved is the stagnancy of the employees
and the growth company. The current ways may be working for the company now but it
is important not to let the employees grow stagnant in what they do. A company in a
stagnant or declining industry must rely on maximum operational efficiency and high
value work to be profitable
Lastly, reduce the resistance to change. Some organizations may see change as
costly and risky but in running a business, it is important to take risks but evaluate its
benefit over its cost. A true understanding of where the business falls in the
marketplace is crucial to growth because without it, you can't set realistic short-term,
mid-term, and long-term goals. Starlight Hardware needs to adapt to changes in their
industry and innovate to cater the needs of its customers.

IV. PROPOSED ALTERNATIVES

1. Consistent polished professional image
Develop a brand identity
Hire a professional designer
Design their logo, business card and website
2. Stagnancy of the employees and on the growth of company
Restructure jobs of the employees
Consider performance-based rewards or bonuses
Develop SWOT analysis
3. Reduce the resistance to change
Conduct an open conversation with the employees
Announce the change at the right time

V. SOLUTIONS SELECTED

For the improvements given and its proposed alternatives, the stagnancy of the
employees and on the growth of company should be the focus of Starlight Hardware.
Starlight Hardwares employees jobs are mainly cash registers, organizing stocks and
entertain customer. With this, employees of Starlight are doing the same jobs and there
is a tendency of underperformance.
First solution is to restructure jobs of the employees. Starlight Hardware must
give a chance to those employees to work on something new or to work on something
that they can use their talents or skills. Also, training and seminars are good ways for an
employee to acquire new skills.
Consider performance-based rewards or bonuses is the second solution. If an
employee has done something that gives benefit to Starlight Hardware, they should
reward them bonuses and recognize them. Doing these may motivate employees to do
their best in their assigned work.
And lastly, develop SWOT analysis. Starlight Hardware doesnt know where they
want their business to be. In order for them to understand, they should develop the
SWOT analysis and analyze their strengths, weaknesses, opportunities and threats in
order to develop a plan to improve the growth of the company.