The Positive And Negative Impacts Of Midas's Success

The strategies and operations that Midas uses have both positive and negative impacts upon its operating efficiencies. Offering limited services have the advantage in the fact that the company requires limited inventory which allows it to store the tools and spare parts needed to perform operations close to where they are needed. Having limited inventory of course helps the company in reducing costs considerably. Cost of both the storage facility needed for the equipment and the cost of labor needed to handle them will be considerably lower. Fewer inventories also saves time because they are easier to locate from anywhere within the store. Having all the equipment required in one store also makes accessing them easier since the time that would

The company can even store more inventories in smaller stores but still manage to handle them effectively by using technologies such as barcode identifiers and radio frequency identifier. According to Pontius (2016), such technologies help in increasing productivity and accuracy and lower the cost of labor. Having multiple shops and limited services enables the application of special tools and work procedures easies. As such, shop employees become more efficient and enable an easy recovery of the initial engineering costs. Having more shops within smaller geographical location and using same tools in each may however make the engineering costs unnecessarily higher with very limited marginal gains. This is because the company will have to procure equipment for every store, so the higher the number of stores, the higher the cost. The customers within a small geographical location may however be few and therefore the equipment will not be optimally used since the stores will be less busy. As such, the marginal gain will be lower. To ensure more profit, the number of stores that the company opens should be mainly be controlled by the demand for its

The plan should ensure that its service delivery is not impaired during the transition period and that the employees are not overworked during the transition and after. Since the management and the employees play a crucial role in the success of the new program, they should first be briefly trained on how the program works, and if the new program will require new systems and technologies, they should be shown how the systems work so that when the time that they will be required to use it comes, they are able to use them effectively. They should also be told the benefits of the new program, both to the company and to them to ensure that they all support it. Then, since the company has many shops, it should roll out the program progressively, one shop at a time to enable the management to effectively gauge the success of the program and to determine the necessary changes that may make the program even more successful before it is fully adopted by the company. This will help the company in avoiding the possible risks that may result from adopting the program for in the whole company at once, only to fail in the