Operations+Management

1. Identify and classify //Reach Out’s// costs (identified in the case and others)


 * // 2. // Explain the use of break-even analysis for //Reach Out// **

//Break-even analysis is the relationship between cost and sales revenue, concerning the fixed and variable assets. It allows reach-out to know how many clients they need to see in order to break-even as well as how many clients they need to see in order to make a surplus and allowing them to decipher the cost they will charge to their clients in order to break even and to know what wage they can give their employees (the students) to identify if they will make a surplus or loss.//


 * 3. Analyse the assumptions and limitations of break-even analysis (HL) **

4. Evaluate the different approaches //Reach Out// could use to improve the quality of their therapist scheme. (HL)

Firstly, one of the main problems that is arising from Reach Out’s therapist scheme is the “punctuality of some therapists, with some not turning up at all” [L98]. This might lead to families pulling out of reach out’s therapist scheme which would result in lower profits and a poor reputation. Ways to handle this would be to have a more “laissez-faire” style leadership where the therapists are allowed to negotiate times with the customer themselves. By doing this, Both parties (therapists and families) will be able to arrange times which suit both of them. The laissez faire style leadership would also imply more direct and effective communication between the two parties. By encouraging better communication, the quality of the therapist scheme for Reach Out is likely to improve. This would be particularly useful as the students may not have flexible working hours. However, the more direct communication between customers and therapists also has a large drawback. This would be that some therapists may attempt to take advantage of the situation and delegated responsibility by attempting to leave classes early for appointments or set unreasonable times which the families cannot argue against as they may depend on reach out’s cheaper therapist scheme to help their children. This will result in poor reputation, a negative CSR image, a reduction in the consumer base and lack of new customers. Secondly, another problem for Reach Out is that Andrew Grandin, Reach Out’s Part time manager in charge of appointments and therapists, is “failing to confirm the appointments or reply to messages”. This is because Andrew suffers from “Asperger’s syndrome” and hence is not comfortable “dealing with adults”. This would mean barriers to effective communication between Reach Out and their customers who participate in their therapist scheme and also a possibility that Reach Out may fail to attract new customers as well. Methods to handle this problem would be possibly to hire a better manager in place of Andrew Grandin who has experience of business. By hiring an individual with expertise, Neil can assure that Reach Out’s therapist scheme is handled efficiently and with minimal problems. This will give more assurance to Reach Out of successful customer retention and possibly an expansion of Reach Out’s customer base. However, a problem that may arise is that, if an individual were to be hired in place of Andrew, he/she may demand a higher wage which can harm the charity in terms of costs. Also, Reach Out may have to suffer costs from the recruiting process as they will have to pay for possibly advertising and training. These costs can harm Reach Out financially and also harm them on a reputation basis as they will lose an individual who encourages healthy Public Relations between customers and reach Out.

Thirdly, Reach out could also work towards safety standards. As Reach Out are currently hiring students, there is no guarantee of students making all their fixed appointments as they have been put in the appointments by Reach Out. As Autistic children need a consistent schedule to work better in their interaction development, they would not be able to develop properly with inconsistent therapists. Ways to solve the problem could be to encourage students to arrange their own times which they are certain of meeting and hence making more consistent appointments with their designated children. This can help improve the quality of reach out as this will help them work towards better safety standards when dealing with the families of autistic children.

In evaluation, there are many problems with the current therapist scheme which are mainly caused by poor communication, a lack of expertise on the part of Andrew Grandin and other factors which deter the therapists from keeping their appointments. These all have their solutions such as changing the leadership style, hiring an individual to replace Andrew who has more expertise and allowing therapists to make their own appointments with the customers. However, each solution also has its minor problems such as therapists taking advantage of the lessened control of the charity over them which are not likely to cause a major problem for Reach Out

//A good response - HEBE//

5. Discuss the arguments for and against //Reach Out// making or buying the PECS cards. (HL)

PECS cards stand for Picture Exchange Communication System which is a method of using cards with pictures and symbols to communicate with children with autism. Laura has a goal to produce PECS cards with a unique selling point and will be using the surplus to offer communication resources such as PECS cards at a reduced price. However, the money from the surplus could be used for something else that is more useful in the company. For example, hire more professional therapists for kids as this will have a better effect on the kids compared to purchasing PEC cards. The PECS cards are not appropriate for kids under the age of 3 because they have not achieved the skill of matching non- identical object. PECS cards should only be used at the start of age 3. This will enhance their reading and speaking capability which are necessary for their daily life. Apart from this, if Reach Out were to offer PECS cards at a cheaper price than its current competitors, then there will be a high chance that customers will be more likely to choose Reach Out and not others. This could be a very good unique selling point for them and will increase their brand image and have a good reputation within the market share. Overall, I think that Reach out should make their own PECS cards rather than buying and use the money from the surplus to improve in other areas of the business. Such as, hiring more professional employees to assist the kids more.