4.1 Milestone 2 QSO 600

Overview : This activity will allow you to create a graphic organizer, which is an important skill in the field of operations management.

Prompt: Create a graphic organizer that presents different types of production systems and their uses and purpose when considering risks. Your graphic organizer should be related to the type of organization selected for your final project (for example, service or manufacturing). Include the risks involved for internal and external stakeholders within the organization that you selected. The following

critical elements must be addressed:

I.  Present types of production systems related to the organization selected for the final project

II. Describe risks involved for internal stakeholders within the organization selected for the final project

III. Describe risks involved for external stakeholders within the organization selected for the final project.

Summary:

Ekono is a department store, leader in the market in Costa Rica, whose goal is to have all

items for the family with the best prices in the country (EKONO, 2016). The company has more

the 24 years in the business with 35 stores around the country. They offered around 8000

products which include own manufacture products. Their strategy has been to focus on the client

necessities, superior shopping experience, having all of the products at one location,

development of their brands with excellent condition and high financial gains, and lastly,

locations all around the country at best shopping locations.

Products and Services

Ekono focuses on families who visit their store to buy anything that they need at home,

from snacks to clothing to home appliances. Their store is divided into three departments:

Clothing and Accessories, General Merchandize and Foods. They also have a service financing

and point system (preferred customers) for their clients. Clients can get a credit card with Ekono

and have a set payment amount, a fix finance charge, cancel before without any fees and make

extra payment without any charges (Chung, 2015). The point system works with any purchase

done at the store with items that are not on sale. The points are to be used later to lower a later

buy or to get prices. Another service that Ekono has is the availability to check the product’s

information online with prices, which is something that many companies in Costa Rica opt-out

because of different reasons. Giving the prices online gives confidence to clients that they can

visit any store and they will get the same item for the same price. However, the client cannot

make an order online at this time. The new service that Ekono would like to give to clients is the

availability to place orders online to be delivered to their home or business or pick up at the store

at no extra charge, offered only to their credit card or preferred customers at the beginning to

then expand to any customer.

Justification

Costa Rica has one of the lowest shopping online numbers in Central America, The Tico

Times reported on May 30, 2016. “Only 12% of consumers in Costa Rica shop online” even

though about 47% have service (The Tico Times, 2016). However, in the same report, research

shows how many customers are subscribing more to online mail services that will deliver

products from the US to Costa Rica for a based subscription (The Tico Times, 2016). This is a

time for companies in Costa Rica to offer a better online experience with fast and free delivery to

take advantage of this new trend in online shopping. I have personally chosen Ekono because it

is, in my opinion, the best department store in the country with best prices and customer service.

By adding online shopping, it will be adding a service that will bring positive customer

experience and take advantage of this new trend of online shopping that is increasing in Costa Rica.