In order to successfully fulfil its contract for 20,000 hats per year for the next five years to Nordstrom, Ultrafino Panama Hats must consider many options and take immediate action to put the best options into place.
First, Ultrafino must locate a brick and motor location other than the basement of their home. Options include leasing, purchasing, or building. Once a location is secured, inventory needs to be assessed. Cost per item, availability of quality components, lead time for shipping these components, storage space, working floor space, and accounts payable must all be decided upon. Additionally, a standard accounting software should be implemented along with a company-specific operations software. Alignment of both software packages is important.
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Ultrafino also needs to consider staffing the production line. Estimates on units made per unit of time need to be made, and hrign must take place to fulfil these estimated production needs. With adding staff comes the need for the development of policy and procedure manuals, oversight of personnel issues, possible management hires, administering payroll, and planning for liability. The owners need to establish what roles they will play in this process – are they managers? Personnel managers? Line workers or supervisors? All of the above? Determining what is feasible regarding the roles of the current owners is a crucial consideration to the ultimate success of the business, especially through this dynamic period of growth.
Finally, the owners of Ultrafino Panama Hats need to consider how much above the Nordstrom order they want to grow. Will the Nordstrom order satisfy their net income needs? If so, is it wise to put all of their eggs in one basket? If not, how should they market? These important questions need to be answered for a successful venture.
