Video Case Study: Al Baik
? Does Al Baik produce a good or a service?
? How does the Broasting process affect Al Baik’s productivity?
? How does Al Baik differentiate itself from its competitors?
? Who are Al Baik’s main competitors?

Chapter 2: Globalization Exercise

Forecasting Exercise
Sales of Vimto for the previous six months in Saudi Arabia are shown below:
January February March April May June
30000 40000 35000 55000 50500 70500
Using Moving Average, what is the demand prediction for July?
Vimto has a policy of keeping 35000 bottles of buffer stock at all times. If the stock at the end of June is 40,000 bottles; how much Vimto should we plan to produce in July?
Under what conditions might demand for Vimto increase significantly from normal in Saudi Arabia?
How does the Hijri calendar impact the forecasting above?
How accurate do you think the demand for prediction for July is?
How would you use a weighted moving average to improve the accuracy of the forecast for July?

Forecasting Exercise (Seasonal Average)
1. Calculate the seasonal Index for each month.
2. Calculate the demand for Year 4 using the seasonal Index and assuming the annual demand is 1200.
January
February
March
April
May
June
July
August
September
October
November
December

Assignment:
You are the new Operations Manager for Al Baik. The senior management team has asked for your plan on how you will apply the 10 Strategic Decisions to the Al Baik chain of restaurants.
Prepare a presentation outlining how you would apply each of the 10 strategic decisions. You are free to present in any manner and there is no minimum word count. You can use MS Word or MS PowerPoint for your presentation.